Editor's Note:  Take a look at our featured best practice, Design Thinking - Poster (printable in A0, A1, A2) (1-page PDF document).  Design Thinking poster gives a detailed description of a Design Thinking process.  It is great as introduction to design thinking, an overview of a possible design thinking project, encouraging innovation and design thinking.  Poster presents some typical tools for design thinking: Problem [read more]

Service is a complex, multi-tiered process involving a number of individuals and technologies that either work in unison or encounter problems.  In order to encourage Innovation and improve Customer Satisfaction, it is essential to visualize each step and participant, from consumers to third-party vendors.

Here, Service Blueprints perform an essential function.  As its name suggests, the Service Blueprint aids in the creation of a service process blueprint.

Service Blueprints are a highly effective for Service Design.  They enable businesses to methodically envision, evaluate, and improve their Customer Experiences.  Service Blueprints depict not only the customer-facing components of a service, but also the fundamental processes, interactions, and contacts that comprise the complete service ecosystem.

Service Blueprint has become among the most valuable tools for service providers.  The approach was initially implemented in the context of Service Design, and later employed to analyze operational efficiency flaws.  The Service Blueprint is one of the most widely used instruments for supervising Service Operations, shaping Service Design, and enhancing Service Delivery.

The Service Blueprint includes a process flowchart that depicts the service delivery process from the customer's perspective.  Usually, producing a Service Blueprint consists of 7 steps:

1. Differentiate activities, order, and relationships.
2. Identify criteria, variations, instructions, guidelines, services, and stock.
3. Depict extra lines.
4. Determine line of visibility.
5. Provide timeframes and identify responsible individuals.
6. Identify failure points and waiting periods.
7. Manage divergence and complexity.

A Service Blueprint process consists of inputs in the shape of unprocessed materials, a process that alters the inputs, and provides outputs that are finished products.

Let us delve somewhat deeply into a few of the steps.

1. Differentiate activities, order, and relationships.

Examining the Customer Service scenario initiates the process irrespective of whether a new process is being initiated or an existing one is being mapped out.  The actions of the consumer are arranged in chronological sequence.  Activities, their order, and their relationships are analyzed independently.

2. Identify criteria, variations, instructions, guidelines, services, and stock.

The following phase involves identifying and incorporating criteria and permissible variations, written instructions, operational directions, additional services, and inventory for each step into the service blueprint.

Identification is conducted after building a comprehensive customer service experience and including customer action sections such as:

• Front-stage activities.
• Backstage activities.
• Support processes.
• Tangible materials.
• Timeframes.

3. Depict extra lines.

If necessary, the additional lines are shown next, such as the physical interaction line or the IT interaction line.  When dealing with complicated services, it is recommended to depict more lines.

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Entrepreneurs of conventional businesses are required to develop a 5-year business plan.

Typically, traditional enterprises follow a conventional, resource-intensive, and costly method involving thorough reflection, planning, and implementation with little customer interaction and feedback. To persuade potential investors that the approach is a viable investment, careful consideration of comprehensive financial projections is required during the planning phase.

After receiving financing from venture capital firms, conventional entrepreneurs develop products in isolation, spending countless man hours while maintaining confidentiality to prevent rivals from duplicating the offering.

Each of their traditional stages of product development occurs in a sequential order and lasts for several months. They rely on intuition rather than consumer feedback and notice too late that the offer they launched a while ago is not acquiring traction.

The Lean Startup methodology, on the other hand, prevents businesses from wasting valuable resources and man hours on consumer-repellent concepts or prototypes. Eric Ries coined the term "lean startup" in his book titled "The Lean Startup." The methodology is based on Toyota's Lean Manufacturing philosophy, which emphasizes optimum utilization of resources and waste reduction.

The fundamental concept of the Lean Startup methodology is that when entrepreneurs concentrate on continuously developing products to meet the needs of early customers, they minimize market risks, avoid substantial initial project financing, expensive new product releases, and even bankruptcy.

Lean businesses forgo elaborate business plans and laborious planning. Based on consumer feedback, they evaluate unproven hypotheses, refine, and improve the product.

The goals of employing the Lean Startup methodology are to eliminate wasteful practices and superfluous expenditures, acquire continuous consumer feedback, refine the product based on feedback, and forsake a flawed concept without wasting a great deal of money.

The Lean Startup methodology is implemented using a four-stage iterative cycle referred to as the Lean Startup Cycle. The four phases consist of:

1. Map Ideas Using the Business Model Canvas
2. Develop and Test Your Hypotheses
3. Create a Minimum Viable Product (MVP)
4. Learn, Validate, and Improve

Let's investigate in greater detail the first two phases of the Lean Startup Cycle.

Stage 1: Map Ideas Using the Business Model Canvas

During the first phase of the cycle, entrepreneurs must innovate new and existing Business Models using the Business Model Canvas.  The Business Model Canvas graphically depicts on a single page the nine essential building blocks or elements of Innovation that every startup must analyze critically.

The nine building elements are customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partners, and cost.  Executives must make assumptions, pose inquiries, and discover answers regarding each component.

Stage 2: Develop and Test Your Hypotheses

The second stage entails conceiving, testing, adjusting, or abandoning hypotheses based on the insights obtained from a comprehensive Business Model Canvas evaluation.  Founders decode concepts into Business Model hypotheses and test their customer demand assumptions.

There are three categories of risk associated with hypotheses: desirability, viability, and practicability.

• Desirability: The goal is to determine whether or not the consumer desires the product. Example of a testable hypothesis: "Children aged 9 to 15 will find this product appealing."
• Viability: This category of hypotheses evaluates the risks associated with the Business Model's viability. The goal is to ensure that the product addresses consumer issues and that it is beneficial to find a solution.
• Feasibility: This section assesses the hazards associated with the startup's capacity to develop and deliver products, crucial capabilities, and necessary skills. Example of a testable hypothesis: "We can develop X number of products within two months."

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Future Work Strategy

Many businesses are preparing for the Future of Work in silos led by strategic thinkers. This unstructured and fragmented approach to the Future of Work risks conflicting business unit priorities, redundant processes and initiatives, and organizational misalignment.  Risks can be costly.

A Future of Work Strategy can boost employee engagement, innovation, and competitiveness. HR leaders must build a coordinated strategy to compete in a disruptive and uncertain world as more firms plan for the Future of Work.

However, HR directors struggle to decide how to formalize the Future of Work at their firms. This framework presentation explains how to create a Future of Work Strategy  by describing the 3-steps to follow to achieve the Future of Work Strategy:

1. Trend analysis
2. Scenario Creation
3. Future of Work Strategic Planning

We examine each phase and break down the Future of Work Strategy formulation process into 8 steps.

A Future of Work Strategy often assesses current and future workforce needs, plans for upskilling and reskilling personnel, and implements new technology and work procedures. Gartner defines a Future of Work Strategy as a series of activities to address the uncertainties and repercussions of future events that affect how, when, where, who, and even what work is.

The organization or external trends like can cause these changes... (See more)

Trends Analysis

First-phase trend analysis has 3 steps:  (1) scoping, (2) identifying, and (3) prioritizing trends and potential disruptions.

Sourced trends from outside specialists, press publications, industry-specific trend studies, and search engine alerts are one way to identify future work patterns. Internal sources include progressive business leaders, talent analytics, board and executive meeting minutes, employee, and consumer surveys. Meanwhile, derived trends by visualizing a possible future and working backward to what needs happen to make it happen. Premortems, science fiction, and cross-industry competitor behavior study can help predict the future.

In the 2nd step of Trends Analysis, we evaluate trends on a spectrum of low to high uncertainty and dependent on external influences. The significance and implications of detected trends are based on low to high uncertainty and external influences.

