155: How to Run Strategy Sprints + Scale by Certifying Coaches with Simon Severino

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Very important conversation to have with your team. Of all the activities, which one are the ones that really move the needle forward and are they really contributing to each other? Are they really building upon each other? Because sometimes we do activities but then the energy dissipates because they do not really build upon each other.

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Welcome back everybody. I am super excited to be here today with Simon Severino. He helps business owners in SaaS and certificate services, primarily agencies, discover how to run their company more efficiently with results in sales that soar. I love the tagline. On his website, strategysprints.com, scale your agency with ease and grace. And he and his team of certified Strategy Sprint coaches help business owners, specifically agency owners, double their revenue in 90 days. He's also the host of the Strategy Sprints podcast. He's a Forbes Business Council member, a contributor to Entrepreneur Magazine, and just launched his brand new book, well new this year, Strategy 12 Ways to Accelerate Growth for an Agile Business. Simon, welcome to the show.

Hey Jenny. Hey everybody.

A man after my own strategy systems and sprinting loving heart. I was so excited when I first encountered you and your work because I love the idea of Strategy Sprints and I wonder, I'm so curious to learn how you think about them, but doing a lot in a little bit of time that can just really accelerate results. So I'd love to start with can you inform us how do you think about what is a Strategy Sprint and what's your process for working with clients?

First of all, I'm so happy to be here because I am a listener of your podcast and I love it and we are people. We come from the same place of systemizing and of increasing freedom and increasing the creativity in what we do.

That means so much. Thank you. I'm truly honored.

And my thing was I'm not happy with the way I coach, and I'm not happy with the way I am coached as an entrepreneur because I'm also an entrepreneur, right. Scaling my own business. And when I look for coaches and for methods, it's always tough to pick one. First of all, which bottleneck should I solve? And then which method is really helpful? And who of those does really care? It's so hard to find out. So I was like, how do we improve this thing? How do we improve coaching? And I am passionate about two questions. What's the right thing to do? And how do we do it quickly? So the first became strategy. So what's the right thing to do? That's a strategy question. And which tools are really helpful to get that question answered in half an hour, in an hour. And then get cranking. Right. And let's get going quickly. In sprints, that was my dream method. And you and I, we both have touch points with Google. I was super inspired by Jake Knapp's Sprint method on the product level. And I was like, what if this works for how to run a company? Because those are my problems. How to enter a market, how to stay in the market, how to crush it in the market, how to stay relevant in the market. There is nothing about how you run a company with those principles, but it shouldn't be complicated to translate that to the company level. And so that's what I did. For the last eight years, I've been just refining the method. It just came out as a strategy, Sprints, the book. And now I'm using that to run my own company. Which, you know, is funny because it's a journey and there were so many stages and we can unpack a couple of them. So I'm an entrepreneur building my own business. We coach people on how they can crush it in the market and enjoy marketing and sales and doing it better. That's what I do.

Do you see sprints as a continual process, the way of running a company, or do you see it as a strategic, let's say quarterly initiative that you do? So, for example, the Basecamp guys, I'm sure you're familiar, they always talk about how they run their entire company in six week sprints, essentially. So for you and how you advise business owners, which one is it? Is it continual or is it in key strategic planning moments?

Yeah, that's interesting because when I'm asked, hey, Simon, can you come to do our strategy workshop? I always say no, because a workshop doesn't really do anything except, you know, energizing A little bit inspiring, entertaining, but that's not what I'm after. I'm after transformation. So the strategy sprint is 90 days and those 90 days are 12 sprints of one week each. So you might say it's a midterm length, right? It's long enough that you can tackle three goals and you have 12 times the chance to measure if it works and to course correct. That's what I like. Because three goals, everybody can have three goals in their head. You feel them, you can have them in your body right now. Oh, I know my three goals. I know what I'm working towards. And you have one week where you just solve one bottleneck. So you know exactly what you are doing this week. This creates such a simple and a clear situation for everybody. I know what we are building. I know when we are done. And that's what I love about the strategy sprint. It's 90 days, 12 sprints, three goals. And every week there is a Sprint dashboard where we measure the one marketing number, the one sales number, the one ops number of this week. So we always know what's going on.

