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Alexander Nowroth

Sales and
Business Models
in the Logistics
Industry
Ensuring Growth with Innovative
Strategies
Sales and Business Models in the
Logistics Industry
Alexander Nowroth

Sales and Business

Models in the Logistics
Industry
Ensuring Growth with Innovative
Strategies
Alexander Nowroth
Lebenswerk Consulting Group
Düsseldorf, Germany

ISBN 978-3-658-39755-5 ISBN 978-3-658-39756-2 (eBook)

https://doi.org/10.1007/978-3-658-39756-2

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachme-
dien Wiesbaden GmbH, part of Springer Nature 2023
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher,
whether the whole or part of the material is concerned, specifically the rights of translation,
reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any
other physical way, and transmission or information storage and retrieval, electronic adaptation,
computer software, or by similar or dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this
publication does not imply, even in the absence of a specific statement, that such names are
exempt from the relevant protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in
this book are believed to be true and accurate at the date of publication. Neither the publisher
nor the authors or the editors give a warranty, expressed or implied, with respect to the material
contained herein or for any errors or omissions that may have been made. The publisher remains
neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Responsible Editor: Manuela Eckstein

This Springer imprint is published by the registered company Springer Fachmedien Wiesbaden
GmbH, part of Springer Nature.
The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany
For Melody and Ella Grace, to whom I
owe my personal growth.
Foreword

This book is a novelty. For the first time, the currently prevailing unhealthy
balance of power in shipping is so clearly brought to the fore, namely the one
between the shipping companies and the forwarders. The disruption caused by
the shipping companies and its consequences for customers, the supply chain and
the healthy middle are not only shown in this book, but also questioned, and the
effects on the end customer are set out. The current situation affects large and
small companies and threatens to destroy the entrepreneurial middle class, an
essential part of the economy.
And for another reason this book is a novelty: It deals constructively with
sales in the logistics industry. Since there is almost no literature on sales in
logistics, this area has hardly developed professionally and is often still very
traditional. Alexander Nowroth's book finally creates the basis to take the next
step—and he takes this step himself in practice.
The importance of cooperation between the various stakeholders is empha-
sized in the different chapters of the book, because in today's world it is of great
importance to create and maintain togetherness in order to be able to move for-
ward progressively. The necessary communication and cooperation challenges
each individual team member up to the willingness to take on responsibility
themselves. Appropriate self-motivation, a concrete goal in mind and the assump-
tion of responsibility are an incredibly strong driver for any company. This
applies to the operational area as well as to sales.
Whether the collaboration takes place in the logistics chain between custom-
ers, forwarders and carriers or in sales between the hierarchical levels and teams:
It is and remains the basis for good cooperation and communication. This is made
clear by Alexander Nowroth and questions old structures in which performance is
often not considered objectively or, worse still, only measured in terms of profit-
ability.

VII
VIII Foreword

This book calls for questioning what has become established and regularly
leads the reader onto the path of “continuous improvement”. This and the various
models that Alexander Nowroth shows support the reader in the task of question-
ing his strategy and business model and adapting them to the current situation.
With this book, Alexander Nowroth also provides suggestions for innovation
and progressive progress, which is admittedly a rocky path, but one that must
definitely be taken. However, you don't have to go it alone, because the author
accompanies you with his knowledge and ideas and gives you various kinds of
assistance in your undertaking.
I wish all readers a lot of enjoyment and I am sure that you will smile from
time to time because you have caught yourself or your organization in the wrong
corner for the second, third or even fourth time.
Many thanks, Alexander, for the insights, your constructive criticism and
above all your ideas that you share with us – and not least for the constructive
collaboration.

