Confirmed Business Vision

Description

• Description of the kind of organisation that the company wishes to become in the future. It defines the firm’s strategic objectives and stretches the organisation (i.e. it challenges individ­uals to make the company different from what it is at present).  The BPI exercise should not proceed unless the senior management team reaches consensus on a shared Value Proposition.
• For some organisations, it becomes evident to the project team that the existing Value Proposition stated by management is inadequate or inappropriate and cannot be readily “confirmed”.  In such circumstances, it is necessary to embark on a comprehensive exercise to establish an entirely-new strategic vision for the organisation.

Client Value

• It is necessary to rethink the future direction of the enterprise before major change programs are initiated.  Executives will take ownership, be involved and provide strategic guidelines for the direction and goals of the BPI program.  BPI will only be implemented successfully and carried throughout the whole enterprise when the vision is sufficiently strong to mobilise dramatic change.
• Without a confirmed vision, the BPI project cannot ensure that the Focus Areas chosen for improvement are the ones that need to be changed for the client to remain competitive in its industry.

Approach

To confirm a Value Proposition, current paradigms of senior management must be challenged and perspectives must be broadened to stretch the organisation. The client executive team has to be encouraged to look at their future business from different angles.

1. Design management interview guide.
2. Review and outline competitive environment and business issues (use results from Internal organisational Overview, Business Position, Holistic Business Model).
3. Design a targeted set of questions to identify:
1. What can we sell? (Core Competency/Product/Market Analysis)
2. Where can we sell?
3. What are we actually capable of doing?
4. Customers (How do we add value?) (Strategic Analysis Framework and Value Proposition)
5. Competitors (How can we create an “edge” over competitors?)        
6. Stakeholders (How can we leverage stakeholders’ interest to our advantage?)
7. Assets and Resources (How do we efficiently convert assets to income?)
8. Inter­view key executives to gain shared understanding of the business strategy, mission and vision.
9. Synthesise results and develop content for workshop for confirming the vision.
10. For example:
1. Basis of Competition/Rules: How will we compete? (Five Basic Shared Concepts)
2. Operating Mode: How will we make money?
3. Structural Approach: How will we hold it together?
4. Stakeholder Value: Are we a good buy?
5. Culture: What do I tell my friends?
11. Conduct a workshop with senior management to confirm its Value Proposition.  Depending on the size and nature of the organisation, the tools used in this workshop may range from flipcharts to computer-assisted brainstorming. (Group Vision)
12. At the outset of the workshop discussions, identify the elements of a Value Proposition by asking the leadership team to answer thought-provoking questions such as:
1. Why do we exist?
2. Who are our customers?
3. Who are our key stakeholders?
4. What products and/or services do we (should we) deliver?
5. What do our clients and stakeholders care most about regarding how we deliver these products/services?
13. Reflect the responses back to the group by “filling in blanks” of a paragraph template. This “strawman” format of articulating a Value Proposition and Business Vision (Statement of Direction) promotes discussions on the underlying implications of each phrase.  These statements typically go through several iterations before they are finalised.  Ideally, the final version of the Value Proposition should describe the future state, stretch and inspire the organisation’s thinking and make it clear that new approaches to operating are needed.
14. If all members of the senior management team have not participated in the confirmation / development of a shared Value Proposition, conduct a final presentation/workshop to achieve full awareness and “buy-in”.

Guidelines

Problems/Solutions

• In some organisations, it is not practical to attempt to develop the Value Proposition and Critical Success Factors in a workshop setting (e.g. in extremely large organi­sations or in highly geographically dispersed company).  In these instances, it may be necessary to conduct executive interviews, synthesise results, and circulate draft documents for review.  The consultant is encouraged to attempt some type of group session to validate the results of this task and gain commitment.

Tactics/Helpful Hints

• A powerful Value Proposition inspires and compels change, conveys a feeling of purpose, determines a need for action, and has emotional appeal.
• When the client organisation is part of a larger “parent” company, ensure that the Value Proposition of the client organisation is in line with that of its parent.
• Critical Success Factors can often be developed as an extension to the Value Proposition workshop.

Resources/Timing

• The project manager will need to work closely with the highest levels of executive management.  This implies a need for skills and experience in developing a Value Propositioning and Business Vision and executive education.