2. Old Structure
Retail Reps Pro Reps CI Reps
Pro Audio
Products
Lighting
Products
MI Products
Custom Installation
Products
Pro/MI
Customers
CI Customers
Musiquip/USA
Customers
Musiquip Reps
Administrative Activities
Business Activities
3. Step 1. Eliminate the border
Pro Audio
Products
Lighting
Products
MI Products
Custom Installation
Products
Pro/MI
Customers
CI Customers
Musiquip/USA
Customers
Retail Reps Pro Reps CI Reps USA Reps
Administrative Activities
Business Activities
4. Step 2. Flip everything on its head
Pro Audio
Products
Lighting
Products
MI Products
Custom Installation
Products
Pro/MI
Customers
CI Customers
USA
Customers
Retail Reps Pro Reps CI Reps USA Reps
Business Activities
Administrative Activities
5. Step 3. Call a customer a customer
Pro Audio
Products
Lighting
Products
MI Products
Custom Installation
Products
Customers
Retail Reps Pro Reps CI Reps USA Reps
Business Activities
Administrative Activities
6. Step 4. Re-group customers
Pro
Customers
CI
Customers
MI
Customers
Retail Reps Pro Reps CI Reps Musiquip Reps
Pro Audio
Products
Lighting
Products
MI Products
Custom Installation
Products
MI
Customers
Business Activities
Administrative Activities
7. Step 5. Combine sales reps and line cards
Pro Audio
Division
Lighting DivisionCI Division MI Division
Canada
MI Division
USA
Pro
Customers
CI
Customers
MI
Customers
MI
Customers
Sales Rep + Line Card = Division
Business Activities
Administrative Activities
8. Step 6. Group together business activities
Pro Audio
Division
Lighting DivisionCI Division MI Division
Canada
MI Division
USA
Pro
Customers
CI
Customers
MI
Customers
MI
Customers
Customer + Rep + Line Card = Business Activity
9. Step 7. And voilà: Business Units
Pro Audio
Division
Lighting DivisionCI Division MI Division
Canada
MI Division
USA
Pro
Customers
CI
Customers
MI
Customers
MI
Customers
Pro Business UnitCI Business Unit MI Business Unit
10. Pro
Pro Audio
Pro Lighting & Video
DJ Sound & Light
Interconnect
Pro Audio/DJ Retail
AV Contracting & Integration
AV Rentals & Staging
Media Production
OEM
Value-Added Resellers
End Users
Resellers
MI
Musical Instruments
MI Accessories
MI Retail
Resellers
CI
Installed Home Audio
Home AV Control
Security & Monitoring
Interconnect
CI Retail
CI Install
CE Retail
Value-Added Resellers
Resellers
Types of
Products
Customer
areas of
business
Customer
styles of
business
Where
Musical Instruments Custom InstallationProfessional AV
One company, three businesses (or Business Units)
11. Some definitions
A company owns all the assets and liabilities of “the
business,” and provides the infrastructure for running it.
A business unit is a mechanism for grouping like
business activities together for the purposes of managing,
reporting on, and evaluating the results those activities.
A division is a unique combination of customers,
reps, and products.