March 2022 Felix Wenzel

Hamburg, Germany Managing Partner, a. hartrodt GmbH & Co. KG
Preface

The year 2021, in which I began writing this book, will go down in history as the
most extraordinary since the invention of the container in 1956. So many black
swans1were sighted that their number may have exceeded that of the white ones:
just to name a few, the blockade of the Suez Canal by a stranded container ship
and the outbreak of the Corona virus in various Chinese port cities. Explosive,
never considered possible rate increases of up to 1000% led to the fact that the
shipping companies worldwide accumulated a profit of more than 100 billion
dollars in 2021 and 2022. Never before seen capacity bottlenecks in almost all
modalities (in particular containers) and an unending burden on the supply chain
led to a massive strain on all stakeholders involved in logistics. Just before com-
pletion of the original German version of the book in early 2022, the military
conflict between Russia and Ukraine broke out, shaking us all to the core because
of the human suffering it caused. The conflict led to unprecedented sanctions,
which isolated Russia from most of the world's countries. Shipping companies
stopped calling at Russian ports within a very short time, the Trans-Siberian Rail-
way was avoided by many companies and leading forwarders, thus pouring more
water into an already overflowing barrel.
And somewhere in between the front lines of these disruptive developments is
sales. I call sales a “temporary” giant because in 2021 and 2022 you didn't have
to be particularly good to be incredibly successful. After all, all that mattered was
that the logistics companies had freight capacity. If this capacity existed, it was
easy for them to bring it to the insatiable market.

1A black swan is an event that is completely unlikely, completely unexpected, and (almost)
everyone is amazed.

IX
X Preface

You are probably wondering why I wrote this book at a time when many com-
panies were benefitting from the incredible revenue growth and the profits they
had made. The reason why I am writing this book now is, on the one hand, to
examine how the role of sales has changed so rapidly and deeply in such a short
time. Plus, how organisations can safeguard themselves with much more robust
volume growth against the inevitable future big rate decreases. On the other hand,
it is my goal to support organisations in the transition of sales to a hybrid organi-
zational model. Sales is no longer just the front line where solid sales and margin
growth should be ensured. Rather, the sales organization today decisively deter-
mines how innovative a company is and will be in the next few years, because
sales is the first and much earlier than all other departments to notice the game-
changing changes – for example, with regard to customer needs. This is partly
due to the fact that sales enjoys a high degree of trust with its existing custom-
ers. If such a trust relationship exists, we are honest with each other and provide
information that can be of considerable importance with regard to innovations, for
example, and which must be communicated internally into product development.
However, my practice shows that in many cases, due to wrong incentives, out-
dated structures as well as excessive bureaucracy, sales often only inadequately or
not at all meets this role as an innovation driver.
With this book I also hope to close a gap in the professional literature.
Although there are hundreds of books that deal with the topic of sales, there is
none that primarily deals with strategic, transformative issues in logistics sales.
For many years I was successfully employed as a salesperson and sales manager
on different continents in the logistics industry. And from day one it was clear to
me that anyone who calls himself a salesman in the logistics industry is more of a
consultant than just a salesman in the traditional sense.
The job of the salesman is not over with the conclusion of a deal: Because
of the ever-faster innovation cycles, the rapid market changes and the constantly
changing customer needs, sales always has to have its finger on the pulse of the
customer. Day in and day out. They have to point their customers to solutions and
present them with ideas they have not thought of before. During my active time in
sales I went so far as to tell my customers: “My goal is to understand your busi-
ness better than my own.” And I meant it.
In 2016, I finally found my calling when I co-founded a consultancy to share
my expertise and knowledge with other companies, always with the goal of hav-
ing a greater, positive impact on the logistics industry, but also other service
driven industries. Meanwhile, I look back on dozens of successfully completed
projects and countless encounters with wonderful people.
Preface XI

This book is the distillation of my knowledge, my experience gathered in

practice, and my ideas regarding sales in the logistics industry. My intention is
to inspire you in your thinking and acting, and to enable you to make even better
decisions. Therefore, I will deliberately evolve the know-how to a how-to …, that
is, what actually matters in practical implementation.
The structure of the book is quickly explained. First, we focus on strategic
topics, such as renewing the strategy and business model, and then move on to
tactical topics, such as immediately implementable efficiency improvements,
recruiting and cross-selling techniques. I am particularly concerned with the top-
ics of leadership and talent search and also address the question of how to keep
high potentials.
You, dear reader, have a really challenging task ahead of you: transforming
and shaping a sales organization that has been largely static for decades into a
hybrid and perhaps even into a digital organisation one day. I am wishing you that
this book will be a valuable companion on this journey!