Trends Analysis concludes by prioritizing trends with the greatest potential impact or competitive advantage. NASA's 3-filter approach and John Deere's megatrend assessment filter approach demonstrate this.

Scenario Creation

Using prioritized Future of Work trends, the 2nd phase adapts to predict and test future business scenarios. Scenario creation follows to develop and test future scenarios.

In the 1st step of this phase, we develop future scenarios by identifying the business implications of each once your scenarios have been developed, using storytelling techniques to build simple and relatable narratives that illustrate the business impact, and assessing the quality of the scenarios.

To test scenarios, we must define possible events that must or must not happen for each scenario to unfold and analyze their likelihood to prioritize the scenarios with the highest probability and disruption.

Strategic Planning

In the 3rd step, a roadmap is created to identify, implement, and track future of work activities. The strategy plan should adapt to trends. Scenario Planning culminates with a strategy plan that can adapt to changing trends and implement future work objectives. Identifying Initiatives, Designing Programs, and Measuring Progress comprise the last phase.

Interested in learning more about the Future of Work Strategy? You can download an editable Future of Work Strategy and template here on the Flevy documents marketplace.

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Different phases of organizational development exist.  Some reach maturity and then decline with time, whereas others simply vanish during the initial phase.

However, few businesses are able to avoid bankruptcy and sustain long-term growth.  They continue to amaze consumers with their innovative products and services.  They accomplish this by devoting resources, investment, time, and effort to the development of novel ideas, testing and cultivating these ideas, and discarding obsolete products.

McKinsey & Company created the Three Horizons (3H) of Growth framework in the year 2000.  The model is beneficial for Managing Innovation, evaluating the maturity and potential of Innovation initiatives, and allocating resources accordingly.

The 3 Horizons framework directs an organization's attention toward enhancing its current portfolio and developing future sources of revenue and business opportunities.

The 3H strategic framework defines three distinct Innovation horizons that must coexist for a business to accomplish growth.  To achieve sustainable long-term growth, organizations must invest in each of these horizons and address the corresponding challenges.  The three horizons include:

1. Horizon 1 – Defend and extend core businesses
2. Horizon 2 – Build emerging businesses
3. Horizon 3 – Create viable options

The 3 Horizons framework facilitates appropriate responses to market, technological, and regulatory disruptions.  Each horizon requires a distinct management approach. 

• Maintaining a consistent focus on the present (Horizon 1), the future state of the business (Horizon 3), and the necessary actions to get there (Horizon 2).
• Knowledge of where to direct short-, medium-, and long-term efforts.
• Maintaining a diversified portfolio of initiatives across the three horizons and effectively managing risks by balancing stability and cash flow with innovation's inherent risks.
• Maintaining a focus on maintaining and expanding a particular brand, conceiving original ideas, and investing in viable projects.
• Avoiding common mistakes, such as concentrating solely on new opportunities or future initiatives and disregarding existing core value propositions.
• Expansion into new geographies and the modification or introduction of wholly new products and services.
• Developing or acquiring new competencies through the recruitment of top talent.

Let's investigate these growth horizons in depth.

Horizon 1. Defend and Extend Core Businesses

The first Horizon of Growth relates to "business-as-usual" activities that are essential for the survival of the principal (core) business.  This growth strategy focuses on short-term expansion (1-3 years) by maintaining and expanding margins and profits from existing, cash-generating primary operations.

Leadership must evaluate the organization's strengths and weaknesses, as well as its effective value propositions and those that must be discontinued.  Horizon 1 initiatives consist of product revisions, the introduction of product accessory features, new services, Digital Marketing, and improved customer support.

Horizon 2. Build Emerging Businesses

The second horizon requires refocusing efforts on expanding the current portfolio by exploring new revenue-generating opportunities and experimenting with new innovations in response to fluctuating markets. This horizon concentrates on improving existing business models by investigating the prospect of acquiring new skillsets and technologies and analyzing new market segments.

This horizon focuses on the accomplishment of medium-term (2 to 5 year) objectives through the addition of new product lines or geographic expansion.  Horizon 2 activities are anticipated to generate a reliable rate of return on capital expenditures.

Horizon 3. Create Viable Options

The third development horizon involves research, the creation of new conceptions for prospective long-term growth (5-12 years), and the formation of altogether new businesses.  Investing in new Product Development, M&A, Automation, or Artificial Intelligence are examples of such endeavors.

Interested in learning more about the Horizons of Growth framework? You can download an editable PowerPoint presentation on McKinsey's Three Horizons of Growth here on the Flevy documents marketplace.

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Editor's Note:  Take a look at our featured best practice, Growth Strategy (41-slide PowerPoint presentation).  The reality is: all businesses face the challenge of achieving sustainable Growth.  They need viable Growth Strategies.  So, what is Growth Strategy?  It is the organization's high-level Corporate Strategy Plan that outlines everything the organization needs to do to achieve its goals for [read more]

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Multiple industry sectors are entangled in unrelenting competition as organizations endeavor vigorously, frequently competing over identical attributes, while offering comparable products and services.

This environment of intense competition has distinct and accepted boundaries and well-defined competitive norms.  Companies endeavor to surpass their competitors and acquire a larger portion of the product or service demand in this setting.

As the market space grows more and more crowded, prospects for growth and profit dwindle.

Products either become commodities or discover their niche, resulting in intense competition that transforms the industry into a battlefield.  This is why such environments are referred to as "red oceans."

Establishing an uncontested market space, also known as a "blue ocean," is one method for sustaining profitable growth.  Blue Ocean is a business strategy that encourages the creation of new markets and Value Propositions that make competitors irrelevant.

The basis of this strategy is Value Innovation, through which unchallenged markets are created.  Value Innovation is the simultaneous effort to achieve uniqueness and cost effectiveness.  The companies shatter the conventional cost-value trade-off by providing substantially greater value to end consumers at a reduced price.

The foundation of the Blue Ocean Strategy is the 4 Actions Framework, which represents a powerful tool. The primary argument of the 4 Actions Framework is that establishing a new market can generate more advantages than contending against entrenched competitors in an existing market.

The framework considers the following 4 actions when either enhancing a current offering or developing a fresh one:

1. Raise
2. Eliminate
3. Reduce
4. Create 

The vital component to implementing a successful 4 Actions Framework strategy is identifying the recurrent obstacles that only the organization can address.  The framework is designed for assessing the current Value Proposition of an organization whilst discovering a way to create a new one that resonates with a different group of consumers or needs.

Let us delve a little deeper into some of the actions.

Raise

In this action, queries pertaining to product, pricing, or service characteristics that must exceed industry standards are addressed.  The essential query to pose is, "Which factors justify significantly exceeding typical industry standards?"

This query pushes businesses to identify and eliminate the trade-offs that customers must tolerate.

Eliminate

This action investigates segments of an organization or industry that can be eliminated wholly to reduce costs and help establish an entirely new market.  The essential question that must be asked is, "What are elements that are frequently ignored by the industry that ought to be eliminated?"

This question necessitates consideration about the elimination of factors upon which competitors have customarily competed.  The focus should on characteristics that necessitate significant effort and investment, but generate only marginal revenue or new consumers.

Reduce

This action examines areas of a company's product or service that are not essential but are notable in the industry and can be streamlined without being eliminated.

Interested in learning more about the 4 Actions Framework?  You can download an editable PowerPoint presentation on the 4 Actions Framework here on the Flevy documents marketplace.

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"Strategy without Tactics is the slowest route to victory.  Tactics without Strategy is the noise before defeat." - Sun Tzu

For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics.  Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy.  Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.

These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.

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 Today’s competitive environment calls for unique approaches to win customers.

