co-designing your new business model… the realities, … · 2020. 3. 4. · co-designing your new...

Co-designing Your New Business Model… The Realities, Practicalities & Processes of

Re-engineering Your Existing Business ModelThursday, 7 December 2017, 1.00pm – 2.00pm

Michael Goldsworthy, Principal Consultant, Australian Strategic Services

Better Boards Webinar: Thursday 7 December 2017 Status: Final Version: Master Date: 7 December 2017 Software: InDesign © 2017 Australian Strategic Services Pty Ltd

Webinars

2

u Part One: Webinar Acknowledgements, Focus & Objectives .......................... 3–9

u Part Two: Reality & Practicality Check One… Where Is Your Organisation Really At In Its Journey To The New Customer-driven, Competitive Marketplace? .......... 10–23

u Part Three: Reality & Practicality Check Two… The Key Considerations & Processes Of Strategically Transforming Your Organisation ............................... 24–38

u Part Four: Reality & Practicality Check Three… The Processes & Practicalities Of Co-designing & Implementing A New, Innovative Business Model ....................... 39–61

u Resources: Articles & Tools To Assist You To Co-design & Implement A New, Innovative Business Model ................................................ 62–81

u Further Information & Assistance ........................................................................... 82

Webinar Contents

3

Part One: Webinar Acknowledgements, Focus & Objectives

Webinars

4

u In presenting this information I acknowledge that:

* directors, chief executive officers and executives (leadership teams) either have, or are in the process of planning to transform their organisation, re-engineer their business model and reinvent their culture…or they are not!

Webinar Acknowledgements

5



* each leadership team and their respective organisation operates within different frameworks of legislation/regulation, standards/accreditations, contracts/service agreements, legal entity/constitution, vision/philosophy, strategy/business model etc


6




* the journey of strategic transformation and therein the co-designing of a new business model will also be different for each leadership team


7




* the journey of strategic transformation and therein the co-designing of a new business model will also be different for each leadership team

* this presentation provides a broad overview, specialist advice should be sought from advisors or consultants when required.


8

This Webinar provides the opportunity for leadership teams to gain new or enhanced learnings about:

* their specific governance or leadership and management roles and responsibilities in leading and managing the re-engineering of their business model within a strategic transformational process/project

Webinar Focus & Objectives

9

This Webinar provides the opportunity for leadership teams to gain new or enhanced learnings about:

* their specific governance or leadership and management roles and responsibilities in leading and managing the re-engineering of their business model within a strategic transformational process/project

* the realities and practicalities of co-designing and implementing a new, innovative business model.

Webinar Focus & Objectives

10

Part Two: Reality & Practicality Check One… Where Is Your Organisation Really At In Its Journey To The New Customer-driven, Competitive Marketplace?

Webinars

11

What Is Your Organisation’s Status…Is It A Leading, Following Or Resisting Organisation?u Leading Teams/

Organisations Following Teams/

Organisations Resisting Teams/

Organisations

Approx 5%–10% of Providers


Potential Future Providers

P otential Future Providers


12

What Is Your Organisation’s Status…Is It A Leading, Following Or Resisting Organisation?

Broadly, boards, chief executive officers and executive teams fall into one of three categories as shown in the model above, consequently causing their organisation to become a leading, following or resisting organisation or fall across two of these categories.

u Leading Teams/ Organisations

Following Teams/ Organisations

Resisting Teams/ Organisations



Potential Future Providers

P otential Future Providers


13

What Is Your Organisation’s Status…Is It A Leading, Following Or Resisting Organisation?u One: Transformational Leaders Create Leading Organisations Leading organisations typically only account for 5% – 10% of an industry

or sector. Typically their leaders demonstrate the following attitudes, characteristics and behaviours:

* a strong, dynamic, collegial and collaborative leadership team (board, chief executive officer and executives)

* visionary, entrepreneurial, creative and innovative; looking outside the square, seeking out new ideas and opportunities

* leaders have significant intellectual capacity and capability * undertaking (or have undertaken) a strategic organisational

transformation project driven by powerful strategies and processes * co-designing new business model/s, new markets, customer

categories, market channels and revenues, new technologies, etc

14

What Is Your Organisation’s Status…Is It A Leading, Following Or Resisting Organisation?u Two: Traditional Leaders Establish Following Organisations Following organisations generally account for 70% – 80% of an

industry or sector. Their leaders typically demonstrate the following attitudes, characteristics and behaviours:

* slow or steady sequential thinking and implementation * varying degrees of change and achievement * watching and learning, generally slow to act, at worst no sense of

urgency or strategic advancement * at worst, conservative, risk averse or cautious boards, chief

executive officers and/or executives * however, high end following organisations often transition over

time into leading organisations, or amalgamate or merge with leading or other following organisations, as do low end following organisations.

15

What Is Your Organisation’s Status…Is It A Leading, Following Or Resisting Organisation?u Three: Terrible Leaders Maintain

Resisting Organisations Resisting organisations at minimum

account for 10% – 25% of an industry or sector. They demonstrate attitudes, behaviours and characteristics that say:

* “we are quality, we are accredited” * “our clients love us, we are OK” * “we’ve seen it all before, we don’t

need to do anything, so go away” * “we know the local politician” * “our organisation is not broken so why

try to fix it or change it?”

