What is Driving Your Company?
If we cannot determine what the core driver for our business is, then setting a strategy for the company will be impossible. Strategy is simply the framework which guides the choices that determine the direction of your firm. The Driving Force is the primary determiner of the scope of future products and markets.
The concept of the driving force was first presented by Benjamin Tregoe and John Zimmerman in their book “Top Management Strategy” that was first published by Simon & Schuster in 1980. I find their discussion on strategy, both what it is and is not, to be the most concise and comprehensible of any text I have read on the topic. The next few blog postings on strategy will be based on my interpretation of their work.
There are really only three categories of drivers for a business.
These can be divided into more 9 detailed forces that help focus a business on its true driver. I will explore each of these in upcoming posts. Today, I am introducing the concept of a DRIVING FORCE.
Products or Markets Served
Companies who have products a their driving force will continue to develop products similar to their current products. New products are similar or derivatives of current offerings. Growth is attained by expanding into new geographic regions.
Market driven firms will provide a range of products to fulfill the current and emerging needs of their current market demographic. It develops or acquires new products to support its current market.
This group of companies derives its new business by creating new products and services based on its expertise and body of knowledge – technical, production, sales, distribution, etc.
These firms generally develop offerings that they are best equipped to develop and then seek applications that can use it. They are adept at locating the users of the expertise and applying it to their specific application.
Results as the driving force are the typical profit-, or revenue- driven firms. These firms are willing to modify products offered, markets served, and acquire new capabilities to grow profit or revenue. A firm is NOT results driven if they are unwilling to make these types of changes to their business to drive results.
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