Wednesday, April 8, 2015

The Coherence Premium


Coherency, by definition, is the quality of forming a unified whole.
A coherency in business can keep all on track allowing for the 3 to 6 strengths of that company to increase focus, efficiencies and effectiveness.  Do what you love and the money will follow is a mantra for many.  Does diversity also allow for long-term stability? What is trait that would be essential for a company that may have mastered a niche market to continue to sustain and grow?  What if a big disrupter happened in that market of a new airline? Restrictions from a war or fuel may dramatically disable a business depending on airway rights or bulk fuel purchasing. If this company was not diversified, would it die?  If it were diverse would it survive the challenge allowing for a regroup and attack the disturbance to get that part of the company back on its feet?

There will always be people on both sides of this philosophy. To keep core strengths always in the sights with each new move or direction can keep a leap of faith from the train of consistency and root to another train car not off a bridge.   

Diversify, consolidate then expand is a common pattern in some of the most successful companies. There are perceived strengths like Anheuser-Busch and eagle brand snacks in the 80s.   Rolling in money until they stepped on the toes of Frito Lay.  Then squashed by Frito Lay with their snack market prowess taking Eagle Brand out and making the beer company reevaluate what their core strength’s really were.

Virgin airlines, resorts, virgin galactic, Banking, books, commercial spaceflight, consumer electronics, films, …. mobile phones, music, radio, retail, travel. Virgin is still growing with revenue of 15 billion euros in 2012 and 50,000+ employees.

I look to the mission to understand the possible 6 core perceived strengths.  Which strengths could encompass an extraordinarily diverse range of products and services like Virgin Brand? It must be a washed down melting pot of bland.  

“Our vision is to contribute to creating happy and fulfilling lives which are also sustainable – surely a vision worth aspiring to? With businesses spanning many sectors and touching many aspects of our customers’ lifestyles we feel that Virgin is in a perfect position to contribute to this vision. After all, the Virgin brand has always been about having fun in a unique Virgin way.
We believe that we have a part to play in making this a reality and so our vision for sustainability within the Virgin Group is: “to make a credible contribution towards sustainable lifestyles whilst meeting or exceeding the expectations of our staff, customers and other stakeholders”.

To the contrary Branson is also quoted as saying…
‘Your mission statement should reflect your business' special niche.’

When I boil this down to my own mission, strengths and philosophy’s I wonder what happens after the cohesion? With me, it allowed a deep dive to see my likes, abilities and a way to plug them into a business culture. I.E.: Short responsive turnaround of projects, Interacting with the public, social benefit, little repetition while still keeping core services.  Fine art exhibitions coordinator fit my skill sets and mission.
Have I thrived and grown? Some would say yes others no. To contribute to the well being of a community was the big part of the goal. Here there was great success.

To take away if a mission and business is well managed and kept with in skill sets and strengths it can bring great success.  To be acutely aware of the core is another story.
Stay true to the core and bring it!

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