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February 09, 2004
Core Critical
Another perspective on gap analysis starts here.
Most people have way too complicated a view of how their companies are organized, which makes it hard to make things better and improve profits.
Instead, think about your business as simply as possible. Consider the smallest number of units which allow you function. Or perhaps, think about it as an expense statement with the fewest possible line items. I like the first way better, which will lead you to a P&L analysis when you're done.
No matter how you look at it, here's what you should come up with:
1. Sales and Marketing - telling people about what you've got, and helping them purchase it.
2. Product Development - coming up with cool things the market wants and will pay for.
3. Production (or operations) - manufacturing and/or delivering the products and services PD comes up with, in sufficient quantity and with low-enough costs
4. Customer Care - making sure your clients (customers) are satisfied, loyal and repeat buyers.
5. Executives, Administration and Overhead - the glue that holds everything together.
That's it.
Think about this and let me know if you come up with any other "core critical" elements to a business. I don't think there are any.
PL
Posted by plemberg at February 9, 2004 05:07 PM