48 Building Blocks
1. Business Governance
1.1.1 Wicked Problems and Taming: Understanding how to identify and approach wicked problems.
1.1.2 Biases and Framing: Mastering the human mental flaws and how to shift frames.
1.1.3 Agile Thinking Models: Making the organisational thinking agile, fast and efficient.
1.1.4 Systems Thinking: Developing a systemic mind-set of learning and improving.
1.2.1 Complexity: Understanding the drivers of business model complexity, and ways of managing them.
1.2.2 Value Disciplines: Assessing the interdependencies of the business model value disciplines.
1.2.3 Ultimate CCP/S Value Positions: Establishing the ultimate customer, cost and product/service value positions.
1.2.4 Convergence: Configuring the business model for value position convergence and zero resistance and waste.
1.3 Dynamic Adaption
1.3.1 Disruptive Drivers: Determining the business model impact of technology, market and macro changes.
1.3.2 Systematic Drivers: Mastering the industry learning curve and commoditisation forces.
1.3.3 Breakpoints: Assessing and leading the industry business model life stage development.
1.3.4 Game Theory: Ensuring a dynamic and continuous adaption of the business model through scenario planning.
1.4 Board Excellence
1.4.1 Board Ownership: Anchoring the Business Model Excellence ownership with the board members.
1.4.2 Board Involvement: Deepening the board involvement in the core lateral development and strategic business model processes.
1.4.3 Rules of Procedure: Enhancing the board behaviours, information processing, processes and routines.
1.4.4 Company Beliefs: Embedding a belief in the company DNA of how the business model should be sustained.
2.1 Industry Value Chain
2.1.1 Profit Potential: Deciding why, where and how to play in the Industry Value Chain.
2.1.2 Make-or-Buy: Understanding where to build own organisations, and where to use partners.
2.1.3 Production or Sourcing Strategy: Establishing how to meet customer demand through supply chain push/pull strategies.
2.1.4 Capacity Configuration: Optimising the configuration of own and sourced capacities.
2.2.1 Market Coverage: Determining where, what and how to sell in specific markets.
2.2.2 Product and Service Range: Establishing the product and service portfolio, variants and introduction models.
2.2.3 Customer Segments: Defining the customer segments and their specific requirements.
2.2.4 Technologies: Determining how the company should meet, and exploit, the technological possibilities in the market.
2.3 Value Proposition
2.3.1 Voice-of-the-Customer: Understanding customer requirements, delighters, headaches, and how they perceive the company and market performance.
2.3.2 Industry Competitive Factors: Grasping the competitive landscape, identifying critical factors and what competitors are offering.
2.3.3 Segmented Offerings & Account Structures: Determining how customers are served, the account structure and approach to segments.
2.3.4 Pricing & Yield: Establishing pricing & yield models and strategies in line with business model interdependencies and marginal impacts.
2.4 Competitive Advantages
2.4.1 Threshold Levels: Identifying the advantages held by competitors, and establishing the industry threshold levels.
2.4.2 Criticality & Impact: Determining which advantages are critical for long-term performance, and the impact of these on the company BME.
2.4.3 Capability Gap: Establishing the capability gaps, and the timelines and costs involved in bridging these.
2.4.4 Targeted Advantages: Deciding which competitive advantages to target, as well as where to only match competition.
3. Operational System
3.1 Structural Excellence
3.1.1 Organisational Structure: Making the organisational architecture – the frame – agile and scalable.
3.1.2 Organisational Alignment: Creating organisational efficiency and agility down to the activity level, while ensuring vertical and lateral alignment.
3.1.3 Decision Architecture: Enhancing the company decision system and creating highways for fast and efficient execution.
3.1.4 Financial Backbone: Creating financial traceability and determining the BME across the company value chain.
3.2 Process Excellence
3.2.1. Process & IT Backbone: Creating fast and efficient process architectures and “highways” for process & IT implementation.
3.2.2 Process & IT Design: Designing processes and IT for customer requirements, scalability and complexity management.
3.2.3 Process Optimisation: Creating the company optimisation models and philosophy.
3.2.4 Process Control: Building the process & IT foundation for the company performance management.
3.3 Functional Excellence
3.3.1 Functional Strategy: Defining the functional strategy, optimisation potential and roadmap.
3.3.2 Concepts & Competences: Implementing world-class concepts and competences to gain functional competitive advantages.
3.3.3 Functional Performance: Driving functional performance management and knowledge sharing.
3.3.4 End-to-End Synchronisation: Bridging functions and external stakeholders and enhancing the speed and efficiency of the lateral value driving activities.
3.4 Execution Excellence
3.4.1 Execution Efficiency: Defining execution and decision models to enhance the company execution.
3.4.2 3xP and Strategy Deployment: Ensuring strategic deployment and “traffic control” of all the company programs and projects.
3.4.3 Strategic HR: Increasing the individual multiplier effect of each company leader and employee.
3.4.4 Performance Routines & Culture: Building a performance culture based on values, behaviours and standardised routines.
3 Spheres1. Business Governance: The outer sphere that ensures the ongoing recalibration of the business model.
2. Strategy: The middle sphere that defines the company shape and scope.
3. Operational System: The system core that is executing and monetising the strategy.
1.1 PARAMIND: The excellence mind-set for combating mental flaws with systemic thinking models and constancy of purpose.
1.2 Superconductivity: The configuration of the value disciplines for ultimate convergence, and for zero business model resistance and waste.
1.3 Dynamic Adaption: The dynamic and continuous adaption of the Business Model to changing external and internal conditions.
1.4 Board Excellence: The Business Model Excellence Framework ownership, required board behaviours and company beliefs.
2.1 Industry Value Chain: The company placement and configuration in the overall Industry Value Chain.
2.2 Battlefields: The areas, segments and technologies where the company chooses to compete.
2.3 Value Proposition: The offerings, channels, structures and prices, which are delivered to customers.
2.4 Competitive Advantages: The company capability gap and targeted advantages.
3.1 Structural Excellence: The organisational, decision and financial backbones of the organisation.
3.2 Process Excellence: The company process and IT infrastructures and competences.
3.3 Functional Excellence: The development of world-class performance in each core function.
3.4 Execution Excellence: The company leadership, execution models, integrated competence development and culture.
“For the simplicity on this side of complexity, I wouldn’t give you a fig. But for the simplicity on the other side of complexity, for that I would give you anything I have”. Oliver Wendell Holmes Sr.