Tag Archives: effective management

Business Modelling

12 Jan

Strategic Planning; the Business of applying and finding Best Practices and Business Models.

First off, we are not talking about a business plan here, that’s something totally different. We are talking about a business model.

Strategic planning has to become a systematic and procedural affair to become an effective management tool.

We have to model the very process of strategic management for our organisations, and our selves first.  So that it becomes one “game plan” for all to use and identify with, with one set of rules, played and followed by all.

This brings about perfection, and unity of effort. Anything else is just scattered mumbo-jumbo. Where we have diverged strategic models of design in one habitat, we end up with diverging effort, and over utilisation of resources, conflicting efforts – very little else delivers like unity of effort.

What are these best practices, or business models we speak of?

A business model or business practice or best practice is this;

  1. best practice is a method or technique that has consistently shown results
  2. best practice is a technique or methodology that, through experience and research, has been proven to reliably lead to a desired result
  3. best practice is the recognized methods of correctly running businesses or providing services
  4. A Business model is The plan implemented by a company to generate revenue and make a profit from operations
  5. A business model isn’t something you build from the ground up
  6. A business model is a document describing the operations of a business including the components of the business, the functions, and design.

Best practices could be seen as the tactics and Models as the strategy of the business…

  • Tactics; are how we do things we planned, with what we have, in the time we have been given
  • Strategy; is with what, where, when, and how we want things done, as well as who get to do it and how much will it cost.
  • This requires structure, and systems, to merge both tactics and strategy with.

Models requires systems design

Creating systems; is a business process – that of systems design. Here we look at best practices to base our design on. A best practice is a method or technique that has consistently shown results superior to those achieved via other means, and becomes a benchmark or standard to which a task must comply with.

In addition, a “best” practice can also evolve to become better – with the use of technology -as improvements are discovered. The process of developing and following a standard way of doing things that multiple people can use – saves time and money in training – and error finding. It creates steps, a recipe to follow, with measures of time and ingredients, that translates into a process that becomes part of a system, working to deliver a result.

Systems follow logical steps, translating into logical action that then becomes action plans or items.  Action plans are subordinate to strategic plans, they give action to the planning, with the use of systems, resources, logistics, financial value (cost), time frames, to deliver a pre-set outcome – that delivers a required specific result or output over time…

PROCCESSES ARE PROCDURAL; their aim is to create order, and structured work flow and packages. Only where work is broken up and distributed as packaged to create a chain of events that delivers a result, can we talk about systems design then.  

Strategic planning has to become a best practice, and have a business model, in our management sphere today, for us to have any cardinal use for it.

This can be done when we have a system for design that everyone follows when designing a strategic plan. This is for establish organisations only. New and emerging will follow a totally different paradigm.

The steps are;

  1. Asses your history; so that you may not repeat the same mistakes made in the past…
  2. Determine your customer; are they still our customer and why, if not, who is and why, focus, on fulfilling wants, needs, and requirements. Review your market share and start prospecting with new markets. Get a grasp on new entrants, technology and product.
  3. Asses your current situation; with an environmental scan and project where you will be, and then want to be. Then predict your cost effectiveness and survivability.
  4. Perform a GAP analysis; devise four scenarios; worst case, better, ideal, and ultimate.  
  5. Question your business assumptions; what are we doing right, good, wrong and not at all? What should we be doing more off and then also less of? To eliminate waste.
  6. Evaluate your current structure; is it still in line with the current strategy? (or even the original structure). Perform a CAPS analysis; Concept Attributes, Perception, Systems – Analysis to find the deficits and strengths. Attributes that will typically emerge are;
    1.     Alienation of core function and focus; change in directions have alienated the core function, we need to redesign or
    2.     Structure is not efficient and effective anymore
    3.     Technology has changed and
    4.     Under resourced
    5.     Red tape, administrative chock points
    6.     Lack of focus and drive
    7.     Lack of experience and expertise
    8.     Lack of capacity and or ability
    9.     Lack of training, or sub standard training
    10.     Lack of direction and effective managing
    11.     Total collapse of support functions
    12.     Lack of command and control
    13.     Maintenance and repair has lapsed or fallen behind
    14.     Too much diversification
    15.     Calibration; of the vision and mission statement, is this still what we want, need, and do?
    16.     Calibration of the culture, the values and principles we hold onto as organisation
    17.     Perform a needs assessment, what do we need to become…

10. Determine the main future thrust and focus, the core business, from today on and forward..

  1.     Projects that need to get special attention to realign the organisation;

                                          i.    Identify; KPA – Key Performance Areas, and KPC Key performance Criteria

                                        ii.    Quantify: Who, What, Where, When, How, and How much

                                       iii.    Qualify: That this is the best course of action, research, test assumptions, mediate, consult, train, teach, staff, equip and implement…in phases…evaluate and fine tune.

                                       iv.    Budget; work out the budget

  1.     Operations cost
  2.     Insurance
  3.     Training needs and requirements
  4.     Infrastructure and logistics
  5.     Transport and telecoms etc…

11. Define responsibility and accountability, enter into contracts, and draw up new job descriptions, structures, positions, and posts. Interview and assign/ place.

12. Educate and communicate, network and teach, mentoring and counselling, enforce discipline.

13. Manage and measure, day to day action plans –track  progress, rollout, and KPA’s

14. Revise, and repair

15. Develop a medium, long and extra long range consecutive plan

16. Monitor the progress

17. Have strategic reviews at least quarterly

18. Have tactical reviews weekly

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