Strategic Assessment
HOW A BUSINESS PERFORMS IN A FAST-MOVING WORLD

Question #8: We have “clearly” defined our “business model”, and each manager can write it in a few sentences.

Caveat: In most businesses, different executives and managers will give different answers to “What is our Business Model?” In fact, they may not agree on what a Business Model actually is.

Your Business Model should tell you: first, who is your targeted customer; second, what is your customer value proposition; third, how will you deliver this value at an appropriate cost. All three are about value delivered to your targeted customers.

Can you see why you can’t score over 4 on this question, if your scores for Questions #1-5 were low? There are hidden misalignments that will inevitably cause friction as you try to move forward in your business. That is why Market Leaders drive toward strategic clarity (for example, applying Carlos Dias’ processes and tools for collaboratively selecting a targeted Business Backbone, offering Customer Value Propositions that offer high value to the targeted markets, and capturing back that value using highly effective Business Models and Customer Value Propositions).