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In The Art of War, Sun Tzu says: “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.”
It’s crucial to focus on the big picture first. But what about the day-to-day? What tactics can you use to accelerate victory? In this episode, Taylor and Richard introduce the 3 P’s — Plot, Pivot and Profit — and break down how this system transforms the way you execute on a daily basis.
Show Notes:
- The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm
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[00:00:00] Richard Gaffin: hey folks. Welcome to the E-Commerce Playbook podcast. I'm your host, Richard Gaffin, director of Digital Product Strategy here at Common Thread Collective. I'm joined again, as always. He's back on the mic by Taylor Holliday, CEO of Common Thread Collective. Taylor, how you doing this? Fine morning.
[00:00:15] Taylor Holiday: It's doing good, man. It's Wednesday, I've got the office to myself. So it's our work from home Wednesday. I tricked everybody into creating that so I could have the office to myself. So I'm allowed to wear a t-shirt, no collars required today. And so I'm I'm engaged and ready to create.
[00:00:30] Richard Gaffin: Wow. Yeah, yeah, yeah. You don't have to adhere to the famous CTC dress code.
[00:00:35] Taylor Holiday: That's right. We've got whole set of office rules now that we're trying to, to invoke over on the whiteboard here. So I'm looking at 'em right now and ca oh, a couple of them. I've got callers and buttons every day. No shorts or toes. Second screen, unless you're in sales, you must have headphones.
Five minutes a day of non-work related conversation as a group. You have to commit to improving the OSUs in one way each week. No, selfish Seltzer. WeWork here offers seltzer. If you go get it, you can't get it for just yourself. And then happy hour attendance on Thursdays is non-optional, so, or also known as mandatory.
[00:01:15] Richard Gaffin: Mandatory happy hour. Wow, that's great. All right, well, we're gonna have to have a discussion with the folks here at uh, CTC Portland. I mean, we don't have an office, but you know, I love it if we enforce the rules in our own homes or whatever, but um,
[00:01:27] Taylor Holiday: you go.
[00:01:28] Richard Gaffin: Cool. All right. Well, so today we're talking about, we've been talking and we talk about this pod on this podcast, a lot about frameworks of thought, right? How to build a strategy, how to think top down about how you construct your business. And now in our conversation immediately before we hit record, you had quoted Sun Sue from The Art of War, who says that strategy without tactics is the slowest way to win, I believe. And then the flip side of that is tactics without strategy is just the noise before defeat. And so, W maybe that's a way to set up that what we've been explaining to you. W it gives you guys a very slow way to win if there's not a tactical element attached to it. However, it's still the right way to think about it. But with that strategy or that strategic framework established, what we wanted to talk about today was another I guess sort of CTC original I don't know what the word is, anagram or acronym, which is the we've talked about GQ as the sort of way to establish the framework of what you need to do, establish your goal, and now we're gonna talk about the way to execute on that plan and kind of give you a little bit of a look into how we execute on. Plans for clients here at CTC because it's one thing to talk about all this stuff. It's a completely other thing to put it into practice. So what we're gonna talk about today is the three PS system. And those three Ps are plot, pivot, and profit. And so, I'll throw it over you to then Taylor to give us, give us an overview of what those three P's mean, how we sort of use 'em at CTC and give us kind of a, kind of a summary of, of what the three P's are.
[00:03:04] Taylor Holiday: Yeah, I've been doing a lot of work in, I'm rewriting the CTC methodology overview sort of a governing document of the entire approach to what we do and. It sort of is broken into three key elements. One of 'em you described that's straight out of the brain of Professor Richard here, which is all about the e-commerce diagnostic, the GQ or Growth Quotient score about establishing the problem.
Where are you at relative to these key indications of health that we've seen in, you know, over a decade of helping brands grow. That helps to establish the problem. And then from there we build a map. , that's our, what we call the growth map. Think of that as the governing strategy. The governing directive of how we're going to manage and grow the business towards a common objective.
