About 50% to 70% of business improvement efforts fail according to many studies, yet I’ve discovered on an approach that is delivering a 70% success rate on my improvement work. In this video, I’ll share another piece of the puzzle that has helped make this success possible.
Hi there, Matts Rehnstrom here, Shaper of Business Excellence. In this video, I’m going to talk about the business idea. I’m still standing here by my poster showing all the business excellence components and the relationship between them. What does this do for us? It makes us understand all the important components that we need to work with when building improvements for our business.
In today’s video, I’m focusing on the business idea. The last video, I talked about the owner’s perspective and that it’s important for you to understand what the owners want out of it, not as a business idea, but what they expect in general.
I also told you in that video that you need to write this down in a one-pager. This one-pager will come in handy because when we look into the business idea. However, before we look at that in more detail, what happens if you don’t have a business idea?
If you don’t have a business idea, it’s hard for people within the organization to really be engaged in their work because they don’t really know why they’re there. In the first video or maybe the second video in this series, we talked about the big WHY, so the business idea is very related to this WHY.
Here we will describe the whole idea behind the business. If you don’t have this and if it’s not written in a way that is useful for the people, then it’s hard for them to be engaged in the day-to-day business.
They do what’s expected but not anything more because they don’t really know if they want to take an initiative. They don’t know in what direction to take that initiative.
Many organizations that I meet have a business idea, but more dutifully. They someone told them that they need to have it, but don’t use it.
It could be the bank that said, “Okay, what’s your business idea?”, when they’re going to lend this organization money. Or it could be a management consultant. Yes, I know they just say you need a business idea, but then they write it up in a fancy way that is not used within the organization and that’s not how you going to do this.
What do you need to do then? Well, here it comes:
Okay, so let’s give two examples. I don’t claim these to be the best business ideas, but I just want to make a point how different they can be and how important it is that you write this down because as you see in this example, it will be a totally different way how you will set up the organization.
The first example is then we provide modern style shoes to the urban woman so that she is looked up to and respected. Okay. I did say that wasn’t a perfect business idea, but that’s the first one.
The second one is we give the outdoor people comfortable and reliable boots for adventures and safe nature experiences. That’s another one they both have to do with shoes.
The first one gave shoes to women, the other one gives boots to people that is outdoor. If you see these two, you understand the power of having a business idea for your business because it actually points your business in a certain direction and the things that you describe in the business idea will be used later on in the work with the rest of the components.
That’s why it’s so important that you nail this business idea. So you explain to everyone that is a stakeholder in into the business or other business that this is what we’re doing within our business.
So what about the business idea that you have in your business? Is it a more general one that is not really juiced for anything? Because it doesn’t really say that much or is it on a more detailed level where you can read and understand what your business is doing.
Please leave a comment about it below and I’m excited to see what you write and how you find your business ideas. And if you like to have a poster, this poster with all the components, click here to download the poster for FREE. Then you can follow along and you can read more about each component within this poster. So with that said, let’s go shape our business for excellence. And see you in the next video.
Matts helps Business Analysts, especially those who work in government administration, to design efficient and high quality business processes for their clients so they are able to deliver value in a sustainable and transparent manner. With over 20 years of advanced business process design in both IT and government, he can show you a simple ‘Business Excellence’ formula which dramatically reduces the time required to design a process as well as ensures it is created in a way which is optimized for the people who actually do the work. The health of the business and the people working in it is always at the forefront of how I help business analysts design their processes. ➔➔If you are a business analyst who wants to ensure you deliver the best possible outcome for their clients (especially if your current project is not running perfectly according to plan!) then Matts can help you.