Three essential checks to ensure a successful
complex web of corporate divisions, some serve as cost centre units, while others function as
revenue or profit centres. However, when desperate times call for desperate measures, a company may
seek to transform its cost centre unit into a revenue generator, striving to remain relevant and
valuable. But how can this transformation be carefully planned and executed to ensure its success?
Let's explore three crucial checkpoints before embarking on the journey of turning a cost centre
unit into a thriving source of revenue.
- Desirability check
avoid being discarded, it's essential to assess your unit's relevancy. If internal stakeholders
no longer perceive its value, it's time to seek relevance elsewhere. Judging the unit's
relevance involves contemplating industry trends and forecasting their direction over the coming
years. Additionally, consider political landscapes and regulations that may impact your
business. Keeping a vigilant eye on government policies ensures that you stay ahead of the
- Feasibility check
Transformation is never an easy journey. People and systems must adapt to new ways of working.
Evaluating the company's strengths, weaknesses, and the capabilities of its people, machinery,
and systems is paramount. However, the commitment of leaders to drive this change remain the
determining factor for success. Their unwavering dedication will guide the organization through
the transformational process, inspiring others to embrace and support the change.
- Viability check
What is a business without its market? Therefore, before initiating any transformation, thorough
research is necessary to identify whether a market exists for the proposed revenue-generating
venture. Furthermore, it's crucial to ask if customers are willing to invest their hard-earned
money in the product or service offered. Identifying market demand and ensuring its viability
will pave the way for a prosperous transformation.
becomes a necessity when circumstances demand it, but its success relies on a meticulously crafted
and thoughtful plan. Before executing your plan to transform a cost centre unit into a revenue
generator, conduct the three essential checks: desirability, feasibility, and viability. These
checkpoints will ensure a smooth journey toward successful execution.