“The first step in a growth policy is not to decide where and how to grow. It is to decide what to abandon. In order to grow, a business must have a systematic policy to get rid of the outgrown, the obsolete and the unproductive.” — Peter Drucker
In the financial sector, something I see frequently is companies holding on to unproductive strategies or ways of doing business that might have been profitable in the past but no longer fit given the current business climate.
Consider these examples: a bloated compensation system that over-pays salespeople for what they bring to the table; producers who consistently under-perform yet remain with the company year after year; having a thousand products to offer customers but your sales staff only sells 10.
Companies that want to grow must be willing to take an honest look at all aspects of their business and abandon what isn’t working.
What is your experience on this topic? Have you encountered a similar situation? Let us know. Your comments are appreciated!