 Following the identification of a consumer category, organizations need to determine which customers to target and how.  It is necessary to agree on the full scope of the customer job, including their underserved and overserved needs. Now is the moment for Leadership to consider and choose the most suitable strategy required for market success.  It is time to determine whether it is necessary to add a new feature to an existing product, develop a cheaper version of an existing product, or pursue an entirely different path.

The JTBD Growth Strategy Matrix outlines market strategies to target the appropriate consumers and meet their needs.  The matrix facilitates the selection of the most effective strategy for a given scenario.  The product must complete a customer's task faster, more effectively, and more affordably than its competitors.

On the four quadrants of a matrix, the JTBD Growth Strategy Framework depicts the potential for product or service offerings to complete customers' duties better, worse, more cheaply, or more expensively.  It allows businesses to target different consumer segments with a value proposition by situating them in the appropriate quadrants. 

• The Y axis of the matrix indicates whether the organization can complete tasks more or less proficiently than its competitors.
• The X axis, on the other hand, indicates the company's ability to offer more expensive or cheaper products than its competitors.
• The upper left quadrant is designed to accommodate consumers with unmet needs.
• Customers with limited options occupy the lower left quadrant. To attract these consumers, organizations should offer superior performance products and charge a premium price. Even if they offer no competitive advantage, companies can charge this group a premium for their goods.
• The right upper quadrant serves consumers whose needs are either underserved or overserved. These consumers will be attracted to a product with superior performance and a low price.
• The right lower quadrant is comprised of non-customers and consumers whose needs are met in excess. To attract this consumer segment, businesses should price their products more affordably.

 Depending on the circumstances, organizations can employ one of the following five strategies to meet the specific needs of consumers in the four quadrants of the JTBD Growth Strategy Matrix.

1. Differentiated Strategy
2. Dominant Strategy
3. Disruptive Strategy
4. Discrete Strategy
5. Sustaining Strategy

Let’s talk about the first 3 strategies in detail.

Differentiated Strategy

Many of the world's most profitable and rapidly expanding businesses employ a Differentiated Strategy because, when executed effectively, it generates astronomically high profits.  This strategy is employed to provide underserved customer segments with a new, pricier product or service that performs a customer's job more efficiently.

The strategy permits a company to enter a market at the upper end, acquire a significant portion of profits, and then penetrate the market to increase market share. Through operational innovation and production cost reduction, an organization is able to simultaneously reduce the price of its existing products and introduce new, superior products.

Dominant Strategy

Businesses that target every consumer in a market with a new product or service that performs the same function noticeably more effectively and at a lower price employ the Dominant Strategy.  This strategy necessitates investments in a new product platform, competencies, resources, and talent, rendering defense impossible for the overwhelming majority of incumbents.

According to research, organizations employing a Dominant Strategy can be successful if their value propositions are at least 20% superior and less expensive than those of their competitors.

Disruptive Strategy

Organizations use Disruptive Strategy to target overserved customers or non-consumers with a new offering that allows them to complete a job more inexpensively but less effectively than competing offerings.

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There are numerous ventures that have not yet attained the level of being completely established businesses in the current business environment.  This situation is attributable to a number of factors, including the failure of ideas to acquire traction, insufficient funding, and insufficient customer analysis.

Startups make speculative suppositions about their Business Model in their early phases.

These assumptions relate to the ascertainment of their target customers, sought-after product features, suitable distribution channels, revenue strategies, pricing approaches, customer acquisition, retention, growth methods, strategic product delivery activities, internal resource demands, requisite partnerships, and overall costs.

The aforementioned suppositions stay unsubstantiated until they endure testing in real scenarios and receive feedback from actual customers and market interactions.  These insights are crucial for the survival of startups during their initial stages of existence.

The Customer Development Model (CDM) can effectively validate assumptions pertaining to customer analysis.

CDM represents an iterative and responsive process that reflects the unpredictability of launching a new business and entering new markets.  Each phase of the CDM has a distinct objective and a distinct set of deliverables.  The step-by-step procedure aids entrepreneurs in identifying viable business opportunities and transforming them into profitable enterprises.

The primary objective of the CDM is to gain a comprehensive understanding of customers and their difficulties.  By acquiring this comprehensive understanding, entrepreneurs can improve the trajectory of their product creation, sales, and marketing initiatives, thereby increasing their efficiency.

By adhering to this methodical model, a learning and discovery cycle can be created, facilitating task prioritization and accelerating the launch and scaling of startups.

Product launch failures are not unique to startups; even well-established and well-financed businesses can come up with unsuccessful new market offerings.  A case in point is Motorola's $5 billion satellite-based phone system.

Regardless of the magnitude or stage of a business, distinguishing customers and delineating markets remains an ongoing necessity.  The Customer Development Model is not only useful for new businesses, but also for established ones.

Each of the 4 linked steps of the CDM has its own unique requirements and outcomes.

1. Customer Discovery
2. Customer Validation
3. Customer Creation
4. Company Building

The Customer Discovery part focuses on gaining an understanding of customers, their difficulties, their tastes, and their purchasing behavior.

Customer Validation sets a uniform sales process, which is an essential step in the growth of a business.

Iteration occurs between the initial 2 steps until the stage is set for the 3^rd step, i.e., Customer Creation.  This step increases demand and identifies potential customers.

Company Building focuses on building the enterprise in order to encourage expansion and executing the business strategy.

Let's delve a little deeper into the 1^st 2 phases.

Customer Discovery

Knowing the actual customers requires extensive investigation, which is distinct from determining product features or conducting focus group testing.

The approach recommends that CDM implementation teams be on the ground, in the field, to locate markets and consumers.

The consumer search phase eventually centers around the product's vision.

Customer Validation

Prior to Customer Validation, the prospective customer and market must be determined.

This step follows identification because it is explicitly designed to aid in the creation of the map needed for successfully getting to those customers.

What distinguishes the Customer Validation process is that if it fails, the team must commence Customer Discovery from scratch.

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Design is essential to the creation of effective solutions.  It includes aesthetics, usability, and the user experience.  Several models are employed to direct the design process.

Despite the variety of design models, there are foundational steps that are universal.  These include comprehending the problem, generating ideas, prototyping the solution, testing it, and refining it.  These stages are the foundation of Design Thinking and enable designers to effectively navigate complex challenges.

The design process is an organized way for guiding creative teams toward a clear and effective goal for their design pursuits.  Excellent design requires a sharp focus on a particular objective, and when an extensive team is involved, it necessitates stretch collaboration and coordination.

During exercises such as market research, ideation, user testing, and Design Delivery, the design process enables the timely participation of a variety of individuals.

The design process establishes useful guidelines to ensure that design concepts satisfy user needs while maintaining brand consistency.

Even non-designers must follow the design process when creating digital products.  Cross-functional team members contribute significantly to the design.

Creative and design teams have a design process that is specific to their work; for instance, UI design teams will take a different approach than graphic design teams.

When undertaking significant design initiatives, the majority of teams adhere to a standard procedure, despite variations.

Utilized design process models include the Double Diamond Model, the UX Design Model, and the Service Design Model.

The Double Diamond Model provides a framework for divergent and convergent thinking, emphasizing the significance of investigating multiple solutions before zeroing in on one.  The Double Diamond is a graphical representation of the design process that emphasizes resolving both the problem and the solution.

The strength of the Double Diamond Model lies in its iterative and non-linear nature, which enables designers to appreciate ambiguity, investigate diverse perspectives, and discover innovative solutions.  This model ensures that the final design closely corresponds with user preferences and requirements by implementing user feedback and continuous iteration.

The 4 phases of the Double Diamond Model are as follows:

1. Discover
2. Define
3. Develop
4. Deliver 

The Double Diamond model is a 4-phase, structured approach for designers that serves as a road map for organizing their ideas to improve their creative process.

