PROFITABLE GROWTH
Achieving profitable growth requires the ability to balance objectives that often conflict with one another, especially when products and services are being delivered across multiple functions, business units and legal entities. Examples of conflicting objectives include:
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- Increasing revenue with new products, while also increasing profits
- Increasing customer satisfaction / retention, while maintaining margins
- Reducing costs and inventories, while simultaneously maintaining service and quality
- Optimizing performance of functions and business units, while doing likewise for GMs as a whole
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These tradeoffs [between cost, service and quality] affect virtually every aspect of enterprise performance. However, few organizations explicitly manage them. Without the ability to formally manage tradeoffs, organizations lack formal mechanisms for optimizing enterprise performance.
Establishing formal capabilities for managing outcomes and tradeoffs is central to our value proposition. These capabilities are embedded into integrated planning and performance management processes, thereby enabling formal mechanisms for:
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- Aligning cost structures with revenue streams
- Managing [internal and external] customer expectations
- Establishing accountability for delivering customer value propositions
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Integrated planning and performance management processes also support sustainable cost reduction and operational excellence, two closely related business objectives. Details about the solution that supports the above can be found here.
