Tag Archives: Strategy

A cheat sheet of 19 different types of business models

To change the game, change the business model. But, what if you can’t find one?

Well, HBR published an article on business models that has the following cheat sheet of 19 different business models that you can brainstorm and adapt to a new venture.

Most articles you read about business ideas have been written by freelance writers who have no business experience and have no idea of what they are talking about. And they certainly don’t know what makes for a good business idea. Visit website to find a super list for business accordint to Shravan Gupta a businessman with years of experience in the business field.

True innovators don’t have a culture that aims to please the boss

for innovation safe is riskyHow many strategic plans look a little bit different from the year before? 99.9% do.

When I say “a little bit different” I mean tighter strategies with incremental goals and objectives and more of the same activities as the year before. Yes, we’ve all seen this before. What’s ridiculous is that you may begin a strategy session thinking differently, but most everyone defaults to safe because “that’s not what the boss expects” when the time comes to decide on a course of action; a lot of good ideas are not considered because of this.

This situation presents itself in most businesses, but the ones who are able to leap ahead have one thing in common: they are ruled by ideas, not hierarchy.

It isn’t business-as-usual to be ruled by ideas

Over the last few months of 2014 I was involved in facilitating a strategic plan for a government created mechanism in charge of coordinating entrepreneurial activities in the city of Tijuana. They brought me in because they wanted to shake things up!

There were many challenges, but the main thing was to be more ambitious. Unfortunately, it’s one thing to say “let’s rethink our approach” and another to actually go forward with it. Well, that’s exactly what happened after the strategy sessions.

The ideas that were presented in the strategic plan were cookie-cutter versions of what happens in other entrepreneurial ecosystems around the world, in this case they are localized to Tijuana. The sad thing about it is that the people in charge of this government mechanism, the boss, vetted all of the ideas; even though they were the same as the year before.

Why did this happen?

Because the group of people that came up with the strategic plan wanted to shake things up, but only just a little bit. The result was almost the same set of activities as the year before, with incremental goals and objectives.

Not the recipe for shaking things up…

The best idea wins

In innovative organizations, there is a unique understanding that to shake things up one has to STOP doing what leads to more of the same and START doing what will lead to new and different. So, if the decision making process in your business is to go through a suit (business as usual) that values safe bets that lead to more of the same; now you know what will counter that: letting the best idea win.

How do you do that?

Easy, ask yourself some business shaking questions:

  • If we make a list of all the projects we are working on, do any of those have the potential to change our business significantly over the next year?
  • What’s the boldest idea we should work on?

Best and bold are subjective terms, so it is best to first develop a criteria for what you want. The criteria I use to describe innovativeness is: new, surprising and radically useful. Secondly, come up with some ideas that fit the criteria you defined. And finally, define a timeframe to see some prototypes and let people try stuff and don’t judge them if their idea fails.

Employee freedom and responsibility go together

The main point is people need freedom, support and challenge to make innovation happen; not to think twice about expressing themselves freely because they fear getting punished. Put simply, if you are afraid to say what you really think in a meeting, you are not free. You are a corporate slave.

True innovators do away with corporate slavery. True innovators trust people to do the right thing, and that starts with defining culture and then hiring for specific values and behaviors. Hiring is hard, it’s the most important job for any business, and there isn’t a cookie-cutter recipe to follow, but if you focus on hiring for brilliance you can be certain that the best ideas will win; not the loudest voice in the room.

Bottom line: A culture that values playing it safe, is a culture that stagnates. A culture that thrives is one where people and ideas that challenge the status quo are valued.

CEOs don’t really want a new business model

Find the revolution before it finds youThere are various reasons why established businesses fail at innovation, but one stands above all: CEOs don’t really want a new business model.

True innovation, not the incremental type, brings forth new approaches and business models. If you are an upstart, that means you are probably creating a new business model. For an established company, it means coming to grips with the reality that your existing business model is going to become irrelevant; if you don’t act first.

But, no matter how many times we see an established business drop rock bottom because its leaders failed anticipate and change with the times, CEOs of other businesses are content with maintaining the status quo. Seems like learning from others doesn’t fit their mindset.

How to think

We’re one week away from 2015, people will make their resolutions and try to keep them for a whole year; which usually doesn’t work out as planned. One resolution, an ongoing effort actually, that we should all aim for on a daily basis is that of making better decisions.

That means thinking better, which will have a cumulative effect in all else we do; including executing on our New Year resolutions.

A question I get asked often is something along the lines of , “How can I improve my ability to make better decisions?” To this, I respond with a counter question, “why do you think you make bad decisions in the first place?”

The reframing of the question, is good example of “what to do” to make better decisions. Thus, an easy way to make better decisions is to ask yourself questions, but that usually comes after you’ve done some grunt work to define a better question beforehand.

5 questions to help you think about the culture you wish to create

dare to create culture

Culture eats strategy for breakfast. Why? Because even a beautifully conceived strategy won’t be executed the right way if people’s values and beliefs are not aligned. In other words, culture is not mandated; it is shaped from the beginning.