All businesses should have a plan. No doubt. Ideally you should be able to distill it down to a single page…. A4, A3, A2 ? You’ll have to decide what works for you….
Gone are the days of spending a few days in an “off-site workshop” to draft a 30 page, 5-year vision of the future. In the current VUCA environment (Volatile, Uncertain, Complex and Ambiguous) strategic decision making is increasingly critical. But it is also becoming increasingly more difficult to get right.
The creation of a validated and actionable business model is a vital step in moving an organisation from its current state to its new, preferred one. Whether this move is based on innovative thinking or in response to external, environmental or market pressures.
Your business plan will be a living document. Business-as-Usual is no longer the norm. As established business models come under threat, organisations need to make good strategic decisions quickly. And then deliver on their choices.
Changes to the business plan and operational activities will be driven by a validation or amendment to the business model.
The de-facto standard for developing a business model was published by Alexander Osterwalder in 2010. It has developed; with various iterations and adaptations across the world – from businesses to social enterprises.
Several commentators and consultants have evolved the Business Model Canvas into a Lean Startup canvas, and include Problem Definitions to form the context and KPIs to identify how to monitor progress. All helpful adaptations.
But a model is not the same as an actionable plan. And the model to action cycle needs to be simple, iterative and quick to execute on.
With the Model-to-Action management framework I will journey through the realms of strategy to delivery, from business model to cash-flow.
The integrated approach to this cycle helps to address the findings of CGMA research presented in “Joining the Dots – Decision Making for the new era”.
This research highlighted the following key findings in companies’ increasing challenges in decision making in the modern era. Namely that “many companies are struggling to:
- Overcome bureaucracy and achieve agile decision making
- Build greater levels of trust and improve collaboration
- Take a long-term view and define the right metrics
- Turn huge volumes of data into strategic insight
- Build the decision-making skills of senior leaders
The framework prompts the killer questions you’ll need to ask yourself as you develop and refine your business model. It will help validate your model within your external environment. It will float possible scenarios to turn ideas into actions, and provide tools for decision making, planning and budgeting, for project monitoring and KPIs for model validation.
If you would like to follow the model as it is wheeled out of the hanger and positioned on the launchpad, please subscribe below. No spam will follow you from this submission… promise!
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