Optimizing your business functions requires you to critically assess each function within your organization based on how it contributes to your core value proposition. An optimized business is agile; it can seize opportunities, overcome challenges, and consistently deliver value to customers and stakeholders.
How to Optimize Your Business Functions Around Your Value Proposition
Evaluate Your Functions
In order to optimize your business functions, you must evaluate them. When evaluating your business functions, ask yourself these two questions:
- Does this function support my core proposition?
- Does supporting this function need to be done in a way that is unique to my business?
For the functions that support your core value proposition, increase your investment and focus. For the functions that don’t, reduce the time and energy you spend on them. The second factor is whether this function is unique to your business. If it is, you’ll have to do it on your own or find a more expensive, custom solution. If it doesn’t support your core proposition and isn’t unique to your business, stop thinking about it!
3 Ways to Handle Each Function
There are three ways you can handle each business function – build it yourself, buy a custom solution, or buy an off-the-shelf product.
Based on how each function supports your core proposition, and how custom you need it to be – determine whether you will build or buy each function. Here’s an example of how a typical business may evaluate their main functions.
These tables are meant to provide a simple overview of your business functions, but we know that in reality, things are much more complex. Each function has many sub-functions that you may have to treat differently. Here’s an example of how a typical business handles their IT sub-functions.
By utilizing these tables, you can systematically assess each aspect of your organization’s functions. Tailor these tables to your specific business needs. Remember, the goal is to gain an understanding of your business functions, enabling you to make informed decisions and implement strategies that lead to enhanced efficiency and overall success.
Optimizing your business functions is not just a goal; it’s a continuous journey towards continuous improvement and excellence. Embrace this approach, and your business will be better equipped to face challenges. In our How to Optimize Your Business Around Your Core Value Proposition blog, we’ll teach you how to identify your value proposition and optimize your business around it to improve your efficiency, profitability, and overall success.
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