Business Model Renewal: How to Grow and Prosper by Defying Best Practices and Reinventing Your Strategy

Business Model Renewal: How to Grow and Prosper by Defying Best Practices and Reinventing Your Strategy

by Linda Gorchels
Released March 2012
Publisher(s): McGraw-Hill
ISBN: 9780071784047

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Book description

Forget “business as usual.”
Don’t believe everything you read about “best practices.”
There is no “magic bullet.”

When your market changes, you have to change your strategy and take control of your own success. You have to renew your business model.

In a global market that is constantly evolving, you can’t expect “magic bullets” or “best practices”—or any stand-alone business philosophy that many books and gurus offer—to guide your company through good times and bad. Instead you need to take an active role in reviewing and retooling your strategies. You need to stop thinking “business as usual.” You need Business Model Renewal—a groundbreaking book that provides a language and multiple frameworks for how to think about and implement business model reinvention.

A full-range guide to synthesizing and applying the most up-to-date thinking in business today, Business Model Renewal challenges you to re-evaluate your methods, rethink your options, and reignite your organization. Constantly challenging the mindset of “tried and true” numbers-based solutions such as market share, financials, and metrics, Gorchels integrates both traditional concepts and cutting-edge ideas to avoid the usual “one size fits all” approach that can stifle a company’s growth. You’ll learn how to build a custom-made business model that encompasses the totality of how your company produces value—including design, infrastructure, culture, operations, and more. You’ll learn how to adapt to newest emerging technologies, how to cope with the biggest market fluctuations, how to serve the latest demographic shifts, and how to plan ahead for your company’s future.

Envisioning business model renewal efforts drives leaders and managers to deal with the ambiguity of future thinking. Shifts in technology, market needs, and competitive arenas can never be known precisely, but must nevertheless be anticipated. Scenario planning and other group-based, collaborative efforts to study the future are therefore necessary components of business model renewal. So, too, is corporate culture, decision making, business model portfolio design, and change management.

That’s why the frameworks in this book touch on all of these facets. Business Model Renewal won’t give you seven proven steps, five key principles, or even 10 irrefutable laws. But it will challenge you to do the hard work of broadening the perspectives of your firm, the ecosystem in which it exists, the role of your personal leadership, and the followership within your corporate culture.