Let us explore some of its phases in greater detail.

Discover

In the Discovery phase of the Double Diamond model, various variables that influence the problem and potential solutions are investigated.

The objective of this phase of the model is to identify and position the actual issue or opportunity.

Typically, businesses begin this process by articulating their problem, presenting their hypothesis, and establishing avenues for additional exploration and learning.

Define

In the definition phase of the Double Diamond model, information accumulated in the 1^st phase is sorted and expanded upon.

The process of sifting through data involves identifying bottlenecks, identifying resource inefficiencies, identifying concealed opportunities, and establishing a list of no-go zones for the design team.

Develop

In the Development phase of the Double Diamond model, a remedy to the problem identified in phases 1 and 2 is formulated.

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One of the main cause of most Innovation failures is a lack of understanding of client requirements.

With the abundance of data available today, organizations should have no trouble understanding what their customers want to achieve.  But this is not the case.  In virtually all cases, data is used to find correlations rather than causes.

The Jobs-to-Be-Done (JTBD) Theory assists in comprehending client preferences by concentrating on what drives a purchase.  The JTBD Theory approaches the innovation process scientifically.  The framework provides an accurate way to pinpoint clients' requirements and issues.  JTBD Theory does this by identifying the jobs that clients desire to carry out by buying a product.

The JTBD approach enables acquiring a profound understanding of the clients' needs.  The focus of the approach is on the customer’s job rather than the product.  JTBD defines products as items that people use to complete a task or address a problem.  The strategy, for instance, directs us to concentrate on drilling a perfect quarter-inch hole rather than on the quarter-inch drill.

JTBD Theory allows organizations to create products and Business Models that have a substantial impact on their target market.  The framework exhibits an Innovation success rate of 86%, which is higher than the typical 17% success rate of conventional Innovation approaches.  When implemented correctly, JTBD provides businesses with a variety of benefits:

• Identifying unmet or over-met customer requests, selecting the best approaches to use, creating concepts, and carrying out concept testing.
• Developing robust yet adaptable organizational processes.
• Creating innovative products that offer a delightful Customer Experience and are difficult to replicate. 
• Draw customers away from the products and services offered by rivals.

According to Tony Ulwick, the founder of the Jobs-to-be-Done Theory and the company, Strategyn, a consumer typically has between 50 and 150 needs in any particular market and out of these somewhere between 5% and 80% of unfulfilled needs. 

There are 5 key stages in the JTBD approach.  The stages of the JTBD Theory make it easier to recognize unmet customer needs and allocate the resources needed to come up with innovative solutions.

1. Hypothesize the Initial Job Statement and Job Map
2. Uncover Customer Requirements
3. Endorse Data
4. Visualize Data to Identify Opportunities
5. Develop Viable Value Propositions

Now, let's go into details of some of these stages.

Stage 1: Hypothesize the Initial Job Statement and Job Map

During the early stage of implementing the JTBD framework, it is necessary to create a specific Job Statement, a list of the customer's unmet jobs, and a Job Map to demonstrate the precise actions customers take to meet their needs.

An objective, succinct, and recorded description of the improvements customers demand in terms of features to alter or processes to simplify, should be included in the Job Statement. While creating this brief Job Statement, the needs and perspective of the customer should be taken into account.

Stage 2: Uncover Customer Requirements

At this stage, the project team should conduct qualitative interviews to collect input directly from the clients.  As a consequence of the interviews, the Job Statement and the Job Map should be refined and finished.  In the job Statement, the verb should appear before the object and any contextual elaborations.  Consider the phrase, "Get breakfast while commuting to work." The clarifier "while commuting to work" brings clarity to the job.

The Job Map is a graphical representation of the customer’s jobs to be done, divided into several phases.  Gathering data, defining the expectations of the clients, establishing hypothesis, and carrying out the selected activities, all fall under the finalized Job Map milestone.

Stage 3: Endorse Data

In this stage, quantitative customer surveys are utilized to validate the qualitatively derived customer criteria that are used to assess customer job completion.

Interested in learning more about the other stages of the JTBD Theory? You can download an editable PowerPoint presentation on Jobs-to-be-Done Theory here on the Flevy documents marketplace.

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Leadership qualities are the most important trait for anyone starting out a career or aiming to climb the corporate ladder.  The foundation of any successful business is strong, skilled leadership.

Leaders who can work with a diversity of personalities and behaviors are more likely to establish an effective workplace.  They must be able to interact with employees in ways that raise their levels of engagement and foster a climate that values sharing knowledge and working together.

The level of emotional commitment, fervor, and dedication that employees have for their work and their employers is gauged by their level of employee engagement. Engaged workers are more likely to be productive, motivated, and satisfied with their jobs.  They are willing to go above and beyond, give it their best, and actively contribute to achieving business objectives.

By prioritizing employee engagement, leaders can attract and retain key people, boost productivity, and advance organizational development.  Employee engagement necessitates a careful examination of the mindsets and behaviors of the workforce before assuming that they would show the necessary degree of commitment.

Neuroscientist David Rock developed the SCARF Model in 2008 to help businesses use empirical research to manage teams, the workplace, and identify the factors that promote employee engagement.

The model incorporates 5 key factors that profoundly influence our choices, levels of involvement, and actions:

1. Status
2. Certainty
3. Autonomy
4. Relatedness
5. Fairness

The SCARF Model effectively depicts two crucial elements of the human brain: rewards and threats.  Rewards are things that instill positive feelings in people, love, bonding, and optimism.  People become more determined, creative, and upbeat in response to rewards.

Threats, on the other hand, cause us to feel uncomfortable, frightened, or anxious.  Our responses to hazards might be categorized as fight or flight, or a decrease in our mental or creative potential.

Let's now go deeper into the first 3 key factors of the SCARF Model.

Status

How we stack up against one another determines where we stand within the organization.  We have a natural tendency to value status.  The reward and danger circuits in our brain are greatly affected by any changes in our status.  Studies show that when people think about their status deteriorating, their danger response is triggered, which results in the release of stress hormones.  However, when our status increases, our dopamine levels increase as well, which improves our mood.

The general well-being of an employee is directly impacted by status.  By adopting a carefully thought-out, participatory performance review, recognizing workers, and praising them in public, employers may preserve the status of their employees.

Certainty

Uncertain conditions demand greater mental effort from our brain; therefore people suffer immensely these circumstances.  Our brains are wired to begin overworking themselves in an effort to make sense of the unexpected when we are uncertain about something.  Uncertainty makes us petrified, alienated, preoccupied, and disoriented.

The fundamentals of good leadership include assisting people in achieving their goals in the face of uncertainty and instructing them on how to feel safe in such circumstances.  Workers feel more secure about their employment when tasks are broken down into smaller, more manageable parts.  Likewise, when there is open communication with the workforce and a clear understanding of expectations, agendas, guidelines, duties, and timeframes, employees feel confident.

Autonomy

One of the main psychological factors that affects how people behave is their demand for autonomy.  Autonomy is the state of experiencing complete control over one's conduct or activities.  When their autonomy or authority is in jeopardy, people become uneasy and demotivated.  They are incapable of reasoning, and as a result, act irrationally.  On the other hand, a sense of increased autonomy fosters confidence and lowers stress.

In order to tackle this, managers and leaders must refrain from micromanaging staff members and instead give them more authority.  Employees should be allowed to choose their own schedules, use their own judgment, and experiment with new ideas.

Interested in learning more about the other drivers of the SCARF Model and strategies to keep the employees engaged? You can download an editable PowerPoint presentation on the SCARF Model here on the Flevy documents marketplace.

