Category Archives: Strategy

IKEA and Their Furniture (Store)

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Strategic decisions drive the culture. Beliefs drive behavior.

Most retailers try to make shopping easier.  IKEA moves most of the work onto the customer.  Yet, customers see this as a fair trade-off .

Combine  American sensitivity to price with European minimalism and you have an IKEA store. IKEA created a strategy that reduced the cost structure that customers saw as a reasonable value proposition. Entering the store, customers are handed a pick ticket used by the warehouse to pull the selected item from inventory. The journey through the store, in a maze of lines on the floor, requires the customer to consider featured items in a process to build the purchase ticket. The path isn’t simply about navigation. It is designed to expose customers to ideas they weren’t planning to buy.

Manicured assembly instructions complete the trade, customers are willing to self-assemble in exchange for a more reasonable price. The instructions are part of a carefully flat packed item designed to fit inside most every American automobile. Delivery may be available, but the strategy is to get it all in the customer vehicle and get them on their way. IKEA intentionally leaves the final steps of manufacturing and delivery to the customer. In return, the customer receives a lower price.  Assembly and last mile logistics are not part of the IKEA business model.

IKEA isn’t successful because it sells inexpensive furniture.  It succeeds because management believed customers would willingly trade convenience for value.  The store, the warehouse, the flat-pack box, the assembly instructions—even the maze through the showroom—are simply observable behaviors flowing from that single belief.

Two cultures, minimalism and price sensitivity, meet inside of a business model that endures. It’s the way we see the world.

What To Do?

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“I have to name the problem?” Logan asked, knowing the answer to his own question.

“Yes,” I replied. “Your aim will cause you to notice the problem. Those without your aim, your goal, will not see the problem. What catches your attention, your focus, will depend on your aim. Then name it. The problem you solve will be the problem you name. And, the name you give to the problem will determine what you do about it.”

The Rhumb Line

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In sailing, the rhumb line refers to the navigation direction, the line between two points, getting from here to there. Before we can get there, we have to figure out where there is, or what there is, or who there is. Without the destination, we have no rhumb line to guide us.

We spend a lot of time figuring out how we are going to get there, without thinking about where it is we want to go.  And, taking a team along with us.  Will it be fruitful to travel there? What lies at the destination? Will arriving be worth the trouble along the way? And, there is always trouble along the way. So, when you pick your destination, aim high. When you start feeling overwhelmed or stressed out, 토토사이트검증 먹튀스팟 offers a wide range of exciting casino games to help you relax and de-stress.

The Value of Advice

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“So, I have to know where I want to go, before I get advice?” Sebastian clarified.

“You are going to get advice all the time from everyone around you,” I said. “Whose advice do you listen to? You have to make a judgement about the guidance you receive, whether that guidance will create the outcomes in line with your pursuit.”

Sebastian was silent. Not stony, but reflective.

“Is what people tell you important to your pursuits, or their pursuits?” I continued.  “Is their guidance based on an objective reality, or their interpretation of reality? Hint, objective reality is hard to come by. It is important to inquire of other interpretations, but ultimately, you have to decide your own interpretation. It is only you with a precise understanding of your journey and its destination.”

Compared to What?

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“We finally nailed down all the details. I think we understand our situation. We understand the players and all the pieces,” Sebastian declared.

“Compared to what?” I asked.

“What do you mean, compared to what?” he wanted to know.

“Just because you have a collection of assembled facts doesn’t tell you much, except what may be behind you in time. How does this collection of data help you get where you want to go? How does your understanding of the current situation prepare you for the destination? Who are the players now and who are the players that will be with you when you arrive? What gifts and contributions exist in your players relative to the obstacles you will encounter? And, all the pieces? You never know all the pieces.”

What the Goal Doesn’t Tell

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“But, can’t we celebrate for just a moment? It has been a good year,” Yolanda was insistent.

