De Mey and De Ridder's Business Model Framework

 

Short description of framework: A framework illustrating how value is created and captured in the interaction between organizations through relationships and transactions.

Main strengths: The framework captures relationships, monetary and non-monetary transactions between organizations, and provides a snapshot of the interactions and dependencies on certain external actors. Transactions between several organizations in multiple steps can be illustrated, enabling a good understanding for the different revenue streams.

Background

The framework was originally created by De Mey and De Ridder (www.boardofinnovation.com) in 2009 to create a common visual language and consisted of 10 framework elements initially focusing on the sales side of a business with the only actors being the company itself and its client. The remaining 8 framework elements was items that can be transferred between the company and its client; product, service, experience, reputation, exposure, attention, money and less money.

In 2010 the business model framework was revisited and updated to include 16 framework elements to capture more aspects of a business case. Still, De Mey and De Ridder argues that they prefer not to include what they call secondary stakeholders, showing the supplier side of a business case.

Framework details

The 2010 version contains 16 framework elements, divided into players and objects to exchange further described below. De Mey and De Ridder do not provide their own definitions of the framework elements, so the definitions below are of the general meaning of the terms, based on how the objects are used by De Mey and De Ridder.

Example using the framework

In the illustration below De Mey and De Ridder illustrates the business model of Niiu, a German start-up providing customized physical newspapers. Niiu will provide personalized and customized newspapers based on content from a variety of different news companies enabling the consumer to combine different sections from different newspapers. By using print-on-demand technology Niiu will create a unique paper version and deliver to each subscriber. The reader will pay for the newspaper and be exposed to targeted advertising based on their content preferences.

List of Key Terms

The term ‘business model’ has historically been defined differently by different academics and consultants, with no common consensus being established. It is not until the last few years that a common definition of what a ‘business model’ is has started to emerge, with an increasing number of authors emphasizing the concepts of value creation and value capture as central to the definition.

One challenge is that frameworks developed from the perspective of enabling business model innovation, are often equated with a definition of the concept of the business model itself. This creates considerable confusion in terms of the differences between the business model of a company, the business model concept as such, and ways of describing business models by adopting different perspectives and frameworks.

In order to provide posts that are easy to follow and to reduce the risk of misunderstandings and confusion, I use the definitions below:

• Business model – the way an organization creates and captures value

• Business model concept – the general idea of illustrating how value is created and captured

• Business model element – a component of how value is created and captured by an organization

• Business model framework – an abstraction to describe and represent different business models

• Business model framework element (or framework element) – a component of a business model framework

• Business model innovation – an innovative business model or the process of innovating a business model

• Business modeling – the process of testing and simulating different business models

Please consult the list above when confused about my use of any of the terms.

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The Scales of Governance: Weighing options, arguments, evidence & consequences

 

Evaluation – Part 1

We use the term ‘on balance’ as a shorthand way of saying that we have come to a decision or choice after considering the power, influence, or ‘weight’ of both sides of a question or issue. This invokes metaphoric reference to a set of balance scales – as in the ‘scales of justice’ (see header image).

Evaluation skills, sometimes described as good judgment, are fundamental to good governance. The EDM (Evaluate, Direct, Monitor) Governance Model acknowledges this. This article is the first in a short series looking at some aspects of evaluation in the work of non-profit directors and managers.

Weighing options

Regrettably, most non-profit governance and management decisions involve more than two options or alternatives. Simple choices between good and bad options are rare. If the issues were that simple, then they could probably be resolved by reference to a checklist or filter system, without having to include them on a board agenda. Often enough in governance deliberations, we can also be faced with a choice between ‘least worst’ options rather than ‘best case’ scenarios.

Debates over complex public policy issues inevitably involve more than two perspectives, unless they are seen through the lens of a polarising media story or a ‘school debating club’ approach. These perspectives contrive to restrict debate to black and white positions, with ‘government’ and ‘opposition’ sides taking a stance for or against a given claim or contention.

Even the choice between action and inaction usually involves additional sub-options, such as whether to act one way or another. For inaction, you could choose to leave the matter off the agenda, or include it, but recommend that the situation simply be monitored for significant developments.

We usually employ arguments for and against each of the options to develop a collective view on which of the options is the most robust, and therefore likely to offer the most satisfactory response to the situation. The criteria we employ to make judgments regarding our option preferences, are discussed further below under ‘weighing evidence’.