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People are motivated by purpose, which helps them realize what matters most in their lives.  It is a profound and unique understanding of their goals and how their actions contribute to the achievement of a larger goal.  It serves as a source of motivation and fortitude.

Purpose involves integrating one's personal objectives with a broader context, such as developing society, having a positive effect, or creating lasting connections.  A person's sense of purpose is a highly unique, subjective concept that might evolve throughout their lifetime.

Stress has harmful consequences on people's lives, but those who have a purpose in life are better prepared to face stress and emergencies. Strong senses of purpose have been associated with higher levels of wellbeing and are likely to make people significantly more resilient than their aimless counterparts.

The Ikigai Framework's cornerstone is Sense of Purpose.  The Ikigai Framework, created by Japanese researchers, is used as a tool for reflection and personal development.  "Ikigai" is made up of the words "iki," which stands for life, and "kai," which stands for value or use.  The word basically translates to "reason for being" in English, to put it another way.

Ikigai is among the primary motivators for pulling most Japanese people out of bed in the mornings.  Because of their purpose in life, they are content and live long lives.  Japan has one of the highest percentages of people who are over 100 years old, and personal Ikigai is a significant contributor to this longevity.

The Ikigai Framework and Japanese culture have long been studied in the West.  The framework comprises the following four crucial facets of life:

1. Passion
2. Mission
3. Vocation
4. Profession

A strong grasp of the four Ikigai characteristics can help you find your life's mission.  You may find your Ikigai at the point where each of the four pillars of existence intersects.  Let's look more closely at some of these elements.

Passion

Your actual interests, likes, and loves are referred to be your passions. It represents a person's inner fire—the pursuits or activities that make them feel alive and engaged.

You may discover your passion by thinking about the activities or passions you naturally gravitate toward—those that make you feel strongly or make you lose track of time.  Individuals’ mission, vision, and ideologies go hand in hand with passion.  When your interests and efforts are in accordance with what you find important, your enthusiasm and feeling of purpose are increased.

In order to figure out what you enjoy, choose a pleasant pastime that makes you feel good and that you would do freely at any moment.  Examples include baking, writing, sketching, gardening, and photography.

Mission

This part involves picking goals or initiatives that match your interests, abilities, and passions while also filling a need and improving the world.

According to the Ikigai Framework, a person's purpose is the intersection between their particular interests, passions, and activities with what the world needs, which is knowledge of the needs, issues, or difficulties that exist in local or global communities. Additionally, these pursuits have to align with your abilities and ideals.  It involves identifying the areas in which we may make a positive impact, add value, or bring about a substantial change.

Vocation

The framework says that just appreciating our job and being competent at it is not enough.  The vocational component highlights the importance of paying people fairly for their efforts.  Thanks to the work we like performing, we should be able to put food on the table and clothes on our backs.

This element of Ikigai straddles the line between what the world needs—identifying the needs or issues globally and understanding the areas where we can make a positive impact—and what we can be paid for—identifying skills, expertise, or knowledge that have a market value and for which people are willing to pay us.

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The idea of self-organization arose as a result of the limitations and inefficiency of traditional hierarchical organizations. 

Organizations have come to understand the need for a more flexible and adaptable method to leverage the collaborative intelligence and creativity of their employees.

Self-organization is a decentralized organizational structure in which decision-making authority is distributed among teams and individuals.  Through self-organization, teams are better able to adapt to and respond to complex and altering circumstances.

Self-organization models typically exhibit the 3 characteristics listed below:

1. Teams constitute the structures.
2. Teams self-design and self-govern.
3. Leadership is situational.

The amalgam of these 3 elements leads to an organization that gives precedence to being responsive to the requirements of the work itself rather than following the instructions of any influential person.

The idea of self-management originated with self-managed teams in the 1960s.  In the 1980s, the concept evolved into adhocracy, and in the 1990s, it was referred to as "the networked firm."  Open-source, Agile methodologies, and the sharing economy have recently shaped involved structures, such as podularity, Holacracy, and customized self-organization methods.

There have been many versions of self-organization, but Holacracy is the most well-known and thorough system.  In every way, holacracy exceeds conventional rules of organization.  The degree of formality of holacracy adds to its comparative ease of evaluation and analysis, especially in light of its wider adoption and implementation relative to other organizational designs.

The self-organizing teams in a holacratic organizational structure are referred to as circles or holons.  A Holon simultaneously exists as an independent entity and as a component of a greater entity.

Circles not only manage themselves, but also actively engage in self-design and self-governance while following the established guidelines as a component of the larger entity.

Holacracy is distinguished by its highly flexible and adaptable structure, constant engagement with all stakeholders, and tolerance for uncertainty.  Holacracy is also distinguished by its systematic approach to business, which encourages significant employee participation in every facet of the organization.

Holacratic organizations adopt a constitution — a living document — that outlines the principles by which circles are formed, modified, and dissolved.  The constitution specifies duties, limitations, and interactions between circles rather than task completion procedures.

Circles not only self-manage, but also actively participate in self-design and self-governance while adhering to the constitution's guidelines.

In a holacratic organization, a "lead link," who is also responsible for connecting a circle to the larger circles of which it is a part, reassigns roles.

Holacracy can be described as the practice of organizing an enterprise so that the tasks at hand take precedence over the individuals conducting them.  An individual may be designated several responsibilities while performing work, leading to their participation in a greater number of circles or holons simultaneously.

Each position entails a distinct level of responsibility and authority, ensuring that each employee is aware of their expected responsibilities.  When a particular role's responsibilities exceed an individual's abilities, the role can be subdivided into multiple lesser roles.

In contrast to traditional hierarchical structures, in which management operates from the top down, Holacracy incorporates management at all organizational levels.  Holacracy promotes collaboration between peers by granting everyone the right to participate.  When any team member identifies a gap between the current and desired state, an all-staff meeting is convened to address the issue collectively.

The Holacracy Framework offers a number of potential benefits to organizations that adopt the model, but it has also received its fair share of criticism and faces obstacles.

Several businesses, such as Zappos, Morning Star, and W.L. Gore, currently use the Holacracy management system.

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Editor's Note: If you are interested in becoming an expert on Customer-centric Design (CCD), take a look at Flevy's Customer-centric Design (CCD) Frameworks offering here.  This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts.  By learning and applying these concepts, you can stay ahead of the curve.  Full details here.

Effective customer service requires understanding how the customer thinks and what motivates their decisions or actions.

Measuring and refining service quality is essential for boosting Customer Satisfaction, Customer Loyalty, and business success as a whole.  This involves gathering customer feedback through various means such as customer satisfaction surveys, analyzing performance metrics, and implementing targeted strategies to increase Customer Satisfaction and surpass their expectations.

Service quality management models assist in bridging the divide between what businesses believe they are providing customers and what customers expect, want, or require from customer service.

The RATER model is a framework for assessing and evaluating Customer Experiences used in service quality management.  RATER is derived from the acronyms of the model's 5 dimensions: Reliability, Assurance, Tangibles, Empathy, and Responsiveness.

Each dimension represents a distinct facet of service quality that can have an effect on Customer Satisfaction.

The RATER model is a beneficial instrument for assessing and building quality service excellence.

In addition to its benefits, the model has limitations that must be considered when utilizing it.

Among the advantages of the RATER model are:

• Comprehensive assessment
• Customer-centric perspective
• Structured evaluation
• Identification of improvement areas

Organizations should be aware of the limitations of the RATER model and consider incorporating it into a broader set of tools and methodologies in order to obtain a complete understanding of the Customer Experience.  Limitations include:

• Subjectivity
• Lack of context
• Limited scope
• Implementation challenges

The RATER model is an enhancement of the SERVQUAL model.  The SERVQUAL model is a framework for evaluating the quality of service and Customer Satisfaction based on 10 dimensions of service quality: Tangibles, Reliability, Responsiveness, Courtesy, Security, Credibility, Access, Communication, Customer Understanding, and Competence.