Düsseldorf, Alexander Nowroth

December 2022
Contents

1 Upheaval in the Logistics and Sales World: Five Trends You

Need to Know!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Trend 1: Disruption Causes Tension . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Trend 2: Exponentially Accelerated Change Requires
Strategic Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3 Trend 3: Sales Struggles with Bureaucratic Shackles. . . . . . . . . . . . 8
1.4 Trend 4: Sales Becomes More Digital. . . . . . . . . . . . . . . . . . . . . . . . 9
1.5 Trend 5: Closing Rates and “Hit Rates” Gain Importance . . . . . . . . 11
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2 The Most Important Players and Business Models at a Glance. . . . . . 17
2.1 Why a Good Business Model is Essential for Survival. . . . . . . . . . . 17
2.2 The Business Models in the Logistics World. . . . . . . . . . . . . . . . . . . 24
2.2.1 Category 1: Capital-Intensive Shipowners and Airlines . . . . 24
2.2.2 Category 2: Less Capital Intensive—Carriers. . . . . . . . . . . . 32
2.2.3 Category 3: Rising Stars—Start-Ups. . . . . . . . . . . . . . . . . . . 44
2.3 How to Adapt a Business Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
2.4 How to Check Your Business Model for its Competitiveness. . . . . . 46
2.5 Defense of the Business Model against Related Industries. . . . . . . . 51
2.6 Derivatives from the Business Model Adaptation for Sales. . . . . . . 52
2.7 Interview on the Topic of Record High Freight Rates. . . . . . . . . . . . 54
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3 Sales Management: A Guide to Creating a Long-term
Performance Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.1 From an Autocratic to a Meritocratic Leadership Style. . . . . . . . . . . 63
3.1.1 The Unfair Balance of Power and Force. . . . . . . . . . . . . . . . 64

XIII
XIV Contents

3.1.2 Characteristics of a Meritocratic Leadership Style . . . . . . . . 66

3.2 The Basics of a Performance Culture . . . . . . . . . . . . . . . . . . . . . . . . 68
3.2.1 Smoothing Disproportionate Performance Distribution . . . . 68
3.2.2 The Right Sales Team Size . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.2.3 Who is Allowed to Stay in the Team? . . . . . . . . . . . . . . . . . . 70
3.2.4 Increasing Return on Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . 71
3.2.5 Gross Profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
3.2.6 The SEAL Elite Squad. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
3.2.7 Virtual Sales Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
3.2.8 The Entrepreneurial Added Value . . . . . . . . . . . . . . . . . . . . . 73
3.3 Make Recruiting the Best Talent Your Top Priority!. . . . . . . . . . . . . 74
3.4 Stakeholder Management: Efficient Linkage with Operational and
Product-related Departments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
3.5 Weighting of the Incentive System . . . . . . . . . . . . . . . . . . . . . . . . . . 77
3.5.1 Progressive Incentive System and Recognition. . . . . . . . . . . 77
3.5.2 New Business Bonus—Extrinsic. . . . . . . . . . . . . . . . . . . . . . 78
3.5.3 Bonus New Business Profit—Intrinsic. . . . . . . . . . . . . . . . . 79
3.6 Remove Typical Performance Obstacles from Your Path . . . . . . . . . 79
3.6.1 Example Bureaucracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.6.2 Example Pipeline Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . 82
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
4 How to Win and Retain Talent in the Company . . . . . . . . . . . . . . . . . . 85
4.1 Three Things You Need to Know Before You Hire a New
Salesperson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
4.2 What Really Matters When Hiring New Employees. . . . . . . . . . . . . 91
4.3 How to Structure & to Conduct Successfully the Job Interview
with an Applicant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
4.4 Overcoming the Shortage of Skilled Workers. . . . . . . . . . . . . . . . . . 95
4.4.1 Solving the Skilled Worker Problem. . . . . . . . . . . . . . . . . . . 95
4.4.2 Using the Principle of the Wisdom of the Many. . . . . . . . . . 100
4.5 Retaining the Best Salespeople in the Company. . . . . . . . . . . . . . . . 102
4.5.1 Solving the Resource Problem at the Operational Level. . . . 105
4.5.2 More Conflict Hotspots in Practice. . . . . . . . . . . . . . . . . . . . 106
4.6 Which Skills will be Required in the Future Hybrid Sales. . . . . . . . 109
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
5 Cross-Selling and Hidden Customer Needs—The Sales Turbo . . . . . . 113
5.1 How a Dream Becomes Reality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
5.1.1 Creating a Culture of Togetherness. . . . . . . . . . . . . . . . . . . . 114
Contents XV

