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Develop Strategic Business Units – Brian Tracy 2011

Dublin
Location:Dublin
Date posted: 2011-02-23 20:26



Develop Strategic Business Units – Brian Tracy 2011

Develop Strategic Business Units

Brian Tracy 2011By Brian Tracy

The strategic business unit (SBU) concept has revolutionized many multi-product or multi-service businesses. It is a way of thinking that is absolutely vital to business success. It was first developed by the Boston Consulting Group and then used by many Fortune 1000 companies to transform their organizations into more efficient and vastly more profitable companies.

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Business Within the Business
Each unit is managed as a separate business, with its own management structure, strategic plan, business goals, sales and revenue targets, levels of profitability, and key roles and responsibilities of the people within the unit.

The starting point of implementing the SBU method is to make someone specifically responsible for the operations and the results of the unit. A competent person is put completely in charge of attaining a certain level of profitability, exactly as if he or she were being made president of a separate business.

Basic Business Planning
To make the SBU approach work, you begin by drawing up a complete business plan for each unit. Each product or service within the unit must also have a complete business plan that includes estimated sales revenues, costs, and profitability. You then proceed to determine the exact people and resources that will be necessary to achieve the goals of this SBU.

Make Someone Responsible
The primary reason that a product or service succeeds is that a competent person is completely responsible for it and is totally committed to its success.

A major reason is the failure of any product or service is that the responsibility for its success or failure is spread among several people, and no one is accountable. No person has a meaningful stake in the outcome.

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