Complexity drives margins and costs; focusing creates sustainable success.
In a changing market, a company intends to remain independent by focusing. Focusing comprises nine activities:
- Establishing transparency of one-time costs by breaking it down into fix costs and investments for variants and variant drivers, such as customers, brands, sales channels, markets, applications, innovations, technologies, and locations,
- radical capping of the number of variants to the fraction with the best margin dynamics,
- variant-driven reduction of one-time costs,
- variant-driven reduction of break-even revenue,
- variant-driven reduction of variable costs,
- solution for remanence costs,
- profitability analysis of focusing,
- approval of relevant stakeholders, such as customers and workforce,
- establishment of a competitive complexity management.
We advise you to focus.