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Herman Mott: The Simple Metric That Transformed a $13M organisation into $230M in 10 years. Yes 25%CAGR

Author
John Downes
Published
Tue 12 Aug 2025
Episode Link
https://criticalfewactionspodcast.com.au/HermanMottEpisodePage

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Do your customers trust you to deliver?

  • Are late or incomplete deliveries costing you repeat business?
  • Is “on time” performance just a dashboard metric;  or does it reflect your real customer experience?
  • Could one overlooked KPI be hiding millions in lost growth?

If you want to scale profitably by delivering your promise every day, this episode is for you.

In this episode, I sit down with Herman Mott, a former Managing Director who helped grow a $13M organisation to $230M in 10 years. His tool? DIFOT;  Delivered In Full, On Time.

Herman shares how this one metric aligned his people, systems and customer promise;  and how mid-sized CEOs can do the same.

What You’ll Learn:

✅ Why DIFOT is a customer reputation metric; not a logistics stat

✅ How tracking DIFOT by process, product, and team unlocks margin and retention

✅ Why you must measure the full “order to cash” cycle to improve

✅ What the data says about SMEs who measure end-to-end ops

✅ How culture, visibility and live data make DIFOT sustainable.

Highlights:

00:00 Meet Herman Mott: A Journey of Success

00:53 Understanding DIFOT: Delivered In Full On Time

01:23 Herman's Credentials

04:23 Transforming Business Operations with DIFOT

06:58 Implementing Six Sigma and Lean Strategies

12:11 Measuring and Improving Business Efficiency

14:17 The Importance of Sales and Marketing Efficiency

15:49 Engineering Innovations for Operational Excellence

21:23 Building a Culture of Continuous Improvement

24:48 Managing Working Capital Effectively

26:39 Supplier Collaboration and Inventory Management

29:10 Innovating with New Products

31:49 Leveraging Logistics Partnerships

33:22 Implementing DIFOT and Technology

40:40 Engaging Employees and Building Culture

42:13 #CriticalFewActions™ for Senior Leaders

The #CriticalFewActions™ You Can Do Today:

  • Track DIFOT across products, customers and teams;  not just at a high level
  • Map your order-to-cash process and uncover hidden costs
  • Make delivery data visible daily
  • Empower teams to take ownership and solve issues early.

If you found this conversation valuable, please Subscribe / Follow, leave a comment, and share this episode with your peer business leaders. Your support helps us reach more CEOs who want to improve organisation performance and value.

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Sponsor: The CEO Masterclass in Strategic Planning and Implementation

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OR: 

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Final Thought:

Your operations are either keeping promises;  or breaking them. DIFOT shows you which. Make it visible. Make it cultural. Then watch your growth follow.


References:

  • Why DIFOT is a big deal for customer satisfaction, ITE Community, 2020:-
  • Studies show that poor OTIF/DIFOT delivery leads to customer dissatisfaction and defections — including warnings that "a company can suffer a colossal customer exodus when it fails to honour that commitment" in ecommerce contexts blog.roambee.com+4community.ite.org+4conexiom.com+4.

  • Transform the whole business, not just the parts, McKinsey & Company, 2019:
  • McKinsey research confirms that breaking down silos with end-to-end operational transformation can yield a 30–40% boost in performance, far outperforming piecemeal improvements mckinsey.com+2mckinsey.com+2mckinsey.com+2.

  • DIFOT overview and benchmarks, Wikipedia & Industry sources:
  • Academic sources suggest that best-in-class retail supply chain operations aim for 97%+ OTIF at SKU level, marking the metric’s importance as a competitive benchmark consignmate.com+9en.wikipedia.org+9blog.roambee.com+9.

Tags:

#CriticalFewActions #CEOMasterclass #DIFOT #OperationsLeadership #CustomerTrust #OrderToCash #BusinessExecution #MidMarketGrowth #LeadershipMetrics #VisiblePerformance

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