The Upsurge of Joint Ventures in Small Businesses: Exploring Potential Pitfalls

by with No Comment ComprehensiveSustainable Business
Photo by Rami Hammoud

Let’s say you run a small business that produces sustainable and eco-friendly home goods, such as bamboo towels and reusable beeswax wraps. You have a strong commitment to sustainability and reducing waste, but you’re struggling to expand your product line and reach a wider audience.

 

 

You could enter into a joint venture with another purpose-driven company that shares your values and has complementary offerings, such as a company that produces sustainable cleaning products or reusable containers. Together, you could create a bundled package of sustainable home goods that meets the needs of consumers who are committed to reducing waste and living a more eco-friendly lifestyle.

 

 

This joint venture benefits both companies – you gain access to new product offerings that you can offer to your customers, while the other company gains access to your customer base and expertise in sustainable home goods. Together, you can offer a more comprehensive range of sustainable home goods than either of you could alone, and share in the profits that result.

 

 

 

Key Takeaways

 

– Joint ventures (JVs) are a strategic alliance, where business can pool their resources and expertise to achieve a goal

– Advantages of JVs include shared costs, access to more resources including capital, labor, assets and expertise.

– Joint ventures are different from partnerships because JVs do not involve any sharing of ownership of the venture.

 

 

 

What is a Joint venture? and how does it apply to small companies?

 

 

A joint venture is a strategic alliance where two or more people or companies agree to contribute goods, services and/or capital to a common commercial enterprise. The contributions can include resources such as capital, labor, or assets, skill or expertise such as experience and knowledge

 

 

SMEs have advantages when consider JV (Joint ventures), by teaming up with other people or businesses in a joint venture, you can:

 

– Extend your marketing reach

– Access needed information, resources, and skill sets

– Build credibility with a particular target market

– Access new markets that would be inaccessible without the partner

– Access technical expertise and know-how that your company may be lacking

– Access intellectual property that would otherwise be out of your reach

– Access new revenue streams

– Share risks and expenses

 

 

For instance, suppose you and five other potters form a joint venture to hold a Potter’s Fair on a particular date. Because you pool your resources, you’re able to do much more advertising and promotion 

than you would be able to go alone, bringing out crowds of customers for your joint event.

 

At first thought, a joint venture sounds like a partnership, doesn’t it? But legally, joint ventures and partnerships are not the same thing, they’re two distinct forms of business ownership. In a strategic alliance there is no exchange of ownership between the companies involved.

The key distinction between a joint venture and a partnership lies in their respective purposes. Joint ventures are formed when individuals or entities collaborate for a specific purpose or project, while partnerships are formed when individuals or entities come together to run a business jointly.

 

 

In a joint venture, each member retains ownership of their own property, and shares only the expenses associated with the specific project or venture. Conversely, in a partnership, all members share ownership of the business, as well as the associated profits and losses.

 

Pitfalls

 

 

Joint ventures can certainly exist in small businesses and start-ups, and can be a valuable way to pool resources and expertise in order to achieve growth or tackle complex projects. However, there are several potential pitfalls to be aware of when entering into a JV:

 

 

  1. Misaligned goals: If the partners have different goals or priorities for the venture, it can lead to conflict and disagreement over how to proceed.
  2. Unequal contributions: If one partner contributes significantly more resources or capital than the other(s), it can lead to resentment or a feeling of unfairness.
  3. Lack of communication: Communication is key in any business partnership, but particularly so in a JV where there may be multiple parties involved. If communication breaks down, it can lead to misunderstandings or missed opportunities.
  4. Legal and financial risks: JVs can expose partners to legal and financial risks, particularly if they are not structured properly or if the partners do not have adequate protections in place.

To better understand the potential risks and rewards of joint ventures, let’s take a look at a graph that illustrates some key data points:

Risk vs Benefit - JV

In this graph, we can see that JVs can be a valuable way for businesses to achieve growth and increase profits. However, they also come with risks, particularly if the partners are not well-aligned or if there are legal or financial issues. It’s important for businesses considering a JV to carefully weigh the potential benefits and risks, and to work closely with legal and financial advisors to structure the partnership in a way that minimizes risk and maximizes the chances of success.


As a hybrid consultancy, Anima can help small businesses identify potential joint venture opportunities and create smooth journeys for collaboration. We have extensive experience in working with small businesses and developing customized strategies that align with their unique needs and goals.


