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PeterisChiefExecutiveOfficerforamedicalsupplymultinational.Hiscompany
hadjustcraftedanewplantocountercompetitivethreats.Itstressedthe
needtocutcycletimeconcentratesalesonhigher-marginproductsanddevelop
newmarkets.Allinallthiswasaprettyclassicverysoundstrategy.
FourmonthsaftercirculatingtheplanPeterdida“walkaround”toseehow
thingsweregoing.Hewasappalled.EverywherePeterturnedpeopledepartments
—wholebusinessunits—simplydidn’t“getit.”
Firstsurprise:Engineering.Thegrouphadcutproductdesigntime30%meeting
itsgoaltoincreasespeed-to-market.Good.ThenPeteraskedhowmanufacturing
wouldbeaffected.Itturnedoutthenewdesignwouldtakemuch
moretimetomake.Totalcycletimeactuallyincreased.Ourmessageisnot
gettingthroughPeterthought.
Secondsurprise:Sales.Thenewstrategycalledforashift—emphasizehighmargin
salesratherthatpushingproductdownthepipelineasfastaspossible.
ButjustabouteverysalespersonPeterspoketowasmakingtransactionalsales
tohigh-volumecustomers;hardlyanyonewasbuildingrelationshipswiththe
mostprofitableprospects.Salesisdoingjustwhatit’salwaysdonePeter
thought.
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