Frictional Forces Internal from People, Products, and Processes
The force of friction is both static and dynamic. You need a force to overcome the static (resistance) to change and to get started. Once you get going, the resistance, the dynamic friction is less; but, you still need to keep pushing to keep moving in the right direction.
People. Now that you have a good picture of what is happening all around your company on the outside, it’s time to look at your internal activities. First and foremost, everyone talks about the culture of your organization. Your culture is captured in your vision and mission statements. Your values and long term goals are important to motivating your workforce. Your short term objectives will obviously affect what you do. What are your plans for developing people, motivating them and rewarding them?
Product. How are your products positioned today against the competition? What is your roadmap for new product development? Do you have the right features for the future? Are your costs in line?
Process. Your processes need to continually improve to drive cost out and improve quality by all its measures. Get lean in everything you do.
With that you can determine what your operating budget is going to be. Closely related to that is your plans for investing in capital expansions and the cost of capital for process improvements.
What do you have going on internally that you need to deal with? Are you worried about passing on the company to the next generation or creating an Employee Stock Ownership Plan? Do you need to reduce costs? Are you dealing with the need to train new technicians? What Key Performance Indicators (KPI’s) will you use to monitor your progress?