Mafia Offers: Dealing with a Market Constraint (the Theory of Constraints way) For the first time anywhere Dr Lisa goes deep on how to develop a Mafia Offer. Chapter 22 of the Theory of Constraints Handbook is titled Mafia Offers: Dealing with a Market Constraint. You can download the ebook right here.
It is a PDF instant digital download for only $6.95 (and this is the ONLY place you can get the PDF version): PDF VERSION you can get the Kindle version from Amazon. Amazon offers this as a Kindle version but you DON’T need a Kindle to purchase and read it. They offer Kindle readers for the PC, Mac, Iphone, Ipad, Blackberry and Android. KINDLE VERSION FREE introduction of the Mafia Offer chapter (Mafia Offer ebook) for the TOC Handbook Here’s the introduction I wrote to the Mafia Offer chapter for the TOC Handbook which is to be published by McGraw Hill around April – May 2010.
———————————————————————————————— A. Introduction: What is a Mafia Offer? A “Mafia Offer” sounds like something out of a movie, not something that could seriously help you make more money in your business by increasing and controlling your sales. Dr Goldratt first introduced the concept of a Mafia Offer in his book It’s Not Luck (Goldratt 2002, 133). Later he defined a Mafia Offer as “an offer they can’t refuse” (Goldratt 2008, 67). But in writing, he more frequently refers to it as an Un-Refusable Offer (URO) (Goldratt 1999, 120) and more recently he (and Goldratt Consulting) emphasizes the need to establish, capitalize and sustain a Decisive Competitive Edge (Herman & Goldratt). For this chapter, I will use the term Mafia Offer and have defined it as follows: “An offer so good that your customers can’t refuse it and your competition can’t or won’t offer the same.” In addition, I will refer to the operational improvements required for a Mafia Offer as the decisive competitive edge, operational advantage, or a competitive advantage.
A Mafia Offer is simply the offer you make to your market – your prospects and customers – to make them desire your products and/or services AND something that your competition can not quickly match. And, of course, the offer you make is a combination of your products, services, and how you deliver them.
And for your offer — the solution you’re selling — to be un-refusable you are most likely offering something of equal or greater value than the price you are charging. Many people confuse a Mafia Offer with a Unique Selling Proposition (USP), Customer Value Proposition (CVP), or a Sustainable Competitive Advantage (SCA). At first blush, it would seem that a Mafia Offer is similar to these other terms you may have heard of; however, when most people are talking about these alternatives they are actually quite different from what we, Theory of Constraints experts, mean by a Mafia Offer.
USPs, CVPs, and SCAs basically take what you already do and state it succinctly and with more specificity aimed at one or a few of their customers’ problems or gaps in current market offerings. These alternatives can be Mafia Offers, but most of the time they are not. Furthermore, a SCA is, in my view, an operational or technological (although these are NOT typically sustainable) advantage and not an offer per se. Most companies offer solutions that solve their customers various problems or symptoms. With a Mafia Offer we are addressing our customer’s core problem as it relates to doing business with our industry. A Mafia Offer typically requires that you do something different (make operational improvements to establish a decisive competitive edge) to address your prospect’s core problem. These operational improvements allow you to actually deliver something un-refusable to your customers and something that your competition can’t or won’t do because they are not willing to or don’t know how to make the same improvements.
In other words, you have to establish an operational advantage. In this way, a Mafia Offer is a sustainable market offer built on this advantage. Mafia Offers are not a positioning or a tag line and “can only be created by satisfying a significant need of the market to the extent that no other significant competitor can.” (Herman & Goldratt) A Mafia Offer is where we start if you have a market constraint. Mafia Offers Dr Lisa’s new book coming in May 2010 Mafia Offers. Please upgrade your browser Theory of Constraints Handbook A global team of Theory of Constraints gurus thoroughly explain this management and improvement methodology and demonstrate its applications Theory of Constraints Handbook provides detailed guidance from the world’s top experts on how to implement the management and improvement methodology developed by Dr. Eliyahu Goldratt and made famous in his 1984 book, The Goal.
