Earlier in the week we covered the topic of strategic planning with insight from Cécile Bernheim, an experienced strategy and business planning expert in Europe. Continuing the conversation of strategic planning, Cécile reiterated the importance of collaboration as it relates to portfolio management and client segmentation.
Portfolio Management, or how resources are allocated across business lines and geography in relation to potential for growth, needs to be done in collaboration in order to be accepted. It has to be a collaborative work among the different organization levels and across departments including the operations/business units. The best results are generally derived from common tools with local data provided by the region themselves. The data should cover both macroeconomic and industry data. All in all, the success of portfolio management resides in good cross-functional collaboration and alignment, common tools and local data and last but a good education process on benefits to the company of the approach.
Interconnected to portfolio management is the understanding of your customers, a vital process of strategic planning. For Client segmentation, it’s important to understand the business of the customer or client of which you’re engaged with to evaluate segmentation: Within which channel are they operating? What’s the client size and degree of internationalization? If you take the larger companies of the world, they’re very international and well poised for partnership, whereas smaller companies might have better proficiencies with local and region specific talent to consider. Furthermore, it’s also helpful to identify the strategic role of the client: Are they adversarial, ready to partner, or interested in driving business? These are all key questions to ask when evaluating client segmentation.
Frontier Strategy Group is pleased to welcome Cécile to our Expert Advisory Network and we look forward to many more content-rich conversation with her. To listen to or download the podcast, click on this link to access the iTunes store.