business consists of five components essential for
its existence, survival and
growth - market,
and services (technology), organization,
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
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
4. PEOPLE: This component covers the energies,
abilities, skills, and attitudes of employees that
can be harnessed for growth. People and companies
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.
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
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.
changes can the company make to overcome the problem
How should it be done? When should it be done? Who
should do it?
the changes ASAP!
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
and services strategies (technology), organization
strategies, and finance