How to move your business forward, 3 quick takes on strategies
I have been fascinated for years by cognitive biases that explains macro-economic developments reflected within micro economic decisions. To support this thinking, I found that 3 simple business strategies empower the variety of macroeconomics, competence and mitigate risks so that you can move your business forward in changing economic environments.
The model I use to channel macro-economic developments into supporting business strategies is the Framework Intelligence. This model is designed to understand changes within economic environments moreover impacts business strategies. From a holistic overview we bring together all core disciplines to implement, sustain and elevate financial viability. The steps within the Framework Intelligence allows you to design new efficient and powerful strategies that improve your market position:
1. Perform assessments
2. Implement effectiveness and efficiency
3. Measurements to elevate business performance
The first step is assessment. The second step is that you implement improvements and efficiencies. In addition, the last step is measuring your results. The main objective for using this model is to create and achieve financial gains that are reflected within positive financial results.
Step 1. Perform assessments
The assessments or reviews in the Framework Intelligence are to assess strategic goals against business objectives and business performance. Assessments define as a starting point which are utilised during the process as baseline for improvements.
We can define various assessments, however the first assessment to uplift, is that we focus on risk assessments. The advantage of having your risk analysis in place, entails direct correlation between efficiency and financial management. The entire process that engineers your efficiencies throughout the process results in losses or gains. This is reflected in your capital, working capital and profitability. Beside the correlation between capital and capital metrics another quantitative point of view is derived from accounting and/or cost accounting perspectives is that the calculations, allocations, and analysis are leading for insights to elevate your process and business performance accordingly.
The key driver to successfully perform step 1 alongside leadership is, mandate from the entire senior management or managing board to engage and manage the outcomes of their internal assessments with regards to their strategic goals.
I advocate through the Framework Intelligence a comprehensive overview moreover with the idea that different silos need to be held accountable for the result. In other words, the entire senior management or board need to work and agree upon the change for business strategy. For example, together with the CFO responsibility the CRO’s vision is parallel alignment between risk management and financial risks and strategic goals. The COO delivers optimized operational performance according to internal controlled processes that compel risk management and financial gains. Thus, working together in this setting ensures a holistic, end to end, comprehensive assessment, and delivery.
Step 2 Implement effectiveness and efficiency
Step 2 within the model is defined as implementation. Implementation is considered as an efficient embedded process within organisations. I will elaborate on this topic using the 5 pillars Framework Intelligence model by indicating implementation costs in addition, the impact of implementation within the model as its fundamentals. If we would value implementation costs throughout the methodology, one can consider implementation costs as the key factor that determines the capacity and changing power within your business strategy.
The Framework Intelligence is driven by 5 pillars whereas the second pillar focuses on core competences. I use core competence as blueprint for profit. Implementation costs here is reflecting on understanding, analysing, assessing, and applying core values in addition engineering an efficient process flows as main indicator for cost reductions. This gives you the opportunity to create a financially viable and future proof organisation.
When we use standardised implementation, we assess the impact with benchmarks.
Benchmarks stimulate improvements and insights for innovations, another indicator for change. As we combine the core competence and blueprints for profits, we see that the blueprint determines the fundaments for your assessment and impact analysis for future assessments. So, it is both running and changing your business and that requires a parallel sequence to benchmark and evaluate this process.
You can identify the levels and core processes for the business and select the best benchmark and implementation requirements. Examples of starting certified benchmark in processes are; ISO standards, e.g. ISO 9001 for process and for data and data governance ISO 27001.
Kindly keep in mind that IT will have different standardisations requirements, especially when data management and protection is in conjunction with your business strategy. Data management requires more focus on risk management and its governance.
It is powerful to have those standardized metrics baselined against and ensure that the correct progress and timing to implement are all coming together and create great synergy between the business objectives and business performance. The holistic approach prevails and implementing these new processes and new practices is to showcase financial alignment at the end.
Step 3 Measurements to elevate business performance
The final step within the Framework Intelligence methodology is measurements. Measurements are quantitative elements that are needed to better understand your business data and business performance accordingly.
In line with the previous steps, the idea of when reinvention periods are decided upon by senior management, how do we get into the cadence for these assessments and leveraging them in other aspects of running the businesses and touching back into cohesion? Coming for division leads, having these assessments at their disposal, creating beautiful synergy that’s about to happen within this? The combination of timing in planning and maintenance brings the cohesion in performance and governance to a next level in addition measurements verify these results.
Using business strategies to move your business forward
When assessing your business objectives and core competences, it indicates that the company growth strategy is gravitating towards a more data driven environment, the natural inclination for innovation and agility. This means that companies integrate data management services and safeguard positions to adequately respond to market changes. How can you implement and utilise these other elements of business performance to a successful cohesion?
Partnerships and collaborations are two macroeconomic movements manifesting within this more digitalized era. We now see that marketplaces are changing and we’re going toward more hybrid offline and online situations that caters infrastructures that govern partnerships. Moreover, dependency within the value chain as showed during the pandemic opened opportunities to create sustainable and optimized solutions for partnerships.
This shift in market is a beautiful thing. It acknowledge that outsourcing or co- production in processes initiate abilities to focus more on their core competences. Technology also progressed this process, new technologies give opportunities to work in alignment. A very powerful element that we’re seeing now is what we can work with and create new marketplaces for a next level in market and ecosystem approach.
The hallmark should be creating dynamics environments that swiftly respond to the market. In my opinion dynamic organisations have more feeling to what is happening within the markets therefore responding adequately how to serve their client from the best customer value. When one should approach this from a holistic point of view and not from an isolated point of view you can be more responsive, interactive and therefore bring more value to the table.
The data is available and that is your starting point. If you calibrate your assessments and analysis for process alterations, you’re able to (re) use the qualitative analysis and elevated business performance. The level of acceptance is high when assessments results are enriched and implemented within a reasonable timeframe. The entire chain benefits from improvements and showcases the power of a holistic approach. Having the direct involvement and mandate of every discipline within management or board prioritise the value of assessment and therefore appropriate level of implementation.
When you utilise measurements to elevate your performance, the focus are your financial gains. What defines the importance for now and what is important within five years? I always say you don’t start a business for one day, you start a business to create a legacy and to achieve success over a long period of time.
So, moving your business forward is relatively straight forward when applying the 3 steps model supported by the Framework Intelligence. Design new and powerful strategies to improve your business when macro-economic changes forces business to pivot or adapt. Focus on assessments, implementations regarding efficiency and innovations, and measurements, enables you to create a solid financial foundation, a long-term trajectory for your business strategies and a successful legacy.
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