Can the team see your business model?
This article is part of the “Organizational Innovation” series, a series of link stamps here. Target audience: Entrepreneur and team leader who care about organizational efficiency and organizational sustainability.
Amazon’s 3 flywheels
Write a column for a while, my experience with “organization” has undergone some changes:
In the beginning, curious homogenization companies have differences in human effects, so start researching organizations;
Afterwards, I feel that most CEOs are not aware of organizational issues, so they begin to share organizational innovation practices at home and abroad;
This year’s organizational concept is on fire. Many CEOs understand the big company’s organizational system and use it directly, so I began to emphasize the adaptability of strategy and organization;
And now, I realize that it’s hard to justify the strategy and make it clear to the whole company before we talk about adaptability.
If every CEO can draw a closed-loop diagram of the business model like Bezos, then let’s talk about the organization, and the column will live better.
So, To more accurately draw what the company’s “Amazon Flywheel” looks like, more than 20 CEOs and partners participated in the first CEO group class earlier this month.
Where is the collective learning, it is simply the CEO’s soul torture.
——CEO of a company
These companies are in the A and B rounds. Most of them were selected by Ali to the AI track class. I thought the CEOs thought about their business very well; butWhen they stood in front of the stage, under the eyes of the teacher’s scalpel, and dismantled their company’s business model to all other CEOs, many CEOs were self-confident.The speed visible to the naked eye is curled up.
This has the sigh of “Soul torture” above, and also inspired me to share some small examples to help more CEO readers understand what they experienced in the class.
The first step is to let everyone see your business model
This is a CEO’s first version of the business model, they are doing data visualization SaaS products.
Probably means that this is a virtuous circle: more visual templates mean better solutions in the user testing phase, better solutions for higher satisfaction, higher satisfaction leads to more High single rate, higher single rate and greater traffic promotion to generate more users, more users will also promote more visual templates.
The CEO spoke very smoothly, because this is his long-standing understanding of “how the company is moving forward”, as long as the flywheel turns, the business will continue to develop.
But the teacher’s comment is: “This is the closed loop for cash flow, not the core of value creation/performance creation. The closed loop of business model should be about how to increase customer value .“
The CEO said that he didn’t understand it. The teacher said, “For example, another company is standing here and saying that you are offering the same things. Why do you distinguish them from them?”
“We have a large number of visual templates,” the CEO said.
“What is the number of visual templates?” asked the teacher.
“There are many visual templates, and the modeling speed is fast.” CEO answered.
“How fast is modeling, what is the value to customers?” the teacher asked.
“Modeling is fast, and customers can see better results in less time when presenting to customers.” CEO answered.
The teacher asked if other CEOs in the field had data visualization requirements, some said. The teacher asked, how many people think that using the less time to see better results during the presentation is an important factor in their decision to purchase the product; some people hesitate.
CEO said 尴尬.
The teacher said, “I re-emphasize again, businessThe closed loop of the model must show the value that the customer cares about, not the business process. “
After an hour, the CEO updated a version. (Although this is not the actual business model of the company, it can at least help us to see that what really keeps the company running is not the closed loop of business processes, but the closed loop of increasing value.)
In the new version, the CEO drew two closed loops of “AI” and “Service”.
In the “AI” ring, better visualization platform tools can produce more templates, more templates to improve rapid modeling capabilities, stronger modeling capabilities, more efficient access to users, and more users to promote Iteration of platform tools.
In the “Services” ring, visual platform tools can help consultants better meet industry needs, more consultancy services generate more total solutions, more solutions mean more ecosystem partners, more Partners eventually lead to more and better platform tools.
In the new version of the closed loop, the “higher satisfaction – more orders – more traffic” part of the business process is removed, and all is about how value is generated and enhanced in the loop.
Of course, this is just an example. It is not the final business closed-loop diagram of the company; it needs to go through a process of polishing, in which the CEO collective class will remain companionship. (Imagine that at the end of the article, there are registration details for the CEO group:)
Step 2, let everyone see your organization status
With a closed-loop diagram of the business model, it’s easy to test the effectiveness of the organization.
