Business is a series of inputs and outputs, connecting points and dependencies. Trying to appraise where the business is now, and confirming that the direction it is going in (or should be going in) will lead it to further success requires a full assessment of the key elements affecting the business. I call this the “3-Dimensional” view – looking at it face on, from above and at the side. In my experience, most assessments fail because too few dimensions are included. There aren’t 3 really – there are a few extra, but you get the idea – look all around the business before concluding that you’re going in the right direction.
The key elements are:
1. The Business Owner’s personal objectives / Life Point
2. The Top-Level Strategy – the industry landscape / the company’s positioning in it
3. Business Model & Recent Financial Performance – how sales converts to cash, and current issues
4. Organisational & Operational Structure – is the business organised for success?
5. Sales Plan – think through how sales are / will be won
6. Marketing Plan – examine the consistency of promotion of the company
7. Innovation – the role of “new” in the plan
Within each step, are a series of sub-steps, analyses and connecting points. The assessment should not skip any of these steps and the aim is to complete a reasonable level of appraisal work at each stage, and then look for the important element – Fit.
Fit (“congruence” in MBA terms) is crucial to concluding that the overall plan will work. If every element of the business is working in unison, or can be directed to be, then success will be easier to achieve. It’s not guaranteed, but it’s much easier if it all fits – nothing will be dragging along behind.
Assessments do not have to be extensive, lengthy processes. Often times, a short review process will gather the main elements quickly, and a well-considered appraisal can be put down. With time, over time, this can be added to and revisited so that continuous planning can be undertaken.
The key take away is to ensure that ALL of the relevant dimensions are included in the 3D Strategy.
John Eager
Written by: Winabu
Date: July 3, 2014