Our team of experts can help small businesses navigate the complexities of joint ventures, including identifying the right partners, defining clear objectives, and setting metrics for success. With our deep understanding of different business models and strategies, we can help small businesses create a solid foundation for their joint venture and ensure that both parties are aligned towards common goals.


At Anima, our unique value proposition lies in not just strategy development but also in execution. We understand that execution is where most businesses falter and that is where our team can add the most value. We work closely with our clients to develop practical, actionable plans that help them achieve their goals and create value for their stakeholders.


We are well-equipped to help small businesses navigate the complex world of joint ventures, identify opportunities for collaboration, and execute on their strategic plans. With our expertise and focus on execution, we can help small businesses achieve growth and success through joint ventures and other innovative business models.

The Importance of Innovative Business Models for Driving System Change

by with No Comment Sustainable Business

In today’s business world, traditional models often prioritize short-term profits over long-term sustainability, which can lead to a range of social and environmental challenges. But innovative business models offer a way forward by challenging traditional ways of doing business and driving positive change.


Business model innovation is important for driving competitive advantage. In today’s rapidly changing business landscape, companies need to continually adapt and innovate in order to stay ahead of the competition. By innovating their business model, companies can differentiate themselves from their competitors and create unique value propositions that are difficult to replicate. This can lead to increased market share, higher margins, and sustained growth over time. Additionally, business model innovation can help companies identify new markets and revenue streams that they may not have considered before, opening up new opportunities for growth and expansion. 



Here are a few reasons why innovative business models are important for driving system change:


1. They challenge the status quo


Innovative business models force businesses to challenge their traditional ways of operating and create new approaches. This can help shift business practices towards more sustainable and equitable approaches, leading to positive impacts on society and the environment.


2. They drive fundamental shifts in the way businesses operate


Innovative business models can help move businesses away from linear models of production and consumption that drive many of our sustainability challenges. For example, a circular economy model can help design products and services that are more durable and easier to repair, reducing waste and promoting resource efficiency.


3. They can have broader impacts on society and the environment


Innovative business models don’t just benefit the businesses that adopt them. They can also have positive impacts on society and the environment more broadly. For example, a fair trade model can promote social justice and reduce poverty in developing countries, while a regenerative agriculture model can help restore degraded landscapes and promote biodiversity.


4. They can help create a more sustainable and equitable economy


By driving systemic change, innovative business models can help create a more sustainable and equitable economy that benefits both businesses and society as a whole. For example, a collaborative consumption model can help reduce consumption and waste by enabling people to share goods and services, while a renewable energy model can help reduce carbon emissions and promote energy independence.


We believe that innovative business models are essential for creating a more sustainable and equitable future. We specialize in business model innovation services that help our clients rethink the way they do business and drive positive change. By working with businesses across various industries, we have helped many organizations adopt innovative and sustainable business models that can drive long-term success and make a positive impact on society and the environment.  If you’re interested in learning more about innovative business models and how Anima can help your business drive positive change, explore our website or get in touch with us to learn more.

How To Integrate Sustainability Into Your Brand Identity

by with No Comment ComprehensiveSustainable Business

As consumers become increasingly environmentally conscious, sustainability is becoming a key factor in brand identity. Companies that embrace sustainable practices not only benefit the planet but also appeal to socially responsible consumers. 

 

In this post, we’ll explore some strategies for integrating sustainability into your brand identity, and why it’s important to do so.

 

Why Integrate Sustainability into Your Brand Identity?

 

 

Integrating sustainability into your brand identity is important for several reasons. 

 

First, it allows you to differentiate your brand from competitors. As consumers become more environmentally conscious, they are increasingly looking for socially responsible brands to support. By incorporating sustainability into your brand identity, you can appeal to these consumers and set your brand apart from competitors that are not taking sustainability seriously.

 

 

Second, integrating sustainability into your brand identity can help build trust with consumers. By being transparent about your sustainability practices and values, you can demonstrate your commitment to environmental stewardship and social responsibility. This can help establish a strong, positive relationship between your brand and your customers, which can lead to increased loyalty and advocacy.

 

 

Finally, integrating sustainability into your brand identity is simply the right thing to do. As a corporate citizen, you have a responsibility to do your part to protect the planet and promote social responsibility. By incorporating sustainability into your brand identity, you can align your business practices with your values and help create a better world for future generations.

 

 

Strategies for Integrating Sustainability into Your Brand Identity

 

 

Now that we’ve established why it’s important to integrate sustainability into your brand identity, let’s look at some strategies for doing so.