5.1.2 Making Employees Part of the Solution . . . . . . . . . . . . . . . . 114

5.1.3 Regularly Review and Update the
Cross-Selling Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
5.2 The Importance of Hidden Customer Needs. . . . . . . . . . . . . . . . . . . 115
5.3 Determination of the Cross-Selling Potential . . . . . . . . . . . . . . . . . . 119
5.4 Practical Guide: Creating a Systemic Cross-Selling
Organization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
5.4.1 The Five Biggest Cross-Selling Killers and
How to Avoid Them. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
5.4.2 How to Implement Cross-Selling Based on Six Central
Success Criteria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
5.5 The Implementation Phase of Cross-selling . . . . . . . . . . . . . . . . . . . 147
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Upheaval in the Logistics and Sales
World: Five Trends You Need to Know! 1

 This chapter gives you an overview of the market environment and

profiles the most important protagonists. We intensively deal with the
current, unique market conditions that have led to massive disrup-
tions for many protagonists. Specifically, this is about exponential vs.
linear developments. Here, a guideline is formulated for how an expo-
nential development can be better managed. We also review the indi-
vidual business models and examine which protagonists are currently
and in the foreseeable future under the greatest pressure to change.
In addition, you will receive practical knowledge of how to increase
sales efficiency in the short term.

1.1 Trend 1: Disruption Causes Tension

The traditional business model of the logistics industry and in particular of logis-
tics service providers is facing a disruption that has never been seen before. The
tension between the various service providers has never been more intense than
it is today. Shipping companies and forwarders are exemplary for this: They are
service providers in the classical sense. However, it is the case that the shipping
companies are also service providers for the forwarding companies, after all, as
asset owner they provide the forwarding companies with the transport capacities
for their containers. In parallel, the shipping companies also offer these capacities
to end customers, since they are not necessarily dependent on a forwarder, but can
also ship containers directly with a shipping company. This inevitably leads to a
conflict of interest.

© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden 1

GmbH, part of Springer Nature 2023
A. Nowroth, Sales and Business Models in the Logistics Industry,
https://doi.org/10.1007/978-3-658-39756-2_1
2 1 Upheaval in the Logistics and Sales World: Five Trends …