Weighing arguments

Deliberative processes in non-profit and for-purpose settings are much less about winning an argument than they are about negotiating best possible outcomes for key stakeholders.

Simply counting the number of arguments for or against the proposal would not pay sufficient regard to the relative value of some criteria compared with others. That’s where recognition of the evidence called upon to support each argument comes into play.

The importance of employing evidence-based decision-making has been formally recognised by the International Standards Organisation with the adoption of ISO9000.

Weighing evidence

Identification of arguments for or against a particular proposal or position, and mapping these so they can be fully examined is a good start in weighing the arguments, but when we acknowledge that not all arguments are supported by the same standard of evidence, we recognise that we need to attach some form of importance ranking or weight to the criteria we apply to our decision making. This would tilt the scales in recognition of our values, strategic priorities, and commitment to evidence-informed decision-making.

When we establish a tender process or initiate CEO recruitment and selection, we are happy to identify criteria for use by a tender committee or selection panel. This helps to ensure that an objective decision can be reached on the preferred candidate. Skill in crafting such criteria exists in most boards and senior management teams, however, the establishment of evaluation criteria for other kinds of decisions is not always addressed. Taking the time to agree on the evaluation criteria, and their relative importance, will be rewarded when the time comes to make a decision.

For complex and high-value decisions, I have found argument maps to be a helpful aid to the deliberative process. There are numerous desktop and online mapping systems available, but I have preferred Rationale* and Bcisive* for many years. The capacity to unpack the debate, capture the supportive and opposing arguments, identify the evidence underpinning those arguments, and the sources of that evidence, is particularly helpful to a board seeking to weight or rank the arguments according to the standard of evidence they rest upon.

*No referral fees or commission arrangements apply.

When assessing whether a board sought access to relevant data and analyses to support their decisions, courts will seek to confirm that directors informed themselves to a level expected by a reasonable person before making their decision. Mere access to the relevant data would not be sufficient of course. The extent to which probing questions were asked and answered also enters into consideration.

Weighing consequences

Certainly, when we assess the likelihood and severity of adverse consequences from action (or inaction) on a given issue, we are weighing the consequences. This only considers the question of what could go wrong of course, and a balanced approach to deliberation would also look at the value proposition, and ‘benefit dividend’ for our client, member, or community. The sweet spot which (at minimum) balances benefits, costs, and risks, should be identified in board decision making, with a preference for proposals in which benefits outweigh costs and risks.

Higher-order governance

The evaluative skills involved in weighing options, arguments, evidence, and consequences are examples of higher-order critical thinking skills. This aspect of evaluation will be explored further in Part 2 of this series.

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Mastering Strategic Management: Models and Steps You Need to Know

 

Strategic management is your blueprint for navigating the complexities of business and ensuring long-term success. It’s not just about setting goals; it’s about aligning your actions with a clear vision and adapting as you go. Here’s a straightforward guide to the key models and steps in strategic management, helping you turn theory into practice.

What are the 7 steps of the strategic management process?

Think of the 7 steps of strategic management as your detailed roadmap to guide your business to success. Here’s how to effectively work through each step:

1. Understanding the context: Start by examining the internal and external environments affecting your business. Look at market trends, competitive landscape, and internal capabilities. This comprehensive understanding helps you identify the current position of your organization and prepare for strategic decision-making.
2. Strategic analysis: Dive into a detailed analysis of your business environment. This includes SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats), market research, and competitor analysis. The insights gained here will inform the development of strategies that leverage your strengths and address weaknesses.
3. Setting business objectives: Define what you want to achieve at the top-level in clear and specific terms. Objectives should be SMART—Specific, Measurable, Achievable, Relevant, and Time-bound. This clarity ensures that your goals are actionable and provides a benchmark for measuring success.
4. Strategy formulation and planning: Based on your analysis, develop strategies that align with your objectives. This involves brainstorming and evaluating different strategic options and choosing the ones that best fit your goals and resources. Formulate strategies that are innovative and practical, considering both short-term and long-term impacts.
5. Strategy execution: Put your strategies into action. This involves allocating resources, assigning responsibilities, and establishing timelines. Effective implementation requires coordination across various departments and ensuring that everyone is on board with the strategic plan. To learn more have a look at our related article: Strategy Execution in 4 Steps: Keys to Successful Strategy.
6. Monitoring and evaluation: Track the performance of your strategies using key performance indicators (KPIs) and regular reviews. Assess whether your strategies are delivering the desired outcomes and make adjustments as needed. This ongoing evaluation helps ensure that you stay on track toward your goals.
7. Closing the loop and feedback: Gather feedback from various stakeholders and use it to refine your strategies. Continuous improvement is key to staying competitive and responsive to changes. Looping in feedback helps you adapt and evolve your strategies based on real-world experiences and changing circumstances.

