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).