Specialisation and Business Success
by Colin Linke on 01/03/10 at 6:26 am
I am looking at some expansion opportunities for my practice at the moment and the leg work has been an intriguing process to say the least.
I am very much an advocate of the philosophy that suggests that business success will flow from specialising in and mastering your core strengths rather then trying to do everything.
Lets take accountants.
I believe – and am yet to be proven incorrect – that experience provides a background to achieving success that a text book simply cannot. Hence I do not prepare tax returns (OK some but only for a select group – read every member of my family). Yes I have studied the topic, read extensively and understand the concepts – I am an accountant after all. But I have not prepared enough tax returns to consider it an area that I would look after for a client. Hence I refer this work out to a select loyal group of partners who look after this for my clients.
What staggers me is the amount of “business coaches”, accountants and advisors who proclaim to be management consultants however have never been in a senior executive role in a company or don’t have an MBA, and who still claim to be capable of delivering the service to their clients.
Sorry guys, but if you have not had practical experience in managing a business through a crisis, restructuring a division, or operating at a hands on level within an organisation then your advice is worth didly-squat!
Lets look at this practically.
I met an accountant this week. For the last 30 years he has been a tax agent. No mean feat I agree. However he also claims to be a management consultant, undertake business improvement reviews and provide business advisory services.
Why? What qualifies him to do so? What experience does he have?
You know the answers here – he shouldn’t, none and none.
Compare this to a close associate of mine. 20 years of experience in large listed entities as CFO. Successful restructure and float of 2 business divisions. Documented track record of business improvement success stories from taking companies in administration back to successful trading, to expanding a small retail group from 5 to 9 outlets and improving bottom line from 8% ROI to 23% ROI in 3 years.
Who is more experienced?
The point of this is that in your business you can sell every brand of widget available – but why not decide on 3 and make sure you always have stock that is accessible, deliver within a time frame and follow up afterwards to make sure that the widget works as required.
Your bottom line will be much healthier with the latter approach – trust me – I am NOT a Management Consultant.
