Organizations must regularly evaluate assets in order to determine their value differentiation. Too many times, an organization holds onto a product or service that is minimally impacting their profit (i.e., bricks in a backpack); whereas the trade-off decision would be a better investment of their finite resources to an asset with a higher payoff.
In order to determine what to divest of or eliminate, a company must have a solutions mindset that works across silos. Project gates that are systematically monitored, and do not isolate. The performance tracks against pre-determined metrics, so that there is clarity on when to abandon or divest.
After making that tough decision, the challenge continues. As a company shifts their strategic goals, there will be employees and organizational structures that require changing. To enable the new strategy/product/service, new competencies/processes are required to execute.
Does your company regularly value assets to determine what to abandon/divest?
