Connecting to Market, Behind the Mask

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A fundamental aspect in developing the Business Model for an enterprise is Connecting to Market. This component involves structuring effective means to penetrate the market and interact with customers, facilitating sales and support strategies, as to promote valuable and sustainable relationships. A fantastic Value Proposition will not contribute to the business success as expected, if it is not perceived as such by the target audience. This may require segmenting and establishing appropriate channels to enable optimized sales and post-sales interfaces, which are friendly to customers and efficient for the company. When the offering and the audience are much diversified, the standardized treatment can hinder the perception of value by some being poorly served, and the financial equation for exceeding it with others. It is important to know customers’ profiles and their related expectations, so to enable serving them suitably, either directly or via third parties. In this way, the business can build appropriate bridges to maximize the expected value flow.

 

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Throughout the Coronavirus pandemic we are facing, this aspect has been deeply impacted, precipitating changes to make this connection possible without physical contact. The widespread use of Internet and social media, of online platforms to hold meetings, virtual classes and transactions, the implementation of delivery mode for products and experiences, all demanded a lot of unexpected effort. On the other hand, resistant behaviors were overcome and unavoidable changes were accelerated, reducing operating costs and expanding the business reach through virtualization. We already knew that digital marketing and technology in business were important, but now they no longer seem optional. For some, this transition can be very complicated or even impossible, but it should be noted that this business challenge continues to be Connecting to the Market, and needs to be tackled so we can remain in the game and win.

Monitoring for Achievement

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Every sensible business owner or institutional leader wants his/ her organization to generate the most possible value to all stakeholders involved. After all, that is the core reason for any enterprise to exist: meet needs or fulfill desires of whom relies on it as provider, and reward who invest and work on it. Looking from a simple business perspective, the organization should be effective in satisfying its customers and efficient to operate in a sustainable way. Resources and activities are placed to produce expected results, to balance this dynamic equation is the basic challenge of management, which to be performed requires monitoring.

Monitoring presupposes key indicators, that set expected outcomes as concrete benefits, and metrics to follow up on what contributes to make them possible. The correlation between these two perspectives and its understanding by those involved is key to ensure focus and performance in the organization. Usually the tendency is to pay more attention to means than to ends, like measuring quantities and registering activities, rather than taking the expected results as guide. However, until it becomes clear what are the ultimate goals of our investment and work, we may get confused and face lack of accountability that will hinder the organization from attaining success. By the way, considering the definition of success from the dictionary leads to this very conclusion: “favorable or desired outcome; the accomplishment of an aim or purpose”. Linking metrics, that are meaningful and actionable, is fundamental!

One cannot lead or manage without setting goals and monitoring progress, since both implies learning. Resistance to monitoring is just natural to human nature, so be intentional about it if you really want to succeed, in all aspects.

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Projects & Changes

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Project is an enterprise with a pre-established beginning and end, which aims to develop a solution to a problem or meet a specific demand. Its implicit characteristics are uniqueness and some uncertainty as to the results and conditions for its realization, which normally presupposes creation or change.

Considering that the Market is dynamic, subject to changes in the regulatory, technological and economic scenario, and customers are increasingly connected and demanding, it is inevitable that in order to remain competitive, the business must be able to respond by adjusting or creating something new. In the same line, whether due to the natural tendency to accommodation or the availability of new knowledge and resources, it is necessary to periodically review the processes in search of greater efficiency, since unproductive costs hurt profit margins and threaten sustainability.

It is normal to find in the company several ongoing initiatives, not always called projects. They can come up with different people and departments, besides those formally recognized as projects, with budget and linked plans. In any case, they will consume resources and dispute people’s attention, which if not managed considering priority, feasibility and final benefits, can impact the desired results and introduce more costs. Therefore, it is recommendable to make an inventory of the existing initiatives, define criteria for their structuring and evaluation, allowing for alignment with the strategic objectives of the company. And when a decision has been made to move forward with a specific project, conditions must be ensured to minimize uncertainties and maximize the achievement of the expected benefit.

Finally, it is part of a healthy governance to define projects and consistently ensure the achievement of those prioritized, in order to maximize the generation of business value. Project and change management don’t need to happen only through a Project Management Office, but should be an intentional and effective practice in any sustainable business.

Workforce Arrangement

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An organizational aspect that tends to be apparent in a company is its people structure, especially when it comes to a service-based business. Therefore, it is normal for business leaders to present their business through an org chart, which often reflects also how they monitor and act in that organization. Family businesses have a lot of history to tell justifying why certain people occupy certain positions in the organizational structure, based on relationship with the founders and on the trust developed. However, this is not the best criterion for filling vacancies as the company grows and faces new challenges.

A company must systematically deliver superior value to its customers in order to sustain its competitiveness, so the people who work there should organize themselves in a way consistent with the value chain implemented. The allocation of each one in the workforce structure should consider, directly or indirectly, his// her contribution to deliver value to customers and results for the business. Thus, technical specializations are ordered with the levels of responsibilities in areas and positions in the organization (vertical), and allocated as resources according to the requirements to operate the processes involved (horizontal). Grouping of people then can follow a logical orientation that favours collaboration by prioritizing value and results, and not simply to meet demands from functional sectors or hierarchies.

In conclusion, the org chart should not be a “personorg“, reflecting a personal view of organizing people in the company, but rather be consistent with the business value flow and aligned with constituent processes.

Processes as Business Asset

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I usually think of the productive chain when I go to a super market for organic products, with processes like: identify and certify suppliers, contract and balance supply, receive and store products, position in store and promote, sell and update stock, monitor and discard products due, evaluate demand and adjust. All of this besides the support processes with people, infrastructure and business management. The logical organisation of activities and resources utilized defines the value flows and provides the systemic vision to coordinate them, in order to generate sustainable value for customers and shareholders. WholeFoods was recently acquired by Amazon in a multi-billion transaction, for the brand’s high penetration in the market and for the processes that operationalize this valuable business

Neuromanagement

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There has been great evolution in the knowledge of brain functioning in the last two decades, facilitating access to information and technologies related to Neuroscience. With this, it has proliferated professional areas and technical approaches with the associated neuro term, such as neuromarketing, neuroeducation, neurosales, etc. Not surprisingly, there is a natural fascination in the discovery of this organ that practically controls every experience of the human being.

In the field of Management, with subjects such as communication, resource mobilization, planning, decision making and problem solving, the activities involve people. And studies now prove that people perform better in connected, collaborative environments where trust prevails. Learning and behavioral change, which are fundamental practices for management, have also gained new insights to avoid pitfalls and to maximize positive results.

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In short, the modern manager should know Neuroscience in some way, to select and work productively with people, in a social and business context with changes accelerated by technology. New challenge in an already complex environment, but it brings a great opportunity to develop high performing intelligent companies.

Do you have a Management Model?

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A brilliant business idea, implemented with a great combination of resources and organization, should deliver good results. However, results tend to worsen, or may even become unfeasible as time passes by. Inevitable changes on external context and on internal conditions bring misalignment among market, strategy, and operation, as well as resources and activities need coordination to respond effectively to clients and business requirements. This dynamic to stay focused and improve continuously the company’s ability to generate more value, based on principles and purpose established, configures its Management Model. When the Management Model is not defined or appropriate, a culture of performance does not grow in the company, investments are not properly prioritized, stakeholders do not learn how to maximize results, and leaders do not develop.

#enterprisemodeling