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Learn How To Optimize
Your Business Success
with Sprocket
It can be difficult to understand every tiny aspect of your business. Looking at them through the lens of the five components of business makes it easier to see the full picture.
Learn how each component is just one cog in the machine of your business, and they need to work harmoniously so it runs smoothly.
What Are the Five Components of Sprocket?
They are the five fundamental aspects of business. Each has a different level of importance, working towards the final product of your successful business.
Introduced in Sprocket: The Mechanics of Business Success, the five components of Sprocket are:
At its heart, the Sprocket components show a successful business is designed around its execution, not its people. You can use each component to better understand your business through the lens of yourself, and more importantly, your employees. This knowledge helps you re-design your business without any roadblocks.
What is a Business Purpose?
A Purpose Statement is optimized when it functions as a giant magnet, strongly attracting loyal and like-minded customers and employees.
What's My Cause?
Employees should feel proud of where they work, and should feel equally proud of where they choose to spend their money.
What's In It For Me?
The Purpose must communicate to all stakeholders the value that the organization offers to them.
What Do I Do With It?
The Purpose must be thoroughly embedded throughout all functional areas of your business.
(Strategy + Structure + Processes + Culture) - Purpose = CONFUSION
What is a Business Strategy?
A Strategy is optimized when it is focused on the organization’s core competencies, each of which achieves alignment between the Get and Give Fingerprints of the customers who provide the greatest value.
What Do I Do With It?
The Purpose must be thoroughly embedded throughout all functional areas of your business.
Which Customers Provide the Most Value to Me?
Do you know which customers provide more revenue or profit?
What Are Our Most Valuable Customers Willing to Give?
Customers perceive value in terms of what they GET compared to what they GIVE to get it.
(Purpose + Structure + Processes + Culture) - Strategy = ANXIETY
What is a Business Structure?
A business Structure is optimized when it identifies the functional areas of the organization and the responsibilities and accountabilities of each, assesses the correct type of knowledge needed for key results, and uses an effective method to share that knowledge with the goal of providing the greatest value to customers and the organization.
Functional Areas
You must define the functional areas of your business before crafting your strategy.
Defining Knowledge
There are three types of knowledge: procedure, experience, and expertise. There are also three types of products this knowledge generates: commodity, standard, and custom.
Sharing Knowledge
Performance can be enhanced by selecting the appropriate span of control (number of managers to employees) in a functional area after knowledge has been defined.
(Purpose + Strategy + Processes + Culture) - Structure = Redundancies/Gaps
What are Business Processes?
A Purpose Statement is optimized when it functions as a giant magnet, strongly attracting loyal and like-minded customers and employees.
Policies
Policies are best reserved for providing guidance on decision-making.
Processes
Processes guide actions taken by employees at the departmental level.
Procedures
A Procedure is needed to define the detailed steps required to perform the tasks identified in the process.
(Purpose + Strategy + Structure + Culture) - Processes = Frustration
What is a Business Culture?
A business Culture is optimized when its architecture is sound, the incentives it uses are closely tailored to both its architecture and its Core Values, and these incentives are tied to behaviors (inputs) rather than results (outputs).
Intrinsic Incentives
You should purposefully attract people to your business whose natural inclinations are to behave in ways that are aligned with how you would like them to behave.
Extrinsic Incentives
If rewards are used to stimulate behaviors that an individual already finds motivation, intrinsic motivation may decrease over time.
Broken Culture
Businesses often see an undesirable culture as being the result of the people, rather than than design an incentive structure.
(Purpose + Strategy + Structure + Processes) - Culture = LACKLUSTER RESULTS
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Whether it’s just you taking it for your small business, your leadership team taking it for your mid-sized business, or your three key departments taking it for your large business, Sprocket can help!