What’s that you are wagging

Does your business strategy drive the business model or is it the other way around? Intuition and experience say that a business model should naturally emerge from the strategy but it is not always the case. If you are running a business, a division of a business or anything that needs both just pause and think for a moment

PS: If you indeed find that your model has been driving the strategy then it might be symptomatic of an inside out culture. Take stock. It’s worth the effort to change the culture and the symptom will take care of itself

3 thoughts on “What’s that you are wagging

  1. Whether the model follows the strategy or vice versa or is it a case of peaceful co-existence…..is it fair to sum up your question? Well to me, in a fluid business situation, the model evolves over a period of time when normalcy returns to the business. The key is just trying to ensure that you have the right strategy in place, so that one does not mis-interpret the opportunity size and the directional approach. Once the strategy is validated and there is an element of stability in the opearting environment, does the templatization of the effort take place, evolving into ” the model”

    • “Peaceful coexistence” – yes, very fair summation. My experience has been that businesses strategies are often written (or even thought through) like a business model (and business models become execution plans). This brings about the instability over time. The operating environment can (and most often does) fluctuate and that should be tackled with a flexible operating model, which is more execution aligned. Each time there is a temptation of changing the business model one must revisit to see if that change is compatible with the strategy

      Good to have you comment, Arnab! Wish you did more and we locked brains (your brains, my head!)

      • Flexible operating model……you sure would not want that to happen with people of my professional disposition and our brethren, the sweet folks in Sales, being around. We revel in finding the “flexibilities” and modelling the opportunities that it thereby offers with a straight faced ” swalpa adjust maadi”.

        But on a more serious vein, I feel that a model should evolve over a period of time when the viccisitudes of successive business cycles have been understood and been factored in. To me a model should have a sense of robustness and provide a sense of comfort, especially in times of stress that the silver lining is just ound the corner. In the words of the market, a kind of mean reversal is what a model should be able to assure, simply by ” being there and having done that”…..the fundamentals should hold irrespective of the technicals holding sway over the short term.

        Lastly, on the ownership of the two body parts that you mentioned, you have obviously got the order wrong. Am sure you remember what GB Shaw had to say on beauty and brains and how an adverse juxtaposition of the same could have disastrous consequences……holds true equally here.

        Good to be in touch Subrata, been such a while, don’t remember if I have seen you either with your specs or your stylish facial hair ( the French one)……been surely quite a while

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