The formula is well known, but the fact is that many companies are not prepared to put in the necessary means and resources to achieve certain objectives.
Most bosses will rightly say that they should focus on 2-3 main objectives and invest in them. This formula is naturally appealing, but it is a little too quick to forget that other aspects of the company must also be given special attention.
It is hard to say which areas should be given priority, as each company has its own objectives, opportunities, challenges, and possibilities. Nevertheless, it is not difficult to point out that most business plans focus on the core business, leaving the non-core activities to one side, or even putting great pressure on their costs and resources.
Is this always the right calculation? We doubt it…
It is certainly important to focus resources on the company’s core activities because these are the areas that generate the highest revenues and margins. Conversely, if these core activities can grow, it is mainly thanks to the non-core business entities.
You can have the best products or references, but you will have great difficulties, particularly in terms of performance and image, if your ‘logistics’ do not follow.
The skills, flows and processes, the relevance of your human resources, purchasing, stocks, infrastructure, technology, security, and maintenance sectors, etc. are decisive. Without them, your “sales” department is simply ineffective, or even non-existent! It is therefore essential to give yourself the means to implement your policy by being able to invest in sectors that are not - a priori - profitable or direct contributors.
Most company CEOs have no idea - really no idea! - of the number of operations that go on behind the scenes every day to make the company run smoothly. It would take a very small number of people or systems to bring the company to a complete standstill in a matter of minutes…
Beyond the risk management issue, this shows that special attention, regular investments and especially supervision and training must be made in these “back-office” environments.
It is one thing to participate in the savings to be made in a company, but it is quite another to have all investment cut off, to have all operational leeway removed, and to have all rights to training removed.
Giving oneself the means to implement one’s policy also means knowing in which ‘league’ the company wishes to play. Everyone is free to buy a luxury car, but it is becoming difficult to demand a small engine and a 20-25% discount for it: there comes a point when being consistent becomes a cardinal value!
That the company operates at two or even three speeds can still be understood that it practices a form of ostracism towards certain entities is another matter.
Have a good week, good thoughts and see you soon.