Usually some measure of financial outcome, probably contribution margin if you're in C T C world, but some all the way down to net profit. And then there's the question of, okay, we've diagnosed the problem, we have a plan in place, we have strategy. Now, how do we actually execute against the strategy? And because I think this is a much harder reality to create in many ways that people realize.
And so I have this, the first slide of my methodology overview deck says, growth equals strategy to the power of execution. So think of that equation. Growth equals the word strategy raised to the exponent of execution. And so it's this idea that these things can't be divorced. They actually have to be married together into a system that brings them both to bear in their fullest effect.
And so the Sun Sue quote is this idea that if you disassociate these things or you move them in the wrong direction, in other words, you go tactics before strategy, you're just sort of creating noise. And so this system that we've created that we call the P three system plot pivot, profit. It is about establishing a working system to execute against your strategy.
And in particular, I guess if we took this phrase and we broke it into its component parts, it's easiest to begin to understand. So let's start with the idea of plotting. While plotting assumes a pre-existing expectation on a map, if we think about plotting your course, that phrase, it's just simply each day waking up.
And simply putting a pin in the map of where you presently are. And it's even more powerful if it's where you are relative to where you expected to be. I have the, I just got finished reading a book called Project Hail Mary, so if anybody's into fiction, it's great sci-fi novel of, you know, there's this New organism that's eating the energy from the sun and the globe is gonna collapse.
And this astronaut scientist has to go save the world. And so much of the book is really cool, like engineering and math about plotting their course to these foreign worlds, millions of light years away and how they get there and all these different things, but slight deviations in the directions or the math lead them wildly off course, right?
And so that's part of the journey of the story. And it's no different in our e-commerce business if we. Don't plot where we are daily. We can wake up weeks, months later and be significantly off course. So step one is, every day I plot my position, I know where I'm at relative to where I expected to be.
And I wanna do this across in as many different indicators as possible. Because one of the things that we believe wholeheartedly about e-commerce is there is no single metric. That can give you an indication of your health, not revenue, not profit, not contribution margin. All of them can hide underlying problems.
Most often at the customer level, where your revenue could be really strong because you're extracting from your existing customer base and you're not generating new customers. Or your m e r could be really bad, but it could be because you're actually getting more new customer revenue than you thought.
And so there is no way with any one metric. So we want to actually plot our position across 25 different metrics. I'm not gonna go through them all right now, but that's what's in our dashboard, is that we forecast every day, every expectation of every metric across 25 key different indicators, and we plot our position every day against those expectations.
[00:07:28] Richard Gaffin: Yeah, no, that makes sense.
So the yeah, I guess a, a good way to think about that is like coordinates on a map, for instance if you're only plotting where you are using longitude but not latitude or whatever, you'll. Effectively have no idea where you are. Oh, you'll know how far north or south you are, but you won't know how far east to west. And I think that's like a really, really key part of this is that it's about finding your place on the map relative to a number of different markers. Like how far away are we from? I don't know, that lighthouse over there, whatever. Like those are all sort of different ways to think about where you are on the map.
But I think a key thing there that you mentioned that. I mean, hopefully you guys have sort of picked up on is that the frequency of plotting is kind of the key here.
That we do it every single day and you know, obviously we tend to have, let's say, monthly goals and we plot where we are. every month and think about these sort of like 12 check-in points over the course of the year. But like you're pointing out with the analogy of of say, space travel, right? If a ship is traveling at the speed of light and it deviates by the width of a dime, it'll end up in a completely different galaxy or whatever. And I think that's kind of the situation here where 31 days is too many to plot or is too many days to pass before you have to course correct.
So talk to me a little bit about how you guys go about. Plotting daily or, or how you sort of came, maybe came to this conclusion that you needed to do that?
[00:08:50] Taylor Holiday: It's a really great question cuz it's hard because an easy, the overly simplified version would be to take the revenue expectation for the month and just simply divide it by 30.