“Yes, indeed. Celebrate the moment. And, there were good moments. But, what does that tell you about the future? Achieving this year’s goal tells you the mark in relation to your forecast, which was created a year ago. Where is your current journey and where are you along that path? Achieving your goal in relation to a forecast doesn’t tell you what went wrong that you can learn from. Achieving your goal doesn’t tell you where you could be if you had taken a different path. Achieving your goal doesn’t tell you about the preparations you took, the capacity your team developed, or didn’t develop.  It doesn’t tell you how good your competitors are, what the market was like or if you have the right people.  It doesn’t tell you who, on your team, has potential.  It’s fine to have the goal as a mark, but focus on the things that drive the goal.  Those are the rich moments in your journey.”

Call to Adventure

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“We finished the year in fine form,” Yolanda announced. “We met all of our goals with some to spare”.

“Good, now what?” I asked.

“We’re going to have a party,” she smiled.

“Yes, and then what?” I pressed.

You’re never happy, are you?” Yolanda pushed back. “I know where you are going with this.”

“Arriving at your destination is the end, and it is fine to celebrate the mark. But what is your journey? What’s next? That is the call to adventure.”

Halt, Where Are You Going?

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“I want to take an inventory of my strengths and weaknesses,” said Olivia, somewhat excited.

“What for?” I asked.

“I think it’s important for us all to be more self-aware,” she replied.

“Why?” I pressed.

“I’m sorry, I thought you would support my interest in some self-reflection.”

“Self-reflection is fine, it’s a worthy pursuit, but for the purpose of what? Let’s say you take a complete inventory, a strength here, a weakness there. And, your observations are absolutely accurate. So what? What have you really accomplished?”

“Well, I would be more self-aware,” Olivia was a bit exasperated.

“Compared to what? A strength here, a weakness there, compared to what? Your inventory is just an inventory. I want to know where you want to go. What does life look like, feel like, taste like in your imagination of the future? What is your next destination on your journey? What is its color? Who is with you? What it your purpose in traveling there?

“When you get clarity in your vision and purpose, then self-reflection will be helpful. Understanding your strengths that will power your journey, facing your faults that might stop your journey, that’s the real value of self-awareness. Before you take an inventory, tell me where you are going.”

Event Driven

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“I think I second-guess myself when I think about what will take our company from here to there, to the next level, so to say,” Kylie wondered out loud.

“How so?” I asked.

“I just know, that I come to work each day, thinking about what I want to accomplish. But, before I get to my desk, someone ambushes me with an unexpected problem that has to be solved. It is difficult to focus on something extraordinary in the midst of derailment. Not that I can’t get us back on track, but then there is another something that happens.”

“And, so you feel like your life, your organization is driven by a series of unexpected events?” I pressed.

“You are right. Life would be much better if we could anticipate and predict, even little things,” Kylie nodded.

I shook my head. “You think things would be better if you could predict the future, but even if you could, which you can’t, you would still feel the same way. As long as you are driven by a series of events, you will be frustrated. Only when you are driven by a purpose, will you sense movement, inch by inch. There will always be problems and events. First you have to find a purpose, a purpose that has you.”

What Holds You Hostage?

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“You can either work on the plan the Board expects, and will not object to, or you can think differently about a new destination that is more important,” I said.

“But, I operate at the pleasure of the Board,” Kylie objected. “They write my paycheck. They expect solid quarterly results. I cannot turn in a plan based on a whim.”

“Then, your thinking has to be more than a whim,” I prodded. “Until then, you are hostage to the normal, predictable expectations that makes your Board comfortable. And, when they are comfortable, you are comfortable, and nothing remarkable will be accomplished.”

“Thinking this way sounds dangerous, a bit risky. If I do what you suggest, the Board might reject my plan and me along with it.”

“Then, you will no longer be a hostage,” I nodded.

“I might also be without a job,” Kylie appeared nervous.

“Think about this question,” I countered. “What moves would you have to make to double the revenues in your company in the next 12 months?”

“That would be impossible,” Kylie pushed back.

“Maybe, maybe not. The point is not to double your revenue, but to examine the moves you might make to do it. What might you explore?”