BUSINESS MODEL IS KEY

Create Competitive Business Models

Organizations rise and fall depending on the business models they develop and implement. If you have a good model you are likely to prosper but if you have a bad one you are most likely  losing money. First things first. In simple terms what a business model ? A business model is  a structure or framework of how an organization engages with its clients or customers so that they willing pay for its products and services in a sustainable manner.  Payment by customers generates revenues and the means to pay costs and  possibly  earn profit. The key things to consider in creating a powerful business model are:

1.       Creating value for customers

No matter how much marketing and advertising you do if you cannot create something the customers want or appreciate then you are going nowhere. To succeed as a firm you must be able to meet a customer need or solve a problem at a cost that the customer is willing and  able to pay. If you create something well sought after at a very low cost you have high chance of success. You have opportunity  to increase price and make more profits. You can keep low prices and other competitors can't match you.

2.       Appropriating the created  value

You can create customer value but benefiting from the value is not obvious. Sometimes imitators gain from genuine innovators. Appropriability  is possible with a  lot of innovation and creativity. Another pertinent question is whether  customers can afford  goods and services? How do they pay? Is it in physical shops, online or via some other platform? To appropriate value you must give customers hassle free platforms to facilitate  exchange . Customers are always hungry for generously priced goods of high quality. To easily  part with money  every transaction should be  be a joy to execute instead of frustration or pain.

 

3.       Select and Engage with the right customer

Successful organizations are happy to lose some non profitable customer segments. They focus on developing unique profitable segments. Through appropriate customization successful firms select, engage and develop the right segments in a sustainable manner. Most companies fail  when they try to treat  all customers the same ignoring the fact that today’s customers demand differentiation, personalization and individuality. 

4.       Decide on Competences and Infrastructure to develop and others to sub-contract

In a world of speed and agility, success is hinged on excellence and  in what you do. If you are weak in certain activities pass them to those with capability or look at ways of upgrading your competences. To be fast and flexible means you don’t have to build all the infrastructure yourself but share, subcontract or outsource.

5.       Build an effective production system

To deliver sought after customer value consistently and reliably you need efficient systems and processes. Therefore an effective production system is key to sustainable competitive advantage. To stand above the pack there is need to design, operate and manage efficient systems, processes and policies. This ensures customers get the best quality always. It is also important to periodically review the production processes and to adjust them in line with the feedback received  from customers. Progressive companies are quick to own and correct mistakes. They pride in continuous improvement based on lifelong learning.

6.       Innovate the business Model

No matter how successful you have been, the business model requires periodic assessment to determine its relevance and effectiveness. Good leaders are not afraid to adjust or even abandon a successful model for the sake of implementing one that is future proof. Innovation of the business model should be part of continuous improvement. Customer needs and tastes are changing so there is need to be in perpetual state of flux, monitoring and improving the way business is conducted. Some organizations have failed to embrace change and they have joined others in the grave yard.If the customer wants to rent a product don’t force him to own it. If the customer wants to pay as they go don’t force them to  pay for the whole month. Also, it is important to realize that customers demand many goods and services for free. Sometimes its better to give them free delivery or repair . Therefore its better to  spend time changing business models instead of trying to change  customer mind frame.

 

Re-modelling the business model should be effected  even in times of great success. The greater the success of a business model brings the greater the risk that executives are tempted to keep and use it for life. Customer needs are changing and the business environment is also becoming more complex and challenging. The only sure way to succeed in the highly competitive, volatile and uncertain market is to be comfortable with change. As a result even the most successful and promising business model needs adjustments.

Dr Andrew Nyambayo (PhD. MBA, Bsc Eng) is a business leader, strategist, coach and motivational speaker with over 20 years experience in the telecommunications and service industry. He is the author of famous books, "Integral Marketing: Enhancing Livelihoods"  and  "Succeeding in Turbulent Times"

TEAMS MAKE THE DIFFERENCE

Creating Winning Teams

Todays’ endeavours are won mostly by strong teams instead of super individuals. The work environment is so complex and the speed of execution needed much faster that the knowledge and skill  of a group is superior to individual actors. A lot has been said about the importance of teams but how do you establish good ones?

1.       Promote diversity in team selection

Strong teams are balanced teams. They consist of members of various social, cultural  and academic backgrounds. They are not a club of people with the same mindset and socialization. Diversity brings newness and creativity, the hallmarks of success.

 

2.       Set the right vision for the team

People are motivated to work towards accomplishment of worthwhile goals. People are happier and energised to pursue clear and inspiring visions. The energy level of the team has a direct relation to the inspiration of the vision.

 

3.       Establish acceptable rules

 Strong teams work according to well established and agreed rules. The rules must not be cumbersome or punitive. For example meetings should start and end on time. Every member should be given room to contribute. Members who miss agreed targets or who behave abnormally are sanctioned in love.

4.       Have clear responsibilities

Successful teams have clearly defined roles and responsibilities. Each member knows what is to be done and when. Everyone knows the acceptable quality and what to do if there are challenges. Assignments are allocated according to knowledge, skill and experience. Members not only work well  among themselves but also help each other.