16

Transitioning From A Service To An Organisation

Stage Iu ‘We Are A Service’

u Strong Operationally

u Weak Organisationally

u Few Services/Products

u A Manager Of A Service

17







Stage IIu ‘Are We A Business,

Are We A Service?’

u Stronger Operationally

u Fitter Organisationally

u Several Services/Products

u Manager Transitioning To Manager/Leader

18







Stage IIu ‘Are We A Business,

Are We A Service?’

u Stronger Operationally

u Fitter Organisationally

u Several Services/Products

u Manager Transitioning To Manager/Leader

Stage IIIu ‘We Are A Community

Business’ (NFP)

u Strongest Operationally

u Strong Organisationally

u Integrated Services/Products

u Leader & Developer Of An Organisation

19

Mission, Maintenance Or Muddling Mode

©ASSPL

Strategic Intent & Strategic Direction

Mission Mode

Muddling Mode

Time

Maintenance Mode

Mission Mode

Transformational leadership is in part about taking individuals, or groups of individuals to a different place…a journey.

In an organisational sense, this means keeping the organisation in mission mode, maybe a short time in maintenance mode, but certainly not letting it fall into muddling mode.

20

A New Paradigm, A New Business Model… But Which Way?

Existing Services/ Products


New Services/ Products

Existing BusinessModel/s

New BusinessModel/s

21






New BusinessModel/s

Organisations Are Here Now Or

Started Here

22






New BusinessModel/s

Best Position/Best Option ForOrganisations

Following

Organisations

Following

Organisations

Lead

ing Organ

isatio

ns

Most Likely Initial Position For Many

Organisations


Started Here

23






New BusinessModel/s

DANGER

Not Possible, Not A Future

Position

Best Position/Best Option ForOrganisations

Following

Organisations

Sell Or Close

Insolvency

Following

Organisations

Lead

ing Organ

isatio

ns

© ASSPL

Most Likely Initial Position For Many

Organisations


Started Here

24

Part Three: Reality & Practicality Check Two… The Key Considerations & Processes Of Strategically Transforming Your Organisation

Webinars

25

Disrupt Or Be Disrupted…Think Uber, Think Airbnb!

u All human service and related organisations are facing massive disruption1 and discontinuous change2 which will come from either:

* Commonwealth and/or State government reforms and policies all of which are happening within relatively short timeframes

* customers increasingly making the purchasing decisions, so an organisation’s customer and retail capabilities really matter

* customer uncertainty because of a lack of adequate, clear and concise information and/or engagement and education

* boards, chief executive officers and executives having to address the key transitional challenges.

1 Disruption; from one paradigm to another paradigm.2 Discontinuous change; powerful shifts that occur within a paradigm at

intervals that are disconnected or have no rhythm.

26

In A Snapshot…The Key Transformational Challenges

u Boards, chief executive officers and executives are facing:

* leading their people, from all levels of the organisation, out of the government funded, welfare paradigm into the customer-driven, competitive, market paradigm

27




* providing transformational leadership that will transform their organisation, re-engineer their business model and reinvent their culture

28





* co-designing a unique, innovative, new business model

29






* dealing with legacy issues; new entrants to the marketplace have no legacy issues, all their time and resources are expended on capturing customers and market share

30






* dealing with legacy issues; new entrants to the marketplace have no legacy issues, all their time and resources are expended on capturing customers and market share

* leading and managing today’s business, whilst researching and creating tomorrow’s business.

31

How Are Leading & (A Few) Following Boards & CEOs Seriously Transforming Their Organisations?

Rusted On PhaseTime

Your Organisation’s Existing Business Model & Services

Government Funded Welfare Paradigm

© ASSPL

32


Rusted On Phase WD-40 Derusting Phase Rust Free PhaseTime

Best Case Financial Scenario

Mid Case Financial Scenario

Worst Case Financial ScenarioYour Organisation’s New Business Model,

Existing Services & New Services



Organisational Transformation

Customer-driven Competitive Marketplace Paradigm

© ASSPL

33


Rusted On Phase WD-40 Derusting Phase Rust Free Phase

Customer-driven, Competitive Marketplace Paradigm

Time






Worst Case Financial Scenario

© ASSPL

34




Time




Your Organisation’s New Business Model,

Combining Existing & New Services© ASSPL




35


Time


Your Organisation’s New Business Model,

Combining Existing & New Services© ASSPL

DANGER ZONE








36

Develop & Use A Transformational Project Flowchart …A Roadmap To Transform The Organisation

4.1 New Business Model Commenced, New Services Developed,

Existing Services “Onboarded”

Into New Business Model

2.1 Co-design A New Business Model; Existing & New Markets, Sub-markets & Channels

2.2 Current & Future Services

& Products

3.1 New Organisational &

Operational Structure & Positions

3.3 New Organisational & Operational Systems & Technologies

3.2 New PDs, Employment

Mechanisms & Policies & Procedures

2.3 Review & Development Of Brand/Image, Branding Guidelines & Marketing Collateral

1.2 Review/New Vision, Mission,

Values, Core Business, Philosophy

Strategic Transformational Plan & Project GANTT Chart Documented & Approved By Board, Communicated & Implemented

Continual Monitoring & Assessment of Industry/Sector Big Picture Components & Trends

Stage One Stage Two Stage Three Stage Four© ASSPL

1.1 Existing & New Customer

Research & Brand Experience

1.3 Research Existing & New Markets, Sub-markets &

Market Channels

3.4 Projected Profit & Loss, Cashflow & Balance Sheet/Capital Plans

2.4 Financial Modelling Of New Business Model; Best Case – Worst Case Analysis

37

Develop & Use A Transformational Project GANTT Chart…A Picture of Progress & Performance

