Management Questions

There are several key decisions that must be made when designing a business:

Customer selection (including channel):

• What are the greatest profit growth opportunities that fall within my planning horizon?
• Which customers are crucial to those opportunities?
• What high-value customer opportunity should be targeted?

Value Proposition and Customer Priorities:

• What are the unsatisfied needs that drive the behavior of targeted customers (what would lead them to switch suppliers or pay a premium)?
• Does my Business Design deliver differentiated benefits on these priorities?
• Does it hinder my ability to deliver these benefits?
• What customer benefits are generated by my business design (vs. my product)?

Profit Model:

• What profit model(s) does my Business Design utilize to capture value?
• How does high profit happen?
• Where will my “Profit Zones” be?
• How do I maximize share there?

Strategic Control:

• How do I protect the sustainability of out-year cash flows?
• Why should the investment community be convinced that my cash flows can be trusted in the out years?

Scope:

• What activities do I need to do vs. allow value chain partners to do?
• What assets should I own vs. letting value chain partners own?
• How can I restrict my activities and assets to the most efficient subset that is required to execute my business design well and retain strategic control?

Economic Model:

• What kind of pro forma economics does my business design produce?
• What economics does it have to produce to be successful?
• How do I distinguish the microeconomics of a new business design from its potential economics at full scale?
• How do I rapidly test, learn, and adjust for improved profitability of a new business design during its initial 12-24 months?

Organizational Systems:

• How will our functional organizations need to change to deliver a business design (R&D, operations, go to market, etc.)?
• How will our performance systems need to change (cultural values, leadership skill sets, human capital, metrics and rewards, etc.)?
• How will our enabling infrastructure need to change to enable the business design to go forward (balance sheet, planning/learning/ control systems, information architecture, etc.)?

Source:
The Discipline of Business Model Innovation: An Introduction to Business Design
by Adrian J. Slywotzky
Oliver Wyman, 2007

217No Comments »http://www.mgmtquestions.com/2007/11/15/business-design-questions/Business+Design+Questions2007-11-15+18%3A15%3A00Administrator Posted by Administrator / Management Questions

A customer’s product experience passes through six basic stages. To help companies assess the quality of a buyer’s total experience, we have identified the key questions for each stage. Individually, these questions may be obvious, but taken together, they uncover the full picture of the experience cycle.

1. Purchasing
• How long does it take to find the product you need?
• Is the place of purchase attractive and accessible?
• How secure is the transaction environment?
• How rapidly can you make a purchase?
2. Delivery
• How long does it take to get a product delivered?
• How difficult is it to unpack and install a new product?
3. Use
• Does the product require tuning or expert mastering?
• Is the product easy to store when not in use?
• How effective are the product’s features and functions?
4. Supplements
• Do you need other products and services to make this product work?
• If yes, how costly are they?
5. Maintenance
• Does the product require external maintenance?
• How easy is it to maintain and update the product?
6. Disposal
• Will use of the product create waste items?
• How easy is it to dispose of the product?

There are six “utility levers” that a company can apply to each of the activities in the cycle:

1. Customer productivity
2. Simplicity
3. Convenience
4. Risk
5. Fun and image
6. Environmental friendliness

Source:
How to tell a flyer from a failure
by W. Chan Kim
Financial Times, January 23, 2001

216No Comments »http://www.mgmtquestions.com/2007/11/14/buyer-experience-cycle/Buyer+Experience+Cycle2007-11-14+18%3A15%3A00Administrator Posted by Administrator / Buyer Experience Cycle

• Who should be members of the team?
• What is the charter or mandate of the team?
• What is the appropriate “value-added work” of the team?
• What are the roles and expectations of different members?
• What procedures will be used to manage work, to build an agenda, to solve problems, to make decisions, etc.?
• What types of interactions will be required among members, and what will be acceptable and unacceptable behavior?

Source:
Managing the Team at the Top
by David A. Nadler
strategy+business, First Quarter, 1996

215No Comments »http://www.mgmtquestions.com/2007/11/12/team-building-questions/Team+Building+Questions2007-11-12+18%3A15%3A00Administrator Posted by Administrator / Teams/Teamwork Questions

• Where should I choose to compete?
• Who should my core customers be?
• How should I differentiate myself competitively?
• How should I discourage competitive investment?

