|
Tuesday, 23 January 2007 14:31 |
|
Sounds like an essay question from HBS?? Well..I am talking competing business objectives that executives and managers grapple with. Ken Favaro, Marakon consulting lists the top 3 pairs that challenge executives:-
- Profitability Vs Growth- Do I cut prices to grow my margins or do I raise prices in order to grow my top line. Top-line growth gives scale, reputation and credibility in market, which, in turn draws talent. These are necessary to generate healthy margins, and healthy margins are necessary to generate the resources needed to keep the top line growing. So growth and profitability, while conflicting, are highly depend on one another.
- Short term Vs Long term growth - Should you cut investment today to boost current earnings or increase investment to benefit future earnings. Current earnings enable investments; and you need future earnings to get the licence to invest.
- (I see this conflict day in day out in my company..) Improving parts of the company Vs Improving the whole. This is the conflict between individual performance and collective performance. Should you create more autonomy for individual parts of the company in order to create more initiative, motivation, accountability and ultimately, more, individual performance, or centralize activity into common functions to get economies of scale and scope? Remember that even though a company is only as good as its individual parts, the individual parts can only be as good or bad depending on what they are gaining from being part of a whole.
Cheers!
|