The Most Important Department
I just read a post titled, “The Only Number that Matters in Business.” It took me back to a few months ago when I had the opportunity to hear Kevin Wheeler speak on trends in the area of talent management. One of his discussion points was about management focusing their energy on the needs of top revenue producers of the organization. Afterwards, I was chatting with some colleagues about the session and this prompted a convo about the importance of department functions that don’t necessarily generate revenue but support revenue generating areas.
A while ago, I heard a CEO speak to an HR audience about the most important department in the organization. I know – you’re thinking he said HR. Nope. He said sales. Because without it, the HR department wouldn’t exist.
I’d like to explore this with you because it’s important for HR to get their heads around it. And without getting into the whole “chicken and egg” thing (i.e. sales wouldn’t even be there without HR). Is there a most important department? And, if so – who is it?
Businesses need to find customers (i.e. generate revenue). Once they find a customer, it’s in their best interest to keep them because it’s cheaper to keep a customer than find a new one. That’s where support departments come in…customer retention.
But it only seems logical that companies will always want more customers and a greater market share. So while keeping the customer is important…so is the constant process of getting new customers.
It seems to me that organizations have two kinds of employees: those who directly generate revenue and those who indirectly generate revenue by supporting the former. I think we’ll all agree that companies need both. And, they’re both important. But do they both generate profit? And, isn’t that the most important thing in business?
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