Evaluating Strategic Investment Priorities for Growth PPT
This PPT slide, part of the 30-slide Fit for Growth PowerPoint presentation, presents a framework for evaluating investment priorities within an organization, categorizing them into 4 distinct types based on their strategic significance and associated cost percentages. Each category reflects a different focus and level of investment, guiding companies in making informed decisions about where to allocate resources.
The first category, "Differentiating Capabilities," emphasizes the importance of unique strengths that set a company apart in the market. This section suggests that 20-30% of costs should be directed here, highlighting the need for innovation, brand development, and consumer insights. The focus is on achieving excellence in these areas to maintain a competitive edge.
Next, "Competitive Necessities" also requires 20-30% of the budget. This category includes essential operations like logistics and IT architecture that are necessary for survival in a sector. The emphasis here is on efficiency, cost reduction, and maintaining acceptable quality levels.
The "Basic Business Capabilities" category, which demands a smaller investment of 10-20%, covers fundamental operations that keep the business running. This includes routine tasks like tax reporting and facility maintenance, where the goal is to minimize costs and enhance operational efficiency.
Lastly, "All Other Activity" represents a significant potential cost burden, with suggested allocations of 30-50%. This category encompasses legacy investments that may not add value, urging companies to critically assess and eliminate unnecessary expenditures.
The slide underscores the necessity for organizations to prioritize investments strategically, ensuring that resources are allocated effectively to drive growth and operational excellence. Understanding these categories can help executives make better decisions regarding where to focus their investment efforts.
This slide is part of the Fit for Growth PowerPoint presentation.
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Growth Strategy Organizational Design Cost Reduction Assessment Operational Excellence Cost Reduction Logistics Innovation
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