New Business Power Management

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Business Power Management

Business is all about Winning and to Win we need Business Power.

Enterprise business power corresponds to its total capability to win (to make business and profits happen).  The over-all objective of business power management is to build and manage both 1) the more or less intangible Brand & Customer assets and 2) traditional tangible assets.  I will explain this further in the “New Asset Management World” chapter.  Operational business power management is a type of trans-enterprise business power chain management.

To win with business power is a trans-enterprise business operations management process that is to develop, finance, administer, supply (purchase and manufacture), market (sell) and deliver its products and services to customers.  This business power win process is based on trans-enterprise teamwork, as the whole enterprise team must work effectively together to make business power happen.

Strategic & operational business power management goes much further than the more limited marketing power management.  Marketing power, which is also a fundamental part of business power, is limited to the capability of the enterprise to market and sell its products plus to manage Brand & Customer assets.  Business power management, however, goes one step further and covers management of all enterprise resources in order to maximize all assets, tangible or not.

The business power concept is complex
and I have therefore chosen to divide it into three major business power levels in order to make it easier to understand and more tangible, as we can only see and work with what we can understand.  The three business power levels will be discussed in further detail in the “Payback” chapter.

The President and the top management team (together with the Board of Directors) primarily manage the enterprise’s strategic and operational business power.  All enterprise employees at all levels are business power contributors.  Business power is ultimately built on people power as shown in the picture on the left.  Again, this is trans-enterprise teamwork, which confirms the vital importance of human resource management.

The people power base concept shown on the left is very general but I have no intention to explain it further in this book, which is focused on the more technical business power management side.  There is clearly no future without quality leadership and quality people with the will to conquer new business.

Business power management is also very important from the external investor’s point of view, as it is used to maximize Brand & Customer assets and profit in order to improve the price/earnings ratio, which is essentially what the investor purchases.  Brand & Customer assets, however, are not fully defined and the exact impact of business power is difficult to communicate to external analysts.  Still, I am sure that improved value management of intangible Brand & Customer assets and the enterprise’s new business power management capability will be vital for establishing a favorable price/earnings ratio.

 

 

 

Manage Brand & Customer Assets

Manage Brand and Customer Assets“Dynamic-Tangible Brand-&-Customer Assets” are the major corporate assets, which require “Dynamic Profit Center Management” to cover both static and dynamic business models. Dynamic-Tangible market assets have direct impact on Profit-&-Loss Statements, which should be managed effectively.

Manage Corporate Power Chain

Bottom Promotion“Corp. Business Power Chain” bridges Static-Tangible and Dynamic-Tangible assets and is the kernel motor for creating cash flow and tangible business results. All departments and personnel are “Business Power Chain Contributors” and part of Corp. Performance Management, as explained in “Dynamic Balance Sheet and Profit-&-Loss Statements”.

Manage Business Timing and Change

Manage Business Timing and Change“Business Power Market Timing” and Corp. Change Management are critical in fast moving and ultra competitive global markets, which require “Dynamic Business-&-Profit Forward Management” with high management horizons in order to follow high market/business paces and secure future business.