In addition, service in the logistics industry leaves much to be desired. So at

any time, around two-thirds of all ships were delayed in 2021 (Weinrich 2021).
Since there are no real alternatives, no forwarder can get around the five larg-
est shipping companies. Neither start-ups nor alternative technologies are able
to physically move containers on the world’s oceans for the foreseeable future.
Alternative transport modes such as rail or intercontinental transport by truck
make up less than one percent of the volume transported by sea from Asia to
Europe. Of course, the shipowners are well aware of this and are pushing ever
harder in order to secure further market share. Consequently, the rationalization
wave of the last ten years has increased the market share of the top five shipown-
ers from 40% in 2010 to just under 65% in 2020.
While this rationalization wave is now slowly ebbing, a new trend is becoming
apparent, namely the increasing hunger of the shipowners for the forwarding mar-
ket. The best example of this is the shipping company Maersk, which in Novem-
ber 2021 took over the German air and sea freight forwarder Senator International
for EUR 556 million (Norddeutscher Rundfunk [NDR] 2021). Although Senator
International is not a heavyweight in the world forwarding market, the company
nevertheless brings enough volume to the table to rank among the top 10 largest
air freight forwarders in Germany (Senator International 2021).
For the forwarders, this development creates an almost insoluble dilemma:
If they want to grow in the area of sea freight, they are inevitably dependent on
shipping companies such as Maersk, MSC, CMA CMG and the other big players,
since a considerable proportion of the business is generated by tenders, and only
the large shipping companies are able to offer the most cost-effective rates.
The takeover of Senator is almost a beacon for the forwarding industry, which
until now has felt safe, as no shipping company has so far entered the tender busi-
ness. But now Maersk can join in this segment in a big way and will become a
little smarter with every tender as regards the shipment data of possible future
customers. This is similar to the principle of machine based learning: Through
processing new data over and over, more and more knowledge and thus more
control over a new business field is gained.
In the field of airfreight, however, the situation looks different, because the
carriers, for example Lufthansa, are not allowed to conclude business directly
with the consignor. This is reserved exclusively for the forwarders, since a for-
warder must always be interposed between the airline and the end customer as a
shipping agent. But thanks to the acquisition of Senator, this business is no longer
safe from Maersk.
Is Maersk therefore a jack-of-all-trades and greedy? This remains to be seen,
but it is clear that nothing is safe from Maersk. And it is by no means unlikely
1.1 Trend 1: Disruption Causes Tension 3

that other large shipping companies—as so often with other groundbreaking

world’s firsts by Maersk—will follow the Maersk example very soon.

The Existence of Many Forwarders is in Danger

When you read the previous sentence, dear reader, you may have been shocked.
Perhaps you work for a forwarder that has been in the market for several genera-
tions, perhaps even for well over a century. How can it be, you now ask yourself,
that what has been achieved in recent years and decades should suddenly become
obsolete?

Of course, the market is much too large to be dominated by shipping companies

alone, but the signs of a massive displacement competition are increasing. The
shipping companies, but also most forwarders, are currently enjoying record prof-
its. Everything points to the fact that the forwarders are doing business as suc-
cessfully as ever and that a decline in freight rates is not to be expected in spite of
all predictions.
Service providers, in particular shipping companies, are no longer willing to
give up any of their margin. In the fourth quarter of 2020 and especially in 2021,
they have become increasingly aware of their power and have realized how lit-
tle power those who cannot provide any shipping space have. This has gone so
far that some desperate forwarders, for example the French logistics company
Geodis, chartered a small container ship at horrendous prices in order to at least
temporarily alleviate the capacity problem for the most affected routes (Whelan
2021). Even some industrial companies followed suit, Costco and Walmart are
two prominent examples (McCarthy 2021).
The explosive increase in freight rates is certainly due to a combination
of several unforeseen factors, but we will have to get used to such events more
and more in the future. And for forwarders it applies that they will have to prove
themselves in a hypercompetitive environment that is fueled by their former loyal
service providers. Last year still partners in the acquisition of large contracts,
today it is quite possible that the shipping company uses its newly gained knowl-
edge advantage to its own advantage and tells the former common customer:
“Load directly with us and save the costs of the forwarder.” Today, it seems, noth-
ing is sacred anymore.
Another fact supports this: Approximately 70 to 75% of containers are bun-
dled in long-term freight rates, and only about 25 to 30% end up on the spot mar-
ket (where freight rates are traded individually at the current day’s price). This
means that it is becoming increasingly difficult for shippers to credibly sell real
differences in their service portfolios to their customers. The main argument for
4 1 Upheaval in the Logistics and Sales World: Five Trends …