For further insights into each of these steps, explore detailed articles and resources on strategy in our resource library (use the search function). Note that HBR also has a rich library of academic and practical articles on strategy management.

Streamlined strategic management process

For a more streamlined approach, here’s a breakdown of the 5 steps of strategic management that you can follow:

1. Business objectives: Begin by defining clear, specific, and actionable objectives for the strategy cycle you want to scope. This involves understanding what you want to achieve in terms of growth, market position, or other business outcomes. Setting these goals provides a direction for your strategic planning and execution.
2. Analysis: Conduct a thorough analysis of both your internal capabilities and external environment. This includes reviewing your organization’s strengths and weaknesses and understanding market opportunities and threats. This analysis forms the foundation for developing effective strategies.
3. Strategic planning: Based on the insights from your analysis, create strategic plans that address your goals and challenges. Evaluate different strategic options and select the ones that best fit your business needs and resources. This step involves drafting detailed plans and considering various scenarios.
4. Strategy execution: Execute your strategies with precision. This step involves putting plans into action, coordinating efforts across departments, and managing resources effectively. Ensure that your implementation plan includes specific actions, timelines, and responsible parties.
5. Evaluation and optimization: Regularly assess the performance of your strategies using metrics and KPIs. Review progress towards goals, identify any issues or deviations, and make necessary adjustments. This step helps you stay aligned with your objectives and improve your strategic approach over time.

These steps provide a solid framework for effective strategic management.

What are the 5 models of strategic management?

Understanding different models of strategic management can help you choose the best approach for your business. Here’s a closer look at the 5 models of strategic management:

1. Traditional or Linear Model: This model follows a sequential process where strategy formulation, implementation, and evaluation are done in a linear fashion. It’s a straightforward approach that works well in stable environments but may need adjustments in more dynamic settings.
2. Always-On Strategy model: Bridges the strategy execution gap using a continuous, rapid, and iterative loop of strategy development, execution, and evaluation. Its connected, data-driven, and agile nature encourages informed strategic decisions, faster execution and time to value, and ongoing alignment with market demands.  
3. Interpretive model: Centers on understanding and interpreting the organizational context, including stakeholder perspectives and internal culture. This model helps in crafting strategies that align with the organization’s unique context and values.
4. Transformational model: Aims for significant change and innovation within the organization. It focuses on transforming business processes, cultures, or products to achieve substantial growth and differentiation.
5. Radical model: Challenges conventional practices and seeks to make disruptive changes. This model is about pushing boundaries and rethinking the business model to drive major shifts and breakthroughs.

Opinion: best model for strategy management

At Quantive, we believe that the Always-On Strategy model is the most suited to today’s market dynamics. At its core, it embraces the fluidity of the market, customer preferences, and macroeconomic changes that are the reality for most businesses today. It acknowledges that change is not just continuous but fast. Rather than depending on dated, set-term plans, this model empowers businesses to tweak their strategy using real-time insights. Its inherent feedback cycles refine and optimize strategy continuously, ensuring it stays relevant and timely. 

To adopt an Always-On Strategy successfully, consider leveraging AI-powered solutions specifically designed for dynamic strategy management. The right solution can optimize the management of your Always-On Strategy, enabling you to wholly and effectively deliver all of your business’ potential. 

Quantive StrategyAI pairs AI with your business data to design, deploy, and continually enhance an Always-On Strategy for your business. 

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7 Steps To Create A High-Conversion Ad

 

Creating a high-conversion ad is not rocket science. It involves several key steps: knowing your target audience in terms of demographics, interests, and behavior so that you can tailor the message accordingly; writing a clear, compelling, preferably short and direct message that speaks to the unique value of your product or service; using visuals that are interesting enough to capture attention, while at the same time aligning with your brand identity. Plus, all CTAs should be powerful, using words like "Shop Now" or "Learn More." When you do an A/B test, conclude which of the two versions is better at marketing the advertisements. Lastly, optimize for mobile, track performance, and change your strategies based on the insights of the data.