 

 

– Define your values and mission statement

The first step in integrating sustainability into your brand identity is to define your company’s values and mission statement. 

What does your company stand for? 

What are your long-term goals? 

How do you want to impact the world? 

Once you have a clear understanding of your values and mission, you can begin to integrate sustainability into your brand identity.

 

For example, if your company values social responsibility, you could incorporate sustainable practices into your supply chain management, packaging, and marketing. If your mission is to reduce your carbon footprint, you could use renewable energy sources, implement energy-efficient practices, and invest in carbon offsets.

 

 

– Assess your environmental impact

The next step is to conduct an environmental impact assessment to identify areas where your company can improve its sustainability practices. 

This could include reducing energy consumption, minimizing waste, and sourcing materials from sustainable suppliers.

There are many tools available to help you assess your environmental impact, including the Carbon Trust Standard, the Global Reporting Initiative, and the Sustainability Accounting Standards Board. These tools can help you measure your carbon footprint, water usage, waste generation, and other environmental impacts, and identify areas for improvement.

 

 

– Communicate your sustainability efforts

Once you’ve identified your sustainability practices, it’s important to communicate them to your customers. 

This can be done through marketing materials, social media, and other communication channels. 

By being transparent about your sustainability efforts, you can build trust with your customers and differentiate your brand from competitors.

 

For example, you could use your website to highlight your sustainable practices and values, or use social media to share stories and updates about your sustainability initiatives. You could also use eco-friendly packaging materials, and include information about your sustainability practices on product labels or packaging.

 

 

– Incorporate sustainability into your product design

One of the most effective ways to integrate sustainability into your brand identity is to incorporate sustainable practices into your product design. 

This could include using recycled materials, designing products that are reusable or biodegradable, or reducing the overall environmental impact of your products.

 

For example, Patagonia, an outdoor clothing company, has incorporated sustainability into its product design by using recycled materials and implementing a product take-back program. The company also encourages its customers to repair and reuse their products, rather than disposing of them.

 

 

– Collaborate with sustainable partners

Collaborating with sustainable partners can help reinforce your commitment to sustainability and increase your brand’s visibility among socially responsible consumers. 

For example, you could partner with a sustainable supplier, sponsor a local environmental organization, or donate a portion of your profits to a sustainability-focused charity.

 

 

– Educate your employees and stakeholders

Finally, it’s important to educate your employees and stakeholders about your sustainability practices and values. 

By involving your employees in your sustainability initiatives, you can create a culture of sustainability within your organization and increase employee engagement and morale. 

You can also communicate your sustainability practices to stakeholders, such as investors and suppliers, to demonstrate your commitment to sustainability and build trust with these important partners.

 

 

Conclusion

 

Integrating sustainability into your brand identity is an important step for businesses that want to appeal to socially responsible consumers, build trust with customers, and do their part to protect the planet. By defining your values and mission statement, assessing your environmental impact, communicating your sustainability efforts, incorporating sustainability into your product design, collaborating with sustainable partners, and educating your employees and stakeholders, you can create a strong, sustainable brand identity that sets your business apart from competitors and contributes to a better world.

 

The Power Of Relationships: Why Effective Stakeholder Engagement Is Crucial For Initiative Success

by with No Comment ComprehensiveSustainable Business


Have you ever stopped to think about all the different people and groups that your business impacts? 


Customers, employees, investors, suppliers, and communities all have unique needs and expectations that are important to consider. 


That’s where stakeholder engagement comes in – it’s all about building relationships and engaging in ongoing conversations to understand and meet those needs.


When you engage with your customers, it’s not just about selling products or services. 


It’s about listening to their feedback, responding to their concerns, and involving them in the decision-making process. 


By doing this, you create a sense of ownership and investment in what you offer, which leads to higher customer satisfaction and loyalty.


Employees are another critical stakeholder group. 


When you engage with your employees and involve them in decision-making, they feel valued and part of something bigger. 


This sense of purpose and ownership leads to higher job satisfaction, lower turnover rates, and increased productivity. Plus, engaged employees are more likely to advocate for your business and attract other top talent.


Stakeholder engagement also helps you stay ahead of potential risks and compliance issues. 


By engaging with regulators, advocacy groups, and other stakeholders, you gain insights into emerging threats and can proactively address concerns before they become major issues.


But perhaps most excitingly, stakeholder engagement can lead to innovation and business growth. 


When you involve stakeholders in product development and decision-making, you gain valuable insights into customer needs and preferences, and identify new market opportunities. 


