In most of the small, emerging organizations, the business head is comfortable in dealing with day to day routine management activities and some extent, in improving one side of the business, that is on value addition or effectiveness improvement initiatives. Nothing wrong in developing in operational capabilities, however in this process, the other side of the business, that is on value creation activities get back seat.
Value creation activities include customer pipeline development, new product development, or improving NPD activities, working on strategic initiatives.
As long as the existing customer gives sales order and business also grows along with a few customers, there is no problem for the business head and his organization. The real problem starts when the current customer slows down in their business due to the economic cycle or reduces the share of the business; the business head feels the impact directly in terms of low sales turnover, profitability and cashflow challenges.
It is always prudent and proactiveness to focus equally on value addition and value creation for both survival and sustainable growth of the business.
The balanced approach calls for the mindset to come out of the comfort zone of the business head during good times.
Value creation activities include customer pipeline development, new product development, or improving NPD activities, working on strategic initiatives.
As long as the existing customer gives sales order and business also grows along with a few customers, there is no problem for the business head and his organization. The real problem starts when the current customer slows down in their business due to the economic cycle or reduces the share of the business; the business head feels the impact directly in terms of low sales turnover, profitability and cashflow challenges.
It is always prudent and proactiveness to focus equally on value addition and value creation for both survival and sustainable growth of the business.
The balanced approach calls for the mindset to come out of the comfort zone of the business head during good times.
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