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«Комплимент» Вера Каппони, Томаш Новак. Инструмент #34

 

Ни Вера Каппони, ни Томаш Новак не являются создателями инструмента влияния «Комплимент». Его описание кристаллизовалось в результате анализа сразу нескольких источников. Но эти два человека в своей книге «Сам себе психолог» прекрасно описали принципы предоставления обратной связи как составной части #ассертивного_поведения. И комплимент рассматривается как одно из проявлений самораскрытия. Когда мы говорим женщине «У тебя красивое платье» это приятно. Но все-таки это оценочное суждение, о котором нас никто не просил. С другой стороны,   у нас есть право высказать свое мнение. На этом и построен принцип «Я-сообщение»: «Мне нравится, как ты выглядишь в этом платье». А это совсем другое дело.

Но наш менталитет не привычен ни давать, ни принимать комплимент. Поэтому приходится работать с ценностными установками участников. Особенно забавно видеть затруднения в традиционно «суровых» отраслях с преобладанием мужского  взаимодействия: строительные и отделочные материалы, металлопрокат, автозапчасти и т.п. Куда легче в медицине, индустрии красоты и т.п.

В конечном итоге комплимент хорошо заходит как один из семи способов укрупнения клиента при продажах и переговорах. Ещё используем комплимент как инструмент раскрепощения группы в начале тренинга. Отработаешь и «батарейка» подзарядилась. А так же как элемент EI при разговоре с сотрудником в тренингах на построение отношений и влияние.

И помните, что не все темы можно использовать. Есть ограничения. Типа, перед применением проконсультируйтесь с врачом

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Видео-лекция по Трауту «Позиционирование: битва за узнаваемость»

 

В каждой профессии есть такие книги, которые стоит прочитать каждому. Книга от авторов Джек Траут и Эл Райс «Позиционирование: битва за узнаваемость» — одна из таких. Мы подготовили видео-обзор основных идей данного издания и дополнили его авторскими комментариями, чтобы вам было намного проще систематизировать полученную информацию.

Книга «Позиционирование: битва за узнаваемость» очень емко и правильно рассказывает о том, как стоит разрабатывать позиционирования продукта. Прочитав книгу, понимаешь, что в теории создания концепции позиционирования бренда нет ничего сложного: очень простые идеи и выверенные работы. Сложность заключается в другом — в понимании рынка и потребителях.

Делимся нашими выводами по книге.

Перед тем, как разрабатывать стратегию позиционирования, внимательно изучите существующие представления покупателя о вашем товаре и о товарах-конкурентах.

Если покупатель уже сформировал мнение и отношение к категории товаров на рынке, имеет опыт использования различных брендов, имеет представление «когда и как пользоваться продуктом» и знает, каким должен быть «идеальный продукт» — в таких ситуациях ищите идеи позиционирования в сознании покупателей, отталкивайтесь от того, каким образом покупатель структурирует товары, а новые и сложные вещи объясняйте, используя существующий словарный запас и кругозор покупателя.

Если потребитель ни разу не пользовался товарной категорией, не имеет опыта использования вашего продукта и не знает, по каким критерием оценивать качество товара — тогда создавайте нужные вам образы и культуры использования продукта, отталкиваясь от очевидных фактов, в которых убежден покупатель.

Если ваша стратегия позиционирования сработала, не меняйте курс и последовательно следуйте успешной идее, сверяйте с ней все маркетинговый программы и акции. Репозиционирование стоит проводить лишь в случае изменения условия конкуренции на рынке или предпочтений целевой аудитории.

Прочитать данное издание вы можете в обновленном варианте, которое называется «Позиционирование: битва за умы».

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How to Assess Your Team

 

Ben Kill, Chartered MCIPD

Assessing and developing critical skills within your team is essential for achieving high performance and ensuring continuous growth. In this text, we'll focus on two fundamental skills, communication and problem-solving, and provide some insights on how to evaluate and improve these skills for better team outcomes.

Effective communication is crucial in any high-performing team. This means you want every team member to be able to convey information clearly, both verbally and in writing. They should also excel at active listening, understanding, and validating others' points of view, and be able to adapt their communication styles to suit different audiences. If these behaviors are not being displayed, there are several ways to improve. You might practice summarizing others' points, which can enhance active listening skills, while online courses in public speaking and professional writing can improve overall communication abilities. Additionally, seeking feedback from peers on communication styles can provide valuable insights for improvement. Of course, the negative impact of not improving communication skills can be significant, leading to misunderstandings, errors, inefficiencies, and poor team morale.