Source:
Achieving Full Potential through Strategies that Work
by Chris Zook
Bain & Company, 1/1/1996

214No Comments »http://www.mgmtquestions.com/2007/11/09/4-questions-every-business-strategy-must-answer/4+Questions+Every+Business+Strategy+Must+Answer2007-11-09+18%3A15%3A00Administrator Posted by Administrator / Strategy Questions

• How do we define sustainable development as it applies to our business and core values?
• Where do we see sustainable development trends and drivers affecting our business in the future?
• Are we doing enough to address these trends today, or could we clearly be doing more to gain business opportunities in this way?
• Do we have all the competencies we need to make progress?
• Can we learn from others to simplify the process and get to the benefits faster?
• How do we trade short-term risks and opportunities against long-term ones?

Source:
Realizing the Sustainable Development Premium
by Gilbert S. Hedstrom
Prism, 1Q 2000

213No Comments »http://www.mgmtquestions.com/2007/11/08/sustainable-development-questions/Sustainable+Development+Questions2007-11-08+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions

• Does the firm/project make use of an especially underutilized asset, i.e., certain segments of the labor force/current office space?
• Will the firm/project create significant contracting opportunities for local firms, especially small/disadvantaged business?
• Does the firm/project fill a hole in the Austin economic base, such as key supplier relationships?
• Does the firm/project have the potential to either seed a new cluster or bring additional firms to Austin?
• Will the firm compete for resources directly with existing local firms?

Source:
Austin’s Economic Future: The Mayor’s Task Force on the Economy – Subcommittee Findings
City of Austin
Note: read more about the project at http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm“>http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm

212No Comments »http://www.mgmtquestions.com/2007/11/07/linkages-to-the-local-economy/Linkages+to+the+Local+Economy2007-11-07+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions

• Will the bulk of the new hires be local or imported?
• What is the average wage paid? How does it compare to the local or national industry average?
• What is the median wage paid? How are job categories and wages distributed within the overall structure?
• What training is provided? Are there opportunities for advancement? Are there funds available for additional education (tuition match, etc.)?
• Does the firm actively promote diversity in hiring and promotion?

Source:
Austin’s Economic Future: The Mayor’s Task Force on the Economy – Subcommittee Findings
City of Austin
Note: read more about the project at http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm“>http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm

211No Comments »http://www.mgmtquestions.com/2007/11/06/job-creation/Job+Creation2007-11-06+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions

• Is the firm a headquarters operation? Does it represent the “headquarters” of a new product/service?
• Is the firm growing? Is the firm in a growing industry? How stable is the firm?
• Does the firm or project significantly enhance the local tax base?
• Does the firm make a disproportionate demand on infrastructure/environment?

Source:
Austin’s Economic Future: The Mayor’s Task Force on the Economy – Subcommittee Findings
City of Austin
Note: read more about the project at http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm“>http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm

210No Comments »http://www.mgmtquestions.com/2007/11/05/overall-economic-and-fiscal-impact/Overall+Economic+and+Fiscal+Impact2007-11-05+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions

• Does the firm have a track record of being an active participant in the arts and cultural life of the communities where it operates?
• Will the firm have a proactive cultural outreach program?
• Does the firm actively encourage employee volunteer/charitable efforts?
• Does the firm have a track record of conducting its business in an environmentally responsible way?
• Does the firm have a track record of supporting environmental initiatives/concerns?

Source:
Austin’s Economic Future: The Mayor’s Task Force on the Economy – Subcommittee Findings
City of Austin
Note: read more about the project at http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm“>http://www.ci.austin.tx.us/news/2003/econdevtaskforce.htm

209No Comments »http://www.mgmtquestions.com/2007/11/04/culturalquality-of-lifeenvironmental-considerations/Cultural%2FQuality+of+Life%2FEnvironmental+Considerations2007-11-04+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions

1. Economic: Will the project generate prosperity and enhance the affected economies?
2. Social: Will the project be implemented in a socially responsible manner and benefit the affected communities in a fair and equitable way?
3. Environmental Quality: Will the project cause long-term damage to the environment?
4. Use of Natural Resources: Will the project protect and enhance natural capital?

Source:
Bringing Corporate Responsibility Down to Earth
by Justin Keeble
Prism, 1/2003

208No Comments »http://www.mgmtquestions.com/2007/11/03/4-questions-to-ask-of-your-project-activity/4+Questions+to+Ask+of+Your+Project+Activity2007-11-03+18%3A15%3A00Administrator Posted by Administrator / Social Responsibility Questions