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By: Kenneth Rudich

Kenneth Rudich — Wed, 23 Jun 2010 17:19:01 +0000

Hi James:

A goal of decreasing expense by 10% would actually be an output. All other things being equal, the outcome would be increased revenue due to the decrease in expense. And possibly a higher profit margin as a result of that. The input would revolve around what you do with your assets – the inputs in the diagram – to achieve that 10% decrease. Maybe you would rework the supply chain to make it more efficient. And that could entail a combination of things – improved processes, automation that requires less people, relocating facilities for strategic advantage, changing suppliers, etc.

For dominating the mp3 music player market, the output is creating a product that is more responsive to that market opportunity (something that can create fulfillment better than what anyone else offers), like perhaps an ipod, and the outcome is capturing enough customers to dominate it. So the product is an output, and succeeding in the marketplace is an outcome. It generates more revenue and more profit.

Good questions. Let me know if more clarification is needed.

Ken

By: James George

James George — Wed, 23 Jun 2010 16:56:30 +0000

So would an outcome be a goal such as decreasing expense by 10% or dominating the mp3 music player market?

Then the output would be the means of achieving it, such as reworking the supply chain or creating the ipod, respectivly.

Am I on the right track? What would the inputs be?