Engaging with suppliers can also foster collaboration and innovation, leading to new business models, products, and services.


In addition to stakeholder engagement, there are other key strategies that businesses can use to promote sustainability and drive innovation. 


One of these is sustainability initiative mapping, which involves identifying and mapping out the environmental, social, and economic impacts of a business and then developing strategies to mitigate those impacts. This approach can help businesses become more sustainable and improve their reputation among stakeholders. 


Another strategy is business model innovation, which involves creating new or modified business models that address sustainability challenges and create value for all stakeholders. 


By combining stakeholder engagement with sustainability initiative mapping and business model innovation, businesses can not only build stronger relationships with their stakeholders but also achieve long-term sustainability and success.


Building strong relationships with stakeholders requires ongoing dialogue, transparency, and a commitment to mutual benefit. 


But by prioritizing stakeholder engagement, sustainability initiative mapping, and business model innovation, you can not only succeed in the short term but also build a more sustainable and resilient business in the long term. 


So take the time to engage with your stakeholders, identify sustainability opportunities, and embrace innovation – it’s worth it!

5 Common Sustainability Challenges Facing Small and Medium Enterprises

by with No Comment Sustainable Business

5 Common Sustainability Challenges Facing Small and Medium Enterprises

Sustainability is not just a buzzword, but it has become a critical aspect of modern business. SMEs play a vital role in the global economy, but they face various sustainability challenges that can make it difficult for them to operate in a sustainable manner.

 

 

One of the biggest challenges facing SMEs is the lack of resources. Many small businesses operate on tight budgets, which can make it difficult to invest in sustainable practices. For example, implementing energy-efficient technology or switching to renewable energy sources may require significant upfront costs that many SMEs simply cannot afford.To overcome this challenge, SMEs can seek out government grants and incentives for sustainable business practices. They can also collaborate with other businesses or organizations to share resources and expertise.

 

 

Secondly, SMEs may struggle to understand sustainability and how it applies to their business. While larger organizations often have dedicated sustainability teams, SMEs may lack the knowledge and expertise to implement sustainable practices effectively. This can result in missed opportunities and a lack of progress towards sustainability goals.

 

 

Thirdly, SMEs may face supply chain challenges. They may rely on suppliers who do not prioritize sustainability, making it difficult for SMEs to implement sustainable practices effectively. Furthermore, SMEs may lack the bargaining power to demand sustainable practices from suppliers, making it challenging to maintain a sustainable supply chain.

 

 

Fourthly, SMEs may struggle to engage customers on sustainability. While larger organizations can use their marketing power to promote sustainable practices, SMEs may lack the resources to do so. This can result in a lack of awareness among customers, which can make it difficult for SMEs to implement sustainable practices effectively.

 

 

Finally, SMEs may face regulatory challenges. While many governments are implementing regulations to promote sustainability, SMEs may lack the resources to comply with these regulations. Furthermore, SMEs may struggle to keep up with changing regulations, making it challenging to operate in a sustainable manner.

 

 

In conclusion, SMEs face several sustainability challenges that can make it difficult for them to operate in a sustainable manner. Lack of resources, limited knowledge of sustainability, supply chain challenges, customer engagement, and regulatory challenges are some of the most common sustainability challenges facing SMEs. It is essential for SMEs to prioritize sustainability and work towards implementing sustainable practices to ensure their long-term success in a rapidly changing business environment.

Target Market

Defining Your Target Market: A Guide for Small Business Owners

by with No Comment Sustainable Business

Defining Your Target Market, A Guide For Small Business Owners

Introduction:

As a small business owner, defining your target market and identifying key players in your industry is essential for growth and success. It enables you to understand your customers’ needs, preferences, and behaviors, and to develop effective marketing strategies, products, and services. However, the process of defining your target market and identifying key players can be complex and overwhelming. In this blog post, we’ll explore the challenges and opportunities of this process and provide actionable tips and insights to help small business owners navigate the way.


Challenges:

Defining the Target Market: One of the biggest challenges facing small business owners is defining their target market. It can be difficult to understand the specific needs, behaviors, and preferences of your customers. However, understanding your target market is critical to developing effective marketing strategies, products, and services.


Identifying Key Players:

Another challenge is identifying key players in your industry. It’s essential to know who your competitors are, what they offer, and how they differentiate themselves to stay ahead of the game.

Gathering Accurate Information: Small business owners often struggle to gather accurate information about their target market and industry. With so much information available online, it can be overwhelming to know where to start and what information to trust.

