Business Repair Services
Business Repair Services
CUSTOMER REALITY CHECK
A business model design starts with the selection of a customer segment to which your business can add value.
This is not responding merely to “customer needs” but really investigating what your customers are doing and how you can improve the value they obtain from their products and services.
You have to understand what jobs your target customers need doing.
Having decided how you provide value to your customers then you need to design how you derive your value from that process and protect it from competition.
That is defined in the Profit Model and we deal with that too if required.
Customers are developing and changing all the time particularly now that we have been through such extraordinary times, so finding out how they have changed and how that affects your business is a key activity.
LCEOS can help with a series of “Reality Checks” that will reaffirm the validity of your customer base or identify the areas that need “repair”.
We will focus on acute issues that need immediate action.
Profit Model Improvements
Profit Model Improvements
The Profit Model is how your company captures value from providing valuable services and products to your customers.
Therefore you need to be clear about your Customer Value Proposition (CVP) and ensure it is current and fit for purpose before addressing any Profit Model issues.
Designing the Profit Model needs an iterative approach by identifying and testing assumptions that accrue from the CVP process.
The Profit Model consists of 4 main components that need to be checked:
Revenue (price x volume)
Cost structure (both direct and overhead)
Target unit margin
Resource velocity (inventory turns for example)
These components need to be able to deliver the bottom line growth that the company wants to achieve.
We will ensure that all 4 are fit for purpose and capable of delivering at the right level.
Defining a workable Profit Model will have implications on Capabilities needed or not needed and business processes that deliver those capabilities.
Capabilities Update
Capabilities Update
If you are satisfied with the chosen CVP and the design of your Profit Model sometimes it can be the Capabilities that are defective or missing.
This service will usually follow from the definition of both CVP and the Profit Model but not always
It can be that the chosen Capabilities that support the CVP and Profit Model are not at the required standard. It may be that you have chosen the wrong Capabilities to focus on for a given Profit Model. We will assess and correct these in our Repair processes
It may also be that they are not being delivered in the correct manner and that will be addressed in the Business Process Realignment section.
Business Processes Realignment
Business Processes Realignment
Capabilities are applied via Business Processes.
They need to have a laser focus on what they are conveying and to what part of the CVP they are being applied
We find that companies can have a number of redundant Business Processes from an historical perspective and these need to be identified and removed
Organisation relevance
Organisation relevance
If an organisation is not custom designed to deliver your Business Model then the company will not reach the levels of performance required.
You have a working and effective CVP and Profit Model, all the correct capabilities delivered through efficient business processes – but if the organisation is not designed to optimally deliver all these components then the Business Model will not perform at 100%.
LCEOS has experience and training in organisation design and strategic relevance that will ensure the fit is optimal
People Skills Upgrade
People Skills Upgrade
People’s Skills need to be aligned with the Business Model needs.
LCEOS will test this alignment in a series of engagement interviews with selected staff members.
The result of this intervention will be a defined training programme for specific staff members.