The week of November 01, 1999
The New Millenium Business Model
by by Jack D. Deal
We began the twentieth century with the industrialized, hierarchical organization based on strength, dominance, protectionism and endurance. As we enter the twenty-first century and the new millenium we see this old industrial, hierarchical model on its last hurrah. What is evolving is a new model -- a functional, market-based model built on capability, value, and flexibility.
Although this 'new model' is still evolving, we are able to get glimpses of the shape this model will take. Here are some attributes of the 'new model':
- Market-based. The customer/client will get primary consideration and all structures will be created out of market-based demand.
- Value-based. The market itself is driven by perceived value. All resources creating value will be given top priority.
- Form follows function. The evolving processes and structures will be determined by the market and value delivered to these markets.
- Find and keep the best people. The best people bring a combination of skills and behavior ranges. Skills and behaviors combine to create capabilities. Capabilities create value.
- Compensate and motivate the best people for what they produce. This can be pay for production, bonuses, commissions, incentives, profit-sharing, etc.
- Provide opportunity and training so the best people can meet their own personal goals while helping the company meet its goals. Structure includes a career plan and regular reviews.
- Maximize potential. Remove all obstacles and let people do what they do best, allowing them to realize their own potential.
- Focus on creativity, production and value.
- Keep relationships strong but infrastructure flexible. Consider building an infrastructure that promotes relationships.
- Look constantly at the future -- three months, six months, one year, ten years. Your business model will change as your industry changes.
- Make sure "having fun" is a full chapter in your business plan. If it's not fun, it becomes a chore. There are of course other models, such as minimizing costs to compete on price. But other models are not as interesting, fun nor profitable as the model outlined above. These new value-driven companies are not only easier to manage but build short and long term sustainable value -- a good goal for any business. And as a result, they create an air of true excitement and are simply a lot more fun!
Jack D. Deal is owner of the Deal Consulting Group, providing business knowledge services to make companies more profitable and successful. 831-457-8806 / jackdeal@ix.netcom.com. Related articles may be found at http://www.dealconsulting.com
NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.
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