Existing & New Customer Research & Brand Experience

Review/New Vision, Mission, Values, Core Business, Philosophy

Research Existing & New Markets & Sub-markets

Co-design A New Business Model

Current & Future Services & Products

Review & Development of Brand/Image, Branding Guidelines & Marketing Collateral

Financial Modelling Of New Business Model; Best Case – Worst Case Analysis

New Organisational & Operational Structure & Positions

New PDs, Employment Mechanisms & Policies & Procedures

Projected Profi t & Loss, Cashfl ow & Balance Sheet/Capital Plans

Projected Profi t & Loss, Cashfl ow & Balance Sheet/Capital Plans

New Business Model Commenced, New Services Developed, Existing Services “onboarded” into New Business Model

Stage

1Sta

ge 3

Stage

4Sta

ge 2

Q42016 2017

Q3 Q1 Q2 Q3 Q4

38

Stra

tegi

c D

irect

ion

& S

trate

gic

Doc

umen

ts

Time

Quarterly Strategy

Workshops

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

Sept2014

Dec2014

Dec2015

Dec2016

Dec2017

Dec2018

Sept2014

Strategic PlanSeptember 2014 – December 2017

Strategic Transformation Plan, Strategic Transformation Project Working Group,

Strategic Transformation Processes & Tools

The Existing Strategic Plan September 2014 – December 2017

Became A Guiding Document

A3 One YearStrategy From Strategic Plan

Strategic Financial Review

& Analysis

“Green Paper” Concept/

Framework

“White Paper ” Evidence/Research

Next A3 Strategic Plan

Strategic Transformational Journey Steps & Activities

Strategic Planning Journey Steps & Activities

A Transformational Case Study,

39

Part Four: Reality & Practicality Check Three… The Process & Practicalities Of Co-designing, Developing & Implementing A New, Innovative Business Model

Webinars

40

The Realities & Practicalities Of Co-designing & Implementing An Innovative, New Business ModelPeople Preparation:

The board, chief executive officer and executive team must understand and come to grips with:

* the key industry drivers that will force their organisation to transform…or amalgamate, merge, be sold or go insolvent

* their organisation’s true industry position and status today * the current and future capacity and capability of individual

directors, chief executive officer and executives to plan, implement and monitor a strategic transformational project and bring people along with the project

* the additional human and financial resources, over and above the existing budget, that are required to undertake this process

* the value and benefits rather than just the cost of engaging specialist strategic/transformational advisors or consultants.

41

The Realities & Practicalities Of Co-designing & Implementing An Innovative, New Business ModelProject Preparation:

With or without the support of specialist advisors or consultants, develop, obtain and utilise:

* a Strategic Transformation Project Presentation for stakeholders

* a Strategic Transformation Project Working Group Terms Of Reference and associated documents

* a Strategic Transformation Plan and implementation tools

* a Strategic Transformation Project Flowchart and tools

* a Strategic Transformation Project GANTT Chart

* a Strategic Transformation Project Decisions/Actions Register

Note: Strategic Transformation Project Toolbox available for purchase from ASSPL, [email protected]

42

The Realities & Practicalities Of Co-designing & Implementing An Innovative, New Business ModelNew Business Model Preparation:

In co-designing and implementing a new business model, it is critical to understand:

* that a strategic transformation project is ultimately all about taking your people on a journey

* that the creation of a new business model cannot be undertaken in isolation from the transformation of the board, the organisation and the reinvention of the culture

* there are eight fundamental steps in the co-design of a new business model; the following pages provide the details

* the creation of a new business model should bring together all existing business model components, other than those that have been discarded, with the new business model components.

43

Step One…Core Business Statement

Co-designing & delivering specialist

lifestyle, health & wellbeing solutions that are individualised or customised for people who

have chronic or complex health challenges, enabling them

to live independently

Core Business Statement

Business Model Components

44

Step One…Determine The Core Business

u Key Considerations & Activities * Many boards, chief executive officers and executives do not know

their organisation’s core business or raison d’être/reason for being.

* A core business statement is not a description of the services or products an organisation delivers.

* A core business statement sits alongside vision, mission, values or philosophical statements, creating an organisational platform.

* A well-defined core business statement, by definition, determines what services or products an organisation operates and what services or products it does not operate.

45


u Key Considerations & Activities (continued) * A core business statement enables a board to determine what

board positions are required around the board table.

* The core business of an organisation is rarely put into the public domain for a variety of commercial, marketing or reputational perception reasons.

* The determination and documentation of a concise core business statement is the fundamental step in determining an organisation’s new business model.

* “A core business statement is, in essence, the absolute anchor point of who we are, what we do and how we operate.”

46

u Key Considerations & Activities (continued)

* An example core business statement:

•

“Operating an efficient and effective medical transport system, to acute and non-acute environments”

Consequently an ambulance service is focused on paramedic services, mobile intensive care services, aero medical transport and first aid training.

Although public perception is that ambulances/ambulance services save lives, in reality this is only a 3% event.


47

Step Two…Customer Categories

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Disabled

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Veter

ans

ComplexHealth

Dementia

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tyMe

ntal

AgedInjury & Accident

AccidentsAccidents

Chronic &

Cancer

Stroke


Customer Categories


48

Step Two…Determine The Current & Future Customer Categories & Their Profilesu Key Considerations & Activities * In the past, many organisations would broadly refer to their clients

as eg: people with disabilities, ageing residents, patients, etc.