Clear case studies define how the theory works, why it works, what issues are resolved, and what benefits accrue. This authoritative resource discusses strategy, performance measures, operations, supply chains, and project management. Theory of Constraints Handbook. Is written by a global team of 43 of the world’s top TOC experts. Features a lead chapter written by Dr.
“Our company participated in a Mafia Offer Boot Camp in late November 2006. With the ideas and guidance we received from the Boot Camp we have achieved three highly important outcomes. We transformed our historical 60%, on time record to 100% on time, in about six weeks. We have now been 100% on time for the last four weeks. We found.hidden production capacity and also increased our profitability. We will start bringing our Mafia Offer to market this week.
We have never had these kinds of dramatic results, or results so fast with any other thing we have tried, and we have tried everything. This is one program that delivers what they claim.” by 2/19/07, Richard Pettibone, Drewco Corporation - Designer and Builder of special workholding dvices. Phone: 262 886 5050.
. Image: vedomosti.ru The Goal:A Process of Ongoing Improvement PDF Ebook: Book Name: The Goal: A Process of Ongoing Improvement Author: Eliyahu M. Goldratt & Jeff Cox Language: English Genre: Psychology, Leadership, Self-Help, Personal Growth Publication: North River Press Pages: 393 Book Size: 4 Mb Book Format: Pdf About the Book: The Goal: A Process of Ongoing Improvement is about New global principles of manufacturing. It’s about people trying to understand what makes their world tick so that they can make it better. As they think logically and consistently about their problems they are able to determine “cause and effect” relationships between their actions and the results. In the process they deduce some basic principles which they use to save their plant and make it successful.
Goldratt & Jeff Cox view science as nothing more than an understanding of the way the world is and why it is that way. At any given time our scientific knowledge is simply the current state of the art of our understanding.
I do not believe in absolute truths. I fear such beliefs because they block the search for better understanding. Whenever we think we have final answers progress, science, and better understanding ceases. Understanding of our world is not something to be pursued for its own sake, however. Knowledge should be pursued, I believe, to make our world better—to make life more fulfilling. There are several reasons Eliyahu M.
Goldratt & Jeff Cox chose a novel to explain my understanding of manufacturing—how it works (reality) and why it works that way. Firstly, The Goal: A Process of Ongoing Improvement, Authors want to make these principles more understandable and show how they can bring order to the chaos that so often exists in our plants. Secondly, I wanted to illustrate the power of this understanding and the benefits it can bring. The results achieved are not fantasy; they have been, and are being, achieved in real plants. The western world does not have to become a second or third rate manufacturing power. If we just understand and apply the correct principles, we can compete with anyone. I also hope that readers would see the validity and value of these principles in other organizations such as banks, hospitals, insurance companies and our families.
Maybe the same potential for growth and improvement exists in all organizations. Finally, and most importantly, Authors wanted to show that we can all be outstanding scientists. The secret of being a good scientist, I believe, lies not in our brain power. We have enough.
We simply need to look at reality and think logically and precisely about what we see. The key ingredient is to have the courage to face inconsistencies between what we see and deduce and the way things are done. This challenging of basic assumptions is essential to breakthroughs. Almost everyone who has worked in a plant is at least uneasy about the use of cost accounting efficiencies to control our actions. Yet few have challenged this sacred cow directly. Progress in understanding requires that we challenge basic assumptions about how the world is and why it is that way. If we can better understand our world and the principles that govern it, I suspect all our lives will be better.
Good luck in your search for these principles and for your own understanding of the “Goal.” If you want to jump-start any manufacturing business, The Goal: A Process of Ongoing Improvement by Goldratt & Jeff Ebook is a must read. Further Reading:.
Contents: Chapter 1 Chapter 2 Chapter 3 Chapter 4. Chapter 36 Chapter 37 Chapter 38 Chapter 39 Chapter 40 Click on the below button to download ebook ‘The Goal: A Process of Ongoing Improvement’ By Eliyahu M.
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