Recently, I had the privilege of addressing a substantial audience of around 680 individuals, comprising government officials, corporate executives, private business owners, and numerous employees. The topic I presented, which resonated with many, revolved around an idea first introduced in 1956 by George Miller: the magical number seven. Miller proposed that our short-term memory can handle seven items, give or take two. Some can manage five, while others can juggle nine.
This concept made me ponder the complexities faced by business owners today. With the growing uncertainties in technology, employment, supply chains, and politics, decision-making has become increasingly challenging. The key to navigating these complexities lies in avoiding cognitive overload—an impediment caused by an excess of information that hinders clear decision-making.
The M.O.S.T. Framework for Effective Business Strategy
The essence of my talk focused on maximizing time and attention through the M.O.S.T.E framework, which stands for Mindset, Objective, Strategy, Tactics and of course, Execution. Here’s a breakdown:
Mindset
A winning mindset is crucial. This goes beyond merely having a growth mindset; it’s about maintaining a vision that transcends the current moment. Such a mindset equips you to tackle present challenges with an eye on future success.
Objective
The power of one objective cannot be overstated. Studies indicate that having more than one primary objective can reduce your intellectual capacity by 38%. In business, this objective should focus on increasing your asset value. This singular focus ensures clarity and enhances productivity.
Strategy
Your strategy should be singular and concentrated on building your business into a valuable asset. A successful strategy encompasses three main attributes:
- Income Generation: Ensure your business consistently generates revenue.
- Capital Value Improvement: Continuously work on increasing the value of your business.
- Tradability: Develop your business to be an asset that can be sold or traded independently of your direct involvement.
Tactics
Developing effective tactics is the next step. Here are five essential tactics to consider:
- Positioning: Stand out from competitors by focusing on whom you serve and how you serve them uniquely.
- System of Delivery: Develop systems that are teachable and trainable, allowing your team to manage operations efficiently.
- Purposeful Team: Assemble a team capable of running these systems, freeing you to focus on growth.
- Growth: Constant growth is vital. It attracts the right team members, customers, and maintains supplier enthusiasm.
- Value: Always concentrate on transforming your business into an asset, ensuring it’s not merely a complex job but a thriving enterprise.
Execution
This is where all great efforts live or die. Too often we find ourselves stuck in the daily, weekly, monthly operational grind needed to sustain our businesses. Adopting an approach to get you our of the engine room and onto the bridge of your ship by way of an analogy, places you in a position to lead execution.
By adhering to these principles, you can simplify decision-making processes, enhance business efficiency, and ultimately build a more robust, valuable enterprise. I hope these insights prove beneficial. Until next week, cut out the noise of competing narratives around our politics, inflation, Brexit, national service, climate change and so on, to focus on what you can control and build.