* In the new customer-driven, competitive marketplace the research and documentation of the current and future customer categories and therein their various profiles are absolutely essential.

* Both current and future customer categories need to align to an organisation’s core business statement.

* Increasingly, Customer Relationship Management Systems (CRMs) are utilised to collate, manage and respond to all customer categories, no matter what stage of the customer journey they are in, from “leads” for new customers through to “exiting” customers.

49

Step Three…Service/Product Categories

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50

Step Three…Documenting Existing, Researching New Service & Product Categoriesu Key Considerations & Activities * Documenting existing and new service and product categories

by either their broad areas (eg: home care services, health care services) or within each category, specific services or products (eg: home care packages, personal care, nursing services) provides clarity in what services or products an organisation is delivering today and what will be developed for tomorrow.

* Significant research and analysis needs to be undertaken in order to: – grow existing services or products, and their aligned markets or

sub-markets, supporting market channels and revenue streams – develop new services or products, and their aligned markets

or sub-markets, supporting market channels and revenue streams.

51

Step Four…Markets & Sub-markets

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Customer Categories


Markets/Sub-market Categories


52

Step Four…The Markets/Sub-markets Of Today, Markets/Sub-markets of Tomorrowu Key Considerations & Activities * Both today’s and tomorrow’s markets and sub-markets need to be

aligned to the various service/product categories and customer categories.

* Once again, a core business statement, if written concisely and definitively, will assist an organisation’s leaders to consider both the current and future markets and sub-markets.

Market example: people with chronic or complex health challenges.

Sub-market examples: people with neurological, cardio, diabetes challenges, etc.

53

Step Five…Market Channels

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Customer Categories



Market Channels & Revenue Stream Categories


Market Channel Descriptors

B2C: Business to Customer

B2G: Business to Government

B2B: Business to Business

54

Step Five…Current & Future Market Channels

u Key Considerations & Activities * Market channels represent the various means, mechanisms,

processes and systems by which customers are delivered to an organisation, and thereafter the various services or products.

* There are three market channels: – B2C…business to customer – B2G…business to government – B2B…business to business.

* The majority of human service organisations are transitioning from a B2G approach, where customers were allotted, along with funding (revenue) which was paid in advance, to a B2C approach, where customers need to be attracted and retained, thereafter being invoicing for services delivered with payment in arrears.

55

Step Six…Revenue Categories

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Customer Categories




Revenue Categories






56

Step Six…Current & Future Revenue Categories

u Key Considerations & Activities * Against each market channel, B2C, B2G and B2B, will be various

revenue categories which are specifically tied to a particular market channel, eg: B2C (business to customer) revenues – fee for service, private health insurance, Medicare.

* The vast majority of human service organisations have adapted to and exploited the B2G (business to goverment) market channel and its associated revenues, be it via tenders/contracts, direct allocations, grants, submissions, etc.

* In the new customer-driven competitive marketplace, it is extremely dangerous to have “one banker, one revenue stream”.

* A variety of revenue streams should be considered against a number of market channels.

57

Step Seven…Customer Gateway, Integrated Systems

Co-designing & delivering specialist

lifestyle, health & wellbeing solutions that are individualised or customised for people who

have chronic or complex health challenges, enabling them

to live independently

Eg: P

rivate

Hea

lth In

suran

ce, P

rivate

Insu

rance

, Work

ers Co

mpensat

ion,

My Aged Care, Local Health Networks, NDIS, Primary Health Networks

Eg: Fee-For-Service, Repeat, Referral, Adverts/Marketing,

Refer

ral, A

llianc

es, P

artne

rships

, Brok

erage

, MOU

, Othe

r Prov

ide

rs

Eg: Tenders, Grants, Public Trustees, DoH, DSS, DSC, Medicare,

Family/Carer/Partner, GP, Client Direct

B2GB2B

B2B

B2G

B2C

B2C

© 2017 ASSPL

• Contact• Information• Assessment

• Planning• People/Coordinators

• Services• ICT Systems

GatewayCustomer

Disab

ility –

Eg: A

ccom

moda

tion, R

ecreat

ion,

Home Maintenance, Transport

Home Care – Eg: Occupational Therapy, Podiatry,

Perso

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Disabled

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tyMe

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lectua

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Home Care: Frail Aged, Aged – Complex /Chronic Health, Private Health

Other Reve

nues $

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Tender $

Public Trustee $ DoH $DSS $

DVA $

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Gov’t

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al $

Private HealthInsurance $

Private Insurance $

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Contemporary Leadership & Management

Contemporary Governance & Leadership

Robust Financial Model, Structure, System

s & Technologies

Crea

tivity

, Ent

repr

eneu

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p &

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vatio

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Customer Categories




Revenue Categories

Corporate Services






58

u Key Considerations & Activities

* Documenting an organisation’s core business, current and future customer categories, services and product categories, market categories, market channels and revenue streams into a clearly defined model is a powerful way of visually and literally representing this new business model on one page, eg: refer to previous page.

* Behind a new business model should be clear and concise statements describing the new business models, descriptors/characteristics, assumptions/parameters and challenges/risks, eg: refer to following pages

* Colour coding your new business model by category and/or by current versus future assists in “visual readability”.

Step Seven…Customer Gateway, Integrated Systems

59

Example Business Model Key Assumptions, Eg:

Board reviews Strategic Transformation Plan and associated documents, agrees on project and signs off financial and human resources for the project.