Information overload: The vast amount of information available online can make small business owners feel overwhelmed. This can make it challenging to make informed decisions and develop effective strategies.


Opportunities:

Despite the challenges, there are opportunities for small business owners to improve their target market definition and industry analysis. One of the biggest opportunities is to learn more about market research techniques and to attend workshops or webinars to improve their skills. This indicates that small business owners are open to learning and improving their market research and analysis capabilities.


Tips and Insights:

Here are some actionable tips and insights to help small business owners navigate the challenges and take advantage of the opportunities in defining their target market and identifying key players in their industry:

Start with your existing customers: Your existing customers are a great starting point for understanding your target market. Gather data on their demographics, behaviors, and preferences to help inform your target market definition.

Use reliable sources: When gathering information about your target market and industry, be sure to use reliable sources. This can include government data, industry reports, and trusted websites.

Utilize market research tools: There are a variety of market research tools available to help small business owners gather and analyze information about their target market and industry.
Consider using survey tools, focus groups, and competitor analysis tools to gather accurate information.

Network and collaborate: Networking and collaborating with other small business owners and industry experts can provide valuable insights into the challenges and opportunities faced in defining your target market and identifying key players in your industry.


Conclusion:

Defining your target market and identifying key players in your industry is a critical step in the growth and success of any small business. By utilizing these tips and insights, small business owners can navigate the challenges and take advantage of the opportunities to improve their market research and analysis capabilities.

We hope this blog post provides valuable insights and tips for small business owners looking to define their target market and identify key players in their industry. Let us know if you’re looking for insights from a ,business model innovation expert to assess your business model; we’re always happy to help.

Being Agile in the UAE

Being Agile in your Small or medium enterprise

by with No Comment ComprehensiveSustainable Business

What is agile consulting, really?


The word agile means the ability to move quickly and easily. As a result, agile has become the consulting industry’s new favourite word.



Like these birds, they don’t follow a leader. Scientists say that every individual bird makes autonomous decisions. Their alignment makes autonomy, and their autonomy makes them fast and flexible.


What do consultants really mean by Agile? And why is it so sought after?

Agility in consulting is essentially business flexibility with a rigid priority. It refers to the ability to evolve and to the requirements of projects and re-allocate resources. The agile framework is usually seen within many digital and technology services in the industry. But the framework has other uses as well. And it usually can be applied to many industries. However, people often confuse this straightforward definition of “agility” with corporate jargon.

Each firm has a few catchphrases about what agile consulting is for. The top consulting firms, for example, says it allows them to “focus on business values”, be “attractive to talent”, and have a “faster time to market”. Unfortunately, this particular explanation misses something. They open by saying what they think are the results of agile consulting, without or usually not explaining how they got there.

The fundamental goal of agile consulting is, as the term suggests, to be nimble. Agility means that a team moves and flexes as a project evolves. This allows them to offer clients an evolving set of services. As new opportunities appear and the client’s wishes change, a consultancy can realign with the moving parts of a project. It not only maximizes the opportunities for revenue generation but also means that teams can be autonomous.

Most of the time, 70-90% of innovation projects fail. Their lack of success is that firms set out resolutely to do something with very little room for manoeuvre. Two-thirds of the successful innovation projects did not end up doing what they did. An agile approach allows them to flex and move toward innovation. In this sense, Agile permits a business to continue to meet its purpose and strategy without having to rethink “how” at every intersection.

Agile teams must be minor, entrepreneurial and highly digitized to create this adaptability. In this sense, agile consulting often resembles the culture of a start-up in its push for novel solutions and new ways of doing things.

Agile has made way for an entirely new set of terminology. Things you may have heard of, like “sprints”, are products of this new world. Most of these new ideas revolve around the need to test new ways of doing things. Although things change rapidly, they are also more prone to failure or technical difficulties. Nevertheless, they must receive the testing they need, so this product design language has grown.


What are sprints? And why are they essential to Agile?

Agile sprints are a short period wherein a development team works to complete specific tasks, milestones, or deliverables. Sprints, also called “iterations,” essentially break the project schedule into digestible blocks of time in which smaller goals can be accomplished. Sprints break down a project into bite-sized chunks. Teams plan a single sprint at a time and adapt future sprints based on the outcome of the previous one.

While each sprint is planned separately, the number and length of sprints in your project should be determined at the beginning. Agile projects are broken down into sprints or iterations — short, repeatable phases, typically one to four weeks long.

