The Two Basic Functions of Business
In his 1973 book “The Practice of Management”, Peter Drucker wrote these golden words:
“The purpose of a business is to create and keep a customer. Because the purpose of business is to create a customer, the business enterprise has two and only two basic functions – marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”
If you survey the leaders of most companies (irrespective of the size), chances are you will hear the following words – Sales, Finance, Production, Human Resources, Operations and Compliance. What do you think is missing?
Well, I have already given the answer – Marketing and Innovation.
What are the most important functions of your business?
How much time, money, energy and attention are you investing in these basic functions?