Table of contents

  1. Cover Page
  2. BUSINESS MODEL RENEWAL: HOW TO GROW AND PROSPER BY DEFYING BEST PRACTICES AND REINVENTING YOUR STRATEGY
  3. Copyright Page
  4. Contents
  5. Author’s Note
  6. Prologue
  7. Part 1: Establishing Context
    1. Chapter 1: Defy Best Practices
      1. Connect Strategies and Business Models
      2. Consider the Ecosystem of Success
      3. Are There Best-Practice Business Models?
      4. Establish a Planning Framework
      5. Domain 1: Context
        1. Internal Scan
        2. External Scan
          1. Technology
          2. Industry
          3. Market
          4. External Events and Trends
          5. Porter’s Five Forces
      6. Domain 2: Strategic Decisions
      7. Domain 3: Alignment
      8. Interview with Kay Plantes (economist, corporate strategy expert, and author): The Importance of Developing a Business Model Portfolio
    2. Chapter 2: Define a Growth Agenda
      1. Beware of “One-Paradigm” Consultants (or Managers)
        1. Growth from the Core
        2. Pursuit of Quality/Efficiency Advantages
        3. Pursuit of Marketplace Advantage
        4. Innovating into New Areas
      2. The Growth Portfolio
      3. Sustaining Growth
        1. Reinforcement and Protection Strategies
          1. Stay the Course
          2. Reduce the Scope
          3. Defend the Perimeter
        2. Renewal and Revitalization Strategies
          1. Add New Value
          2. Reposition
          3. Extend the Base
        3. Relaunch
        4. Rationalization Decisions and Retirement Strategies
      4. Transformative Growth
      5. Disruptive Growth
      6. Next Steps
      7. Interview with Bob Arzbaecher (President and CEO of Actuant Corp): Sustainable Growth without Radical Change
  8. Part 2: Mental Models and Insights
    1. Chapter 3: Foresight: Betting on Turbulence
      1. Every Business Decision Is a Bet on the Future
      2. Scenario Development
        1. Process of Scenario Development
          1. Define Scenario Development Team
          2. Identify Drivers of Change
          3. Create Scenarios
          4. Determine How to Be Successful in Each of the Scenarios
          5. Seek Common or Agile Components and Establish Strategic Direction
          6. An Example: Corporate Energy Futures
          7. A Few More Tips on Scenario Development
      3. Group-Based Forecasting and Ideation
        1. The Delphi Method
        2. Prediction Markets
        3. Integrated Roadmapping
        4. Social Media Options
      4. Foresight and Business Models
      5. Interview with Peter Bishop (Associate Professor of Strategic Foresight and author): The Significance of Strategic Foresight in Thinking about the Future
    2. Chapter 4: Innovation: Looking for New Beginnings
      1. What Is Innovation?
      2. Product versus Business Model Innovation
      3. Diffusion of Innovation
      4. Innovating Existing Product Lines
      5. Continual Idea Sources
      6. Business Case Knowledge
      7. Ingraining an Innovative Culture
      8. Interview with Dave Franchino (President + Principal, Design Concepts, Inc.): Innovation from the Context of Business Models
    3. Chapter 5: Decision Making: Determining Direction
      1. The Basic Framework
      2. High-Stakes Decision Making
        1. Historical Data May Not Be Relevant
        2. Many Decisions Are Made under Stress
        3. Serious Biases May Thwart Performance
        4. The Consequences of a Wrong Decision Are High
        5. Many People Are Involved in the Decision
        6. Business Model Changes Trigger an Ecosystem of Decisions
      3. Organizational Decision Making
      4. Interview with John Conover (President, Ingersoll Rand Security Technologies): Decision Making Is a Critical Part of Leadership
  9. Part 3: Business Models: Aligning to Make Things Happen
    1. Chapter 6: Contextual Leadership
      1. The Role of the Individual in Leadership
      2. Leadership and Followership
        1. Emotional Intelligence
      3. Transformational Leadership
        1. Understanding the Need for Change
        2. Creating a Shared Vision
        3. Paving the Way
        4. Building Leaders at All Levels
      4. Leadership Essentials: Expert Advice Column
        1. Passion
        2. Focus
          1. The Tyranny of the Urgent
          2. Juggling Glass
      5. Ownership
      6. Interview with John Malanowski (VP–Human Resources, Kimberly-Clark Corporation– North Atlantic Consumer Products): The Importance of Leadership Talent Bench Strength in Business Model Renewal
    2. Chapter 7: Dynamic Strategy, Business Design, and Structural Alignment
      1. Big Picture Thinking Must Coexist with Nuts-and-Bolts Proficiency
      2. An Iterative Planning Process
        1. Where Are You Now?
        2. Where Do You Want to Go Long-Term?
        3. What Are You Going to Accomplish during This Planning Cycle?
          1. Target Market
          2. Planning FACTS
        4. How Are You Going to Accomplish Your Objectives?
        5. What Are Your Metrics for Tracking Results?
      3. Dynamic Strategy and Business Model Renewal
      4. Interview with Scott Lingren (Director of Corporate Strategy and Business Transformation, Freescale Semiconductor): Cracking the Real-World Code for Linking Strategy with Implementation
    3. Chapter 8: The People Side of Alignment: Culture and Organizational Change
      1. The Monkey Parable
      2. Corporate Culture
      3. Leading Change
        1. Sense of Urgency
        2. Guiding Team
        3. Powerful Vision
        4. Share the Vision
        5. Motivate Progress
        6. Coordinate Short-Term Wins
        7. Continuously Reinforce the Direction
        8. Embed the Required Culture
      4. Kaleidoscope or Binoculars
      5. Corporate Culture and Business Model Renewal
      6. Interview with Joan Finley, Ph.D. (Senior Program Manager, Baxter Healthcare): Orchestrating Business Model Renewal through Effective Organizational Change Initiatives
  10. Index

Product information

  • Title: Business Model Renewal: How to Grow and Prosper by Defying Best Practices and Reinventing Your Strategy
  • Author(s): Linda Gorchels
  • Release date: March 2012
  • Publisher(s): McGraw-Hill
  • ISBN: 9780071784047