involving a forwarder has always been that he can find the best logistical solu-
tion for the respective customer and maintain a certain independence in choosing
the service providers. However, this is now diluted by the fact that, for example,
more and more shipping companies are travelling together on certain routes with
so-called “Vessel Sharing Agreements”(VSAs). This is similar to a “light” cartel,
as there is no longer any real competition or it is at least severely restricted. The
competent regulatory authorities could oblige the companies by abolishing these
VSAs—similar to the conference ban of 2005. Whether this will happen remains
to be seen.
The only means available to carriers to counter this existential threat is the
anchoring of systemic capacity to innovate. Only by developing and offering
highly attractive, relevant products can a company secure a dominant position in
certain industries However, the biggest hurdle on the way there is not—as is often
assumed—the lack of innovation competence, but the unshakeable desire and the
understanding that despite current record profits, continuous innovation is indis-
pensable! Success makes you lazy, and such a resounding success as the logistics
industry is currently experiencing makes you complacent and even partially blind.
Let’s take a look at a family-run German logistics company that is part of my
customer base. For example, there is the managing director who is always busy
generating as much new business as possible, driven as he is by sales figures and
various profitability KPIs. Nobody in the company is concerned with the topic
of innovation as long as the good times continue, with the opportunity to make
more money than ever before. First of all, one is inclined to think of oneself and
of today and not of tomorrow. That is human, of course, but is anything other than
conducive to innovation. Innovation means thinking radically differently and at
the same time being open to the fact that one’s own business can move in a com-
pletely different direction.

 Many shipping companies have grown strongly in the last twelve to

eighteen months, so there is a great danger that the organizational
structure has remained unchanged, although it ought to have been
adapted or changed urgently due to the increasing business.

Employees are at the end of their tether in terms of their workload and have no
headspace and even less free capacity remaining to deal with creative, experi-
mental activities. Every minute invested in innovation would be a “lost shipment”
for them. That’s roughly like not wanting to change the tires during a car race
because you’re afraid of losing the time you need to do it. However, the fact that
1.1 Trend 1: Disruption Causes Tension 5

you will gradually become slower with worn-out tires—which stand for an over-
loaded organization in this example—and thus lose the race in the medium term
is ignored.
Being innovative means consciously withdrawing from day-to-day business
and critically examining one’s own business both from a distance and up close.
The “Skunk Works” approach, which was invented for this very purpose, is
known from Silicon Valley (Pratt 2018). Here, a department is de facto hermeti-
cally sealed off from the rest of the company. This allows the employees assigned
to this “skunk” team to concentrate 100% on the development of innovations. If
you now think that this is not possible for you, that you cannot stop the relevant
employees and that you would rather leave the whole thing completely to exter-
nal consultants and other service providers, this can certainly work, but such an
approach entails the not inconsiderable risk that these external consultants will
not gain a deep insight into your business. Ideally, you should work with external
and internal employees together and give them the opportunity to think freely, to
nurture their ideas, possibly to reject them or to check their feasibility. Your motto
can therefore be:

 Precisely because you are so successful, you can afford to take a step
back to take two or three steps forward in the long term through a
serious innovation approach and thus keep your competitors in
check.

It is not so important whether you now make 1.7 or 1.85 billion euros in sales—
especially for family-run companies—but it is all the more important what inno-
vative power you have and whether you also plan for the time that will inevitably
come after the current “high”: namely the crash into more normal realms. Always
keep in mind: the greater the party, the more severe the hangover!
By no means do I want to paint too black a picture, but I absolutely want to
shake you awake, because time and again in my daily work I experience that profit
and sales growth are blindly chased after as if there were nothing more substantial
for the success of the company. At the same time, many company owners swear
that they think fundamentally in the long term and by no means only from quarter
to quarter. However, too rapid growth is unhealthy; this applies not only to chil-
dren, but also to your entire organization. So you should make compromises. Such
a compromise can look like this: you make concessions in terms of sales and profit
growth because your colleagues are getting more and more tired due to excessive
overtime hours leading to more and more avoidable mistakes being made.
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