I love how clear that is just even the way you put it. But you're right. Giving people something so straightforward to focus on and sounds like one metric for each of the major categories. What you're describing sounds more like an operating system for how the company works. How does this compare to something like the traction OS that we know swept the entrepreneurial community certainly in recent years?

Yes, Gino inspired me totally. I like eos and I think it was the best solution for that time and it brought a lot of clarity to many companies out there now. To me, the digital age is a bit more fluid and a bit more dynamic. So I wanted the clarity of an operating system with the Dynamism of the Web3world. So I took the best of what was working there, but we changed it to be applicable. For the digital agencies that I work with, they don't care about some things and they care much more about other things. For example, we don't spend a ton of time thinking about the org chart. Org chart for us is something of the past. We think about the here and now and fast building, how we can prototype launches, how we can prototype landing pages, et cetera. So some things have changed in relevance and our method has changed with that. So you might say we are the operating system for the digital agency.

I'm curious, I want to ask you more about your avatar because you said some really interesting things before we hit record. When you say that you deprioritize work charts and even work structure. Tell me more about that. How do you envision it?

Yeah. So our question is, what is the bare minimum that really matters this week? What is the next step right now? So we are in the here and now and we think of what does really matter. So out of the 274 blueprints and tools in the Sprit University, most of them have the function of simplifying and of putting us into the present mode. We don't care about milestones, we don't care about. Org charts, we care about what's right here, right now. What does the user look for, need, want, and how can we improve it right now and get a quick feedback if that's actually improving?

Speaking of figuring out what the bare minimum, what matters most? That's not always easy to determine, Right? So there's that Peter Drucker quote. What gets measured, gets managed. And then that has sparked so many things like KPIs and OKRs and all these things about how to measure EOs has this entrepreneurial scorecard. But it strikes me sometimes, and I've had this experience with a lot of metrics, is that you can measure all kinds of stuff and that does not mean it's getting managed any better than it was before, just because you're measuring it and likewise determining that one thing that matters most each week. I could imagine that that's challenging for certain business owners. So how do you help people hone in on the right thing to make sure that each of these 12 sprints they're doing in a quarter are directionally sound, that are going to create ease and grace and double their revenue.

Yes. So an agency starts a sprint, they usually come because they hit something like 100k per month. And if they do just more of what they do, they seem to just be stuck there. They don't get from 100 to 200 by doing the same things. So that's the moment when they call us. Now we start making a quick, quick audit of all the processes of operations, marketing, sales, positioning and mindset takes half an hour and we know where the bottleneck is. So the bottleneck is probably the key here. Because if you look at the here and now, you can break down a business into very simple components. A business is basically marketing sales and operations. That's what a business is like. You create value by saying, hey, here we are. How can we work together? And hey, let's go and now let's do it. So that's the business in Three elements. If you want to go fancy, let's make it six elements. It's awareness, interest, engagement, closing, delivering, retaining. So if you want to measure anything, measure these three things and find the bottleneck in those six elements. So right now, this week, if you run an agency and I am your sprint coach, I will ask you, all right, what's your marketing number of this week? And you will tell me the one marketing number. The one might be number of opt ins on the landing page might be number of subscribers of this week. But we have together picked the most important number from a white list that every sprint coach has. And we have also a blacklist of numbers that are not allowed because they are just fancy. Like you cannot tell me watch time of your YouTube clips because we don't care. That's not telling us anything. I love YouTube, but that's not a relevant metric. A relevant metric for marketing can be number of subscribers this week, numbers of opt ins this week. So there is a white list. Same thing with the sales number, same thing with the ops number. So we will measure only three numbers every seven days. That's how you solve the number overwhelm which everybody has. They have too many numbers too late. Instead we have three numbers in real time and every seven days we learn from those numbers.

Remind me what those three are. Marketing.

Marketing, sales and operations.

Okay, thank you.