But that doesn't work, right? That's not how revenue actually shows up. Now what we've done is we've built three different model inputs that inform the daily expectation.
It begins with qualitative planning, which is your marketing calendar. So the first thing to do to help establish your daily expectations are what are the key promotions and stories you are going to tell that are going to create a deviation upwards, usually in expected performance. So let's say you have a promotion, a product release, a sale, a campaign, a big influencer moment, you're going on Shark Tank, whatever it is that has to be on the calendar, and you have to have a sense of the amplification.
of that moment relative to your average. So the easiest way to do this is historical performance. Let's say you're running a sale. It's a sale you've run before, and you have some sense of the amplification of that sale because you have a lot of historical data. Great. Now you have a mechanism for improving that.
And one of the things that we're working on, which is again, it's gonna be all part of the end result of this system, is actually like this. This connection between qualitative expectation of marketing types and promotion types. And outputs. So let's say we have a historical sense of this sale performance created this amplification of revenue.
Now the model, as you put that onto the calendar, can actually build that in automatically, that amplification. Same thing with product releases and other campaign moments. So that's the first part. It's qualitative assessment and planning that creates some amplification of the revenue across the, the, the calendar.
The second is we, what we call a day of the week model. So we have a tool inside of STAs that allows for, for the ability to look at either your store's history by day of the week or your industry's performance by day of the week. So if you're a new brand, you can lean on the industry data. If you're an existing brand with lots of history, you can lean on your own store data.
And the, the people when there are, are growth strategists when they're building their forecast can actually toggle. How much weight they want to the day of the week model. So for Bambu Earth as an example, it's a really important to use the day of the week effect because Saturdays and Sundays are repeatedly and consistently much higher volume through our cost caps on spend.
And so the day of the week modeling is really accurate for Bambu Earth. So that's usually the second thing we'll do. And then the third thing would be like a year over year modeling version where you could take last year's revenue pacing. And duplicate it, which is a good starting point. So usually what people will do is they'll sort of look at, last year, they'll look at the marketing calendar to make sure the promotions and emails are all being sent on the same days, or they'll adjust them from there.
They'll add in a day of the week effect, and boom, they're ready to go. And that becomes the daily expectation of revenue spend, contribution, margin, all the way down the chain. And so, The model outputs the monthlies, and then the growth strategists go to work on building the dailies through these different modeling levers that exist that are qualitative planning day of the week effect, year over year effect.
[00:12:07] Richard Gaffin: So o one other thing that maybe is helpful to think about or, or for us to get into on this plotting element, which is this is a way to bring the li bring to life. I think a phrase that you say often that we think about often, which is that we hold every dollar accountable to profit. Right. So the idea here is, I know you'd mentioned, you know, there's the 25 key metrics that, that sort of form the coordinates of where you are on the map. And we don't necessarily have to get into every single one of them, but I wanted to break down. So, you know, we, the idea here is that we're planning or thinking about the revenue expectation of every given ad email. Just whatever Google search, whatever that we're running every single day.
So maybe break down like the complexity of what is it exactly that we're tracking on a daily basis or holding accountable.
[00:12:57] Taylor Holiday: That's a great question. So it's every dollar spent in every channel and every campaign. So our growth map will include literally every campaign has an expectation of spend in Rojas every single day, as well as every email campaign being sent in, every flow being sent. So emails are actually really great cuz they're really predictive in a, in a very consistent way.
So your email flows, think of that as your welcome flow, your post-purchase flow, your banning cart flow. They all generate some amount of revenue every day. and you can look at that over time and you can build a pretty easy model to predict how much revenue to expect from every flow every day. Now, it varies a little of course, day to day, but the variation's fairly small.
And then you can look at, what we'll do is we'll categorize campaigns by type. So again, for Bamboo as an example, we do skin stories is like a recurring Tuesday email that goes out and we can look at the size of the list. that send and how much revenue gets generated by that email. And we can predict, okay, there's four of those being sent.
