Identifying Key Resources for Performance Optimization PPT
This PPT slide, part of the 20-slide Strategy Dynamics PowerPoint presentation, outlines a systematic approach to identifying the resources that underpin organizational performance. It emphasizes a causal analysis rather than relying on statistical correlations. The method encourages asking "what causes what?" to drill down into the factors influencing revenue and costs. For instance, revenue is defined as the product of sales volume and price, while costs are broken down into salaries, sales, marketing, and R&D expenses.
A key aspect of this analysis is the mapping of each element onto a diagram, which can be created using various tools like paper, whiteboards, or software. This visual representation helps track performance outcomes over time, allowing for a clearer understanding of how different elements interact and contribute to overall performance.
The slide introduces the concept of "accumulating asset-stocks," which are resources that exhibit specific behaviors—they can accumulate or deplete over time. The logical causality rule remains applicable, meaning that the relationships between sales volume, customer counts, and salaries are interconnected and can be quantified. For example, sales volume is derived from the number of customers multiplied by sales per customer, while total salaries are calculated based on the number of staff and their average salaries.
The concluding note highlights common examples of resources, including customers, cash, personnel, product catalogs, and capacity. This structured approach provides a framework for executives to assess and optimize the resources critical to their organization's success.
This slide is part of the Strategy Dynamics PowerPoint presentation.
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