And sales numbers can be number of discovery calls that you had or demo calls that you had or closed deals this week in dollars. An operations number can be your churn rate this week. How many people did you lose from your cohort? If it's a subscription based business. If it's not a subscription based, you might ask how happy are our customers from 1 to 10? And you talk about the NPS or how many client referrals did we get this week? 6? 7, 8? So how many clients introduced you to a new client? Current clients introducing you to a new client this week? 3? 4, 7. So those are three examples of a marketing number, a sales number and ops number. And the work is actually to pick one because that's the relevant conversation, which is the number for each part of the business that tells us if we are moving in the right direction at the right pace.

I was just going to say that picking one is also hard. Not only identifying the bottleneck, you and I share that in common of. I mean, so do many other business authors who talk about operational efficiency, that usually the biggest bottleneck is a good place to look because it's stopping everything else. But as far as key Metrics. What's interesting is in a business like mine, there are many different things going on and you might just tell me, well, then you need to simplify your business. But it's almost like each category of the platform would have a key metric in those three areas. Marketing, sales and operations. So I could look at licensing or coaching or podcasts as a channel or something else, et cetera. Do you think that that is part of the problem if a business is too complicated and you can't find those key metrics? Or do you suggest rotating somehow within the 12 sprints, just choosing a different business area that becomes the focus?

Enters the monthly habit. Because right now we talked about the weekly habit. You know, in the method there is a daily habit, weekly habit, monthly habit. So we talked about the weekly habit. The three numbers that we measure now enters the monthly habit. The monthly habit is here to ask the question, okay, all the activities, how do they contribute to each other, to the parents category? So licensing, how does it contribute to one of those numbers? If it contributes to the sales number, we will measure it in dollars per week from licensing. If it contributes to the marketing number, we will measure it in. These are the number of people who subscribed to the podcast this week because of the licensing activities. So the simplification happens because in the end those activities, we pick them, they matter because they contribute to your dashboard. And sometimes we realize, wait a moment, do they actually contribute? And that's again a very important conversation to have with your team. Of all the activities, which one are the ones that really move the needle forward and are they really contributing to each other? Are they really building upon each other? Because sometimes we do activities, but then the energy dissipates because they do not really build upon each other.

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I'd love to go behind the Scenes of your business a little bit. You were saying before we hit record that you've gotten really clear on your avatar, specifically strategy sprints. The person you're really talking to are owners of agencies with at least 15 people making at least 80k a month. How did you arrive at something so specific? Was that always there, even when you were starting nearly a decade ago? Always. Or did you whittle away little by little, year over year to get to this clarity? Because it seems that that would also help you clarify what you and your team are working on for your strategy sprints.

There is such a huge misconception out there. Even the smartest people, they think that you start with the avatar. All programs, all coaches, they say start with the avatar. My experience is the opposite. After 21 years of strategy advisory, I do it now the other way around. You start doing stuff and then when you had multiple people and you solved multiple problems backwards, you see the avatar, you see it very clearly, which one was the most fun, which one was the most profitable. And then you bring them together. It's quite simple. So in hindsight, you know exactly who this is for. And it happens also similar when you run an ad, you think that you do the targeting first and then the copy. But in reality, after a couple weeks, the ad will tell you who your audience is, not vice versa. So for me, the avatar is something that you actually, you nail it. After a while in the field, I rather pick the big question. So I pick what's the problem? And then I start solving the problem. And after a while, maybe after a couple of weeks or months or years, I know exactly who this is for because I got the data. So in our case, it took decades, decades to nail it. We had always the same problem, go to market problem, how to enter a market, crash it in the market, stay in the market with ease and grace. That was the only problem that we ever solved. But after 1600 sprints we knew exactly. All right, this works quite okay for those kind of people, but it works 100%. You can guarantee the results if it's for agency with 15 people, B2B business, either consultancy or marketing or UX agency, and they are founders led, they are doing 18 to 100,000 right now and they will double their sales in the 90 day sprint and they will have 10 to 14 hours freed up from their time per person per week. You can guarantee it. So it was clear in hindsight and we have many, many clients where we had the same experience. It's so tough in the beginning, but After a couple months or years, you know exactly by looking backwards. What was the most fun? What was the most profitable?

