How Strong Are Your Company’s Functions?
To drive accountability when implementing EOS, we utilize an “Accountability Chart”. The Accountability Chart is based on the fundamental belief that every company – regardless of industry or size – has only three major functions:
Every organization has a Marketing and Sales function where they go out into the market and create demand, then convert that demand into revenue. Every organization has an Operations function where they manufacture a product, deliver a service or both, and every organization has a Finance function where they track the inflow and outflow of financial resources, deal with financial controls, and manage financial assets.
If you’re going to build a high-performing company, then all three functions must be strong. Let me prove my point:
– What happens in a company where the Marketing and Sales function is strong, the Operations function is strong, but the Finance function is weak? The company mismanages its financial resources and either runs out of money, is sold, goes out of business, or never really achieves any meaningful level of success.
– What happens in a company where the Marketing and Sales function is strong, the Operations function is weak, but the Finance function is strong? Customers leave because the company can’t deliver on its quality and timing promises and the company underperforms or fails.
– What happens in a company where the Marketing and Sales function is weak, the Operations function is strong, and the Finance function is strong? The company goes out of business because of weak sales or is possibly sold.
I’ve simplified this example to make a point: every one of your functions must be strong if you’re going to get anywhere close to achieving your company’s full potential. In reality, sometimes Marketing and Sales splits into two distinct functions. Sometimes, Operations splits into 2, 3, or 4 separate functions. Sometimes Finance splits into IT and/or HR.
The rule of thumb at the leadership team level is that a company has 3 to 7 functions that make the business run, and every function must be strong.
If you have weaknesses in any functions in your business, click here to schedule a time to talk!