The Portfolio Management Approach to Business Transformation

One point of view that may allow a business owner to move forward with their business is to view the business as a portfolio of assets. The portfolio becomes a metaphor for the business itself. Instead of considering the employees as Human Resources the better approach is to consider them as assets.

Resources are for the most part consistent and self similar. Assets vary and some may be under-performing or underutilized. Business processes and systems are assets and if they are unique they have a much greater value.

Beyond these assets the firm has the more traditional assets of equipment and technology. It may also have some proprietary assets such as patents and trademarks.

All of these add up to value that is then modified by supply and demand in the market place. So try to view your business as a portfolio and you may discover new insights that can lead to transformation and progress.