Under additional scrutiny, researchers determined that a few of these dimensions correlated closely; consequently, they reduced them to the following 5 dimensions and dubbed it the RATER model.

1. Reliability
2. Assurance
3. Tangibles
4. Empathy
5. Responsiveness

Let's elaborate on a few of these RATER dimensions.

Reliability

Reliability refers to the service provider's ability to deliver the promised service reliably, accurately, and on time.  Customers should expect the same level of service quality each time they interact with a service provider.  Additionally, dependable service providers should be able to resolve any issues or problems that may arise during service delivery quickly and effectively.

Service processes and systems that are well-defined and robust are the foundation of dependability.

Assurance

The knowledge, skills, and reliability of staff, as well as their ability to instill trust and confidence in consumers, constitute assurance.  Knowledge consists of the qualifications, skills, and training required to effectively provide the service.  It also includes the staff's extensive knowledge of the service.  Additionally, tangible elements such as well-maintained facilities, contemporary equipment, professional-appearing materials, and a clean and organized physical environment can convey professionalism.

Customers have confidence that the staff will act in their best interests, provide accurate information, and deliver on their promises when they have assurance.

Tangibles

Tangibles pertain to the physical evidence of the delivered service.  This may include offices, apparatus, employees, and communication and marketing materials currently in use.

Interested in learning more about RATER Model?  You can download an editable PowerPoint presentation on RATER Model here on the Flevy documents marketplace.

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In the modern Digital Age, advances in technology and communication, combined with the explosive growth in data information, have given rise to a more empowered global customer.  Recent economic and political events highlight the need for organizations to understand how consumers view the world and the most important attributes for their purchasing decisions. 

Thus, increasingly more organizations are seeking to invest and focus on Customer-centric Design.  A clear understanding of customer needs and behaviors across the organization will help drive profitable growth strategies and provide the confidence to invest in opportunities at a time when staying within budget can be extremely difficult.

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Making choices under pressure is challenging.  There are a variety of techniques and answers for difficulties, depending on the circumstance. When making judgments, a tailored approach is required, which should help avoid making a mistake with irreversible consequences.

The Cynefin Framework is a paradigm to help in making reasonable decisions in changing settings.  It is a systematic way for understanding complex topics and making decisions.  The model does this by looking at potential features of a scenario and factors that have an unintended impact on people's ideas and actions.

In Welsh, the word "Cynefin" denotes a habitat, place, or familiar.  Researcher Dave Snowden put out the idea in 1999 while acting as the European director of the IBM Institute of Knowledge Management.  Later, he founded and served as the director of the IBM Cynefin Center for Organizational Complexity.  Dave Snowden developed the Cynefin Framework as a method for controlling knowledge under challenging circumstances.

The framework is built on concepts from Knowledge Management and Organizational Development.  With time, the Cynefin Framework grew to become a more thorough sense-making model that can be applied in a variety of situations, including Business, Management, Leadership, Marketing, Product Development, Corporate Strategy, and emergency situations.  The strategy strongly emphasizes the need for adaptation, adaptability, and a better understanding of complex systems.

The five contexts or domains (sometimes referred to as the five Cs) that make up the Cynefin Framework are used to categorize problems according to their level of complexity.

1. Clear: A situation in which all parties can perceive the causes, effects, and potential solutions.
2. Complicated: Requiring analysis or specialist expertise to understand the cause-and-effect relationships.
3. Complex: In this situation, issues are impacted by emergent patterns and have several interdependencies.
4. Chaotic: The situation is very unpredictable and unstable since there are no clear cause-and-effect links.
5. Confused: Since there is uncertainty and ambiguity, it is challenging to determine which of the other domains is active in this scenario.

The 5 Cs, or situational domains, of the Cynefin Framework are governed by cause-and-effect relationships. 

Let's now take a closer look at the first three domains.

Domain 1: Clear

In the first domain, there are processes and established rules in place, so nothing is left to chance. In this field, cause-and-effect relationships are well recognized and may be handled by following tried-and-true methods.  The situations that come under the clear domain are very predictable and have straightforward or simple remedies.

When the problem and the solution are both well known, this discipline deals with known knowns.  Answers typically refer to past actions and encounters.  Efficiency, homogeneity, and repetition are given priority in this area of order.

Domain 2. Complicated

In this context, the cause-and-effect connections may still be found through practice and study, even though they are not always as obvious as they are in the Clear domain.  The problems can still be fixed, but doing so necessitates research or analysis to identify their underlying causes.

There is a feeling of predictability and "known unknowns," but further analysis and investigation are required to find underlying trends and practical answers.  There may be more than one workable solution to a problem, and different opinions among professionals are possible.  Examples of situations that fall within the "Complicated" category include creating an exhaustive project plan, correctly diagnosing a challenging illness, or addressing a technology problem.

Domain 3. Complex

Complex systems are dynamical systems having a variety of interacting components, non-linear interactions, feedback loops, and interdependencies that result in unexpected outcomes.  In this situation, there are no clear cause-and-effect relationships.  Solutions can only be found via trial and error, education, adaptability, and collaboration.

Complex environments are unpredictable, therefore testing can help find viable answers.  Failures ought to be embraced as a vital component of learning.  It is essential to observe and spot trends in order to gain insights into the behavior of the system. This will allow you to understand the behavior of the system from many angles and come up with workable solutions.

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Control and direction emanate from the top of conventional organizational structures and management practices.  These structures and procedures become obsolete and unable to adapt to the volatility of the market. Inadequate and sporadic communication between the various divisions of the organization is another problem with this traditional hierarchy.

Innovation and the external environment have an ever-increasing impact on businesses. Stafford Beer, a British operations research theorist and cybernetician, developed the Viable System Model (VSM) to determine the probability of a system's or business' continued viability in the face of incessant disruption and intensive competition.

According to Stafford Beer, organizations and systems are extremely diverse and governed by multiple interdependent and interactive strata. Variety and complexity are proportional to the size of the organization.  Adaptability is one of the most prominent characteristics of viable systems, which must also maintain environmental equilibrium.

The Viable System Model describes an organization as an integrated system. This system must be in harmony with its surroundings. If this equilibrium is disturbed, the organization will cease to exist. The Viable System Model emphasizes the significance of adaptability to a dynamic environment for the success of organizations.

To facilitate rapid and effortless change implementation, the VSM promotes a horizontal, self-organizing organizational structure. Self-organizing systems or organizations are those that maintain a fundamental sense of self and direction, indicating that their decisions and actions are governed by clear and significant goals. Self-organizing enterprises typically have multiple levels of purposes, each of which must be viable and maintained for the enterprise to operate efficiently.

A self-organizing system or enterprise is influenced by three essential factors:

• Operations – indispensable for accomplishing duties.
• Management is indispensable for operations.
• The environment in which the other two factors function.

Typically, the external environment presents more numerous and intricate challenges and uncertainties than the organization's daily operations. Similarly, the complexity and diversity of an organization's operations will always outweigh its management structure's complexity.  The VSM facilitates:

• Examining a company's internal and external equilibrium.
• Identifying issues and deficiencies.
• Improving organizational procedures and infrastructure.

Stafford Beer described the VSM's five subsystems or components:

1. Operational Unit
2. Management Level
3. Coordination Level
4. Cognitive Level
5. Policy or Organization Ethos

These subsystems can be mapped to organizational structure elements. 

Let's now dive deeply into the first two VSM components.

