[Column] Principles for Unifying Organizational Groups ➅

I would like to introduce a column article.

A product strategy is a measure to bridge the gap between goals and actual performance. A product refers to the materials for business, and a product strategy is a measure to address the gap in achieving goals. In departments like sales or manufacturing, where numerical targets are set, it involves gap measures, while in departments like management or operations, which focus on qualitative targets, it involves strategies to address the gaps. For example, if last year's sales were 800 million and this year we want to reach 900 million. Identifying the 100 million shortfall is the product. The ways to cover this shortfall include: - Covering it with sales - Covering it with gross profit - Covering it by reducing costs - Covering it through turnover, among various other methods. Companies that use the term "product" have a mindset focused on bridging gaps and shortfalls. Generally, the concept of performance varies by company. Some companies consider performance based on sales revenue, while others may consider operating profit. Our company's management department must determine what constitutes performance for each department. For example, the performance of the management department may be measured by balancing the regular income and expenditure, while the sales department may balance based on gross profit, among various performance metrics. In any case, how to create the materials for business is the essence of the product strategy.

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