Do you know your products? Do you know your clients?
Sounds simple! It isn’t!
Most companies think they know them because they track:
- Sales
- Volumes
- Market Share
That’s not knowledge. That’s activity.
Real knowledge starts when you ask harder questions:
Which products actually fund the business – and which consume the system?
Which clients create value – and which create complexity?
Many products sell, but:
- Require Discounts
- Increase Operational Friction
- Tie up stock and cash
- Inflate sales, logistics, and admin OPEX (Operational Expenses)
Many clients look “important”, but:
- Need Constant Attention
- Negotiate Everything
- Delay Payments
- Destroy Margin Quietly
Even worse is the combination of low margin clients buying low margin products.
Here’s the uncomfortable truth:
Profitability is not a sales issue. It’s a portfolio issue.
When you don’t truly know your products and clients:
- Complexity Increases
- OPEX grows
- Management gets exhausted
- And the system starts working against you
That’s why strategy is not about doing more. It’s about choosing where to play – and where not to play.
Not all products deserve to live. Not all clients deserve to be served the same way.
Don’t invest in growing your business, changing the warehouse and distribution system, production, technologies in a complex and loss-making environment. Dematerialize things first by knowing your products and customers.
When companies finally see this, something changes:
- Focus Improves
- Decisions Become Calmer
- Margins Recover
- Execution gets Lighter
Know your products. Know your clients. Design the system accordingly.
That’s where sustainable performance starts.
The ConnectDots methodology and tools does exactly this.
See here the ConnectDots Methodology
