Sustainable business

February 22nd, 2010  Posted at   Operations Management, business

We have great strategies from the top to see the business through the next few years. But how are these translated to operations guide and behaviour in the company?

You know that a great strategy has gone wrong when Sales and business development folks go all out to cling deals to meet numbers without considering whether the company can cope with the demand. Once they got the deal, the company will go into panic mode when there aren’t sufficient resources to achieve the business goals.

My suggestion is to setup a corporate framework that encourages prudent behaviour and accountability. Not just rewarding sales figures that are not sustainable if the company is patching itself up to deliver.

Imagine a company that deliver results by connecting things up prematurely, sales organization gets the bonuses for delivering, and 1 year on, the business cannot sustain the operations because the ad hoc mashing of services in the company gave way.

This brings us in the future to another topic regarding how we can make a company more agile to keep up with new business challenges.

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