Business is an ongoing and constantly changing journey. At no point is it possible to relax, organizations must constantly renew themselves exploiting breakthrough innovations that create continuous competitive advantages. Successful companies have a long-term perspective on their business.
Rethink your business model and challenging status quo comes first because the business model reflects how the company is going to make its revenues and profits in its ongoing business journey.
Organizational readiness assessment can be defined as an analyzing process to assess the organizational readiness strengths. It reveals how competitive the organizational readiness is to unlock new business opportunities through breakthrough innovations fostered by transformational changes that effectively capture, create and fulfill values, better than the competitors.
The Business Innovation Plan is about controlling one’s own destiny. We do not want the company’s destiny to be controlled by the competitors. Therefore, it is crucial to manage all the upcoming changes in the process before they become a problem.
Moreover, if the growth strategies have been appraised by the board of directors and the CEO then next step is jointly to further formulate and test them. The business concept must exploit the rationale behind the opportunity and reveal the expected benefits. Then ultimately the business concept is transferred over to the company departmental ownership. The departmental role is to build detailed business plan that will be approved and then implemented with the highest confidence levels.
Companies can facilitate a change to implementation through two different channels:
Annual operating business plan: Developed every year at the same time.
Strategic business plan: A master plan is developed for impulsive opportunities that come around.
Incorporating the right business focus into the organization through the annual business plan process is effective and drives focuses and delivery of concrete results. However, many unexpected business opportunities can come into sight very fast and cannot therefore be a part of the annual business planning process. In these cases after top management has formulated and built the concepts for the new opportunities.
To ensure the company is on the right track, according to plan, there must be an active key performance management review in place. If the performance is below planned expectations, the key performance metric system will help identify the appropriate action to be taken, to set the company back on track in time.