A new mindset
For years Business Process Re-engineering has helped foster the idea of breaking down departmental silos and integrating processes across their boundaries. Aligning tactical decisions with the overall business strategy requires an approach from a broader or integrated perspective as well. Optimal decisions from a single management discipline’s point of view, can be highly unfavorable for another. A sales plan to boost revenue with an increased and differentiated product portfolio is often perceived as a ‘bad idea’ from an operations-efficiency point of view. And a CFO plan to reduce inventory might be perceived as a threat by both sales and operations. Making the right business decisions requires a holistic balancing of these opposite forces. And though one can imagine many possible trade-off combinations, not all of them will be profitable and therefore long-term sustainable. Replacing emotions by facts and calculating the impact of different business scenarios from a 360° perspective is the best decisioning guide at the executive table.
Focus on RONA
Equazion realizes this holistic integration through a pursuit of RONA (return on net assets) improvements. Taking all product- and customer-related external and internal levers of the RONA into account during the decision making avoids biased and unfavorable decisions.
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