Beginners Guide To The Tornado Method
Beginners Guide To The Tornado Method
Beginners Guide To The Tornado Method
Foreword
Neville Chamberlain and I met 20 years Use the Tornado Method to make sense of
ago and I’m happy to say he is as much a where you need to focus next, troubleshoot
geek now as he was when we first met. your business, deal with overwhelm… Heck,
use it to have a life. Because the way Neville
He’s never been your ordinary, average, run- explains it, you are where the tornado hits the
of-the-mill, techno-geek – a geek for the sake ground and can cause the most damage – so
of geeking – oh no, his geekiness is far from you need to take care of yourself so you can
ordinary. He’s extraordinary. take care of business.
Neville has a unique talent for being able to
simplify and codify complex systems in such a Neville’s Tornado Method should
way that you can immediately understand come with a cape and 8ghts.
how each part contributes to the whole. For
those of us who are entrepreneurs, business It doesn’t. But it should. Well, maybe not the
owners, and Captains of Industry, this insight ;ghts, but the cape for sure. In as long as it
is like being giged a Super Power because takes you to read this book you will gain
there are very few systems more complicated immediately usable and powerful insights into
and interdependent than business. how to take your business from zero to hero.
Here, at last, is a way of understanding not And what do I know, maybe ;ghts are your
only how business works, but how your thing. Who am I to suggest you don’t snap on
business can work beAer. And you don’t need some spandex and leap tall buildings with a
an MBA to understand it either. The concepts tornado emblazoned across your chest.
just make sense, and going from
Michael Dean Dargie | Make More Crea;ve
understanding to something you can put to
use right now is easy – and fast.
When I went truly “solo” as a consultant, I You don’t need an MBA or business educa;on
Now I was on my own, and I quickly
thought I knew quite a lot about building and to learn how to use the Tornado Method to
running a business.
got lost trying to do all the things I build and run your own business.
thought were necessary to build a
Ager all, I’d been in the frenzy of the dot-com If you do adopt the Tornado Method, you will
era as co-founder of an Internet incubator (as
business. find it easier to:
we called it then), did a very successful
I needed something to help me make sense of • deal with overwhelm,
company turnaround, ran a successful
all the things I had to do, but as hard as I • troubleshoot and fix problems,
bou;que consul;ng business (both mul;-
looked, there was nothing out there.
million dollar businesses) and done consul;ng • manage your business,
work for one of the biggest players in the So being the systems nerd I am, I started
Canadian oil and gas world. building my own.
• and, if you have a team, engage them so
you can have a truly high-performing
But I soon realized that while I did know a lot Since mid-2017, the Tornado Method has business.
about some parts of building and evolved to become a proven framework for
Ul;mately, if you can get all 11 elements in the
running a business, I had building and running a small business. I use it
three layers right, you will have not just a
previously always had a in my own business and with my clients. It’s
successful business—you will have a life as
team around me that been tested with literally hundreds of
well.
took care of all the businesses, from startups to growing, from
solopreneurs to teams of 20. And that’s something worth working for.
1. Revenue Engine
The Revenue Engine is how your business makes
money. It consists of elements you’re already familiar
with, including marke;ng and sales. 2
2. Building Blocks 3
The Building Blocks are the design of your business. Well-
designed building blocks make it easier to market, sell and
deliver your stuff. This is where you’re working on the business.
3. GeRng Stuff Done The layers build one on top of the other. Your Revenue
Ul;mately, everything in your business falls on your shoulders. If Engine will only be successful if you support it with
you want to have a successful business, you have to maintain solid building blocks – and ultimately everything rests
high levels of energy, focus and produc;vity. on your shoulders.
10 The three building blocks are supported 9 Your products and/or services. We call this
by your strategy (knowing where you a Product Ladder because offering
want to go), and your planning (what customers a choice (from small to large)
you need to do to get there) makes it easier for them to buy.
11
You can’t build a successful business The Purpose In the process of working through this I gained
As I built my business it became blindingly one more piece of insight which led me to The
spending 8me on stuff that doesn’t One Ques;on.
clear that I had to be very careful where I
maJer.
spent my ;me.