For instance, if you have a website launch project, you might split three months’ worth of work into six two-week sprints. During sprint one, your goals might include hosting setup, WordPress theme installation, sitemap creation, and content interviews/research. Tasks like these can often feel like prep work that team members are eager to get out of the way so they can focus on the real meat of the project. But if you establish them as the goals of your first sprint, you’ll ensure the project starts off on the solid ground and help team members feel an early sense of accomplishment while ramping up for more intense work.


Sprint Cycles

A sprint cycle is a repeatable process you’ll go through every time you manage and plan a sprint. The steps of the process will stay the same—what will change are the insights you learn at the end of a sprint and how you apply them to make the next sprint even more effective.

How the process works

At Anima, we follow Agile frameworks very often. It helps us quickly understand our clients’ immediate goals and help clear those as soon as possible. Note that this isn’t rushed work; rather, the pace at which we would operate would be hyper-focused. This is how Agile helps our consultancy provide accurate and ideal deliverables for each client.

Agile methodology is commonly used by both Scrum and Kanban enthusiasts. They use this framework religiously as it has proven tactics to ensure efficient results: Results like

  • 2x – 4x acceleration in time to market and new project delivery

  • 15% – 20% reductions in development costs

  • Most importantly, 90% employee engagement

It’s easy to see why. Like organizational transformation objectives, achieving agile at scale requires companies to address their full operating model. They must embrace change. And they must support this agile transformation—completely and visibly—from the top.


Anima’s Approach to Agile at Scale

Taking agile beyond pilots and scattered initiatives requires great changes in processes, habits, and even mindsets. It also requires careful timing and coordination. We work with clients at every step of their agile-at-scale journey.

  • Understand the starting point. Our customized approach starts with understanding where an organization is. Proprietary assessments, such as our agile maturity assessment, help us gauge capabilities, competencies, and willingness to change—and benchmark against best-in-class peers. By understanding a client’s readiness for enterprise agility, we can shape recommendations and strategies to fit their unique environment.

  • Enable the organization. Enterprise agility requires catalysts to change and influence behaviour. Set up and execute agile pilots. Agile at scale generates value and lessons that help scale this new way of working when well implemented. We work with organizations to select visible and relevant pilots, establish agile processes, and measure results—building dashboards to track value delivery, squad performance, defects, and work progress.

  • Adapt the operating model. By feeding learnings into the operating model, we fine-tune methodologies and set the stage for agile transformation. We define how roles and responsibilities will shift, drawing on a database of more than 3,000 role charters that detail accountabilities across functions. We address all functional model components, including governance, culture, leadership and talent, and technological enablers. And we work with clients to communicate changes—reducing ambiguity, and tension, as they deploy agile at scale.

  • Build an agile playbook. Transforming to an agile organization won’t happen overnight. By building on initial projects, customizing best practices to a client’s context and culture, and enabling ongoing coaching, workshops, and pulse checks, we create a roadmap for enterprise agility—and a path for sustainable change.

What 10,000+ employees say about agile transformation

We surveyed nearly 10,000 employees while they were amid an agile transformation. About one-fifth of them worked in organizations with more than 100,000 employees. Slightly less than half worked at organizations with fewer than 5,000 employees. The rest were relatively evenly distributed between those extremes. The employees worked in the technology, telecom, and financial services industries, as expected, but also in the logistics, health insurance, automotive, consumer goods, and professional services fields.

The survey consisted of 51 questions that tested whether employees were enabled or hindered during the agile transformation. We averaged each respondent’s answers to identify the top and bottom quartiles. The top quartile had the most positive sentiment and reflected where workers felt more empowered to embrace agile. Conversely, the bottom quartile had a more pessimistic view and consequently represented where employees felt more hindered and unlikely to adopt agile.

Three conclusions stand out. First, successful agile organizations are learning organizations. They do not rest on past accomplishments and practices. Nearly nine of ten respondents who feel enabled by their organization’s agile transformation said that their culture and management encourage failing fast and embrace learning from mistakes.

Second, agile teams want data to help them prioritize their work and measure success. Data helps them learn. Unfortunately, too few teams have the data they want. For example, only half of the respondents said their teams could measure customer satisfaction, a key indicator of team effectiveness.

Third, agile runs into trouble when it rubs against the conservative practices and behaviours of traditional organizations. Agile becomes the square peg struggling to squeeze into a round hole. For example, more than half of respondents said their organization’s standards, risk processes, and control requirements slow their work.

