Bruce Merrifield, President — Merrifield Consulting
•QPM •Quantum Profit Management (QPM) •business math for distribution •cost-to-serve math •LIPA •line-item profit analytics in distribution
Wednesday, July 19, 2017—Innovation, with its uncertain outcomes can be scary. Many companies shy away from major innovation because it's too abstract and feels risky. But, innovation comes in many forms, from common adaptations done by everyone, to disruptive supply chain innovations like Wal-Mart's cross-docking quick response or Amazon's 2-hour Prime delivery.
One way to boost your company innovation IQ is by adopting the Anti-Nitpick Rule and the Wheel of Learning Tool.
The rule is simple: If anyone offers a question or idea about how to change for the better, no one can nitpick it unless they have a can-do answer for their nit or an alternate change improvement idea. Arguing against change and for the status quo is not an option.
Wheel of Learning Tool
Since people nitpick to preserve their world out of underlying fears, one way to take action is with baby-step change experiments. If the steps are small, low-risk, and inexpensive, then even the most anxious teammates can be comfortable and even courageous.
The Wheel of Learning Tool is a cyclical curiosity tool that starts with questions, which lead to ideas and theories for possible answers. Theories must be then tested with baby-step experiments that reveal new findings.
Reflecting on the findings will lead to new questions to start the circle again.
Here's Your Opportunity
I explain the wheel in a short video clip and in a new video course called Cost to Serve Math. The course, which consists of 50 five-minute videos, will give you starter questions to start your own wheel work. This video is an excerpt from Lesson 46 of the course, where I discuss the Wheel of Learning and how this simple tool can catapult you forward with innovative thinking.
The five-minute lesson in full teaches your team:
Why it's good to have multiple ideas/theories when it comes to solving questions internally
Why it's good to look at and learn from other channels and industries with similar (but maybe not so obvious) problems
How to move from theory to action and new learning
Enjoy the excerpt, and I encourage you to consider making the Wheel of Learning an active part of your organization's culture. Also, remember to take a close look at the entire CTS Math course for your company. If you have any questions, contact me or get in touch with Kerri over at iKlarity (Kerri.Laryea@iKlarity.com) to experience the entire course.
For more information about Bruce Merrifield, visit: www.merrifieldact2.com
The 3rd of 3 lists defining the markers of Distribution companies outpacing their peers.
Bruce Merrifield and Randy MacLean discuss the handful of key customers in your business, and how to keep them happy and loyal.
Randy MacLean explains the differences in business intelligence systems, and how to know what you're getting with each kind.
See how implementing LIPA can give you the bandwidth to be more accommodating to your customers with analytics-based service excellence
Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss different levels of cost analysis, and why deeper analytics can bring much greater benefits.
Companies are developing more and more sophisticated approaches to sales compensation and here Bruce Merrifield and Randy MacLean examine the trends.
Waypoint Analytics uses line item profit analytics to dig deep into the numbers, and Waypoint users learn both bad news and good news about their customers.
Managing Product Line Profits shows how operations can have a significant impact on net profit and examines Peak Internal Profit, accumulated profit and more
Many naturally occurring, high gross margin percentage accounts and high gross margin percentage SKUs are operating profit losers.
A discussion of the benefits of segmentation and how this approach can help distributors achieve far greater levels of profitability.
Top companies like Amazon can leverage big data to predict consumer buying habits. Bruce Merrifield discusses how you can do this too!
Most distributors have naturally occurring, high gross margin percentage accounts and high gross margin percentage (small dollar pick) SKUs.
Here is a case study in which the lowest gross margin percentage niche was the most profitable and the highest gross margin percentage was the loser.
Continuance of the Enterprise Account Selling Model video series. Refers to a preceding video. Drawn from Bruce's presentation at APIC on March 1, 2016.
A continuation of the discussion between Bruce Merrifield and Randy MacLean over Bruce's Enterprise Account Selling Model (part 2).
Bruce Merrifield and Randy MacLean discuss Bruce's Enterprise Account Selling Model, as presented at APIC on March 1, 2016.
Using the negotiation process to achieve CTS savings, allowing you to offer your customers lower prices while leaving the table with a larger profit.
This video by Bruce Merrifield and Randy MacLean describes why you can't rely solely on gross margin to determine profitability.
An in-depth look at some historical limitations to sales compensation, and why those factors no longer apply with the availability of LIPA.
A fixation on gross margin – without looking at cost-to-serve (CTS) – has blinded countless distributors and limited their ability to achieve profitability.
See why your most profitable 200+ items are typically popular commodities with lots of picks for lots of customers with a high average sales dollar per pick.
Learn how this distributor was able to massively ramp up its profitability even as it lost many of its customers.
Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.
Randy MacLean talks about the emergence of a new sales strategy.
A discussion on how little extras can sometimes add up to a lot of infrastructure cost in wholesale distribution companies.
Randy MacLean discusses key profitability metrics for QPM.
A discussion of the perils of a cookie cutter approach when it comes to sales and service in the wholesale distribution industry.
Bruce Merrifield of WayPoint Analytics teaches the importance of customer segmentation and the insights it can offer your distribution company.
Randy MacLean introduces the core principles of QPM and illustrates how it's the most effective way to run a business.
Have you had trouble conveying the importance of CTS to your team? Learn how this course provides an affordable and convenient educational solution.
Bruce Merrifield and Randy MacLean discuss profit strategies for wholesale distributors that will raise their cost-to-serve and profits.
Webinar: Quantum Sales Compensation Plan Part 2
Webinar: Quantum Sales Compensation: Designing Your Plan
Webinar: Quantum Sales Compensation for the Wholesale Distribution Industry: Launching Your Plan