11 effects of a wide range

The complexity of the choice, psychological stress, expensive descriptions and other consequences that await those who have embarked on the path of a wide range.

Everyone should understand how many problems he will have to face when creating a wide range and understand whether he is ready for this.

Many still believe that it works this way:
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“So-so ... The more of all sorts of things I have, the more people will have a choice, and the more likely they are to find exactly what suits them. I think it will increase my profit. "

Well, something like this. Unless much more confusing. At the same time, not everyone understands what awaits him. I would like to draw attention to the consequences of a wide range so that everyone can answer the questions: “Am I ready for this? Do I have enough resources? ”

With a wide range of products, the company will acquire a mass of management processes, not to mention other difficulties.

Psychology

Difficult choice

People find it difficult to make a choice in real time if you have to choose from more than three options. Barry Schwartz described something similar in his book Paradox of Choice. Why “more” means “less”. ” People generally tend not to make a choice. Even from the three options is quite difficult to choose one thing. Everything is quite simple: the choice is baffling and depressing, since it is necessary to abandon alternatives.

Psychological stress

The greater the range - the more difficult the management of the commodity matrix. The more complex the management, the more chances to make a mistake, and the more time you will have to spend on work. Perhaps someone has heard of such a feature: when a person is faced with a mass of tasks, it is difficult for him to take on one of them. Stupor and fear of starting, because everything looks very difficult - this is common in such cases.

Advertising and descriptions

More advertising

More positions - more advertising. More advertising - more expenses. Therefore, more resources are needed to launch a campaign.

More descriptions

Each position should have a qualitative description. What are the descriptions and which of them are the most effective I wrote here, you can read who is interested. With regard to advertising and descriptions: unfortunately, in most cases, entrepreneurs neglect one of the basic rules of project management:

A project is doomed to failure if it is not provided with all the resources necessary for its implementation.

Neglect is expressed by the placement of a mass of positions without proper advertising and qualitative descriptions. Simply put, the products put up, but the fat part of the marketing stupidly spat.

Organization

Software

The wider the range, the stronger the company's need for professional software. The needs of the company simply will not allow the use of free or cheap software with limited functionality. In addition, your databases will become more popular in the eyes of intruders. Complicated and expensive accounting systems - this is what awaits a company with a wide range.

Logistics

This is all that is included in the processes of supply management: procurement, transportation, sales and storage of materials, parts and other equipment. In addition, it is the management of financial flows. The group of logistic processes is also with a narrow range, but it will not be superfluous to repeat that the harder the system, the harder it is to manage. Simply put, get ready for additional costs that will allow you to reduce costs in organizing the turnover.

Warehouses

Actually, yes. No storage space can not cope. And the more varieties of products, the harder it is to find a suitable room. In addition, the more expensive it will cost, because it must be equipped in accordance with the need to quickly and easily find certain positions on the basis of their classifications.

Number of staff

The company is cluttered with processes - the number of personnel increases proportionally: more people are in storage, more programmers, more movers, more sales managers, more support agents, more managers at various levels. And who will look for all these people? HR right. And in the amount of one unit, he is unlikely to cope. There is nothing strange or bad in this, as well as in other consequences - it is only a question of the availability of the necessary resources and psychological readiness. Growth is good if the project management rule described above is observed.

Quality of staff

Developed skills are rare, and they are quite expensive. You will not be able to hire a simple student for the role of manager and train him in some subtleties of work. You will need strong managers with experience who will be able to deal with control and management systems. You can't hire a novice programmer who will figure it out on the go. You have to look for professionals who are well versed in your software and who are able to quickly find and stop all the bugs and threats.

Of course, other personnel must also have certain qualifications in order not to have difficulties in working with your systems.

Interaction speed

This problem is largely solved by Telegram, but in companies with several management links, as a rule, decisions are made very long and difficult.

My experience suggests that everything goes through 3-5 links, after which a decision-making process takes place, which also has its own difficulties due to increased risks. Later there is a reverse reaction, also stretching to five links. I do not think this is a whim. Rather, the need associated with a massive amount of rotating internal data.

Sometimes incidents occur, if no “exit” has followed a “entrance”. “Entry” is what comes at the beginning of a process, and “exit” is what comes out of this process. In this case, I mean requests. If the sales manager gives any request regarding the head of the sales department, the exit should follow from the latter.

Another rule for project management is:

All "inputs" must be "outputs". Nothing should go into “nowhere” without reaction.

Why shouldn't it be like that? Because otherwise there will come a real managerial chaos, which is very difficult to deal with. Any mistake, any request without an answer can be very expensive. Of course, sometimes it happens when someone can not cope with the flow of "inputs" and does not give the necessary "output".

Management of risks

This is such a broad and complex section that it would be worthwhile to devote a separate article to it, but I will try to state the principle itself. Each process existing in a company carries the risks of a project. Risk management is to maximize the likelihood of favorable events and their consequences, as well as to minimize the likelihood of adverse events for the project and their consequences.

For this purpose, a risk register is created, in which all those events that can influence the course of the project are entered. Events are classified, depending on the probability of their occurrence. The same classification occurs by the severity of the damage upon occurrence.

It happens somewhere like this:

• Analysis of the processes occurring during the project
• Creating a risk list
• Risk analysis and classification
• Risk Prevention Planning
• Planning mitigation techniques in case of risk
• We will not go into the jungle. Let's make some chain. More different positions - more difficult commodity matrix. Harder product matrix - harder to manage. More difficult management - more processes. More processes - more risks.

Which mechanism will break faster: the one with only three moving parts or the one with a couple of hundred?

By the way, usually insured against those risks, the occurrence of which can ruin the company. It often happens that it is cheaper to prevent the occurrence of a risk than to prevent it.

I hope I managed to pay attention to what consequences await everyone who wants to have a wide range. Everyone will cope with the management of scooter, but not everyone can control the plane. If you want to fly - you need to have the willingness not to break with the staff.

Alibaba and other giants are high-tech aircraft that have excellent pilots. They can be leveled, but you can not sit in the pilot's seat without preparation.

Successful test flights, gentlemen!