The One QuesDon
If something didn’t contribute to moving the
I knew that as a solopreneur I didn’t have ;me
business forward, I had to stop doing it. Ager
for things like management reports – but I did
all, I s;ll wanted to have a life, so I just wasn’t
want something more specific than “a feeling”
willing to work 80 hours a week.
to judge if something was working or not.
But figuring out what really maAered was not
But working with clients made me realize that
that easy.
“our marke;ng is great because we get lots of
The Tornado Method helped me figure it out: views on Instagram” was not a true measure
of marke;ng success.
• Each element in the Tornado Method has a
purpose. So I turned the purpose of each element into a
ques;on – which measures how well each
• If something I’m doing in say, Marke;ng,
element is really performing.
doesn’t contribute to the purpose of
marke;ng, I had to stop doing it.
Back Office: The purpose of your Back Delivery: Usually no problems here – most Follow Up: No one likes feeling like a
Office is to run a slick business. No late of us are pretty good at what we do. But transaction (I got your money so now I
filings, admin up to date and all that jazz. it’s about more than just doing our stuff: don’t care any more). So the purpose of
the purpose of Delivery is to provide Follow Up is to make sure they don’t feel
The One Question: Is my admin up to date,
value, quality and a five-star experience. like a transaction.
and do I know where my money is?
The One Question: am I delivering The One Question: are they delighted,
flawlessly every time? and do they come back for more?
Strategy and Planning: The purpose of Strategy and Product Ladder: The purpose of a Product Ladder is to
Planning is to know where you’re going and how you’re make it easy for customers to buy – usually by offering
going to get there. them a choice.
The One Question: Do I know where I’m going, and how The One Question: is it easy for them to buy?
I’m going to get there?
So her
e yo u h
elemen ave it
t s of t – all 1
he Torn 1
Metho d a do
in the
togeth three l
er w ith ayers
Purpos each e
e an d lement
One Q ’s
uestion
.
The core worksheets will give you There are four core worksheets in the Tornado 4. The Domino Sequence
Method: The Domino Sequence is used to help
the tools you need to assess how
priori;ze where you need to focus next.
well your business is doing and focus 1. The Quick Assessment
on what maJers most. The Quick Assessment, as the name suggests, Before you start
gives you a quick overview of how your I recommend you print out the core
business is doing. Use this to decide where to worksheets in Part 6 so you can follow along
focus next. and apply the core worksheets to your
business.
2. The Revenue Engine Worksheet
The Revenue Engine Worksheet, also known as
the Brutally Honest Worksheet, will help you
understand what’s really working – and what’s
not.
The Quick Assessment gives you a 1. How is my business doing? 2. Where do I need to focus next?
quick overview of how well your First, it gives you an at-a-glance overview of Second, the Top-Level Assessment will help
how your business is doing overall without you determine where to focus next.
business is doing and where the “hot
gesng into too much detail.
spots” are. Each element depends on the elements in the
We can easily get overwhelmed by all the layers below it, and in the Revenue Engine, an
details we have to deal with when building a element depends on the elements preceding
business, and this overview helps us hide it.
There are two major reasons for doing a top-
some of the detail so we can get a clear idea of
level assessment:
where we need to focus.
Worksheet, because this is where you Event sponsorships In-person meetings Trial periods
Categories
the purpose of the Revenue LinkedIn posts In-person meetings Weekly progress reports
will discover that there are a small number of metrics that tell you
Leads generated 1 12
how well that element is doing.
For example, one of the most important metrics for Sales is the total
value of sales made. In Marke;ng, the most important metric is the Articles sent 1 16
indicators:
Leads generated 1 12
• You shouldn’t have to spend a lot of ;me to calculate a number.
Choose numbers that are readily available or provided by the
system you’re using (most systems will at least tell you how many Articles sent 1 16
Needs work
Creating your Domino Sequence
Hurting the business
To create your Domino Sequence, start
by coloring in only the performance
indicators in the Revenue Engine
2. Find contributors
• Look at any elements preceding the trouble spot
in the Revenue Engine. Are they delivering on
their purpose? If not, they may be contribu;ng
to the problem, so mark them so you will know
you need to fix them as well.
