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The Death of the Business Plan Implications for Organisational design Chris Catto

The "Death" of the Business Plan

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The “Death” of the Business Plan and Implications for Dynamic Organisational Design The paper will challenge common thinking in regards to Business planning and strategic execution. The session will seek to link business modelling with tactical planning and highlight the implications for effective team dynamics, organisational design and strategic delivery. The paper will be broken into five parts; 1) The Disconnect 2) The Business Model vs Business Modality 3) The Collective 4) The Critical mass 5) The Conclusion Contact me if you have any questions?

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Page 1: The "Death" of the Business Plan

The Death

of the

Business

Plan

Implications for

Organisational design

Chris Catto

Page 2: The "Death" of the Business Plan

The Disconnect Business Plan

or Fanciful

Treasure map?

PESTAL

SWOT

5 Forces

BSC

Chris Catto

Page 3: The "Death" of the Business Plan

The Disconnect

The Construct

The Business Plan Audience

What about what the customer wants?

Who deals with the customer?

Hierarchy and span of control?

Perception?

Motives?

Professional Managers v Industry Experts (the consumer

inside?)

Chris Catto

Page 4: The "Death" of the Business Plan

What is his View?

How much does

his view matter?

Chris Catto

Page 5: The "Death" of the Business Plan

The Application

• Budgets &

Forecasts

• Performance

Appraisals

• KPIs & KRAs

• Individual

Bonuses

• Salary Bands

• Gaming

The Disconnect

Chris Catto

Page 6: The "Death" of the Business Plan

Business Model v Business

Modality

Natural Business

State

Solid v Fluid?

Static or Moving

Parts?

Chris Catto

Page 7: The "Death" of the Business Plan

What is the Modality of

your Industry?

What parts require:

Updating?

Maintenance?

Re-engineering?

Replacing?

Each industry has a

particular tried and

tested methods of

revenue generation,

product development,

manufacturing, service

delivery and customer

service.

While the fundamental

principles of the

business modality

remain constant,

tactics for delivery

are continuously

improved, challenged,

refined and enhanced

with the introduction

of new technology and

change in social norms

Chris Catto

Page 8: The "Death" of the Business Plan

Is your Industry Modality

Changing?

When does the Modality Die?

When the vehicle for servicing

the “need” changes

If the Need no longer exists,

Then The need you were

servicing was a fad!

How often has your

Modality been reinvented

or even completely

substituted across

History?

Chris Catto

Page 9: The "Death" of the Business Plan

The Collective

The Artisans of the 21stCentury

Individuals form Teams within the Business Modality –

Modality is formed of natural overlapping

components.

Teams have collective Skill sets that complement the

Modality Components.

Modality Components include: Sales, Marketing,

Product development, engineering, manufacturing,

Logistics, service delivery, Administrative Support

Leaders within the teams are self determined by

combination of skill Mastery and as the facilitators of

Collaboration. Ultimately Leaders act as natural

catalyst for problem solving.

Chris Catto

Page 10: The "Death" of the Business Plan

The Collective

McGregor: Theory X Theory Y

Maslow: Hierarchy

of Needs

Argyris: Theories of

Action, double loop

learning

Organisational Performance

is a function of Environment

The Collective Mastery of

skill in a favourable Human

Environment

Principle for individual

Performance is mirrored

Mastery of required skill

placed in a favourable

human Environment

Chris Catto

Page 11: The "Death" of the Business Plan

The Critical mass

Each business has

a tipping point

A critical mass

required to;

first - to break

inertia

Second - to

continuously

service the

critical mass to

maintain

momentum

The momentum in

business is

represented by

the Flow of

sustainable Cash

The Implication

for

Organisational

design is to align

the collective

skills with the

Business

modality;

That generates

the cash flow

momentum; That

exceeds the

Sustainable

Business tipping

point

Chris Catto

Page 12: The "Death" of the Business Plan

The Critical mass

Just as seasonal rains bring

life to the living environment

The Focus of Organisation

Design is to maintain momentum

of Cyclical

*Self improvement

*Advancement of Collective

knowledge

*Innovation

*Product Development

*Infrastructure reinvestment

*Positive Market Engagement

The Rain that maintains the

momentum of the water wheel

Page 13: The "Death" of the Business Plan

The Conclusion

The Business Plan as we know it is

as useful as a message in a bottle

• Designed for Wrong Audience

• Insular,

• hopeful,

• A Limited communication Medium

• Practically direction less,

• beholden to the currents that

surround it

Chris Catto

Alternative:

Strategic Modality Statement

1) Understand the Modality

that services the core need

2) Align the Collective

3) Recognise change and

Sustain Critical mass

Implications for

Organisational Design

The Artisan Organisation

Designed around Teams of Skill

and mastery optimised in a

favourable Human

Environment

Chris Catto

Page 14: The "Death" of the Business Plan

The Author

Chris Catto

Director & Chief Performance

Partner – Putney Breeze

Business Advisors

Author of Premiership Business

For more information, strategic facilitation or Speaking

engagements contact [email protected]