The majority of current customers stay with the organisation and attract new customers.

The growth of existing services continues whilst the research and growth of new services, markets and sub-markets, market channels and revenue streams occurs.

The new business model, which brings together existing and new services, remains profitable against agreed financial measures and benchmarks.

The board, chief executive officer and future executives continue to robustly monitor the emerging and future disability, aged care, health care, mental health and associated industries/sectors.

60

Example Business Model Key Characteristics, Eg:

The new business model creates an organisation that is multi-service, multi-revenue, multi-market, multi-product and multi-location.

It becomes a professional services business based on designing and delivering services/products at agreed prices, defined timeframes and predetermined standards.

Targetted partnerships provide mutually beneficial and measurable value and benefit to enact the various strategies and projects.

The organisation moves from an incorporated association to a company limited by guarantee.

The organisation becomes a community business that operates on community business principles and practices.

61

Example Business Model Key Risks, Eg:

The board, chief executive officer or executives drift from the core business and/or associated vision, mission and core business statements.

The organisation stuggles to retain the current chief executive officer or executives or attract future chief executive officer and executives.

A minor or major incident or event brings about significant impacts or implications, eg: litigation, reputational damage, loss of customers.

Fraud, theft, corruption or misappropriation at any level of the organisation.

Without a re-engineering of the constitution, membership and the governance model, danger of a challenge from dissatisfied directors and/or members.

62

Resources: Articles & Tools To Assist You To Co-design & Implement A New, Innovative Business Model

Webinars

63

Current & Future Business Model ToolStrictly Private & Commercially Confidential

Version: 1.0 | Copyright © 2017 Australian Strategic Services Pty Ltd. Usage of this document is governed by the licence & copyright agreement found at http://www.asspl.com.au/agreement Removal of this copyright notice violates the terms of the licence & copyright agreement.

«Org_Logo»

«Name_of_Organisation»

Current Business Model Tool

64

Current & Future Business Model ToolCurrent Business Model Tool Descriptors


2

Current Business Model Name: ............................................................................................... Key Characteristics/Descriptors: ............................................................................................. ..................................................................................................................................................... ..................................................................................................................................................... .....................................................................................................................................................

Current Business Model Key Assumptions: 1................................................................................................................................................... 2................................................................................................................................................... 3................................................................................................................................................... 4................................................................................................................................................... 5...................................................................................................................................................

Current Customer Segments Current Customer Relationships Current Value Propositions Current Key Activities Current Key Partners Defines the different groups of people or organisations an enterprise aims to reach and serve. Customers comprise the heart of any business model. Without (profitable) customers, no company can survive for long. In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviours, or other attributes. An organisation must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specific customer needs.

Defines what the key relationships are with the various customers’ categories and their associated markets or sub-markets. Typically provide key words or descriptors about the various customer categories and therein their characteristics and behaviors. Note the organisational customer relationship will be different from the customer/carer relationship.

The Value Proposition is the reason why customers turn to one company over another. It solves a customer problem or satisfies a customer need. Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment. Some Value Propositions may be innovative and represent a new or disruptive offer. Others may be similar to existing market offers, but with added features and attributes.

Describes the most important things a company must do to operate successfully. Like Key Resources, Key Activities are required to create and offer a Value Proposition, reach markets, maintain Customer Relationships and earn revenues. And like Key Resources, Key Activities differ depending on business model type.

Key partners describes those individuals or organisations that will be identified and engaged to support the implementation and achievement of particular strategies or projects contained in the organisation’s Strategic Plan. Typically organisations adopt a targetted approach to identifying, researching and onboarding partners or alliances. Partnership agreements should provide measurable mutual value and benefit to both partners. Without partners organisations operate in isolation and struggle to leverage additional ideas, opportunities, resources etc.

Current Market Channels Current Key Resources Channels defines the various means, mechanisms, processes or systems which deliver current services or products. Channels may also describe the various means, mechanisms, processes or systems that support the delivery of particular services or products, eg: multimedia.

Describes the most important assets required to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments and earn revenues. Key Resources can be physical, financial, intellectual, or human. Key Resources can be owned or leased by the company or acquired from Key Partners.

Current Cost Structure Current Social, Environmental or Economic Impact Current Revenue Streams The Cost Structure of a business model should reflect the various components of expenditure; providing a clear and concise set of statements or descriptors, or possible ‘wet thumb print’ financials, that will support the proposed business model.

The social, environmental or economic impacts describe those tangible social, environmental or economic impacts, results, outcomes or benefits that will arise because of the proposed business model implementation.

The Revenue Streams of a business model should reflect the various components of income; providing a clear and concise set of statements or descriptors, or possible ‘wet thumb print’ financials, that will support the proposed business model.

65

Current & Future Business Model ToolCurrent Business Model Tool Questions


3



Current Customer Segments Current Customer Relationships Current Value Propositions Current Key Activities Current Key Partners For whom are we creating value? Who are our most important customers?

What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they?

What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying?

What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Who are our Key Partners? Who are our Key Suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?

Current Market Channels Current Key Resources Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? How are we integrating them with customer routines?

What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Current Cost Structure Current Social, Environmental or Economic Impact Current Revenue Streams What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

What are the measurable social, environmental or economic dividends/impacts that have been delivered to individuals, families, towns, communities or regions?

