A natural reaction to ‘Seeing Red’ is to feel emotionally engaged with the subject / object that inspires this basic response of ‘fight or flight.’ In every walk of life this reaction is to be encouraged, red the colour of danger must create immediate reaction for us to avoid the worst.
Here at Diamond-Clarity we have deliberately used the traffic light system to provide our visual interpretation of your business and at times you will ‘see red.’ This has engendered some fierce responses along the lines of ’there is nothing wrong with my business, you must be wrong!’ The implication being that the BF Diamond has been skewed to create the ‘right responses’ for Diamond-Clarity Consultants.
This is the reason we sell the BF Diamond as a product, once you have completed the survey and we have provided you with the BF Diamond Report our engagement is at an end. You can choose how you proceed with the observations and recommendations provided by the Report removing any reason for us to bias the results of the survey.
So how has ‘Seeing Red’ helped some of our customers?
- Funding –The BF Diamond identified that the Business Model was currently in the red zone. Our customer was struggling to achieve break- even with a reasonable order book for the company’s products. However, the tell-tale was that the Product Development was also in the red zone. The Business Model assumed a certain gross margin from each custom -made product sold to customers, increasing sales should have brought the business to break -even. Customising products was taking longer in development than had been assumed thereby increasing costs and reducing margins and extending the sales cycle effectively starving the business of cash.
- Market – The BF Diamond identified that the Market Analysis was currently in the red zone. Our customer was receiving a great deal of attention for its’ innovation from market commentators but little actual sales traction. Perversely the BF Diamond identified that Route to Market was in the green zone whilst Cash Management was showing in the red zone. The Market Analysis had identified the target sector for the company’s product and the marketing strategy had developed the Route to Market for that sector. Concerns over Cash Management were related to whether the cash runway could be extended for long enough. Our customer was too small to compete in the target market sector where returns were achieved by businesses that had the resources to complete all the product standards demanded by the industry. Fortunately, an adjacent market sector was identified with lower barriers to entry which could be exploited by our customer.
‘Seeing Red’ is a ‘call to action’ that our customers answered and directed their businesses towards a better future. The BF Diamond provided the clarity for the right decisions to be made having considered the position of their companies from a holistic point of view.