Subsystem 1: Operational Unit

The first component of VSM, the Operational Unit, is responsible for daily operations and the implementation of operational processes.  This element is responsible for executing the activities that directly contribute to the production of goods or services, or the accomplishment of the system's objectives.

Operational Units interact with their internal and external environments and receive performance feedback.  It coordinates with other VSM subsystems longitudinally (with other operational units) and vertically (with higher-level systems).  By encouraging top-down and bottom-up communication, organizations can inculcate a culture of collaboration, cooperation, and adaptability.

Subsystem 2: Management Level

The second subsystem of the VSM is the operational unit's coordination and control mechanism.  This level assures alignment with the overarching objectives of the organization or system.  The Management level ensures that the required communication channels, information flow, and Decision Making processes are in place to promote cooperation and unity among the various units.

This component creates strategic plans, policies, and directives for Operational Units.  It determines the overall direction and objectives of the system and ensures their effective communication and implementation.  This level assesses the unit's resource requirements, allots resources and budgets, and ensures optimal utilization and operational performance within the organization or system.   It is responsible for the system's adaptability and learning requirements.

Interested in learning more about the other components or subsystems of VSM? You can download an editable PowerPoint presentation on the Viable System Model here on the Flevy documents marketplace.

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Decision Making is essential to any organization's success.  Military strategists use their training and experience to create battle plans and make quick decisions aimed at achieving specific objectives.  Military strategies, concepts, and practices have found widespread application in business and daily life.  The works, memoirs, and experiences of renowned military historians and strategists, such as Sun Tzu's "The Art of War," Clausewitz's "On War," and Liddell Hart's "Strategy," are highly esteemed in the business world and continue to be utilized by business executives worldwide.

Numerous businesses have successfully captured markets, competed with rivals, and accomplished strategic objectives in the marketplace by employing military strategies.  In both the military and the business world, unity of command, planning, effective communication, Decision Making, mutual understanding, and coordination are essential.

Colonel John R. Boyd was a fighter pilot in the United States Air Force and a renowned military strategist whose writings and theories have been extensively adopted by the military and the business community.  Boyd served at the Pentagon and provided mathematical support for the F-15 Eagle program.  Together with the mathematician Thomas Christie, he created the Energy-Maneuverability (E-M) theory of aerial combat, which became the industry standard for designing fighter aircraft.  In addition, he made significant contributions to the development of a light aircraft (later known as the F-16).

Colonel Boyd's most well-known theory is the Observe, Orient, Decide, and Act (OODA) Loop or Boyd's Decision Cycle.  The military uses this instrument to plan and execute strategic decisions.

In the business realm, the OODA Loop is a Decision Making mechanism.  The model consists of a four-step decision loop:

1. Observe – entails gathering as much pertinent data as possible.
2. Orient – involves analyzing the data gathered.
3. Decide – entails choosing a course of action.
4. Act – involves implementing the decision.

Implementing the OODA Loop provides numerous benefits for organizations.  For instance, this framework: 

• Improves the processing and reaction periods of practitioners.
• Establishes harmony and reduces discord among parties involved in a decision's implementation.
• Enables prompt, objective decisions.
• Enables individuals to concentrate on particular aspects rather than uncertainties.
• Promotes Problem Solving and innovative abilities.
• Establishes a dynamic, adaptable, situationally aware, and receptive culture.
• Highlights the importance of careful planning and preparation for effective decision making.

Inadequate planning, lack of practice, and reckless execution of the OODA Loop may result in the following negative outcomes:

• Erroneous, costly decisions as a result of a lack of conceptual understanding.
• Problems and calamities resulting from a decision made without taking into account all available data, scenarios, consequences, and possible outcomes.
• Individuals' erroneous perception of the model's credibility.
• Negative outcomes result from failing to use the OODA Loop in an iterative cycle under familiar conditions.
• Failure to account for the additional response times inherent to team settings and collaboration can result in discord among team members.

Let's examine the OODA Loop's first two stages in detail.

Stage 1: Observe

The initial phase of the OODA Loop requires data collection, a thorough evaluation of the hazard or problem, and an understanding of the organizational and external context.

Observations influence the Decision Making process.  If the OODA Loop's initial phase is flawed, the subsequent decision and action will also be flawed.  In order to accurately appraise the unfolding situation, it is necessary to collect all the data regarding the current organizational state, competitors, and market during the Observation phase.   This is essential prior to making a decision because, while rapidity is important, developing your analytical skills and being able to see what's actually happening are more important.

Stage 2: Orient

During the "Orientation" phase of the OODA Loop, information is acquired, analyzed, and a thorough comprehension of the situation is developed.  This stage involves reflecting on the observations' findings and determining the subsequent actions.

During this phase, we endeavor to create a mental model of the environment or problem, considering our prior experiences and biases into consideration.

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In today's Knowledge-Based Economies, the capacity to acquire and implement knowledge is crucial for both personal and economic success.

Knowledge acquisition and application can be divided into 4 basic categories.  Each category of knowledge represents a distinct aspect of knowledge: Know-what, Know-why, Know-who, and Know-how.

The importance of knowledge work to the success of an organization has grown in recent years.  The struggle between competing organizations has shifted from tangible to intangible resources, in which knowledge and the capacity to apply knowledge play a crucial role.  Having a solid Knowledge Management Strategy has become increasingly important for sustaining a competitive advantage.

Knowledge workers—employees who are valued for their ability to think analytically, analyze data, solve problems, and make decisions based on data-driven insights—now play a crucial role in steering innovation and progress within their organizations by creating, sharing, and utilizing knowledge.  Their knowledge and abilities are crucial to their organizations' creativity, productivity, profitability, and competitive advantage.

Multiple studies on the subject have been analyzed and synthesized to produce the following 7 skills that are essential to the success of a knowledge worker.

The work of Cochran and Ferrari (2009) served as the basis for selecting these skills, with the addition of "Personal Management" based on the researchers' own insights.

1. Thinking Skills
2. Communication
3. Teamwork and Leadership
4. Lifelong Learning and Self-direction
5. Technology Use
6. Ethics and Professionalism
7. Personal Management 

Each of these abilities is necessary for knowledge workers to prosper in their positions and contribute to the success of their organizations.  Through policies, procedures, and organizational structures, organizations and their leaders should facilitate the acquisition and application of each of the 7 skills for knowledge work.

Let's delve somewhat deeply into a few of the skills.

Thinking Skills

Thinking abilities are the capacity to employ information effectively in order to solve problems, create solutions, and complete duties.

Thinking skills encompass critical thinking, systems thinking, analysis skills, problem resolution, creativity, and design.

Communication

Communication skills are the capacity to comprehend and convey ideas effectively.  In addition to verbal and written communication, there is also nonverbal communication.

The 1st component of effective communication skills is the ability to comprehend and decipher complex information from a variety of sources and media. 

The 2nd component is effectively and appropriately communicating this information in multiple formats.

Teamwork and Leadership

Teamwork and Leadership refer to the capacity to collaborate with others to achieve a common goal.

Teamwork and leadership entail collaboration, motivation, and efficient management to attain shared objectives and maximize the team's effectiveness.

Lifelong Learning and Self-direction

Self-direction and lifelong learning refer to the process of acquiring new skills, knowledge, and expertise in one's field of work or interest.  Learning Organizations equip their employees with this capacity.

Interested in learning more about 7 Skills of Knowledge Work?  You can download an editable PowerPoint presentation on 7 Skills of Knowledge Work here on the Flevy documents marketplace.

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Sir Basil Henry Liddell-Hart (31 October 1895 – 29 January 1970) was an influential British strategist, historian, and military theorist.  The prolific author B. H. Liddell-Hart authored numerous works on military strategy and tactics.