Problem-solving is another essential skill for high-performing teams. Team members should be able to quickly identify issues and generate effective solutions, utilizing creative thinking to develop innovative solutions for even the most complex problems. They should also be able to analyze potential outcomes effectively to choose the best solutions. To improve their problem-solving skills, team members can participate in regular brainstorming sessions to foster creative thinking, or even engage in puzzles and games to sharpen their analytical skills. Finally, they should purposely seek diverse perspectives on problems so that they can broaden their approaches. Unfortunately, the consequences of not improving problem-solving skills include project delays, increased costs due to inefficient solutions, and reduced team effectiveness due to the growing number of unresolved issues.

Leaders should encourage team members to train and mentor each other in communication and problem-solving, and provide new opportunities and challenges to help them apply and further develop these skills. Additionally, managers should try to set clear objectives and create a structured development plan to ensure continuous skill enhancement. By focusing on these strategies, you can build a high-performing team that is motivated, engaged, and effective.

Continuing the assessment and development of critical skills within your team is essential for sustaining high performance and growth. In Part 2, we'll focuses on two additional fundamental skills: time management and leadership.

Effective time management is crucial for any high-performing team. Team members should be able to properly prioritize tasks by urgency and importance, thus ensuring that critical tasks are completed on time. Utilizing tools to manage time and stay organized is also key to maintaining productivity and meeting deadlines consistently without sacrificing quality. If these behaviors are not being displayed, team leaders can foster improvements by implementing new time management techniques like the Pomodoro Technique, using digital tools for tracking deadlines and tasks, and regularly adjusting priorities to respond to changing demands. Failing to foster good team management can lead to missed deadlines, poor productivity, and dependency on others due to poor workload management. Any leader can tell you that this can quickly alter team dynamics and cause a lot of unnecessary friction.

Leadership is another essential skill for high-performing teams. Effective leaders help inspire and motivate team members, fostering a positive and productive work environment. They also delegate tasks wisely, ensuring optimal workload distribution, and make decisions confidently. If these leadership behaviors are not being displayed, improvements can be made through mentorship from more experienced leaders, participating in leadership training programs, and seeking regular feedback from the team to refine leadership methods. Without good leadership, teams may suffer from a generalized lack of direction, leading to confusion, inefficiency, and poor decision-making, which can compromise project outcomes.

Whether you're the leader, a manager, or just team member, it's essential that you try to train and mentor one another in time management and leadership skills. You should also seek to provide new opportunities and challenges to help your teammates apply and further develop these skills.

Continuing the assessment and development of critical skills within your team is essential for sustaining high performance and growth. In Part 3, we'll take a closer look at two more fundamental skills: adaptability and teamwork.

Adaptability is crucial in today’s fast-paced work environment. Team members should be able to quickly adjust their approach in response to changing circumstances, embrace new technologies and processes readily, and maintain productivity and composure under stress. If these behaviors are not being displayed, leaders should try challenging team members with new and diverse projects, setting up cross-functional projects to gain experience with different perspectives, and offering feedback to help them understand new viewpoints. Failing to do so can lead to inflexibility that slows innovation and response to market changes, causes undue stress, and contributes to a sense of resistance to new ideas.

Teamwork is perhaps the most important and most obvious factor required for high-performing teams. Remember, just because people are working together, doesn't necessarily mean they are functioning as a team. Effective collaboration, open communication, and respect for diverse viewpoints are key components of strong teamwork. Each member should be able to contribute to group goals, help resolve conflicts amicably, and communicate openly. If these behaviors are not being displayed, it may be time to start engaging in team-building activities to strengthen bonds. It's also a good idea to try and instill empathy by having them consider others’ perspectives or create collaborative projects to improve team dynamics. If a team can't function as one, it can lead to project failures and missed goals.

Leveraging and supporting these critical skills is crucial for sustained success. Leaders should consider encouraging team members to train and mentor each other in both of these disciplines, and provide new opportunities and challenges to help them apply and further develop these skills. By focusing on these strategies, you can build a high-performing team that is motivated, engaged, and effective in achieving its goals.

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