This is how much revenue will occur on those days. Here's how that'll affect overall revenue. Cuz usually what happens is when you send an email, you get a bump from your existing customer revenue expectation. So that buoys your overall MER for that day, it buoys your overall revenue expectation for that day.
So these become. Pillars to that schedule. So what happens is every dollar in every channel and every email sent are rolled into a tab. We call it the mer Todd. It's like an overall view of daily performance. Those get imported as targets into STA lists, and you can sort of go in and QA and make sure, okay, this is being sent.
And, and if something changes in the schedule, then that's fine. You can go alter the expectations if needed. But when you start the month, you should have. Every day of the week, every campaign that's being sent, every dollar that's being launched in a campaign planned. And of course we know it's not gonna go exactly according to plan, but the goal here is creating the expectation that you can plot against, so that you can very quickly see where you're off.
[00:14:51] Richard Gaffin: Hmm. Right. And so, speaking of which, then let's move on to the next P, which is Pivot of course. So you have this mass of signals, all of which are really important. And the idea here is that you're, if you're off on any one of them, let's say, or on maybe the main ones, whatever it happens to be, then you have to take action that day to course correct and to get yourself back to the model.
Now, of course, executing against this is in some ways easier Sid than done, or it feels easier said, than done. So you've mentioned all of these, you know, you're getting hundreds of signals. How do you pick and choose what, what exactly you're gonna go after? How do you execute it? And then maybe like go into some specifics of what execution looks like, because what one thing that we don't want to be doing, Is, or, or rather I should say the answer to these problems, can't be, make a bunch of creative and throw it in the account, which tends to be most people's, like same day like, oh my God, we have to do something. Reaction. So how does this differ from that and what's an example of executing and pivoting?
[00:15:49] Taylor Holiday: Yeah, that's a great question. So what you're, the way you're able to course correct accurately is by a clear diagnosis of the problem. So, I, I could share my screen here for those of you watching on YouTube to give you an indication of sort of what this looks like. So I'm gonna, I'm gonna do that real fast.
Okay, here we go. So what we're looking for in STA loss, and I'll give you an example in the month if I go to this month when I was looking at Bambu Earth just recently, let's say before the sale this past weekend.
Okay, so this, this is the dashboard that shows us performance expectation across those. This is almost 30 plus different metrics cuz we have multiple channels in here. Just to give you a sense of what's going on. Okay, so you could see I was sitting here this was last week. I was looking through our brand Bambu Earth, and I could see I'm, I've got a 16% deficit to contribution margin, a 12% deficit to revenue, 10% deficit to ad spend. I'm basically right on an MER pretty close on AOV, got a deficit on orders.
Now I can see pretty quickly where the deficit is coming from. I have the revenue layer cake here. I can see new customer revenue, returning customer revenue. So I've got a deficit on both of these things, right? So I've got problems. The email revenue number's not pulling in there, but we're actually on target.
I don't know why it's not there, but right now, but but I can see I've got sort of deficits in both of these places. I can come down and see my paid revenue target and if I look in Google and Facebook, okay? So I know I've got deficits in both existing customer and new customer revenue. So I've got both problems to explore.
Okay, so now when I think about new customer revenue, I've gotta think about which channel and my larger gap. And most of my revenue comes from paid revenue for Bambu Earth. Okay, so I've got a paid revenue deficit. I'm right out on efficiency. This tends to mean I have a volume problem and we like to say that there's only two kinds of problems.
There's either volume problems or efficiency problems. In this case, I've got a volume problem cuz my efficiency is pretty dang good. My paid tax right on target, my paid a e r, paid new customer acquisition. And. Right away I noticed that I'm massively overperforming in Google relative to expectation.
