Monday, February 10, 2014
A Balanced Improvement Strategy
Think globally and act locally. Management must first think of the global business, then of the local company, and strike a balance within the overall business strategy. Focusing your business strategy on the “4-C’s” will help leadership to think globally and act locally.
• Customer-based – Growing your business means gaining new customers while retaining existing customers. Focus on improving “value” not just the quality of your product.
• Competition-focused – Mirroring the competition is not enough, sustainability of your business requires innovation in order to produce a superior product (cost, quality, lead-time).
• Cash management – Minimize the fixed costs within a single location and share the cost of capital throughout the corporation, in affect extending the company’s overall Return On Assets (ROA).
• Community support – Longevity of your operation is contingent on gaining the support of your community through job placement, talent management, investments and innovative supplier solutions.