It's fascinating to hear you hone in on the piece about guaranteeing results, that not only was it fun and profitable for you, but that that was the group that you could most reliably, most confidently say, this is exactly what I'm going to help you achieve. I find that something that holds me back is even for this podcast, I'll think to myself, who is this really for? Okay, small business owners within that, okay, they want to have a delightfully tiny team, so smaller than the ones you're describing. And then here's what happens in my mind. So I'm curious what you would say. I'll go, well, is it only people running a location independent business, what is used to be called a lifestyle business, but I refer to it as life giving? Or could it apply to brick and mortar? And immediately my mind goes, well, I don't want to rule out brick and mortar. There are things that could be helpful for them too. And so I find that sometimes I resist getting as clear as you did with telling me who your avatar is, because I figure, well, I don't know, you know, they could be benefiting too. And so I probably water things down. Even still, even though this podcast is much more specific than even my other show, Pivot. So were there moments where you had to rule out a group that you genuinely enjoyed, but it just didn't tick all the boxes? Like, for example, for you to target non employer businesses? It sounds like those might be your colleagues, fellow authors, fellow podcasters, but they're not your ideal customer.

I resonate so much. And I also resisted, and I still resist now a little bit less, but I resisted. I think last year I was on 700 podcasts. And so every time you get asked, right, who is this for? And I felt into my body if my answer feels totally clear or not. And I also saw it in the stats in the weekly dashboard. It was picking up or not picking up, right? You see, hey, they don't get the message. Or, yeah, they get the message. And so before I honed in on agencies, people were not getting the message. It's like the Slack team, If you remember 37 rounds of iterations of telling people, hey, this is a cool thing. And they were like, no, I don't feel it, I don't feel it. And then almost at the end, they were just going out and somebody asks them, but wait a moment, does that mean I don't need to Send emails anymore to my colleagues. Yeah, exactly. Oh, come back in. So sometimes it takes you 37 rounds to get something very simple across. It took me 700 rounds. Yeah.

I can't believe it. 700 last year. Oh my goodness. That's amazing. You must be meeting so many people.

Yes, that's the cool part.

Tell me about how you structure your team. Because in free time in the book, I talk about how there's a way to structure a business for maximum growth. But I personally think that it's just as important to structure the business for how the owner and the manager gets the most energy. And obviously that's not the world conquering type of business, because the world conquering business would subsume the founder's desires in order so that the business grows as big and far and vast as possible. I'm curious how you think about this. Like, is your goal to scale as big as you can possibly grow or did you find a sweet spot for yourself? And so I'd love to know how many full time team members you have if you're happy with this configuration. And then I'd love to also hear about your certification program so that you can scale the work that you do through the certified sprint consultants.

Yes. So I started as a solo, solo guy, right? I was the coach. And then I hit the first plateau. I think it was the first 500,000 per year where I was like, that's it, that's it. I can maybe squeeze in one more weekend of work, but that's it. I'm the bottleneck here. So it was a life giving business, but that life was kind of boring. That life was just being in workshops. So there was no life anymore. I had a business with no life. I was like, no, that's not working. I have to find a better way. And as I usually do, I hold the question. And the question was, how can I keep the integrity and the quality without being the bottleneck? And I had no answer. But I hold the question and I just walk around, right? Go running. I listen to podcasts, I go running. I pass by a McDonald's and I go, wait a moment, this guy here is paying to use a brand and an SOP manual. That's it. And he's opening his own thing in his country. Light bulb moment. That is my direct path. If this works, I have found a scalable model for me. I just have to create the brand and the SOP manual. That's it. And then everybody can become a certified strategy sprints coach. So I was like, this sounds too easy. And that's exactly, that's exactly what we're looking for. We're always looking for a direct path. If it sounds too easy, go for it. Most people are too complicated.

