Friday, November 06, 2026

Revenue's up and the bank balance still isn't. Jim Collins's Hedgehog Concept shows SME owners why saying yes to everything is the real margin leak.

Ask an SME owner what their strategy is and they'll show you a document — a slide deck, a one-pager, maybe the output of a strategy offsite from eighteen months ago that's been opened twice since. Now look at where their money and their best people's time actually went last quarter, and you'll usually find a completely different strategy running underneath it. That gap is why so many "strategic" businesses still aren't growing: the real strategy was never in the deck. It was in the ledger. Kevin has spent 30+ years building and running nine companies of his own — and before that, inside the marketing engines at DDB, Ogilvy and Saatchi and Saatchi on brands like McDonald's, Samsung, IBM and Nestlé — and has never once watched a business fail because of a badly written strategy document. He has watched dozens stall because the actual spending and rostering told a different story than the document did, and nobody was checking.

The Named Enemy: Strategy as Decoration

The conventional wisdom says strategy problems get fixed by better planning — a sharper vision statement, a tighter set of pillars, another offsite. That's the myth worth dismantling. Harvard Business School's long-running research into resource allocation, led by Joseph Bower and Clark Gilbert, found that a company's real strategy is the sum of thousands of small day-to-day resourcing decisions — who gets hired, which project gets the marketing spend, whose calendar gets protected — not the document those decisions were supposed to follow. Harvard Business School's work on resource allocation and strategy makes the point plainly: strategy is what gets funded and staffed, not what gets written down. For most SME owners, the written plan and the funded plan have quietly drifted apart, and nobody has put the two side by side to check.

The Framework: The Resource Alignment Audit

You don't need a new plan. You need to test the one you have against what your business actually did last quarter. Kevin calls this the Resource Alignment Audit, and it takes you an afternoon, not an offsite.

1. Pull the real spend, not the budget — Go to your last quarter's bank statement or profit and loss statement and rank every discretionary spend category from biggest to smallest. Not what you budgeted for. What you actually spent.

2. Time-audit the leadership team for one week — Track where you and your senior people's hours actually go, in half-hour blocks if you can stand it. Most owners are stunned by how little time touches the "priority" they'd name if asked.

3. Run the Three Bets Test — Write down the three biggest bets your stated strategy claims to be making this year. Then check steps one and two against them. If the spend and the hours don't clearly support at least two of the three, you don't have a strategy problem — you have an alignment problem, and it's fixable in weeks, not years.

"I have grown my business 5x since working with Kevin. Everything Kevin told me to do was the complete opposite of what I had been doing. Working with Kevin has truly been a complete game changer."

— Richard, Chem Suppliers

Why Owners Know This and Still Don't Fix It

Most owners could run this audit themselves this weekend. Almost none do. Not because it's hard — because it requires a kind of honesty about your own business that's genuinely difficult to give yourself. You wrote the plan. You believe in it. Finding out your own spending and time don't support it feels like admitting failure, so the plan stays on the shelf, unchallenged, while the real strategy — the one being written by your bank statement — quietly takes the business somewhere you never chose.

This is precisely where an outside operator earns their keep. Someone who has sat on the other side of this exact problem in nine different businesses can look at your numbers and your calendar for an afternoon and see the misalignment you've missed for two years, because they're not attached to the version of the story you've told yourself.

Quick Wins Before Your Next Planning Meeting

  • Pull last quarter's profit and loss statement and circle the three biggest discretionary line items — do they match your stated priorities?
  • Ask each senior team member, separately and unprompted, to name the company's #1 priority this quarter. Compare the answers. Divergence is your alignment problem made visible.
  • Block two uninterrupted hours this week to audit your own bank statement as if it belonged to a stranger's business you were assessing for investment.

Key Takeaways

  • Recognise that your real strategy is what gets funded and staffed — not what's written in the plan.
  • Run the Resource Alignment Audit quarterly: real spend, time-audit, then the Three Bets Test.
  • Expect resistance to your own findings — the plan feels safer than the evidence.
  • Bring in an outside eye when the gap is too close to see from inside your own business.

If your business strategy is built on hope rather than a structured roadmap, the Resource Alignment Audit is the first thing Kevin works through with you.

...and you become the owner whose spending and calendar match the strategy you say you are running.

Friday, October 16, 2026

A bank survey found 98% of small business owners do not know their company's value. Most shrug because they are not selling. That is the mistake: the work that lifts value is the same work that lifts growth right now.

Friday, October 16, 2026

Global surveys put client satisfaction with coaching at 95 percent good or excellent. The unhappy minority almost always skipped the same three checks before they signed. Here is what to check before you do.

Friday, October 16, 2026

67% of founders work more than 50 hours a week, and most of those hours go to re-explaining tasks or double-checking work that did not need it. The fix is matching your leadership style to each task's readiness level.

Friday, October 16, 2026

Seventy-seven percent of B2B buyers call their last purchase complex, with six to ten people in the room. Most SME sales reps still pitch like there is only one decision maker, then blame price when the deal goes quiet.

Friday, October 16, 2026

Eighty-four percent of consumers say they plan to buy from a small business in the next two months. Most of that goodwill never converts, and it is not because customers do not care. It is because there is no specific offer ready to meet them.

Friday, October 16, 2026

Most SME owners are hitting their numbers, so why is confidence falling? The real reason isn't the economy. It's what's missing from next year's plan, and the three-question test that fixes it before you finalise a dollar of it.

Thursday, October 15, 2026

Owners testing something new are far more likely to expect faster growth. Here is how to find the adjacent customer segment sitting right next to yours.

Thursday, October 15, 2026

Thought a business coach was out of budget? For many eligible NZ businesses, the Regional Business Partner Network can cover a large share of the cost.

Thursday, October 15, 2026

Some SME leaders are already getting a half-day a week back from AI. Here is the simple filter that decides what to automate, augment or leave alone.

Thursday, October 15, 2026

It was not the pitch that killed your last deal. It was the four weeks of silence after it. Here is the follow-up sequence most SME sales teams never build.

Thursday, October 15, 2026

Most SME marketing stops the moment someone buys once. Here is the Value Ladder that gives your best customers an obvious next step, and why 74 percent never get one.

Thursday, October 15, 2026

A growth plan with no diagnosis is just a wish list with a date on it. Here is the three-part test that separates a real strategy from guesswork, before your next budget gets signed off.

Wednesday, October 14, 2026

Everyone in your industry follows the same playbook. Here is why fresh eyes beat it, plus a one-hour exercise to borrow a proven idea from another industry this week.

Wednesday, October 14, 2026

Five lessons from McDonald's own history that a 20-person US business can copy, plus where systems stop and growth questions begin.

Wednesday, October 14, 2026

Different industries hit different growth constraints. Find the Simple-Growth page written for your type of business, plus two free resources on loyalty and exit planning.