So I can click into this tile and be like, wait, what's going on here? Now we've launched pax. Now this is not a big part. Of Bambu Earth's spend. Okay, so this isn't a huge lever, but I can see that we've got this Pax campaign. If I just go to non-brand, exclude brand for a second, cause that's really what I'm focused on here.
I can see that this PAX campaign is really working better than I had anticipated. , and this isn't a big part of where we're at. This is something new that we've launched, and so we're gonna dive in and start pushing volume here. I've gotta make up volume now. I'm not gonna get a ton out of this, but there's something there that I can immediately action against.
Additionally can action again, into Facebook to figure out, okay, I've gotta go figure out some of this spend deficit that I've got here to go solve this problem. And I might open up caps actually, because if I look at my overall waited Cak, I'm basically right on target with a slight increase in a O V.
So my, my A M E R is really good and I never want to create consecutive months of new customer acquisition deficit because I know that that's gonna have effect down the line on the future revenue. So I would rather make up the volume at a slight deficit to efficiency than be behind. So I've, I walk out of this and I'm gonna stop sharing my screen here with two key actions, or actually really three key actions that I walk away with to go in course correct.
Increase my Google volume immediately cuz that Peak Max campaign is performing. Loosen up caps in my highest performing campaigns to try and get more Facebook volume and go check my email schedule cuz I've got an existing customer revenue deficit and I should probably send a few more. And those three things become immediate actions that I could take.
Now, ideally before May 26th, I would be actioning against those every single day to, to even be able to course correct faster. But whatever metric is off, there's some corresponding set of actions and we could build a whole sort of decision tree around each of these. If a O V is in a deficit, go look at which products you're selling and figure out if you have the right offer.
Concept relative to expectation. , right? If efficiency is behind, you might have to, and you're overdoing volume, go tighten your caps, right? Like there could be an opposite. Uh uh, you, maybe your threshold's too high, maybe one of your Facebook campaigns, AOV was lower than anticipated. And so the cop, the cap was inappropriately set.
Like there's efficiency measures. Maybe go rea or reduce the amount of new campaigns that you have live. Cuz those are volume strategies, right? So, Problems tend to exist in one of two categories, volume or efficiency. And they tend to isolate themselves into newer existing customer revenue, and then if they're in new customer revenue, either in paid or organic, and then if they're in paid in some channel, and you can follow this, just sets of decision trees like each little metric is a door I walk through to try and solve the problem as it exists, and we like to do it in this frame.
This is a really easy, simple three-part framework to think about as you analyze the data, as you analyze your plot each day to help you think about pivoting. It's what, what do you see in terms of the data? Okay, so what, what is it telling you? What is the insight that it generates? And then now what? And so we make our growth strategist actually write to customers through this lens, here's what happened yesterday.
Here's what it means. Here's the action that I'm taking in what I'm doing about it. And if you do that every single day, some action against some expectation, or in some cases, I'm right on course. Things are rocking and rolling. We're gonna continue course, and I'm actually gonna start building contingency plans in case things deviate in the future, right?
Each day is gonna unveil to you some set of actions to take.
[00:21:09] Richard Gaffin: Yeah, so I think like the, the important thing there is like you could look at that status dashboard and be overwhelmed by the number of things that are read, but in fact like all of that, it's just a lot of signals that are pointing towards one or two or three main sort of branches of decisions that you can make. So ultimately, it's not necessarily that complicated, it's just that you have to have. At least there is a little bit of intuition involved here to look at all of the signals and say like, this is pointing towards one of a few different buckets of decisions that we can take, but whatever it
happens to be, even though this could seem sort of complicated, it's definitely better than, you know, throwing the kitchen sink at it and just seeing what sticks to mix a metaphor, because that that just doesn't do anything.
This gives you a framework to think about exactly what the action you should take next is, and so also like I think another way to, or another thing that. Strikes me as like, so we're talking about daily pivots.
