Case 796: Diagnosing and Fixing a Broken Business Model Problem: Profits were continuing to decline and were no longer sufficient to sustain company operations long-term. Situation: Financial results had been fluctuating around a downward trend for several years. As problems became obvious, they were corrected. (The model was patched.) DecisionMap: The status of the key variables in the business model were symbolically represented for each location on a map showing all locations. Revealed: The business model was no longer valid for most locations. For a majority of the locations the key variables were no longer within the ranges needed for the business model to work. Result: A new business model was created that enabled each location to optimize performance while remaining in compliance with corporate strategies and meeting corporate objectives. Application: No matter how successful a business model once was, times change and the business model can cease to be effective. If enough time passes, the financial consequences can grow to be quite painful and force change -- or an exit. Is company culture or tradition preventing your company from acting on (or from even seeing) important, major trends? Could your company benefit from tools that enable continuous learning? Or, facilitate small adjustments to emerging trends? Or, help avoid procrastinating until changing with the times becomes a costly, painful experience? To get help now, just email us the best time and way to contact you. Copyright © 2002 - 2006 GAPuzey Consultants. All rights reserved. DecisionMaps and DecisionMap are trademarks of GAPuzey Consultants. |
DecisionMaps Enable Strategic Management. |
Some sculptors say they see the figure hidden in the rock and just remove what does not belong. Sculptors enable others to see the hidden figure. Executives and other key decision-makers use DecisionMaps to reveal the best solution to their business situation, problem, or opportunity. What business situations, problems, or opportunities are you wrestling with that could be solved with a new perspective? How much value could a DecisionMap help you find? The most important decisions the CEO and top executives make are strategic decisions -- i.e., deciding the right things to do. Executives must have a valid business model and understand it well to manage strategically. The following case example is highly summarized. |
