Volkmar Völzke's BLOG

When does the decline of a company begin? When the focus shifts from opportunities to problems. From attack to defense. From growth to maintaining the status quo.

That's why my latest publication in the Swiss magazine Organizer revolves around the necessary leap in growth. You can request the PDF of the article ➔ here (only in German).

It has always been true that those with more success and more influence have a distinct growth mindset and act accordingly. It is a well-known law of nature that what does not grow dies.

However, a good business with loyal customers does not simply disappear from the market. It can even work very profitably for a long time. But my point is this: this strategy is highly risky and is becoming even more so in today's world. If you play the hold game, you are exposed to greater pressure in every respect, from the sales market to the labor market.

And even more important: with low growth, you miss out on huge opportunities.

The good news is that almost e...

I am currently working on a global leadership and cultural change project with a major client. One of the goals: massive increase in sales with rising profitability - and all this in highly competitive markets.

The key to this lies not only in innovation and processes, but also - above all - in people's minds. In other words, people tend to stand in their own way with their current beliefs. (Doesn't this somehow seem familiar in your own life?)

From my point of view, the remarkable insight is the following: Many people in worldwide organizations love change. As soon as they are credibly encouraged to do so, the suggestions and ideas for sometimes substantial changes (especially in their own sphere of influence) bubble out of them.

It sometimes seems to me as if we have lifted the cap of the famous genie’s bottle: Once it is outside, it does not want to go back in.

Now, of course, such a change does not happen "just like that," but you have to move important levers. Here are three d...

When I talk to CEOs and division heads (for example, in my coaching sessions), I sometimes have the impression that the budgeting process eats up too much of their time and energy, typically in the fall. As a former large company divisional controller, I can tell you a thing or two about it (and I see the same tendency in medium-sized companies, too).

The problem is that budgeting is 100% unproductive when measured against the company's purpose (mission) and vision (because hardly any company will make "outstanding budgeting" part of its mission or vision).

In other words, managers - and usually many other people involved - are working on something that is a "waste" in the traditional sense. In addition, the budgeting process often replaces strategy discussion. Not only do we then not have a strong business strategy, but also high opportunity costs.

Why does something like this happen? In my experience, there are three main reasons. In the following, I also share what you can do abo...

You may know the situation when parents encourage their children to go outside and play instead of always sitting at home. Why do they do that? Sure, because they want their children to gain experience and learn something outside.

Because we know that life experience never comes from studying indoors, but from getting your hands dirty.

When I'm working on strategy with my clients, I sometimes feel like the daddy who says, "You have to get out there to gain experience and test your ideas!"

What do I mean by that? For most people, the strategy process encounters a big bump when it comes to the transition from strategy creation to implementation. Often, they have developed great new value propositions and new business models, or have come up with new structures and requirements for the workforce or other innovations.

And what happens next? Many are now trying to perfect these results with more people. Other stakeholders are involved in the discussion of business models or HR managers ...

Note: The following article has nothing to do with department stores, but very much with the future of your business, regardless of the industry.

The other day, I stumbled across a nice statistic that clearly shows how the retail market has changed in recent years: fewer and fewer people go to department stores anymore.

This is nothing new. We have known about this trend for years. But here is my point: how many department stores have managed to profitably implement their mission (creating shopping experiences) in other ways? You know the answer: none or hardly any.

The astonishing thing is that every business school and dozens of manager books teach that we have to constantly question our business model in order to remain successful tomorrow. What drove big money into the company’s pockets yesterday may be irrelevant tomorrow. So why don’t the management teams of many companies put this simple insight into practice?

Here are three reasons for sticking with old models—and ideas a...

For many companies, things have changed with COVID-19 and the lockdown. It is only logical to look at whether the strategy still fits and where adjustments are needed, right? Wrong!

If you had a robust strategy, then very little will need to change. But if your strategy was on thin ice, then it is more than appropriate to rework the strategy anyway. The past few weeks have been just the stumbling block that provided the necessary impetus.

Even if you think that you have a strong and robust strategy, I still see three issues that receive far too little attention when it comes to successfully shaping the future. It would be best for your company or your division to look at them immediately. Time is pressing!

Here are the three decisive and mostly underexposed questions for strong strategies:

1. Who do we want to become? This question is hardly ever asked seriously, but it is at the beginning of everything. How can we combine our strengths and strive together to reach outstanding goals
...

Did you notice? Those who thrive (people and businesses) do something extremely well or they do something in a unique way. Or even both. 

Look at the most successful companies, Apple for instance, or Siemens, SAP, and many almost unknown SMBs: in the areas they thrive, there is at least one of these to elements in place: excellence or uniqueness. And they have business models that make these distinctions profitable. 

What I see at too many companies (in particular SMBs) is too little focus on business model innovation.

Often, this is left to chance or random evolution. Instead, I suggest considering these three steps: 

1. At least yearly, run workshops with participants from all parts of your organisation to (re)invent new business models. There are specific methods to make this exercise very effective and efficient.
2. Ensure you collect inputs from your customers and the marketplace: what would they dream of, ideally? What would help them make a leap forward?
3. Implement a winning te...

Recently we spontaneously took the train over the Bernina Pass to Italy for two days. The Bernina mountain line is part of the UNESCO World Heritage, as one of only three railway lines in the world.

Especially in Switzerland, there are many fascinating railway lines, all of which have one thing in common: purely rational economic reasons could hardly ever justify the construction.

What was needed was the sometimes obsessive passion of individuals, coupled with a firm belief in the possibilities and in doing something good for the region. Also, it needs ongoing marketing, often even worldwide for the whole thing to be economically viable.

My point is this: at any given time, there have certainly been 1000 reasons not to carry out the project. And yet it was done. Why? Because it is hard and because we can do it. And because it does something good.

We can find it crazy or irresponsible. But exactly such a mindset, combined with passion and perseverance, moves us forward.

How does it...

About 50 years ago, we were on the moon for the first time (and about 47 years ago we were on the moon for the last time). Click here to watch a short video related to this event.

Many people ask the question "Why should we go to the moon at all?" And: "Aren't there more urgent problems to solve?

Such questions reveal the precise problem: they kill ambition in the first place and focus on the urgent instead of the magnificent.

Of course, this is not about the moon, but about the fact that most leaders have forgotten to think big and to believe in extraordinary goals. 

"Don't dare too much" is the motto. In that case, it is better to first optimize the processes or start the next employee survey, for instance. Also, many managers prefer to spend their days discussing the problems they face.

I miss the big visions, in politics and especially in business.

Here are three suggestions if you want to get out of the comfort zone a little bit:

1. New questions. Don't ask "why", but " why
...

500 weeks ago, I committed to sending value to my community every single week. This is almost 10 years!

I called this newsletter "Friday Noon Memo".

Thank you for being a reader and by this a supporter of the “success movement” for making the world a better place.

Here are four landmark posts over the last 500 weeks.

I think they didn't lose any relevance.

Enjoy reading!

Issue #1, October 9th, 2009:

Foundations for a better performance 

Let me invite you to our Friday noon memo where we discuss fresh ideas about better performance of people and organisations. Enjoy reading.

Always the same story

All organisations presume they are different from the competition. Perhaps they are, to a certain extent; however, three key challenges are almost the same for each organisation, no matter in which industry, of what size, if non-profit or commercial.

1. The goals, objectives and strategies are not consistent or not consistently communicated.
2. The business processes are not standardi
...