“Concentration is the key to economic results. Economic results require that managers concentrate their efforts on the smallest number of products, product lines, services, customers, markets, distributive channels, end-uses and so on that will produce the largest amount of revenue.” – Peter Drucker
It is important to focus on the activities that are going to help the organization accomplish their goals. An organization only has limited capacity to provide full lifecycle support for your products and services. More products and services will not necessarily enable you to accomplish your goals and may actually distract you from important activities that will help you accomplish your goals.
Some examples of goals in this area:
- Increase market share of “abc” product/service by ‘x%’.
- Launch product/service “abc” with ‘x’ required results.
- Enter new market ‘xyz’ with product/service “abc” with ‘x’ required results
- Develop a new product/service with ‘x’ required results
- For our key products, increase customer satisfaction, improve key processes, etc.
- Utilize social networking to increase our marketing and capture ‘x%’ of the market, increase ‘y’ new customers, etc.
- Increase marketing effectiveness
- Restructure pricing to be more competitive in ‘xyz’ market segment, take market share, etc.
- Retire ‘xyz’ product/service and redirect resources to ‘abc’ product/service
Define your product/services goals to ensure the organization can focus on the portfolio that will ensure the financial goals can be met.
Product & Services goals help define “what we do”.