5.       Always raise the performance bar

High performing teams are always looking at ways to exceed the previous milestones and targets . They are never satisfied even after beating records. Continuous improvement of systems, processes, products and people’s conduct is their everyday passion. High performing teams celebrate success but never get satisfied with current achievement. They take time to celebrate but ever hungry for more.

6.       Have Effective communication

Strong teams are well known for good communication, whether verbal or non verbal. Some teams have a reputation of songs and dance. They energize and assure each other through clear and unambiguous communication be it email, face to face communication or even whistling. The team is an orchestra producing good music.  Where there is effective communication, disputes and disagreements are minimized.

7.       Share burdens

High performing terms share burdens. If one member is struggling other members come to the rescue. If there is bereavement for example members support each other. Strong Teams are willing to take pay cuts rather that losing members through retrenchment. High performers to sacrifice  pay for cohesion and high team spirit. Community is more important than pay check. Sustainability better than short term gains.

When you have built and developed a strong team you are assured of winning the game.

Dr Andrew Nyambayo (PhD. MBA, Bsc Eng) is a business leader, strategist, coach and motivational speaker with over 20 years experience in the telecommunications and service industry. He is the author of famous books, "Integral Marketing: Enhancing Livelihoods"  and  "Succeeding in Turbulent Times"

ARE YOU A GOOD LEADER?

REALITY CHECK FOR LEADERSHIP

 

Become a good leader

Everyone can be a leader but not everyone can become a good leader. To be a good leader you must develop a winning mindset, be resilient to adversity and be willing to empower and inspire your team. You can develop a winning strategy but to deploy it effectively you must first define reality. Reality is the current status of things? Reality is the tone in the shop floor and corridors of management? Reality is the current perception of customers, suppliers and other stakeholders about you and your organization.

 

Reality check is critical before you make your next big move. Yu don’t want to use a hammer to fix an ant neither do you use a car to pull a train. Assessing the situation first and accepting what you see is 50% of the job. Only 50% more is left. The challenge is that most people want to prescribe medicine without appropriate diagnosis. As a result they are ineffective or use too much force to the destruction of people and institutions.

 

Deploy appropriate strategies

Some of the reasons people fail to check on reality is that they are too keen to deliver results. Unfortunately a good house is never built on bad foundation. Take time to assess and then deploy appropriate strategies. A builder who avoids special foundation only has himself to blame when the building cracks and is condemned. He should not rush laying bricks but accept that the soil is bad so he needs more time for testing and making special foundation. Sometimes there may be need to abandon a bad site because the cost of building is prohibitive. This should be the modus operandi of a leader. How bad is the situation? Can it be rectified? How much time and resources do I need? The first reaction should not be diving to resolving the issue, but assessment , planning and then crafting appropriate intervention.

 

Therefore good leaders accept reality, good or bad. They don’t just wish or budget for good situations. Good leaders sometimes have to accept that the organization has fallen to the basement, it’s not the ground. The situation is worse than what I envisaged. It is going to take longer than we planned. By accepting reality a leader galvanizes trust and credibility. He /she gains the right to lead and be followed.

Dr Andrew Nyambayo (PhD. MBA, Bsc Eng) is a business leader, strategist, coach and motivational speaker with over 20 years experience in the telecommunications and service industry. He is the author of famous books, "Integral Marketing: Enhancing Livelihoods"  and  "Succeeding in Turbulent Times"

 

 

DON'T BE RIGID AND STATIC

Winning through Dexterity and Adaptability 

Dexterity

Success especially during turbulent times depends a lot on dexterity and adaptability. It's not only what you know but how you apply what you know. It's the high speed and accuracy of execution that frightens competitors or catches them off guard which is critical . When you execute with high proficiency, skill and zeal you have high chance to survive and excel in turbulent markets.

To make it in this uncertain world of volatility, ambiguity and complexity you must be ready to change course and do things differently. You must be comfortable with change, not afraid of it. Like a cat you must be willing and able to jump from one position to the other, from one height to the other. Not only should you perfect your current game but you should also work on new ones. Constantly and consistently seek new opportunities. As an example Fin order to  attract, retain and motivate capable highly skilled staff organizations  must be flexible enough to change their well tried and tested remuneration philosophies and try new ones that fit the environment. In the new world nothing is so sacred that it cant be changed. Both people, processes, systems and policies should be changed.

Adaptability

Lifelong winners are always adaptive to different situations. In a rapid changing world its not about strength and endurance but adaptability. The individual  who wins in not the one runs faster than machines or who thinks better than machines but the one who can adapt and work with and not against them. New technology is not the enemy but being unable to reframe yourself and work in partnership with the technology. Move at pace with the new technology. Never be slow to adopt newness This is the new normal. Change is everywhere. Therefore adaptability brings new life to dying professions and markets. You can benefit from the adjacent possible not just from opportunities far away. Learn new rules in the business game. After learning and thoroughly understanding the rules change them to your advantage. At every opportunity renew yourself like an eagle.

Dexterity and adaptability are truly the hallmarks of sustainable advantage. Without them you have no legs to stand on. How can you compete?

Dr Andrew Nyambayo (PhD. MBA, Bsc Eng) is a business leader, strategist, coach and motivational speaker with over 20 years experience in the telecommunications and service industry. He is the author of famous books, "Integral Marketing: Enhancing Livelihoods"  and  "Succeeding in Turbulent Times"