The re-imagining business need is felt when you start seeing signs of stagnation. Most companies, over their lifetime, do require to go through reimagining business. Large corporations have dedicated business strategy units that assist them in this work. Most companies hire external consulting firms to take an independent look at their company and identify pathways for growth. These teams will examine the company’s existing business strategy, business, and operating model. In confidence discussions with leadership and staff is part of the exercise. These conversations help the consulting team understand the culture and operating style of the company.
The first step in re-imagining a business is to dive deeply into its business strategy.
The key elements of a business strategy review are:
Undertake a review of your internal and external systems, including competition and the interplay between the two. You will be surprised by the insights that this analysis will reveal. Value chain maps to obtain an integrated view of the company’s business processes help the consultant obtain an integrated view of the company and its operations. A comparative value chain map for a competitor’s business processes and relationships is also prepared. Comparing the value chain maps of the company and the competitor helps identify areas of strategic convergence and competitive advantage.
Armed with this information, begin the strategic planning and re-imaging exercise. It is done by independently generating three to five ideas to help you gain a competitive advantage. Each idea is put through rigorous testing. Testing the ideas is done at the shop floor level. The test results give you insights into the best options to help the company to the next growth cycle. There are no shortcuts in business strategy planning, no bright ideas that anyone can prescribe. It is an evolutionary process that you will need to undertake with deliberation.
Sometimes the business strategy review will reveal that changes to the existing business model are required. A business model review evaluates the key components of a company’s business model, such as its value proposition, target market, revenue streams, cost structure, and competitive advantage. The purpose of a business model review is to assess the effectiveness and sustainability of the current business model and identify areas for improvement. This can be done by analyzing financial data, market trends, customer feedback, and other relevant information. The insights gained from a business model review can inform strategic decision-making and help a company adapt to changes in the market and stay competitive. The review is often a critical component of the re-imagining business exercise.
The next step in reimaging business is a review of the organization’s structure. Organization design and restructuring exercises typically involve several main steps, which may vary depending on the specific context and goals of the exercise. Some of the key steps include:
- Define the objectives: Clarify the purpose and desired outcomes of the exercise. This may include improving efficiency, reducing costs, increasing agility, or responding to changes in the business environment.
- Analyze the current organization: Evaluate the existing organizational structure, roles and responsibilities, processes, and systems to identify strengths, weaknesses, and areas for improvement.
- Design the new organization: Develop a new structure that aligns with the objectives and addresses the identified areas for improvement. This may involve creating new roles, changing reporting lines, and modifying business processes.
- Develop a transition plan: Identify the steps required to move from the current organization to the new structure. This may involve training, communication, and change management activities.
- Implement the changes: Execute the transition plan, which may include reassigning roles, changing reporting lines, and updating policies and procedures.
- Monitor and evaluate: Measure the effectiveness of the new organization and make adjustments as necessary. This may involve gathering feedback from employees, customers, and other stakeholders and tracking key performance indicators.
Throughout the process, it is important to communicate with employees and stakeholders to ensure that they understand the reasons for the changes and their roles in the new organization. Effective change management is critical to the success of any organization’s design and restructuring exercise.
A reimagining business exercise is a company-specific exercise.
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