For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

66

Current & Future Business Model ToolCurrent Business Model Tool


4



Current Customer Segments Current Customer Relationships Current Value Propositions Current Key Activities Current Key Partners

Current Market Channels Current Key Resources

Current Cost Structure Current Social, Environmental or Economic Impact Current Revenue Streams

67

Current & Future Business Model ToolStrictly Private & Commercially Confidential


5

«Org_Logo»

«Name_of_Organisation»

Future Business Model Tool

68

Current & Future Business Model ToolFuture Business Model Tool Descriptors


6

Future Business Model Name: ................................................................................................. Key Characteristics/Descriptors: ............................................................................................. ..................................................................................................................................................... ..................................................................................................................................................... .....................................................................................................................................................

Future Business Model Key Assumptions: 1................................................................................................................................................... 2................................................................................................................................................... 3................................................................................................................................................... 4................................................................................................................................................... 5...................................................................................................................................................

Future Customer Segments Future Customer Relationships Future Value Propositions Future Key Activities Future Key Partners Defines the different groups of people or organisations an enterprise aims to reach and serve. Customers comprise the heart of any business model. Without (profitable) customers, no company can survive for long. In order to better satisfy customers, a company may group them into distinct segments with common needs, common behaviours, or other attributes. An organisation must make a conscious decision about which segments to serve and which segments to ignore. Once this decision is made, a business model can be carefully designed around a strong understanding of specific customer needs.

Defines what the key relationships are with the various customers’ categories and their associated markets or sub-markets. Typically provide key words or descriptors about the various customer categories and therein their characteristics and behaviors. Note the organisational customer relationship will be different from the customer/carer relationship.

The Value Proposition is the reason why customers turn to one company over another. It solves a customer problem or satisfies a customer need. Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment. Some Value Propositions may be innovative and represent a new or disruptive offer. Others may be similar to existing market offers, but with added features and attributes.

Describes the most important things a company must do to operate successfully. Like Key Resources, Key Activities are required to create and offer a Value Proposition, reach markets, maintain Customer Relationships and earn revenues. And like Key Resources, Key Activities differ depending on business model type.

Key partners describes those individuals or organisations that will be identified and engaged to support the implementation and achievement of particular strategies or projects contained in the organisation’s Strategic Plan. Typically organisations adopt a targetted approach to identifying, researching and onboarding partners or alliances. Partnership agreements should provide measurable mutual value and benefit to both partners. Without partners organisations operate in isolation and struggle to leverage additional ideas, opportunities, resources etc.

Future Market Channels Future Key Resources Channels defines the various means, mechanisms, processes or systems which deliver future services or products. Channels may also describe the various means, mechanisms, processes or systems that support the delivery of particular services or products, eg: multimedia.

Describes the most important assets required to create and offer a Value Proposition, reach markets, maintain relationships with Customer Segments and earn revenues. Key Resources can be physical, financial, intellectual, or human. Key Resources can be owned or leased by the company or acquired from Key Partners.

Future Cost Structure Future Social, Environmental or Economic Impact Future Revenue Streams The Cost Structure of a business model should reflect the various components of expenditure; providing a clear and concise set of statements or descriptors, or possible ‘wet thumb print’ financials, that will support the proposed business model.

The social, environmental or economic impacts describe those tangible social, environmental or economic impacts, results, outcomes or benefits that will arise because of the proposed business model implementation.

The Revenue Streams of a business model should reflect the various components of income; providing a clear and concise set of statements or descriptors, or possible ‘wet thumb print’ financials, that will support the proposed business model.

69

Current & Future Business Model ToolFuture Business Model Tool Questions


7



Future Customer Segments Future Customer Relationships Future Value Propositions Future Key Activities Future Key Partners For whom are we creating value? Who are our most important customers? Are there any particular characteristics, descriptors, expectations or requirements from various future customer segments?

What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones will we establish? How will they be integrated with the rest of our new business model? What will be the critical success factors of our existing or new customer relationships?

What value will we deliver to the customer? Which one of our customer’s problems will we help to solve? What bundles of products and services will we offer to each Customer Segment? Which customer needs will we satisfy?

What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Who are our Key Partners? Who are our Key Suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?

Future Market Channels Future Key Resources Through which Channels do our Customer Segments want to be reached? How will we reach them in the future? How will our Channels integrated? How will we integrate them with customer routines?

What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams?

Future Cost Structure Future Social, Environmental or Economic Impact Future Revenue Streams What are the most important costs inherent in our future business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Are there any other cost drivers, considerations or risks?

What are the measurable social, environmental or economic dividends/impacts that are anticipated to be delivered to individuals, families, towns, communities or regions?

For what value are our customers really willing to pay? What revenue streams can we draw from our customers? How will they pay? Will they require particular terms or conditions? How much does each Revenue Stream contribute to overall revenues?

70

Current & Future Business Model ToolFuture Business Model Tool


8



Future Customer Segments Future Customer Relationships Future Value Propositions Future Key Activities Future Key Partners

Future Market Channels Future Key Resources

Future Cost Structure Future Social, Environmental or Economic Impact Future Revenue Streams

71

How Do We Compare Against Our Peers?Strictly Private & Commercially Confidential


Organisation’s Logo

Organisation’s Name

The Board/Executive Comparison Tool… How Do We Compare

Against Our Peers & The Market?

72

How Do We Compare Against Our Peers?The Board/Executive Comparison Tool


2

Differentiator One: Distinctive Platform • Truly distinctive vision, mission, values, core business & philosophical statements & models, provide

a distinctive organisational platform. • In particular the philosophy is typically extensively documented, acting as a framework for

professional development of the Board, managers, staff & volunteers, a guide for individual, team & organisational attitudes & behaviours & the basis of developing unique service/business models.

