To combat the ill-effects of commoditization, businesses more than ever must create a culture of cooperation, innovation and renewal. New product and service offerings no longer reside in the domain of any single part of the organization. Profitability can no longer be narrowly viewed as a snapshot in time measuring “total sales minus total costs.” By contrast, profitability must be understood within a context of velocity, momentum and inertia. Some may refer to this as Throughput Thinking, as partially described within Eli Goldratt’s Theory of Constraints model1. However, Throughput Thinking is much more than a method for understanding and executing organizational complexity. It is a philosophy that empowers the entire organization to answer the question of not only where they make the most money, but also where they make the best money.
The term Best Money is inherently qualitative. Best Money is the profit produced by working with customers on meaningful programs. The essence of this effort is derived by passion and an unwavering commitment to make a difference. Best Money is the resultant of Sales and Operations collectively understanding the essence of customer value. Customers are compelled to work with organizations that authentically foster relationships of mutual respect, mutual benefit and mutual transparency. When customers perceive seamless intentions between their suppliers’ Sales and Operations team, they migrate to a natural state of calm and trust.
