Wednesday, March 07, 2007
"management craft " by Ram Charan
" MANAGEMENT CRAFT "
by Ram Charan.
All companies have a budget. It is, however, astonishing how little detail about revenue and sources of revenue growth you can find htere. Almost all of the lines in the budget are cost related. Few, if any, identity resources explicitly earmarked for growth.
The growth budget provides a foundation that will allow a compay to increase revenues instead of just talking about it. It includes all critical actions over the short , medium, and long terms that require resources to achieve revenue growth goals. One of the key missing links for generating revenue growth at most companies is - upstream marketing.
What most people visualise as marketing involves advertising, promotion, brand-building, and communicating with customers though public relations, trade shows, and in store displays. Those activities are primarly " down sream " in nature - they enhance the acceptance of a product or service that already exists.
Upstream marketing takes place ast a much earlier stage, by developing a clear maket segmentation map and then identifying and precisely defining which customers segment to focus on... In any company of reasoanlbe size, nnovtion is a social proces that required collaboration and communication for idea generation, selecting those ideas for revenue growth that are to be funded. and shaing those ideas into product prototypes and launchin g them into market place.
by Ram Charan.
All companies have a budget. It is, however, astonishing how little detail about revenue and sources of revenue growth you can find htere. Almost all of the lines in the budget are cost related. Few, if any, identity resources explicitly earmarked for growth.
The growth budget provides a foundation that will allow a compay to increase revenues instead of just talking about it. It includes all critical actions over the short , medium, and long terms that require resources to achieve revenue growth goals. One of the key missing links for generating revenue growth at most companies is - upstream marketing.
What most people visualise as marketing involves advertising, promotion, brand-building, and communicating with customers though public relations, trade shows, and in store displays. Those activities are primarly " down sream " in nature - they enhance the acceptance of a product or service that already exists.
Upstream marketing takes place ast a much earlier stage, by developing a clear maket segmentation map and then identifying and precisely defining which customers segment to focus on... In any company of reasoanlbe size, nnovtion is a social proces that required collaboration and communication for idea generation, selecting those ideas for revenue growth that are to be funded. and shaing those ideas into product prototypes and launchin g them into market place.
