Building Block 6: Portfolio

The product and service portfolio of a company can be both the cause of a company’s difficulties and the key to its future success. In this context, past and current success is no guarantee of the company’s future success. Use restructuring to create a balanced and sustainable product and service portfolio. Restructuring does not mean that everything in the company has to be changed. Carefully consider which changes are actually necessary for the sustainable success of the company, and stick to existing good solutions. The strategic directions of restructuring are thus improvement, streamlining, and/or innovation. Do not ask yourself how much a product or service must cost, but how much it may cost. Restructuring allows you to design the organizational structure and processes of the company in such a way that the cost targets derived from target costing and the associated competitiveness can actually be achieved.