Essential #1 Create and Sustain a Breakthrough Value Proposition
1. Our products and/or services are creating a new world for customers by uniquely solving a compelling, unmet need
2. Our products and services are redefining the market by providing a product of higher perceived value
3. Our products and/or services are streamlining the market by leveraging supply chain advantages to offer lower prices with good enough quality
4. The higher-order benefits (emotional or financial) are the primary reasons that customers buy from this company
5. The value proposition provides unique higher order benefits across each product, location, and experience
6. We clearly articulate to ourselves, our board, and our customers our target market, customer profile, and value provided
7. The creation and delivery of new products or services dominate this company's product line (or services) offering
Additional comments:
Essential #2 Exploit a High-Growth Market
8. We can clearly identify the (demographic and needs) characteristics of the market segment being served
9. The market segment targeted by our products and services is growing at annual compounding rates
10. There is an achievable opportunity to grow at least one billion-dollar company in this company's market segment
11. As far as can be determined, our company's revenue growth rate is higher(meaning greater) than our industry's peers
12. There is market opportunity to grow our overall business at least 10 times its current size
13. Our industry has a demonstrated track record for customers buying from small, next generation high-growth companies
14. There is a low number of competitors we truly compete with because our product or service is so distinctive
Additional comments:
Essential #3 Marquee Customers Shape the Revenue Powerhouse
15. Our best customers partner with our company to define the value of our offering in terms associated with customer benefits' not capabilities
16. Our most important customers are providing feedback on product requirements through field trials, surveys and/or advisor councils
17. Our best customers proactively share the value created from buying and deploying our products and services with other customers
18. A small percentage of our customers account for a disproportionate level of sales
19. Sales to our best customers are growing at compound growth rates and exceed the growth rate of our company's revenue growth rate
20. The company uses customer testimonials in most public relations initiatives and/or utilizes customer testimonials at tradeshows
21. Our most important customers proactively sell for us by recommending or introducing us to peers
Additional comments:
Essential #4 Leverage Big Brother Alliances
22. We have an explicit strategy to leverage complimentary alliances with bigger companies
23. We have an impactful alliance with a bigger company and we are actively cultivating that alliance
24. We realize significant business benefits from alliances (lower costs, supply, revenues, etc.)
25. The executive champions in this company and in its alliance partners are involved in the alliance relationship: communicate regularly about aligned incentives/goals, programs being executed and future plans
26. Our Big Brother alliance partner does not have similar alliances with competitors to our company
27. Alliances account for a measurable impact on our business (i.e. revenue growth or profitability)
28. There is a clearly articulated and agreed on set of win-win interests with our Big Brother alliance partner(s. These interests are regularly checked on and, if necessary, updated
Additional comments:
Essential #5 Become the Masters of Exponential Returns
29. The management is transparent about its financial picture to shareholders and employees; this information is easily accessible
30. This company consistently exceeds management's stated quarterly goals as well as analysts' expectations; when quarterly goals are not met, management quickly takes corrective action as an integrated team
31. Return on investment greatly exceeds the cost of capital
32. The management team balances investment decisions in R&D and SG&A with achievement of earnings. This balance comes from honest discussion and clearly stated long-term goals
33. We are generating positive free cash flow
34. Free cash flow growth is compounding at a rate equal to or greater than revenue growth
35. If this company over-delivers on earnings within the year, it reinvests to accelerate revenue growth or new product development
Additional comments:
Essential #6 The Management Team: Inside-Outside Leadership
36. The leadership of this company has a dynamic duo pair of 'C' (i.e. CEO, COO) level leaders: one is clearly outside facing and the other is inside facing (though both acknowledge that these lines sometimes can and should blur)
37. Our leadership demonstrates actions based on a consistent set of company values, particularly during times of crisis
38. Our culture is based on exploration and innovation in a way that is distinctive and that is conveyed to our employees
39. Leadership takes an active role in problem solving as well as decision making
40. Our leadership speaks a common language of innovation and avoids mindset traps that will limit growth
41. The management team is quick to self-correct and tries to do so effectively and with teamwork
42. We execute cross-functional initiatives well
Additional comments:
Essential #7 The Board of Directors: Comprised of Essentials Experts
43. The board of this company is not dominated by investors and management team members but instead includes CEOs of other billion-dollar companies and customers
44. There is a CEO on the board who had grown an exponentially growing business that has achieved $1B revenue
45. There is a board member who understands and represents customer requirements
46. A Big Brother alliance partner is an active member of the Board of Directors
47. A well-respected community member is a member of the Board of Directors
48. The board focuses more on the long-term growth of the business than achieving "short-term" returns for investors
49. The management team is well prepared for board meetings and "the best it can be" when engaging with board members
Additional comments:
Linking the 7 Essentials
50. The management team of this company meets regularly with our most important customers - and when we do we listen carefully and non-defensively
51. This company measures and optimizes its initiatives to maximize profitability per customer
52. The suppliers of this company are a strategic source for lower cost or highly differentiated products or services
53. Marquee Customers and Big Brother Alliance partners proactively helping to grow our market or our share of the market
54. The research and development resources of this company work directly with leading customers
55. The management clearly identifies top strategic priorities that are shared with all employees
56. High performance, cross-functional teamwork is an established work/culture norm
Additional comments and reflections:
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