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Yes, it's a select group. They need to fulfill many criteria and then we work very closely together. There is the Monday meeting where all coaches show every Sprint dashboard of every clients and we go over them and they have a 60 days daily certification program and then they get access to the Sprint University with 274 blueprints, tools, swipe copies. So it's a very close, close collaboration. We are team basically. They are in their country, in their vertical, but we are team. We meet every Monday for the coach meeting and I'm currently their head coach and soon somebody else will be the head coach. But I'm currently the head. The first step was to fire myself from operations. And I remember telling my wife, I'm going to fire myself from operations. People cannot book me as a coach anymore. And she goes like but Sahan, you are the business. And I was like yeah, yeah, but something's changing. I'm the bottleneck.

That's like when my friend MBS told me he doubled his rates relative to what everyone else at the company would cost for a client to bring them in. And he would even say to clients, I purposely make it difficult to hire me but if you insist, my rate is this. So he had his if you insist rate, but that was his way of transitioning slowly but surely out. I love how hands on you are with the certified coaches. Do you do revenue share with them? Are they paid as contractors? How do you set that up?

It's a contract like a franchise. So there is a flat franchise fee and then there is on top. The sky is the limit and we can conquer the world. And everybody scales it differently. So depending on their life cycle, right, most of them, they run their own business or are building their own startup and so they enjoy the cash flow that it brings with the freedom. So basically they do two days per week of strategy, sprints, coaching, and then three days per week they build their own business and they know it will take like five years, 10 years. So they like the cash flow and the team, but they want only the good parts of being in a team without the other parts. So there is not a lot of meetings, there is no bureaucracy. Who are we serving? Show me the Sprint dashboards. Are all three numbers going up? Fine. Is one number not going up? Okay, let's deep dive.

I love that. And then they all probably learn from each other. When you do the deep dive into any one metric that's not on the right track.

Oh, we learn so much from each other. I'm learning every day. Like today in the morning, a team started and they want to become ISO certified. And so I was like, hey, people, who of US has done 10 ISO certifications with clients? And then we had one of us from the UK said yeah, me, all right, tell me, how do you do that, which processes are really important, etc. So I learned today how to do ISO certification as I never knew that, but it's important for that specific sprint, for that client. And so we see superpowers everywhere. So I could not possibly bring that quality because we have different superpowers and when we are in one room, it's like the Avengers, right? Everybody brings out their best.

How do you structure your core team? So within headquarters, what does that look like?

Super lean. Super lean. We have three employees and we manage it like the method. So there is marketing, there is sales, there is operations. That's it. These are the three roles. And then everything else is contract based and needs to be resilient in terms of it's always paid from the profits. And if there is zero work, it creates zero costs. And if there is 10x work, it creates more costs, but we are happy to pay it from the profits. So that's one part of the strategy sprints method. You want always to have self correcting, self healing mechanisms in systems. So if I go on holiday and we have 10 times more clients, okay, the costs are now 10xing from the profits and that's all super healthy. If I'm on holiday and we have zero sales, we have also zero costs. So this is something that you want to build into systems. We call it self healing loops and self correcting mechanisms. And so this is how we are built. It's just super lean. There is no headquarter, there are three employees and then there are around 15 contractors on the marketing side, eight contractors on the sales side and then scalable up to hundreds of coaches and they can become thousands very quickly. And this whole thing is super resilient. It's like bitcoin. It doesn't cost anything to build and it's impossible to stop.

Look at you go. That's amazing. Yeah. It's so agile what you're describing. And I just love the intentionality of how resilient. Exactly. Like as you said, it's very resilient system. It's not fragile because.

Whatever the conditions, it adapts to the conditions. And yet it is super scalable because like you said, you could have all those coaches. I imagine if you had a couple hundred coaches, would you need to change anything at hq, the digital hq? Not saying you have a physical one, but sometimes I think about that myself. I mean, I don't really have ambitions to scale to even dozens plural of coaches, unless the demand was really there for some reason. Would that create more overhead for you and your team? Would you just need more leaders to lead that Monday call?

