The Twelve Components of Profit Design (4-7)

The Profit Design

James Fischer, author of Navigating the Growth Curve and creator of The 7 Stages of Entrepreneurial Growth process said, “A company is never too small to organize their thinking and planning around revenue groups. I consider these 12 factors so critical that I refer to them in a phrase I borrowed from the space program: mission-critical factors. And despite the importance of attending to these points, most companies can only think of two. . .”

The last issue addressed the first four which can be found at effectiveness.com/the-twelve-components-of-profit-design.

Now, a Closer Look at the Next 4 of the 12 Components of Profit Design

4. Scope of the Enterprise
What is the scope of your business? Vertically or horizontally integrated? Do you have a wide or narrow product range? Do you outsource (customer service, marketing, direct mail, etc.)?

5. Culture
It is important to identify and support a dominant cultural preference. Otherwise, employees will not know and understand the type of behavior that best advances the enterprise’s vision, mission and goals.

6. Knowledge Management
Do you derive knowledge from within your ranks or outside? The employees create a talent and knowledge pool. How you tap into the core intelligence of your enterprise directly affects the bottom line.

7. Organizational Structure
A good organizational structure should let you look outward and forward. But most importantly, when you combine value exchange (which is #2 covered in the last issue) and Organizational Structure, you can begin to measure the impact on the current and future capacity of the enterprise.

The other 5 elements of Profit Design will be examined more closely in subsequent issues:

8. Customer Intelligence

9. Strategic Alliances

10. Operating Systems

11. Research and Development

12. Capital Intensity

In The Next Issue: A closer look at the remaining five elements of the 12 Components of Profit Design

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