Do we need visionary leaders for innovative business models?

When I joined Microsoft in 1993 my decision to do so was stimulated by the picture I had from Bill Gates as a visionary leader. The company’s mission Bill Gates created at that time was “A computer on every desk and in every home”. It was an aspirational vision and motivating target for the scorecards. Would Microsoft be the same company today if the mission would never have existed and Bill Gates visions would have not influenced the product and research agenda in the way he did?

Most famous companies today are connected to visionaries: Apple with Steve Jobs, Amazon with Jeff Bezos, Facebook with Mark Zuckerberg and Tesla with Elon Musk. Does this prove that only visionary leaders create truly successful and innovative companies? How many visionary leaders have failed to create successful and innovative companies? This is much harder to answer than the first question. We only know about success stories, failures do not get the same publicity.

The passion for a visionary value proposition

visionary leadersAll of the above named leaders are not only visionaries from a product or services point of view. They are passionate about a value proposition for their customers. Bill Gates core value proposition was productivity gains, Steve Jobs was design and function, Jeff Bezos is price and customer service, Mark Zuckerberg is social sharing and Elon Musk is sustainable clean energy. The products are a means to an end and deliver the value proposition.

Employees in organizations need to understand the value proposition a leader wants to create. Innovation, to realize a value proposition, can occur everywhere in an organisations business model. Truly innovative organisations constantly challenge the status quo and look for different and better ways of achieving the vision.

A true visionary leader is able to view the organisation as an outsider. A fresh perspective allows the leader to forget about the existing customers and look at the entire world as the future market. A good example is Elon Musk with his broader perspective and the creation of multiple companies all supporting his true vision in a very different way.

Visionary companies: Do they need charismatic leaders?

Is your organisation blessed with such a leader? Continue reading Do we need visionary leaders for innovative business models?

Value creation through values in Business Models

Team and corporate valuesBusiness Model Innovation opens up the opportunity to not only transform the value proposition, value architecture or revenue model of an organisation, it is a chance to rethink your human value systems and build businesses that customers love, employees’ value and investors are excited about. Often, particularly in turbulent times, cultural innovation is an imperative for management.

Many books have been written about why organisations should have value systems defined and how you implement values in your core business. Still not all organisation have made this effort and those who did not always manage to live up to those set standards. Surprisingly, Alex’s business model canvas does not have values as a key building block of a business model either.

Effective organizations identify and develop a clear, concise and shared meaning of values or beliefs, priorities, and direction so that every employee understands and can contribute. Those values, once defined, impact every aspect of your organization and of the whole business model. The values must be an integral part of a description of any business model.

In my leadership career I have experienced what difference it can make if you have a leader that takes on the challenge to transform an organisation through values. When I started my work at Microsoft Australia the organisation was at first view a fairly successful subsidiary, achieving its revenue targets and outperforming other subsidiaries in some areas of the business. At a closer look the organisation had issues in areas like customer and partner satisfaction as well as employee retention. The most worrying factor was that departments were fighting each other over resources and a culture of back stabbing was quite common.

Cultural Innovation as a starting point for Business Model Transformation

Microsoft had already values defined that every employee should live up to and display. In reality many of those values were not more than letters on a web site. The company appointed a new Managing Director and with his appointment a cultural transformation journey began. He hired a Consulting firm that was specialized in building “Conscious Businesses” and our organisation transformed within 2 years in an amazingly positive way. Our leadership team, which I was part of, experienced a dramatic change in how we interacted with each other and how we connected our businesses in a much more meaningful and holistic way. Our customer satisfaction increased substantially and our employee health index (a measure of subjective employee satisfaction) became world leading within the company. Continue reading Value creation through values in Business Models

Knowing the Value within your Business Model is vital

Knowing where to start in designing a business model or simply just even trying to describe it to others can be difficult. You need to explain its value. The great advantage of explaining this through a business model canvas that looks for value constantly does help. This a guest post by Paul Hobcraft, an Agility Innovation Specialist.

Business Model Canvasfluidminds approach to exploring and explaining the business model does just that- it focuses on focusing the mind on the value within the business model.

The first value point is in the Value Proposition

Naturally we all look to the Value Proposition to explain the business model but like a car you should always look ‘under the hood’ to see the engine and what gives a car its performance. Equally you should stand back from the proposition and ‘take in’ all that makes this up. For a car it is the styling, the design, the promise and what or who is behind it. We look to buy on a given ‘promise of value’ and in having the benefits explained it allows us to believe and ‘see’ the potentials. A business model, well designed and described, does just that. It confirms the (new or existing) value that makes up the new business model.

The value proposition shapes much; it identifies and defines where this business model is providing new offerings that advance on existing benefits to customers. The fluidminds business model canvas seeks out the customer and the customer benefit- it is looking to provide value by identifying where there is a clear fresh, new proposition.

Value Proposition on the Business Model CanvasWe do have to recognize a value proposition is not just looking to resolve the known jobs-to-be-done. In many new business models can be bringing together often fragmented parts of existing offerings and combining them in new ways, or deliberately and completely disrupting existing businesses through adapting new insight, technology advancements or understanding, into new business models. We only need to think of Apple and how it combined different technologies, revolutionary design and applied new materials into stunning, game changing products that changed our thinking of the actual jobs we thought about into totally different ones, which totally undermined existing business value or perceptions. Those become game changers. Continue reading Knowing the Value within your Business Model is vital