Every business consists of five components essential for its existence, survival and
growth - market, products and services (technology), organization, people, and finance.
Take away any one of these components and the company ceases to function.
Each of these five possesses unlimited potentials that can be tapped to transform the component into an engine to drive the growth of the company.
The maximum achievement results when all five components are energized and developed in a balanced and harmonious manner.
Where the accumulated energy of the company is the fuel for growth, the five components utilize the fuel and drive it to growth and profitability. Just as more energy in the company provides more fuel for combustion, so to the well-being of each of the components determine the final outcome. Together the fuel and the power of the five components drive the company to growth and prosperity. The stronger the combustion more powerful is the result.

Let's DEFINE each of these five components more closely.

1. MARKET: This component includes the company's relationship with existing and potential clients/customers, its knowledge of changing needs and opportunities in the market, the way it identifies and reaches its clients/customers, the quality and speed of service it provides, marketing, advertising, and the selling and management skills its possesses.

2. PRODUCT AND SERVICES (Technology): This component refers to the capacity of the company to deliver products and services. It includes the range and quality of products/services it markets, the technical knowledge and skill of sales and service staff, and the level of technology incorporated in its products/services and utilized to carry on business.

3. ORGANIZATION: This is the component that holds everything together and forms it into a living whole. Organization consists of the structures, systems, policies, procedures and activities of a business, the manner in which it exercises authority, takes decisions, communicates, coordinates and integrates its activities.

4. PEOPLE: This component covers the energies, abilities, skills, and attitudes of employees that can be harnessed for growth. People and companies grow together.
Those companies that provide maximum opportunities for their people to grow, find maximum opportunities for their own growth.

5. FINANCE: This component defines the way in which the company manages, monitors and utilizes capital resources for its growth. It includes the quality of systems and skills for accounting, budgeting and financial management, cash and credit management, control over purchasing and inventory, access to capital.

Balancing the five engines

The performance of a company is determined by the extent to which it utilizes its potentials. A business achieves maximum performance when each of its five components is fully developed, and when all five are developed in a balanced and harmonious manner.
When the development of the components is uneven, the weaker components prevent full utilization of the capacities of the stronger ones.
For example, a company with a good reputation in the market or excellent products will not be able to fully leverage these strengths if its people lack critical skills or its organization cannot respond quickly to growing market demand.
We can also see that the company is as strong as its weakest engine (as indicated by the black bar across the following chart).

Balancing the Five Components

YOUR COMPANY
Review the definitions of the five components above again. Then think about how your company rates on each of the components based on the definition. Be sure to indicate where there are problem areas at your company (within the engine definition). Try to get other people's feedback in making the determination.

What changes can the company make to overcome the problem areas?
How should it be done? When should it be done? Who should do it?

Make the changes ASAP!

Here we present Batard & Partners consulting deliveries in support of your business growth strategies to improve each of the five fundamental components of your company; market strategies, products and services strategies (technology), organization strategies, people strategies, and finance startegies.