According to the value flow shown in the diagram, everyone in the organization must stand at a certain point in the loop and apply force in the right direction; if not, then the effectiveness of the person in the organization It must be low. The more people, the more things are not on this ring, or the direction of pushing is wrong, the more problematic.
The good news is that we look at the organization and there are closed-loop diagrams.
The second day of CEO’s collective learning is to try to think systematically and understand the situation inside the team. The following is a question that the CEO has drawn and is facing the organization today.
The company initially focused on project-based consulting services and later began producing modular software.product. The original purpose was to reduce the cost of the consulting business, and as the tools became more and more, they gradually put more effort into productization.
In this seemingly complicated picture, there are 3 loops.
The loop above is a dynamic process that directly solves the project delivery problem: The current symptom is that the project delivery manpower is insufficient, so the delivery team is expanded Can alleviate the current delivery problem.
The following loop is the process of fundamentally solving the delivery problem: The problem of insufficient manpower for project delivery, only by modularizing and building the product Process standards can be fundamentally resolved; but this approach takes a long time to accumulate and is difficult to accomplish overnight.
The overall loop on the right side represents the impact of side effects on problem resolution: Expanding the payment team, including letting everyone work overtime on the project This will result in a large amount of cost and effort for the overall team, reduced investment in productization and standardization work, and thus an increase in project delivery capacity.
In fact, when the CEO draws this question out, the solution is very clear.
The “expansion team” will only intensify the problem itself. The reason why we have to solve the problem through the “expansion team” is simply to get time for the “product modularization” fundamental solution. .
So, if the side effects lead to time not being won, but instead compress the time when the underlying solution works, the CEO will go to see what is causing the side effects in the organization and how to cut off the side effects. .
The CEO believes that letting the people who do the project abstract the core of the business and the product itself is notIt’s easy, because people who seem to be doing projects don’t like precipitation. Instead of depositing it, it’s better to go directly to the project.
But this time, another CEO on the field said that maybe there is a hidden factor between the “expansion project team” and “side effects” – the people who do the project certainly know about productization and standardization. The importance of this, but because of this, the talents of the project lack the motivation to abstract the business capabilities; because the stronger the product capabilities, the weaker they are needed. While more standardized products can help them deliver more easily, it may be a state of being too busy to keep them running so much. The more substitutable you are, the less money you can make.
The teacher said that there is indeed a hidden mental model between the short-term solution and the side effects.
In the case of the above, if the person doing the project really thinks so, then from the organizational level, the company is pushing the productization, and there is no design specific scene for the project team to keep growing, is it in use? Any way to change their potential perception: the better the product, the more space they grow, not the other way around.
Of course, this is just a simple example.
The core of this closed-loop diagram is to help people see what the business and organization are doing today, and (and more importantly) let everyone discover what the hidden problem on the “side-effect” loop is.
Put the hidden problem on the map and you will be able to see it – it seems to be a business problem, but behind it is the organization’s problem.
So, try to draw it; drawing it out is about invisible.
I don’t say much again, why should I see it together?
Entative companies face too many and too many problems, whether it’s strategy, organization or business.
Moreover, everyone sees different issues. While the CEO is at the center of the infinite problem, he seems to bear the ultimate responsibility for solving all of these problems.
But in the CEO group class, the teacher said, “CEO is not to solve various problems. Before becoming a mature company, the most important thing is to earn tickets and squeeze into an industry standing position. If you don’t even earn tickets, what can you do to solve future problems?”
Using system thinking tools to look at strategy and see organization is to see the status quo with everyone and use limited resources to push the flywheel. Although you don’t have to think about tools, you can feel the problem more or less, but others may feel different from you.
So, let the strategy and organization be seen – this is the first lesson of the CEO group.
附—Pro CEO Collective Learning Module:
Module One System Thinking: System Fundamentals and Strategy Map
Module 2 Team Learning: Mental Model, Effective Communication, Team Relationship
Module 3 Vision Leadership: Incentives for Vision Sharing
I am a reporter, Meng Xiaobai, who is exploring the topic of “organizational innovation”. The series link is here. Target audience: Entrepreneur and team leader who care about organizational efficiency and organizational sustainability.
Readers who want to participate in the discussion and even join me to study “organizational innovation” can add me WeChat: nihaomengzenmeban