The Teeter Totter of Business Decision Management

A teeter totter is a plank balanced on a fulcrum.  Business decisions are very similar with the options management decide upon like –

RISK TEETER

opportunity teeter

There are more categories depending on the magnitude of the impact to your business.  But you get the gist.

One of the most important factors that most any decision  in business impacts is

efficiency teeter

 

 

 

– If you decide to go after market share

– you increase your sales and marketing spend

– you add staff

– you add products / services

– you acquire another company

– replace your ERP or other major software

for example…

You tend to do more than one of these together and they all impact efficiency and your effectiveness.

The critical part of all the above (and other components you are working in) is to ensure success focus on effectiveness in achieving your objective over any inefficiencies your business/staff will experience.

Laggards on your staff will passive aggressively put up speed bumps (hopefully not roadblocks) with claims of making things more efficient by slowing down a change, hedging on the depth of a resource requirement allocation and/or swamping out non-priority activities that they are more comfortable performing than the top priority actions that will directly impact the attainment of the objective.

Therefore, executive managers must pay special attention when making major changes that their measures are effectiveness focused.  Examples from expanding from the above are –

– If you decide to go after market share > effectiveness > focus on the overall budget, the attainment of market share and competitive response vs lie item budgets

– you increase your sales and marketing spend  > effectiveness > obviously it is gaining targeted or better market share and revenues

– you add staff > effectiveness > how quickly can you gain effective work from the new hires

– you add products / services > effectiveness > increase top line revenues, adding new customers, larger share of existing customers spend

– you acquire another company > effectiveness > increase top line revenue and market share

– replace your ERP or other major software > effectiveness > higher quality data collection and standard processes followed for data collection/processing

My old coach would say keep your eye on the ball which is what effectiveness is in the end.  Yes, you could have a more compact swing, better hip turn to use your legs more and quieter hands to improve your hitting the ball.  But, first and foremost, KEEP YOUR EYE ON THE BALL!

 

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