OnPoint, LLC

Becoming both a quitter and a winner

Agile organizations must be prepared to adapt quickly to changes in the market. To pursue a new opportunity, they must be willing to re-deploy scarce resources by abandoning a product, service or activity that already exists. The decision to abandon is painful and is typically delayed far too long, thus depriving the new opportunity of resources.

In his book, Management Challenges for the 21st Century, the late Peter Drucker proposed that abandonment decisions must be practiced systematically. Drucker described an outsourcing firm that scheduled abandonment meetings on the first Monday of every month. At each these meetings, all levels of management complete a comprehensive review of one aspect of the business and identify what should be changed or abandoned. Twice a year, all levels of management must report on the actions taken as a result of these meetings.

Without a formal review process, unnecessary work and unprofitable business will drain resources and impede progress. If you periodically review your operations, you will find projects that should be canceled, services that are no longer profitable, and reports that no one reads. Such work should be identified and eliminated. Your competitive edge could very well result from the work you don’t do.

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OnPoint, LLC