Don’t Know/ Unsure

Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Two: Unique Service/Business Model • A unique service/business model can really set an organisation apart from its peers. • The service/business model will have been documented & is well understood & applied by the

Board, CEO & managers who can individually & consistently describe the organisation’s service/business model, its elements & application.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Three: Client Engagement, Satisfaction & Repeat/Referral • Levels of client engagement, client satisfaction & client repeat & referral business are considered as

extremely high, documented evidence can be provided to substantiate this state of being. • Repeat & referral business is the most powerful & least costly form of marketing; it maintains

existing clients & attracts new clients, which is important.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Four: Intellectual Capital/Capability • The combination of our internal & external intellectual capital/capability provides real horsepower in

the development & deployment of strategy, projects & innovations. • The key internal & external people provide significant & measurable value & benefit, they act as a

united team, propelling the organisation’s growth & development, via agreed strategies &/or projects contained in the Strategic Plan.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

73



3

Differentiator Five: Industry Insights/Business Intelligence • Intuitive or specific industry insights & business intelligence supports our strategic thinking, strategic

discussion & strategic decisions &/or organisation or operational equivalents. • Typically many managers & staff contribute to industry/sector insights & business intelligence that

ultimately translates into the strategies contained in the Strategic Plan.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Six: Integrated & Cross Referring Services • All services are integrated, not siloed, are cross-referring & synergistic, providing a service

continuum pathway for clients. • Integrated services enable managers & staff to not only see the inter-relationship of all services, but

the opportunities & ideas for improvement & service development strategies or projects that could enhance services for clients.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Seven: Tender/Bid Management Win Rate • The business development, tender or bid management application & win rate/volume per unit of

time, is consistent or increasing over time. • Against industry/sector winnings tables, the organisation is in the top quantile of all winning

organisations that won any particular tender or bid.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Eight: Integrated ICT/Systems • Comprehensive & integrated ICT/systems/software provide powerful data, information & knowledge

that is accurate, informative & timely, enabling informed decision making by the Board, CEO, managers & staff.

• Typically all systems are software based, integrated, operate on one platform & are secure, but easy to access & use.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

74



4

Differentiator Nine: Strategy, Structure, Systems & Services • Excellent strategy, excellent structure & excellent systems, ensure excellent services. • A fully integrated organisational framework of strategy, structure, systems & services are built upon

exemplary vision, mission, values, core business & philosophical statements. • Such an approach ensures an organisational wide perspective is adopted, not just a service

consideration, mentality or approach.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Ten: Delivered & Sequential Strategy • Each strategy/Strategic Plan is seriously developed, driven & delivered. Each strategy/Strategic

Plan is sequentially linked & contributes to the next Strategic Plan. • No Strategic Plan or its strategies stand in isolation from one another. • The organisation has a comprehensive & integrated Strategic Planning System that enables

planning, implementation, monitoring & reviewing via strategic & business planning tools, packages & processes.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Eleven: Leadership Team • Board, CEO & senior managers operate as a united & strategic Leadership Team. • The Leadership Team adds significant value & benefit when they all regularly come together & focus

on the strategic/ organisastional challenges & opportunities, thereby creating major strategies, projects, ideas or solutions.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Twelve: Board Governs, Managers Manage • The Board truly governs the organisation, whilst the CEO manages the organisation, a solid &

collaborative partnership in the leadership & management of the organisation. • The practical application of contemporary governance principles & practices is critical to the current

& emerging leadership & management of an organisation. • To this end the Board has & applies a contemporary governance system; principles, policies,

procedures, tools, templates & documents.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

75



5

Differentiator Thirteen: Learning Organisation, Professional Development • A learning organisation wherein the professional development of individuals & teams is founded on

a well designed, structured & sequential learning framework, process & content. • Advancing each individual’s & team’s skills & knowledge is imperative as the world around an

organisation & its services constantly changes.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Fourteen: Beyond Compliance/Quality • Organisationally & operationally compliance/quality are the base platform of quality. • The journey of business excellence has taken, or is taking the organisation beyond minimum

industry/government standards/quality systems; remembering that standards are minimum, everybody meets them & they do not given an organisation a competitive advantage. Business Excellence, Best Practice or similar frameworks are exemplary.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Fifteen: Targetted Partnerships/Alliances • Targetted partnerships/alliances are aligned to & contribute to the achievement of specific

strategies/strategic projects contained within our Strategic Plan. • Targetted partnerships & alliances should add mutually beneficial value & be measurable. • Partnerships & alliances should create & maintain a zone of mutual benefit between both

organisations; each being able to describe this zone of mutual benefit.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Sixteen: Informed Decisions, Sound Performance Management • An organisational wide performance management system that provides timely & accurate data &

information, against agreed organisational, service or individual’s key performance indicators/measures of success.

• This approach enables the Board, CEO & managers to make informed & timely, strategic, organisational & operational decisions,


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

76



6

Differentiator Seventeen: Financial Resources, Strength & Use of Balance Sheet • The strength of our balance sheet is one thing, the use/leverage of our balance sheet enables the

strategic growth & development of the organisation & its services. • Balance sheet strength provides the opportunity for the Board &/or CEO/managers to have the

necessary financial resources to enact ideas, opportunities, innovations, service development or projects.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Eighteen: Service Profitability & Organisational Sustainability • All services are viable, sustainable & profitable in their own right, no services are cross-subsidised,

no clients are over serviced & staff utilisation time is 85–90% billable activity. • In essence, the organisation is financially sustainable. If over servicing of clients is required, the

organisation has an agreed strategy to “Fund the Unfundable, Fund the Gap”.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Nineteen: Funding the Unfundable, Funding the Gap • The organisation’s capacity & capability to “Fund the Unfundable, Fund the Gap” in service

development or delivery is well established & delivers tangible & measureable outcomes for individuals, families communities or regions.

