subject: The Parthenon Principle in Building a Successful Business [print this page] The Parthenon Principle in Building a Successful Business
If there is one building that could represent the glory that was Greece, it would probably be the Parthenon. It is the perfect example of the good planning, persistence, hard work and commitment of the ancient Greeks. It was, after all, constructed as part of the rebuilding of Athens after the Persian War. Dedicated to the Greek goddess of wisdom Athena, the Parthenon withstood 2,000 years of history. Although partially destroyed today, it is still a symbol of tenacity and creativity. It has also become synonymous to business success. The values that brought the Parthenon to life are now the very principles used by business owners to build a strong and profitable venture. This is known as the Parthenon Principle.
The Parthenon Principle explained
The Parthenon is famous for its pillars or columns. These columns are a metaphor for the core systems in every business. Even an incremental change in each of these columns can contribute to the overall success of the business. With each small change, the overall structure of the business improves.
Consider, for example, the individual systems in the human body. An improvement in just one of these systems can help result in the overall improvement of a person's health and vitality. In a similar fashion, the integrity of a business also relies on these systems in order to survive and grow.
The Mastermind Mentoring Program with Ronnie illustrates the seven core systems -- or pillars, if you will. These are: Sales, Services, Pricing, Promotion, Referrals, Productivity and Profitability (Cost Controls). Even a small improvement in any one of these areas will affect the overall performance of the business. This performance, in turn will improve exponentially with every change in each pillar. A small improvement of only 10% in each pillar has the potential to double the profitability and productivity of the business.
Area of Activity Performance - Improvement - Cumulative Affect
1. Sales 10% - 1.10 x
2. Services 10% - 1.21 x
3. Pricing 10% - 1.33 x
4. Promotion 10% - 1.46 x
5. Referrals 10% - 1.61 x
6. Productivity 10% - 1.76 x
7. Profitability 10% - 1.94 x
To benefit from the Parthenon Principle, encourage your team to focus on all these areas or pillars of the business. Find out how you can improve your performance in each, even if changes are only small and incremental. You could, for example, determine the most effective ways to improve pricing and services, increase sales and productivity, attract more referrals, minimize cost and maximize the results of promotions. As seen on the table above, even an improvement of just 10% in every 'pillar' can result to a more robust, productive and profitable business.
