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The "Death" of the Business Plan

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The “Death” of the Business Plan and Implications for Dynamic Organisational Design
The paper will challenge common thinking in regards to Business planning and strategic execution. The session will seek to link business modelling with tactical planning and highlight the implications for effective team dynamics, organisational design and strategic delivery. The paper will be broken into five parts;
1) The Disconnect
2) The Business Model vs Business Modality
3) The Collective
4) The Critical mass
5) The Conclusion

Contact me if you have any questions?

Published in: Business

The "Death" of the Business Plan

  1. 1. The Death of the Business Plan Implications for Organisational design Chris Catto
  2. 2. The Disconnect Business Plan or Fanciful Treasure map? PESTAL SWOT 5 Forces BSC Chris Catto
  3. 3. The Disconnect The Construct  The Business Plan Audience  What about what the customer wants?  Who deals with the customer?  Hierarchy and span of control?  Perception?  Motives?  Professional Managers v Industry Experts (the consumer inside?) Chris Catto
  4. 4. What is his View? How much does his view matter? Chris Catto
  5. 5. The Application • Budgets & Forecasts • Performance Appraisals • KPIs & KRAs • Individual Bonuses • Salary Bands • Gaming The Disconnect Chris Catto
  6. 6. Business Model v Business Modality Natural Business State Solid v Fluid? Static or Moving Parts? Chris Catto
  7. 7. What is the Modality of your Industry? What parts require: Updating? Maintenance? Re-engineering? Replacing? Each industry has a particular tried and tested methods of revenue generation, product development, manufacturing, service delivery and customer service. While the fundamental principles of the business modality remain constant, tactics for delivery are continuously improved, challenged, refined and enhanced with the introduction of new technology and change in social norms Chris Catto
  8. 8. Is your Industry Modality Changing? When does the Modality Die? When the vehicle for servicing the “need” changes If the Need no longer exists, Then The need you were servicing was a fad! How often has your Modality been reinvented or even completely substituted across History? Chris Catto
  9. 9. The Collective The Artisans of the 21stCentury Individuals form Teams within the Business Modality – Modality is formed of natural overlapping components. Teams have collective Skill sets that complement the Modality Components. Modality Components include: Sales, Marketing, Product development, engineering, manufacturing, Logistics, service delivery, Administrative Support Leaders within the teams are self determined by combination of skill Mastery and as the facilitators of Collaboration. Ultimately Leaders act as natural catalyst for problem solving. Chris Catto
  10. 10. The Collective McGregor: Theory X Theory Y Maslow: Hierarchy of Needs Argyris: Theories of Action, double loop learning Organisational Performance is a function of Environment The Collective Mastery of skill in a favourable Human Environment Principle for individual Performance is mirrored Mastery of required skill placed in a favourable human Environment Chris Catto
  11. 11. The Critical mass Each business has a tipping point A critical mass required to; first - to break inertia Second - to continuously service the critical mass to maintain momentum The momentum in business is represented by the Flow of sustainable Cash The Implication for Organisational design is to align the collective skills with the Business modality; That generates the cash flow momentum; That exceeds the Sustainable Business tipping point Chris Catto
  12. 12. The Critical mass Just as seasonal rains bring life to the living environment The Focus of Organisation Design is to maintain momentum of Cyclical *Self improvement *Advancement of Collective knowledge *Innovation *Product Development *Infrastructure reinvestment *Positive Market Engagement The Rain that maintains the momentum of the water wheel
  13. 13. The Conclusion The Business Plan as we know it is as useful as a message in a bottle • Designed for Wrong Audience • Insular, • hopeful, • A Limited communication Medium • Practically direction less, • beholden to the currents that surround it Chris Catto Alternative: Strategic Modality Statement 1) Understand the Modality that services the core need 2) Align the Collective 3) Recognise change and Sustain Critical mass Implications for Organisational Design The Artisan Organisation Designed around Teams of Skill and mastery optimised in a favourable Human Environment Chris Catto
  14. 14. The Author Chris Catto Director & Chief Performance Partner – Putney Breeze Business Advisors Author of Premiership Business For more information, strategic facilitation or Speaking engagements contact info@putneybreeze.com.au

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