Organizations are on a constant quest to understand themselves and the marketplace and how the two should relate. There are numerous tools and strategies that they can use to put them on the right path to success.

Business performance experts Kepner-Tregoe are strategic thinkers who have developed a list of 9 “driving forces” that influence a business. (In fact, DRIVING FORCE® is a registered trademark of Kepner-Tregoe and readers should visit this page on their site for an overview: http://www.kepner-tregoe.com/resolve/strategy-formulation.cfm).

These forces represent not only the focus of the business and the way they do business, but it can also inform how they approach future opportunities.

Their driving forces include:

Products/Services Offered. Businesses that focus on products usually work within a specific line and rarely depart from it. Most products share similarities.
Markets Served. Businesses that focus on serving specific markets might offer different products but all are aimed at the needs of the market.
Low-cost production. When a business focuses on low cost production, it gains advantages through efficiency. Success might be seen not by raising prices but by lowering costs.
Operations capability. Organizations that can create robust products or deliver robust services efficiently have this as their main focus. Note, while similar to low-cost production, operations capability has a greater focus on processes than on cost.
Method of sale/distribution. Here, a unique and/or proven method of transacting or delivering to the client is what sets the business apart.
Technology. Many businesses adopt technology in their practices but technology leaders fit into this category by creating and defining technology.
Natural resources. As the name suggests, organizations that work with natural resources – as producers or distributors – will have this as their main focus.
Return/profit. These are organizations that willingly switch from one business to another and from one industry to another, depending on where they see trends improving or declining.

Of course, this is just a brief overview and Kepner-Tregoe would go into far more detail. However, for many businesses, they just need a starting place that says “where are we now?” and “where are we going to go?”. This analysis helps to answer both of those questions.

Businesses that can figure out what their main focus is from the above list can use that insight to help them decide what to do next. For example, if a business is driven by the market they serve, they may find that they should survey the market to discover what it is looking for and then fill that need. Or if a business is driven by its unique method of sale, it should avoid chasing other markets or exploring other products or services unless it can be transacted using that sales methodology.

These questions – “Where are we now?” and “Where are we going to go?” – are big questions and not easy to answer in an afternoon board meeting. But knowing the DRIVING FORCES® and using it to inspire the discussion can help businesses to start to answer these questions.

What is your business’ driving force? Leave your answer in the comments!

photo credit: me and the sysop