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“ Theory of the business ”  Peter Drucker Harvard Business Review September 1994. “ How to do it ” ?  “ What to do ” ?  To fully understand these questions we need to comprehend the key  “ assumptions ”  underlying the business. These are the  “ assumptions on which an organisation has been built ”  and they  “ are what I call a company ’ s theory of the Business ” Drucker 1994. Harvard Business Review
The  “ Big Assumption ” “ We are enthralled by  “ Big Assumptions ” -the assumptions that we take to be true. ” If we are certain we know how the world works-and this is how a big assumption operates; it creates certainty-why would we even think to look for a different reality? ”  .... ” Our Big Assumptions give rise to our competing commitments, thereby anchoring the whole immune system ” Kegan & Lahey 2001
The role of assumptions in strategy ,[object Object],[object Object]
Kaplan & Norton
Kaplan & Norton ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
ACBO Model   O utcomes 13%   B ehaviours 78% Commitments Assumption
Osterwalder & Pigneur
What is not seen: The theory of the business.
What is seen: The practice of the business.
The Growth Map
Case Studies ,[object Object],[object Object],[object Object]
Testimonials ,[object Object],“ I will never look at my customers the same again.... ”
Testimonials ,[object Object],“ The mission statement captures what we want to be and should inspire people to make the right choices.... ” “ If I had a simple model online or could use through my I-phone, I would definitely use this model once it was user friendly... ”
Implications ,[object Object],[object Object],[object Object]
Advantages ,[object Object],[object Object],[object Object]
Demonstration ,[object Object],[object Object],[object Object]

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Theory of the business drucker

  • 1. “ Theory of the business ” Peter Drucker Harvard Business Review September 1994. “ How to do it ” ? “ What to do ” ? To fully understand these questions we need to comprehend the key “ assumptions ” underlying the business. These are the “ assumptions on which an organisation has been built ” and they “ are what I call a company ’ s theory of the Business ” Drucker 1994. Harvard Business Review
  • 2. The “ Big Assumption ” “ We are enthralled by “ Big Assumptions ” -the assumptions that we take to be true. ” If we are certain we know how the world works-and this is how a big assumption operates; it creates certainty-why would we even think to look for a different reality? ” .... ” Our Big Assumptions give rise to our competing commitments, thereby anchoring the whole immune system ” Kegan & Lahey 2001
  • 3.
  • 5.
  • 6.
  • 7. ACBO Model O utcomes 13% B ehaviours 78% Commitments Assumption
  • 9. What is not seen: The theory of the business.
  • 10. What is seen: The practice of the business.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.