Refreshing Your Business Model
The business model provides the structure for delivering on the organization’s direction. It provides the framework for the operations needed to support the organization’s mission and is the genesis of the business structures that drive the functional-expertise required to optimize those structures.
Organizations refresh their direction, and by nature the supporting business model, on a regular cadence, typically on an annual basis. Following the directional shift, or in parallel with that change, functional leaders revisit their aspect of the business model and make adjustments to better support the strategic direction.
The Business Model refresh is the second stop along the Value Delivery Spine trajectory.
Those adjustments range from narrow, requiring incremental adjustments, to radical, requiring a multi-year transformational rebuild of the business model. No matter the extent of the alteration, the business model will change. Regardless of where we sit in this change, supporting enterprise-level adjustments, within a function adjusting one aspect of the shift, or on a team deep within the organization navigating change coming at us, it is important to understand the entire business model to understand our part in delivering our mission and the knock-on effects of the changes we make locally.