So when we reach 100 we will have multiple Monday meetings. So there will be probably three meetings on a Monday and we will split it in time zones. But the core structure is the same. You are just multiplying like fractals. It's the same structure, just one layer more, a sub segment more, but it's the same structure. There will be the Monday meeting, but there will be probably 3 difference in 3 time zones. Like we'll have an early Monday meeting for everybody from Singapore to Shanghai, a middle of the day meeting for the Europeans and then a later meeting for Los Angeles to New York. I guess we'll have three meetings, but still on a Monday. What else will change? We'll have three head coaches. So I multiply myself as a head coach, so I create one more certification as a head coach. But it's the same structure, it's the same structure. It's just adding one layer. But the structure itself is scalable and healthy in itself. What else will change? We need more parties. We need to do a week Bali together, a week Mexico together. Because when you are so many, then it's easy, you know, to lose the cohesion, like to feel the spirit of the group. So I will have to learn to do much longer parties, Bali, et cetera.

I love that you include that. That's awesome. Yeah. You could have the Strategy Sprint Con where they all get together.

Yeah.

When you source the certified Strategy Sprint coaches, is there some kind of application process and do you require that they have certain business bona fides of their own, their own experience? Because it seems like, you know, you want a little bit of quality control. Right. Of who's going to be in a position of coaching other companies? Or is the framework so resilient that they don't even need experience? Kind of like the McDonald's model.

This is a question I've been thinking a lot about. And so right now the model is they need to have experience in scaling a business. Must be a B2B business.

And they have scaled one and they long term want to be just a freelance strategy advisor or they want to build their own consultancy slash agency slash B2B software. So must be B2B, must be experienced. And everything else we can teach. But the experience of an entrepreneur who's gone from zero to building something and letting it go, this is nothing I can teach. Nobody can teach you this. You have to have experienced that. But everything else, the 274 tactics, how to onboard clients, how to systemize stuff, how to free 10 to 14 hours per week of entrepreneurs, this I can teach you all of that in 60 days. But the experience.

Being in the arena. So I would never take somebody who just has corporate experience, whatever that is, even the best corporate, you have to have experienced what it means to start something from nothing. And all the roller coasters and how you sleep and how you think about it and how it feels and what it means when you hire your first employee. These things are a must.

Yeah. I love that you include how you sleep. It's true. It's like just knowing that visceral feeling of getting more and more comfortable with uncertainty and decision making and all that comes with entrepreneurship. I love too, your focus on asking the right questions. I don't know if you've read a book called the Road Less Stupid by Keith Cunningham.

No, but it sounds great.

You would love it. My brother told me about it every chapter ends. He sets aside an hour a day for thinking time. Capital T. And every chapter, there's tons of chapters in the book so there's just tons of prompts like his thinking time questions that he has synthesized. So listeners, I'll put that in the show notes. Simon, you would love this book. What is a big question that you're sitting with right now in your business that you haven't answered yet?

How can we make all senses work over zoom?

Same word. You mean with your team operations or even with clients?

Both. Both. When we coach clients. How can we get sensorial? How can we get multi sensorial in a square image? Because that's what I miss from being in a room with somebody and then smelling each other and seeing each other to this confined square existence. How can we make the human experience happen in the digital context?

And since you listen to this show, you know that I always end with the same question. If you could give fellow business owners permission to do something differently or drop something altogether, what would it be?

Dropped? The idea that you have to do more. You don't have to do anything. There is nothing to do. You just follow your process and everything will come. And your process is very simple and you know it.

Thank you Simon. I love it. And now we have a new process to try with the 90 day strategy sprint format. The daily weekly monthly habits. So I'm really excited to dive into your book further and really learn how you lay this out for people. Thank you so much. Where can listeners find you if they want to keep in touch?

The book Strategy Sprints can be found on Amazon. I hang out@strategicprints.com and I can be found there. Strategy sprints.com you can also download many of the tools we were talking about. They're open source and you can get them there.

That was one of the first things that excited me when I found your stuff, that there's so many tools and templates. I love it. Well, thank you so much Simon and big thanks everybody for being here listening.

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