TOS is a model that increases profit margins because it creates profound awareness of your company’s strategic leverage points, and aligns activities to maximize them. TOS consists of two elements:
Element 1: The Five Necessary Business Conditions
For a company to be effective five necessary conditions must be not only be in place, but operating at a sufficient level:
I. Clarity and agreement on the overall vision and business strategy
II. Sound financial model to make good decisions
III. Organizational strategy that assures the best people are on board
IV. Viable sales/marketing strategy to assure we are pursuing the right targets
V. Viable operations strategy to make all of the above happen
Element 2: The Focusing Engine:
A continuous improvement process must also exist. The process should assure the company is using its scarce resources wisely and focuses on only in the right areas. The 5 step-focusing engine identifies and utilizes the company’s strategic leverage point with all functions correctly supporting this task.