Let’s silently hear meeting conversation:
IT Manager: “According to our IT strategy, we are going to implement paperless capability within business”
Business Manager: “Ok! Explain me how this relates to our Business strategy?”
Operations Manager thinking….. these guys are insane; our people struggle to use Word/Excel and they are talking about Paperless….
In Business environment, we often come across situations where we do not understand other’s perspective. One of the main reasons is lack of availability of tools that shows big picture of business and interrelationships between different components.
I am going to you share generic model to represent any business (‘Singh’s Business Reference Model (BRM)).
Singh’s BRM show helicopter view of business that helps to:
- Have common understanding of your business
- Identify Business composition, interrelationships, hierarchy of different business components
Let’s see what it really means!
The Six Tiers:
- Tier 1: Foundation of any Business is its Vision, Mission and Core Values.
- Tier 2: Business Strategy and Tactics supports Business foundation (Tier-1).
- Tier 3: At the next level, comes Business Model, Policy, Partnership (strategic, supplier) and Organisational structure that supports implementation of Business Strategy and Tactics.
- Tier 4: Business Capability and Value chains support all components of Tier 3
- Tier 5: This tier represent end-to-end Business processes and Resources (Human, Technological, Physical Assets, Raw material etc.) to produce output (product/service)
- Tier 6: The last tier represents Procedure, Behaviours and Culture of business. Procedures include step-by-step information to undertake any business process (defined in Tier 5). Behaviours and Culture are attributes of Employees, teams, Departments or overall Business. These attributes have direct impact on quality of Product and Services.
Few notes about tiers:
- Each lower tier is a foundation of higher tier
- Each higher tier supports physical delivery of lower tier
The Three core pillars:
- Leadership: Leadership is core element of any Business. The success and failure of business depends on its Leadership. Effective Leadership drivers Innovation, Continuous improvement at all tiers of business, Resource development, Customer satisfaction and Shareholder value.
- Enterprise Architecture: Enterprise Architecture is core element that integrates individual part of business together. It is a very broad and evolving field. More details are beyond the scope of this post.
- Governance: Governance ensures that business follow agreed process and rules.
The most important Components:
- Stakeholders: Depending on nature of Business, stakeholders can be Executive team, Company Directors, Shareholders or Members of Community.
- Customer: Customer is buyer of business’s Product/Service.
The External Factors – Following are the external factors that directly/indirectly impacts any Business
- Market Forces
- Industry Forces
I hope BRM has help you to visualise high-level picture of your business. I look forward to your feedback and thoughts on this topic!