What about executional tasks that are going to take more than a day to accomplish, let's say. So you say like, we're in this position here on May 20, whatever, and in order to execute what I think needs to be done, this is gonna take us like three or four days. What, how do you think about that? Or how do you sort of prioritize those things?
[00:22:21] Taylor Holiday: So one, you should always ideally have a backlog of what ideas that you are producing prior to deploying.
Okay, so let's draw a distinction between those two things, between the production timeline for, let's say ad creative development and the deployment of the ad creative. So if I show up on May 2nd, and my answer is that I don't need to deploy anything in the ad account, that doesn't mean that I wouldn't also take an action to produce the next thing I will need to deploy someday.
Right? So we, we have this idea, you know, I've sort of evolved it now from $2 of ideas for every dollar of ad spend to $3 of ideas for every dollar of ad spend. Just this idea that you need more than you think you need in order to accomplish this goal. It's sort of like packing more food than you might think on a long hike.
It's just sort of worst case scenario. Like, I carried a few extra granola bars, like no big deal. And so we're gonna use this idea backlog or campaign backlog, and. Best case scenario is you don't need to deploy anything, so we're gonna keep building the reserves. We're gonna keep building the safety net.
We also, in Bamboo, we actually deployed a strategy this month around what we call the contingency sale, which is every month we plan at the end of the month. A promotion that we will launch in the event that we have a deficit to make up because we just refused to mist target. And so if the last week we need to run a promotion, we're gonna plan at the beginning of the month for what that promotion will be.
In the event that we struggled to acquire new customers throughout the month, and in this case we did it, we ran 20% off mini kits and 30% off full size for a weekend on new customer acquisition only massively increased the volume and we're able to make up some of the deficit on the new customer acquisition side.
Which is great. So those are the kinds of things, the contingency planning that sort of bifurcates both production and deployment. Cuz so often what happens is, oh no, I have a problem now. Start the production timeline and I can't deploy or solve it for a week. And I've created a really big hole for myself.
[00:24:31] Richard Gaffin: I know. So this this is kind of kind of interesting cuz we're talking about the three Ps here, but there's, there's a strong connection to, I don't know if you're familiar with the seven Ps from the military, which is proper prior planning prevents piss poor performance.
And I think that's essentially, what we're talking about here is that what we're doing here is creating a framework where you actually know the things that you have to plan for, you know, what you have to build a backlog of so that when you get in a situation where you have to scramble for something, you have a well of ideas to pull from. It's the idea. Yeah. If you're, if you are planned up, if you've created this reserve, then you'll be in a situation where it's not such a big deal if you need to execute against something day of, because you've already done the, the work for it prior to that day.
Right.
[00:25:17] Taylor Holiday: Yeah.
And that, and that's, that's a great call out that in order to enable this idea of pivoting fast, you can't need production to start at that moment.
Now some people have built those systems where like I would say in. Bambu Earth, and this is really probably something you can do on the brand side more than you can do on the agency side, which is that if you have an internal team and your designer's sitting there next to you in the event that you need to make an ad right now, you can probably turn that around pretty quick.
But in our world where we are a partner to multiple brands and we have sort of a timeline of production that's required to get things done, well that doesn't really work. You can't solve a problem today very easily. Now, there are moments that you can sort of red alert Defcon one. But there's a consequence to that somewhere.
It breaks or causes indigestion in the system somewhere, and so the more that you can know and be planning for the inevitable failure, the inevitable miss, then you are better set up to pivot quickly, which is really the key to the system.
[00:26:15] Richard Gaffin: Mm-hmm. I think another, another good example of of where proper prior planning really helps is, is of course, in thinking about. Offer design, messaging, creative that creative direction, I think. So rather than like, if you have to pivot and you have to scramble and get an ad out, what you're getting out is an execution of an idea that's been percolating for a long time.
