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Some business truths

One LinkedIn discussion centered on truths.  Here was my offering.

It seems to me the issue is not around set theory and the axiomatic approach. Board members (representing those holding the equity of the company ) and customers (representing those deciding to spend their disposible cash with your company) don’t care.

Executives are at the center of the fulcrum. One the one side are the equity holders wanting a better return on their investment and on the other side are the customers who want the greatest value for the money they are spending. And the business leaders are trying to navigate through the existing environment and give each what they desire.

Here are a few ‘truths’ those executives should be paying attention to:
– Products, processes and businesses have designs that can be documented.
– Products, processes and businesses can not outperform their design.
– Changing strategies has no effect on the design of a business.
– Strategies are executed, designs are implemented.
– Strategies can only be executed if the design can accommodate them.
– Strategies need to be embedded in the design of a business.
– Design, not strategy, is the key to change.

Getting to KPIs. Their use is in determining when a design needs to be updated. Since designs gain their relevance from the existing environment KPIs need to be sensitive to what is changing.

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