• The organisation has an agreed strategy, structure & policies/processes to “Fund the Unfundable, Fund the Gap”.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Twenty: Mission Mode, Maintenance Mode or Muddling • The organisation is consistently over time in mission mode, growing existing &/or developing new

services. • By all or many measures the organisation can clearly evidence this modus operandi; as against

maintenance mode, where the organisation has remained much the same over time or in fact has gone into muddling mode, declining over time & may be even heading toward insolvency.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

77



7

Differentiator Twenty-one: Entrepreneurial & Innovative • Entrepreneurship, innovation & creativity are inherent cultural characteristics that help define & drive

an organisation. • The Board, CEO &/or SMT can translate & deliver distinctive, pre-eminent or niche/specialist

services or products. • Many NFP Boards &/or CEOs or managers tend to be risk averse, driving an entrepreneurial,

innovative approach to organisational & service development & delivery takes courage, tenacity & resilience.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Twenty-two: Cultural Attitudes, Behaviours & Characteristics • Cultural activities, behaviours & characteristics at all levels of the organisation & within each

individual & team have 80% or greater alignment to the vision, mission, values, core business & philosophy & the agreed strategies/projects in the Strategic Plan.

• Organisational, team & individual attitudes & behaviours are 100% aligned to the stated & agreed organisational values.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Twenty-three: Economic Development, Community Development & Regional Development • Over & above normal service delivery, the Leadership Team (Board, CEO & SMT) understand, &

can demonstrate through projects or evidence, the organisation’s engagement with & contribution to the economic development, community development &/or regional development of the communities or regions in which the organisation operates.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

78



8

Differentiator Twenty-four: Geographic Spread, Service Spread • The geographic & service spread of the organisation & its various services, whether it is national,

multi-state, state or regional, is of sufficient size/economies of scale to ensure organisational sustainability in the current & emerging industry/sector environment in which the organisation operates.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

Differentiator Twenty-five: International, National, State, Regional Recognition • The organisation has consistently overtime been acknowledged & recognised either internationally,

nationally, state &/or regionally via industry, government or peak body awards or similar mechanisms.

• These awards have been used/leveraged to assist in winning tenders, submissions, grants, positioning or promoting the organisation or similar such activities.


Behind Peers

Meeting Peers

Ahead of Peers

Distinctive, Unique

TOTAL SCORES


#

25

Behind Peers

#

25

Meeting Peers

#

25

Ahead of Peers

#

25

Distinctive, Unique

#

25

79

Articles & Tools To Assist You To Co-design & Implement A New, Innovative Business Model

The following tools can be provided to you by email:

u Achievements, Concerns & Ideas Tool

u Current Business Model Toolu Future Business Model Toolu Strategy Stress Test Toolu Systems Review Toolu The Board/Executive Comparison

Tool…How Do We Compare Against Our Peers & The Market?

Strictly Private and Commercially Confidential

Version: 1.0 | Copyright © 2015 Australian Strategic Services Pty Ltd.

Usage of this document is governed by the licence & copyright agreement found at http://www.asspl.com.au/agreement

Removal of this copyright notice violates the terms of the licence & copyright agreement.

Ref: MG:BH

Date: 13 October 2015

Licence No: Lic Number


Organisation’s Name

Strategy Stress Test Tool

This tool has been developed by Australian Strategic Services based on the Article titled

“Have you tested your strategy lately?

Published in the McKinsey Quarterly 2015

Strictly Private & Commercially Confidential

Version: 1.0 | Copyright © 2015 Australian Strategic Services Pty Ltd.

Usage of this document is governed by the licence & copyright agreement found at http://www.asspl.com.au/agreement

Removal of this copyright notice violates the terms of the licence & copyright agreement. Ref: MG:BH Date: 13 October 2015 Licence No: Lic Number


Organisation’s Name The Board/Executive Comparison Tool… How Do We Compare Against Our Peers & The Market?

80

u Winning hearts and minds in the 21st century

u Undergoing Transformation

u Transformation with a capital T

u The role of the chief transformation officer

u The expanding role of design in creating an end-to-end customer experience

u The CEO’s role in leading transformation

u Reorganization without tears

u How to start building your next-generation operating model


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u Disrupt or Be Disrupted…The Six Leadership Challenges of the New Customer-Driven Competitive Marketplace

u Disrupting beliefs: A new approach to business-model innovation

u Strategy…The Key Domain of Directors, Chief Executive Officers & Senior Managers

Adaptive Governance…Transformational Leadership

Articles available from Australian Strategic Services [email protected]


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Further Information & Assistance

Michael Goldsworthy Principal Consultant Australian Strategic Services Tel: 03 5429 6331 Mob: 0418 130 581 Email: [email protected] Linkedin: https://www.linkedin.com /in/michaelgoldsworthy-b672a28/ www.asspl.com.au

Chairman Better Boards www.betterboards.net.au 03 5429 3786 Email: [email protected]

co-designing your new business model… the realities, … · 2020. 3. 4. · co-designing your new...

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