GOAL-II – ITS NOT LUCK

Read to Goal-II to get an idea on the following:

•   How to sell effectively
•   How to find root cause for a problem(Using Current reality tree method)
•    How to reach a goal ( Using Prerequisite tree method)
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 Goal-II is a build up to novel, Goal-I. Here, Alex Rogo faces completely different and tougher challenges. In Goal I, Alex Rogo transforms his plant from a bottomless pit to a highly profitable plant. He gets rewarded with a promotion and made responsible for diversified group. As an executive vice president, he has great vision for companies under his supervision. However, when markets hits downturn UNICO decides to sell companies under diversified group to improve cash reserves and cash flow. Alex faces daunting challenge of selling his 3 companies to three times the face value else his entire career is at stake.He succeeds finally using the following techniques.

How to sell effectively:- While selling a solution or a product , one shouldn’t start with all the positives of one’s solution. First, address the pain point of the market and quantify how much its costing .For example , legacy servers are causing 100000$ loss in revenue per annum  . Then brief your solution which address the solution. For example, virtualize your environment with investment of 40,000$. You save 60,000$ p.a. Then your solution is irrestible.

How to find the root cause for a problem using current reality tree:- Lets take problem of giving a separate state to Telengana. To find out the root cause first we have to list UDE undesirable effects like

•     People are resorting to violence
•     Both the regions want more money allocated for their development
•     Politicians in either sides are trying to maximize their gains.
•     Industry is losing money due to uncertainty.

   You may use post it notes to help with root cause.

 How to go about planning for a goal objectively using prerequisite tree: Let’s say Anil Ambani’s goal is to buy a luxury villa. Then write all the obstacles that prevent him from buying a luxury villa

• Might not have money to buy it—Get a job which gives enough savings and follow a plan to 3 years to save 1 cr so that  you could afford to buy
•  Villa might be very far from city – There are many villa projects within in 40KM of radius. Find out a good builder and with a car 40Km is not a big deal these days
•     Selling it back might be very difficult- You might not want to sell it . Just use it as an investment for future purpose which gives 5cr for the 1cr you invested now .

Thus there is an action plan against each of the negatives . When the action plan is properly executed for each of these then automatically you would achieve Goal …! 

Finally , Goldratt’s objective through Goal-II is to explain intricate business concepts lucidly to an extent that they appear commonsense. When applied effectively they help in many real life situations like, Should i invest in equity during down turn? How to solve innumerable daunting issues at work? Goal-II meets its objectives well . Try applying theory to practice  J