AMBIZ Regenerating The Possible

Transforming Challenges into Opportunities: Turning Cost Centre Units into Revenue Generators

June, 2023 — Written by Trineke Haruko


Three essential checks to ensure a successful transformation

In the 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.

  1. Desirability check
  2. To 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 curve.

  3. Feasibility check
  4. 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.

  5. Viability check
  6. 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.

Change 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.

Rani Soebijantoro
Founder & Chairwoman |

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