Companies, like human beings, if not exercise and take care of themselves, tend to grow fat, develop bad living habits, become slower, have a difficult life and die early.
An easy way to avoid all this, everybody knows it, is to develop good and healthy habits and going to the Gym.
For a company, the Gym is nothing else than having a regular health check about performance capabilities, cost control initiatives, human resources retention policies, investment priorities, client acquisition strategies and, above all, keep always positive the ratio between costs and profits.
There’s a recipe to do this, easily and quickly, if you are concerned about time and costs: The MoSCoW approach!
We call it MoSCoW but what matters here are only the consonants, not the vowels. And a healthy company knows exactly its MoSCoW:
- M, for Must have: These are the company essentials, without there’s no life at all. The critical resources to keep the company running;
- S, for Should have: If the previous ones are absolutely critical, these ones are absolutely necessary to secure the life and growth capabilities of the company. A good example of a Should is selling capabilities;
- C, for Could have: The two above criteria and resources that fit inside them makes the company efficient and effective. However, everybody knows that from time to time, we need to give a treat to ourselves, as a reward. Do we need it? – No! Do we deserve it? – Yes! But with objectiveness and control;
- W, for Would have: Well, this one is everything we can live without and need to avoid if there’s no value to have them in the company. We can always evaluate if a Would can become a Could, but it never becomes even a Should.
It’s not difficult to do and to implement, these good habits, based on this MoSCoW principle. Does this help you to understand what you need to do to have a healthy company?