So you're just like, Hey, we're gonna go ahead and, and execute on this. Offer that we've been thinking about or this angle that we've been thinking about or whatever. So you don't get in a situation where today we have to come up with the best idea possible because that never happens. Whereas you may definitely be tooled to actually create an ad that's relatively good or aesthetically pleasing or whatever within the day. You're probably not gonna come up with a great idea that day either.
[00:27:00] Taylor Holiday: Exactly right. Exactly
[00:27:02] Richard Gaffin: thought work is done ahead of time. Okay, so then let's shift to the final P Profit. So, Taylor, is this an outcome or does this also have some sort of like executional element to it, or is it the idea that P one plus P two equals P three?
[00:27:18] Taylor Holiday: Yeah. That's a good, that's a good question. I think that it is a process, I think. that I want people to think about being connected together, right? So that the banking of these actions is the mechanism by which you get to that result, right? So that plot and pivot are the key to creating profit is, is very much ultimately an outcome.
But there is this idea also that I think is about every that, that your, your monthly profit goal. Is really the sum of a bunch of individual outcomes, right? Like, and that every day that you are banking profit, you are moving closer towards the actual outcome. It's the, it's the end result of the day's travels is some version of contribution margin up or down, and you've either moved further.
From your target or closer to it. And so each day there's some indication it's like, you know, if we were in kindergarten, the bar filling up in our classroom, the bar is either filling up or it's deprecating and I have to, in each of these little micro games I'm playing, have some expectation of the result and carry it over and put it forward when I miss.
And so I think. Well, there is no specific action other than what I would say here is actually, this is about data integrity. It's probably also about the ability to see the thing, to see the destination in a very clear way, and to know where it is that you're tracking towards.
[00:28:50] Richard Gaffin: Yeah. And well, I think maybe, maybe a good way to sum it up is the idea that all, all the plotting and pivoting needs to be happening on a daily basis. But, but the profit also needs to be happening on a daily basis as well.
Like there's a, there's a daily goal towards like, we are going to be profitable today on the money that we spend today, every hour, every day, that kind of thing as well.
[00:29:11] Taylor Holiday: Right.
[00:29:12] Richard Gaffin: Um, cool. So, Anything else you want to hit on this? Any sort of conclusion to draw?
[00:29:20] Taylor Holiday: I would just say that I don't think that it has been normative to manage e-commerce with this level of rigor. I think this is pretty novel. and I think that there are many situations where the, the cadence is, the rhythms of the process have functioned in weeks and months and we've evaluated things in those timelines.
And it's not to say that you can't do that. I would just say it's a lot harder to course correct off of deficits that are in the hundreds of thousands of dollars than it is off of ones that are in the hundreds. And so I wanna solve, Hundred dollars problems, not million dollar problems. And that's what you get to do inside of this system is that the, you should get to a place where you are never missing that dramatically relative to expectation because you are, you forecasting every single month.
And so your ability to be accurate in those horizons is pretty good. And so what it does is it makes big, giant problems feel smaller and, and I think that tends to unlock a more.
Optimistic engagement with your business, which is that it just doesn't feel insurmountable. It feels like, oh, okay, I've gone from, I have a giant profit problem to today's existing customer revenue was off by 8%. How could I fix that tomorrow? Okay. Existing customer revenue comes from emails. Okay? It's supposed to come from these emails.
Oh, and now I've gone from a big, giant hairy problem down to, oh, I need to schedule two more emails this month.
It's just like it, it decomposes the problem down into a place that makes it feel approachable and solvable. And that's what I really like about it.
[00:31:01] Richard Gaffin: Yeah, no, that makes sense. Just kinda like any, any personal life problem that you have to break down as well. It's like you break it down into baby steps and doing a small amount is in some ways better than trying to do it all at once. And so I think that's that's a good summary of, of what this provides.
It provides a peace of mind in the form of smaller problems to solve. Cool folks. Well, thank y'all for listening. We'll see you next week, and until then, solve one hundred dollar problems, not million dollar ones. All right, peace, everyone.