At its core, agile requires responding to change more than following a plan. Teams continually test and refine what they create based on feedback from customers and end users. So it’s no wonder that agile team members value learning and smooth interactions with the rest of the organization and want to take advantage of the insights data can provide.


Summary

Organizational change is hard. Most large change efforts do not meet their objectives. If you lose the support and engagement of your people, you will almost certainly fall short. Our survey suggests a winning approach: be a learning and data-driven organization, and anticipate that you will need to adjust the operating model to match agile ways of working. None of that is easy—but it is all achievable.

4wayshowtogetyourbusinessmodeltoworkright

4 Ways How To Get Your Business Model To Work Right

by with No Comment Sustainable Business

The energy it takes to build a business is endless – by now, this is becoming more generally acknowledged. But, unfortunately, businesses today routinely fail at crossing over to the “next stage” because they are so busy pedalling the bicycle of their current business model they leave no time, attention, or resources to design, prototype, and test a more effective business model.

 
 
 

In the past 50 years, the average business model lifespan has dropped significantly, from 15 years to less than 5 years. The most apparent changes are how businesses sell to their customers and how they buy in business-to-business and business-to-consumer contexts.

 
 
 

When our business models are unstable, there are clear patterns within the business that you will notice more often than not.

 

  • Unreliable revenue

  • Convincing customers

  • Compromising company vision

  • Broad/unidentifiable customer segments

  • Substantial challenges to scale

  • Attracting incompatible talent

  • and more…

 
 

Thinking that even one pattern from the list is a lot to handle and can be a deal breaker. The problem with patterns is that they are repetitive in nature. It might not seem crucial to address these patterns at every moment, but what makes them problematic is that they play a big part in the decisions you make about your company that stunt progress more often than not.

 
 
 

There are various categories that exist inside a business model. A business model canvas is a helpful tool to visualise a business model. You can find more about business models and their different types here.

4 ways to get your business model to work right:

Whether it’s your value proposition, activities or customer segments, they all have to work together and contribute to creating categories that align with growth. For example, if your key activities are not directly affecting your customer relationships, then the model will find it challenging to sustain your business in those two categories. Similarly, it is essential to keep the focus on how everything connects. Your “key partners” must align with every category, or else there could be areas that work better than others and cause an imbalance in your business model.

A rigid business model might have some short-term benefits, but to drive real change, your business model should be malleable to identify the most optimum way to operate. More often than not, Owners & CEOs double down on a model that shows immediate results, but there are chances you could be missing out on a more effective business model.

There will be a time in the business journey when momentum and direction come into play. If you can throw a ball fast but have no sense of direction, the goal of getting to throw the ball quickly becomes moot, and vice versa. It would be the same. In theory, given the opportunity, the ability of a business to move at a great force while keeping in mind the direction does show success parameters and optimistic forecasts. However, this does require specific decision-making skills and a strong foundation. A well-laid-out business model will have the potential to assist in both dimensions (impetus and focus).

It’s essential to know the long-term goal for each category and that they align with the long-term goals of a business. The goals from all categories form an ecosystem and a framework for your business to reach “success”. Setting milestones helps keep track of your long-term goals and even helps flesh out newer goals that align with your progress.

 
 

If you’re looking for a success formula, be aware that it doesn’t exist. What does exist are frameworks you can build for success.

For comparison, relate how you would want to meet your health goals, you could eat right and exercise, but they aren’t success formulas. What thrives is the direction you take to meet your goals, and those open a lot of other variables. If you hit your goals with the proper force, alignment and time, you have “success”.

 

Let us know if you’re looking for insights from a business model innovation expert to assess your business model; we’re always happy to help.

Business model

The Different Types Of Business Models

by with No Comment ComprehensiveSustainable Business

The different types of business models

Everyone (including me) has been in the same boat when they start a business, understanding the problem you are solving for your customers. Undoubtedly this would be the biggest challenge when starting a business. Customers need to want what you are selling, and your product/service needs to solve a problem, a real problem.

Like every piece of advice you get from friends, family, and mentors, they mention the first step in starting a business. But, there are a lot of “first steps”. On top of figuring out what the first steps are, you need to make sure there is revenue flowing in. So, where does a business model come into play?

What is a business model?

A business model is a conceptual framework supporting the viability of a business, including its purpose, goals and ongoing plans for achieving them.

In simple terms, a business model is a plan for how a company can create value. n

A business model answers fundamental questions about the problem you will solve, how you will solve it and the growth opportunity within a given market.

