12 · Implementation Checklist: What to Do First
No matter how good the theory, execution is what counts.
This chapter maps the path “from framework to action”: what to do first, what comes next, and how to diagnose every month.
I. The 6-Step Implementation Roadmap (in priority order)
1️⃣ Get the Numbers Right: True Gross Margin by Product / by Customer
Without this, pricing and cutting orders are just guesses.
- Use ERP data for management accounting (by product / by customer / by project)
- Find: the 20% that makes money (invest more) and the ones that don’t (raise prices / cut them)
- Deliverable: a one-page “product P&L”
2️⃣ Set the Rules: Budget + Delegation & Approval Authority Table
- Annual budget (revenue/cost/profit targets broken down by department)
- Authority table: who is allowed to spend how much (spend freely within budget, approval required above it)
- Deliverable: a one-page “authority & approval table”
3️⃣ Build the Loop: Monthly Operating Review + Quarterly Retrospective
- Monthly operating review (non-negotiable): variance → attribution → actions
- Quarterly retrospective: course correction → hypothesis testing → target adjustments
- Deliverable: a meeting calendar (fixed dates every month)
4️⃣ Cover the Key Roles: A/B Backup + Core Talent Lock-in
- Every key role has an A/B backup (never depend on a single person)
- Core talent: lock in with equity/high pay
- Deliverable: key-role list + succession plan
5️⃣ Set the Red Lines: Cash Flow / Customers / Policy Contingencies
- Cash flow red line: no expansion when cash on hand covers less than X months of expenses
- Customer red line: if a single customer is > 50%, develop a second customer
- Policy contingency: scenario plans for sudden policy shifts (especially e-cigarettes)
- Deliverable: a one-page “red lines list”
6️⃣ Continuous Improvement: Eliminate One Unprofitable Business Every Year
- Every year: strategy review → cut one unprofitable customer/product/business
- Every year: widen the moat by one notch
- Deliverable: annual strategy session
II. Monthly Operating Diagnosis Template
Run through it by the 10th of every month. 10 minutes.
Finance
Operations
Organization
Strategy
III. Annual Strategy Session Template (1 day)
Morning: review
├─ Last year's goal achievement rate (gap analysis)
├─ Five Views (macro/industry/customer/competitor/self)
└─ Retrospective: which assumptions were wrong
Afternoon: planning
├─ Next year's direction (what to do / what not to do)
├─ Three horizons (H1/H2/H3 resource allocation)
├─ Budget (revenue/cost/profit targets)
├─ KPIs & performance targets (company → department → individual)
└─ Top 10 key actions
IV. Starting Points for Different Roles
| Role |
Where to start |
| Founder/CEO |
Ch. 08 Decision Engine + this page’s 6 steps |
| Finance |
Ch. 05 cash flow + management accounting |
| Operations/Production |
Ch. 03 Value Chain + lean |
| HR |
Ch. 10 Iceberg Model |
| Strategy/Executive assistant |
Ch. 01 BLM + annual strategy session |
| New company |
Ch. 09 startup stage + Ch. 02 Governance |
📌 One-line summary: execution = get gross margin right → set delegation rules → build the two-meeting loop → cover key roles → set red lines → cut one thing every year. Run the diagnosis template monthly; stick with it for a year and the system grows itself.