People, Process, Product – 3 x Words To Succeed
People, Process, Product – these words made popular by Marcus Lemonis and CNBC’s The Profit, have become synonymous with business success.
But what does the People, Process, Product statement mean?
And more importantly, how can you use the People, Process, Product methodology to build a business to consistently serve you?
In this article, we’ll cover where the People, Process, Product methodology comes from, as well as how you can use it to serve both you and your business.
People, Process, Product – 3 x Words To Succeed
Where Does The People, Process, Product Methodology Come From?
This is a methodology used to streamline a business’s functions, by saving potential wasted cost, enhancing profits, and creating a better experience for both your staff and clients/ customers.
Marcus Lemonis and The Profit have brought the phrase People, Process, Product to the masses, and highlighted a simple yet powerful principle for business owners to focus on for consistent growth and success.
People, Process, Product – A Breakdown
As Marcus Lemonis displays in his show, the People, Process, Product formula is an excellent framework to use no matter the size of your business.
By focusing on People, Process, Product, you’ll be able to carefully dissect where the roadblocks are in your business, and what you need to focus on and improve to fix and enhance in the individual parts of the framework.
The Importance Of People, Process, Product
The reason why People, Process, Product is very important, is because it teaches business owners the value of having systems in your business.
Without systems, you’ll continuously be winging it, which means your results will always vary.
If your results continuously vary, you’re not in control.
And if you’re not in control of your business – your business will fail.
To be successful in business, you require positive consistency. Consistent profits, and a consistent process in all parts of your business will help you achieve this.
We teach a system and process – because we understand the important of creating a consistent structure.
The value is in the system – the profits and success are always a bi product of the consistent system.
People, Process, Product reinforces this, and therefore we are massive advocates of the methodology.
Below is a breakdown of the People, Process, Product principle.
The first focus point of People, Process, Product is one of the most important; because without the right people, your business won’t succeed.
When it comes to the people part; there are a number of key ingredients needed to ensure you and your people succeed.
Firstly – you need to hire right.
Many businesses make the mistake of hiring people incorrectly in the first place, which causes a whole series of problems for you and your business.
What values are you looking for in a staff member?
Are you clear on what qualifications they need, and what kind of experience should they have to be successful in the role?
Next – is to be crystal clear about expectations.
Do your people know exactly what is expected of them, and why? The People, Process, Product statements requires that you document everything, and the same is true for your expectations.
This will prevent any potential issues coming up later, such as that they weren’t aware they were to act in a certain way, or do various tasks required of them.
Finally, you have to ensure your team are adequately trained.
Your people may have excellent enthusiasm and be determined to succeed as much as you do; however, without the right training, there’ll be a skills gap which will limit the ceiling on how well both you and your business will do.
Ensure you have a system in place to put your people through regular training, so not only do they learn what’s needed to do a stellar job – but you also create consistency as well.
In the People, Process, Product principle, process refers to the various different systems you need in your business to achieve a consistent outcome.
For example; let’s pretend you regularly buy lunch from a franchise chain.
One day, you get your sandwich, and it’s exactly what you hoped for – the salads are right, they’ve given you the perfect amount of meat, and the dressing is on point.
If you go back another day, and this time – they haven’t remained consistent with what you asked for and what you expected; you’re going to leave unsatisfied.
Your negative experience is due to having an inconsistent experience, because they haven’t followed a process to replicate the outcome needed to keep you happy and meet your requirements or expectations.
Systems are crucial to your business’s success, because it ensures things are replicated in a positive way over and over again.
Once you have a system for each area in your business, you’ll need to document this so that everyone is crystal clear on how it works, how to do the task, and what the expectations are.
When it’s documented, it can be followed – and measured and tweaked if need be.
Sales is the most important part of any business, which is why we teach a consistent framework to make this function easier.
Our sales process covers the following modules to ensure you achieve a consistent outcome:
- Building rapport
- Setting a pre-frame
- Asking questions that find their pain points
- Learning about their ideal outcome
- Talking about money
- Handling objections
- Asking for the sale
To learn more about the process in more detail, check out the article linked below.
Related article: The Sales Process – A Step By Step Guide
Finally, the last piece of the People, Process, Product formula is all about ensuring you have something people want to buy, and something that’ll turn you a profit.
Is your product a commodity; meaning is it readily available everywhere? If so, what is your unique selling proposition that’ll make it stand out from your competitors?
Perhaps your selling high ticket – which means it’s a product or service priced at the higher end.
Either way, you’ll need to have a system in place to deliver these consistently, so not only will you end up with happy clients and customers – but they’ll refer their friends and social network too.
In your business, you’ll need to create systems for making or buying your product, hosting or storing your product, and of course selling and shipping it.
Final Thoughts On The People, Process, Product Principle
The People, Process, Product principle is an excellent tool for business owners, because it allows you to focus on the many moving parts of your business with a systems mindset.
Profit and revenue are important for any business to succeed – and these are bi products of consistent systems and processes.
By focusing on the People, Process, Product principle, you’ll have the three key areas to break down, and focus on to succeed.
Related article: The 5 P’s Of Marketing – How To Use It Successfully