Creating a successful business model is essential, especially if you are starting a new venture, entering a new market, or changing your go-to-market strategy. The foundation of every business is its business model. It is the foundation because you need to look at the different avenues, partners, channels, customers, and values your company should be a part of to flow significant revenue inwards. If you look at your direct competitors doing “something” better than your company, that affects whom the audience will listen to. People want to work with companies that are more solid foundationally. A transparent, impactful business model is one of the only ways to increase the probability of success.

Let’s get into the different types of business models.

If you go online, some articles and blogs mention over 50 different types of business models, and we’ve summed them up into four different types (5 if you include businesses inside the metaverse, but that’s a whole other topic):n

    • Business-To-Business (B2B)When dealings or transactions occur between two companies or the business, this type of business model is known as Business-to-Business. What is important to note here is that for transactions to be successful in a B2B model, participating businesses need adequate planning, relationship building and relationship management. Ensure that relationships with other companies are well nurtured and that your business is positioned as a force to be reckoned with. Other models evolve from B2B; models like Business-to-Government or Business-to-Business-Consumer are specific niches that show other challenges to overcome.

    • Business-To-Consumer (B2C) The B2C model is a retail model where products move directly from a business to the end user who has purchased their product/service for personal use. For example, a B2C retail experience can be shopping at a local grocery store or purchasing new headphones from an online store. A B2C service experience can be a visit to the doctor, visiting a hair or nail salon, dining out at a restaurant or using the Uber app to purchase transportation. nnTransactions here tend to be more product/service-driven and less relationship-building (excluding service providers). As a result, impulsive or emotive buying decisions are frequently made in B2C models.

    • Subscription Based Models Any application-based businesses or software companies have subscription-based business models. They offer their product as a one-time or recurring purchase. In return, the company earns monthly or annual revenues. This business model allows the company to earn regular income by allowing the client to pay for the purchase in 12 equal payments rather than asking them to pay the wholesome amount in one go.

    • On-demand Models The on-demand business model follows a simple rule: “Access is better than ownership.” Hence, the idea is to make the services and products easy to access, including those the customer cannot own. For instance, you can rent a car instead of buying one. Likewise, the on-demand delivery business model works on the same pattern. The objective is to deliver the products to the customer safely in less time. Because of the new tech, users tend to use mobile apps for most services. Due to the increasing trend of on-demand services, businesses are now focusing on on-demand business equipment and delivery software. Companies can use non-employees for shipping goods on demand, wherein they may hire local workers or delivery companies to build this business model.

The word “model” conjures up images of whiteboards covered with arcane mathematical formulas. Business models, though, are anything but mysterious. At heart, they are stories that explain how enterprises work. When a new model changes the economics of an industry and is difficult to replicate, it can, by itself, create a substantial competitive advantage.

Another great use of the business model is that it can help crystalize the vision you have for the business. It can get arduous to explain what your vision is and get it to resonate with the network around you. In our business model and innovation series, we will be addressing all areas we know are difficult to maneuver in the early-stages of the business. Creating a sustainability business can get difficult if you’re unaware of the different situations you would experience in “the system”. If you are currently experiencing any stress around your current business model, please feel free to reach out to one of our business model innovation experts.

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Reaching the Next Gen consumer while protecting your core consumer base

by with No Comment Sustainable Business

Reaching the next Gen consumer while protecting your core consumer base

The real question asked by many is, “How can I reach the next generation consumer while protecting my core consumer base, that is ageing”.

To understand the behaviours and attitudes of Gen-Z, we need to take a look at 3 data points, research recently completed by the Forrester group.

  •  
    • 33% of GenZ unfollow, hide or block brands on social media at least weekly.
    • 46% of GenZ think it’s cool to be associated with a brand on social media (vs 52% in 2019).
    • 55% of GenZ indicate a company’s social responsibility reputation influences their purchase behaviour.

These data points reveal that consumer behaviour in the next generation comes down to the truth. GenZ, now more than ever, expect brands to stand up for what is right, to stand up for the truth.

 

To elevate the marketing mix, businesses today have to convey characteristics such as being authentic, respectful, and representing an impactful causality.

 

The words “Business consciousness” have started influencing marketing strategies, seeking the tenets of conscious capitalism, including entrepreneurship, competition, fairness, trust, compassion, collaboration, and value creation – human and material.

 

The reality is, markets surge when they see an altruistic trend. So perhaps there is an acknowledgement that there is an unusual aspect to the conscious business. George Washington called it providence.