• Now look at your building blocks. Are any of
them contribu;ng to the problem? Mark those
as well. In the Revenue Engine, there is no right order 4. Draw arrows to show your sequence
in which to fix things. Ask yourself: Now draw arrows from the first thing you need
3. Find the right sequence If I fix this, will it have a knock-on effect to fix to the second, from the second to the
If there are problems in your Building Blocks, fix somewhere else? third, and so on.
them first. The Revenue Engine elements build on This will help you decide what to work on first. Then start working on the first in the sequence.
them, so un;l you’ve fixed your Building Blocks
you won’t see substan;al improvements in your
Revenue Engine.
Beginner’s Guide to the Tornado Method back to contents 34
Part 3: How to use the Core Worksheets: The Domino Sequence
In this example,
the sequence sta
chang ing that m rts w ith the Bus
ay affect yo ur P iness Mo del, bec
r o ause
yo ur bran d, whic du ct La dder, which in tu
h – if yo u chang rn may affect
e it – w ill definit
ely affect yo ur
marketing.
MarkeDng
Common Problems
Marke;ng problems are ogen caused by:
Here are some of the most common
problems we see – and the most common • Problems in marke;ng itself
contribu;ng causes. If you see similar • A weak brand and/or a brand not used
paAerns in your business, you can use these consistently.
examples to construct your Domino
Sequence. • An untested business model targe;ng the
wrong customer segments with a weak
value proposi;on.
2 3
Use the core worksheets as a
regular check-in on how your
business is performing
1 4
Overwhelm can be your biggest 1. Put everything in a bucket 3. PrioriDze the tasks in the most
Think of the 11 elements in the Tornado
important bucket
enemy
Method as buckets. Take everything you have Now that you know which bucket (element)
As a solopreneur or small business owner, to do and put it in the appropriate bucket. you need to work on first, priori;ze the tasks
everything rests on your shoulders. It’s easy to in that element.
You can do this electronically, with tools like
lose track of what you need to focus on, and Trello, a task manager or even just a text You will find this a lot easier to do because
when overwhelm sets in you will start spinning document. Post-It notes on the wall provide a there are rela;vely fewer tasks in each bucket.
your wheels. great visual overview.
4. Focus on compleDng the first task
Here’s how you can use the Tornado Method
2. PrioriDze the buckets, not the tasks Now focus on gesng that first, most
to deal with overwhelm.
Once you have all the tasks sorted into their important task done. Avoid the tempta;on to
appropriate buckets (the Tornado Method jump around to other tasks – this will just slow
elements), stand back and priori;ze the you down.
buckets. There are only 11 of them, and
deciding what needs to go first is a lot easier Rinse and repeat
than dealing with dozens or even hundreds of When you’ve completed the first task, go back
tasks. to step 1 and repeat the process. The second
The Domino Sequence is a great tool for and subsequent ;mes will be a lot faster than
priori;zing at the element level. the first.
The Tornado Method was born out of my own Your feedback is highly appreciated Good luck building your business
frustra;ons in building a business, and it’s If you have any comments or ques;ons on this I know it’s a tough road with many ups and
helped me – and many other solopreneurs and guide – or anything you want to ask about downs and no guarantee of success. But the
small business owners – build a beAer your own business – please email me. I really rewards are more than worth the effort – so
business faster. appreciate hearing from you, and you will hear good luck building your business!
I hope that this guide will help you do the back from me personally.
same. My email address is [email protected]
A workshop at the
ATB Entrepreneur
Centre in 2017. All
the participants
were startup
business owners.
Am I generating enough of the Are enough of them expressing Do enough of them Am I delivering flawlessly Are they delighted, and do
right kinds of leads? an interest? eventually buy? every time? they come back for more?
Working
Test / Improve
Ideas / Queue
Stopped
Category Metrics Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Leading
Marketing
Lagging
Leading
Lead Nurturing
Lagging
Leading
Sales
Lagging
Leading
Delivery
Lagging
Leading
Follow Up
Lagging
Build your own Revenue Engine Monitor using this Google Sheet as a starting point
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Domino Sequence ___________________________________________ _____________________
business date