What drives some companies to succeed while others languish? Why does Kmart struggle while Wal-Mart and Target thrive? What the former lacks — that the latter have nailed — is focus. Wal-Mart focuses on “always low prices.” Target caters to a similarly cost-conscious market but focuses more on image and design. You can’t be all things to all people, so you need to make decisions about how you will provide differentiated value for a specific set of customers. This requires deciding what your core competencies are.
Your core competencies determine what you are best at. By focusing your business around them, you provide a clearer picture of who you are and what sets you apart from your competitors. But this isn’t the only place that too many options are not a good thing.
When building operational processes, you need to simplify them as much as you can. If a process provides too many options for a set of circumstances, the process becomes inefficient and confusing. A+B=C is clear. A+B=X or Y or Z doesn’t provide a definitive answer. Your process should as straightforward as possible. Even when there is a choice, those choices must be limited. If a = yes do this, if a = no do that. It’s fine for the next step to also be a decision, but break down the options to their simplest form.