Liddell-Hart's "Strategy" is considered one of the most influential works on military strategy published in the 20th century.  This book examines the art of warfare and provides a comprehensive analysis of the strategies and tactics used by great military commanders throughout history.  The manuscript then defines the various components of strategy, including the selection of objectives, the allocation of resources, and the planning and execution of Strategy and operations.

Liddell-Hart argues that the key to a successful war strategy is the ability to maneuver and outflank the enemy rather than engaging in direct conflict.  In his indirect approach, he emphasizes the significance of deception, surprise, and exploiting the enemy's vulnerabilities.  His understanding of strategy applies not only to military endeavors, but also to strategic endeavors in other industries.

In his 8 famous maxims of strategy, Liddell-Hart outlines the proper application of a modern indirect approach to confrontation:

1. Adjust your ends to your means.

2. Always keep your object in mind while adapting your plan to circumstances.

3. Choose the line (or course) of least expectation.

4. Exploit the line of least resistance, so long as it can lead you to any objective that would contribute to your underlying object.

5. Take a line of operation that offers alternative objectives.

6. Ensure that both plans and dispositions are flexible and adaptable to circumstances.

7. Do not throw your weight into a stroke while your opponent is on guard or he is well placed to parry or evade it.

8. Do not renew an attack along the same line (or in the same form) once it has failed.

Let's investigate some of these Strategy maxims in greater depth.

Maxim 1. Adjust your ends to your means.

The first maxim of Liddell-Hart emphasizes the importance of setting goals with a realistic perspective, understanding our limitations, maintaining a positive attitude, and being aware of the obstacles.  Liddell-Hart argues that for a military strategy to be effective, the political objectives must be compatible with all available military means for achieving them.

If conflicts are waged to achieve political goals, those goals should not be greater than the resources available to achieve them.  If objectives exceed resources, there is a high probability of conflict with negligible possibilities of producing positive results.

Maxim 2. Always keep your object in mind, while adapting your plan to circumstances.

The next maxim underscores the significance of balancing a specific goal with adaptability and flexibility in the face of changing circumstances.  Prior to making a decision, it is necessary to evaluate and weigh each alternative based on its applicability and contribution to the larger objective.

According to Liddell-Hart, an effective military strategy must be adaptable to shifting conditions on the ground.  This axiom suggests that a commander should have a clear overall objective, but also be willing to reevaluate their strategy in light of new information, changing conditions, or unexpected obstacles, and shift their focus to different objectives in order to respond more effectively to unexpected events.

Maxim 3. Choose the line (or course) of least expectation.

By this maxim, Liddell-Hart contends that a successful military strategy should concentrate on exploiting the enemy's weaknesses and flaws rather than relying solely on brute force to achieve victory.

A commander can gain a tactical advantage and put the enemy on the defensive by selecting an unanticipated line of attack.  To obfuscate and confound the enemy, military strategists may employ deception and diversion.  This requires considering the opponent's thought process and motivations to anticipate their movements and plan accordingly in order to achieve a strategic advantage in a given situation.

Interested in learning more about the other maxims of Strategy? You can download an editable PowerPoint presentation on Liddle Hart's 8 Maxim's of Strategy here on the Flevy documents marketplace.

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Self-awareness is a crucial component of personal growth and development, as it enables individuals to analyze their strengths, limitations, and values, as well as the manner in which these characteristics impact others.

Self-awareness is a necessary competency for effective organizational leadership.  Self-aware leaders are better able to lead their employees with clarity, empathy, and honesty.

People who have a deep understanding of their personalities possess the following characteristics:

• They are more assured and inventive.
• They make superior choices, cultivate long-lasting relationships, and communicate more effectively.
• They are less likely to deceive, misappropriate, and mislead.
• These individuals are superior employees and have greater promotion opportunities.
• They are more effective leaders with happier employees and more profitable businesses.

An in-depth study conducted between 2014 and 2018 based on the following criteria explored what self-awareness is, why it is necessary, and how it can be improved:

• Analyses of 800 existing scientific studies and 10 separate investigations involving nearly 5,000 participants from diverse countries and industries.
• In-depth interviews with 50 individuals who had significantly enhanced their self-awareness.
• A survey of 100s of managers and their employees to investigate the relationship between self-awareness and leadership.
• An outcome of the study was the formulation and validation of a 7-factor, multi-rater self-awareness assessment.

The study resulted in the identification of 4 Leadership archetypes through various combinations of 2 self-awareness dimensions—internal and external—each with a unique set of development opportunities.

1. Introspectors
2. Seekers
3. Pleasers
4. Aware

Each archetype has its own unique set of development opportunities.  Let's delve a little deeper into some characteristics of the 4 archetypes.

Seekers

Seekers are oblivious of their identity, their core values, and how others perceive them.  As a result, they may feel confined or dissatisfied with their performance and relationships.

Decision-making may be difficult for seekers, who may feel inundated by the abundance of available options.  In addition, they may feel alienated from those who do not share their pursuit for meaning and purpose.

Seekers can develop both internal and external self-awareness by embracing the unknown and being receptive to new experiences and points of view.

Introspectors

They are aware of who they are, but they do not challenge their own perspectives or investigate their unperceived shortcomings by soliciting feedback from others.  This can negatively impact their relationships and hinder their success.

Introspector self-awareness can be enhanced by a commitment to personal growth and development through introspection and reinforcement with feedback from external sources.

Pleasers

Their preoccupation with presenting a particular image of themselves to others causes them to neglect what is important to them.  They are likely to make decisions that are detrimental to their own success and happiness as time passes.

Aware

They have a distinct comprehension of their identity and objectives, and they seek out and respect the perspectives of others.  In such a condition, leaders begin to realize the full benefits of self-awareness.

Interested in learning more about 4 Archetypes of Self-awareness?  You can download an editable PowerPoint presentation on 4 Archetypes of Self-awareness here on the Flevy documents marketplace.

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For both the current executives and leaders of tomorrow, our frameworks address 2 facets of Leadership:

1. How to elevate your management skills to becoming a Leader in your organization.
2. How to elevate your organization to becoming the Leader in your Industry.

Learn about our Organizational Leadership (OL) Best Practice Frameworks here.

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Businesses must continue to adapt and innovate if they are to thrive in the face of disruption and intense competition.

Change is essential to the growth and profitability of an organization, but it is frequently resisted by individuals and groups within the organization, making its implementation challenging.

Change Management is the process of assisting and preparing individuals, teams, and organizations as they modify their operations, processes, and structures.

Change Management requires addressing and overcoming significant obstacles that impede Transformation.  These obstacles include:

• Change disrupts the routines and comfort zones of individuals, resulting in creating resistance to change. It induces fear of the unknown, a lack of trust in the change, and a loss of control.
• Change Management requires a well-planned and implemented strategy. Ineffective planning causes confusion, delays, setbacks, and obstacles that impede the effective implementation of change.
• Change initiatives necessitate resources, including time, money, and people. Inadequate resources impede the effective implementation of change and produce subpar results.
• Effective and consistent communication is required for Change Management, but there has been a disruption in this area. Inadequate or absent communication leads to misunderstandings and resistance to change.
• When instituting change in a global organization, cultural differences present a significant obstacle. Diverse cultures have diverse perspectives on change, and their values and beliefs frequently contradict the initiative for change.

To effectively implement change, organizations must address these obstacles and implement a well-thought-out Change Management Strategy.

To overcome any obstacles in implementing Change initiatives, leaders must carefully consider and implement the 5S Keys, which all begin with the letter "S:"

1. Sponsor
2. Strategy
3. Straw Boss
4. System Map
5. Stakeholders

None of the 5S alone ensures the success of a Change Management initiative; all five are indispensable for sustainable change. 

Now, let's examine the first three of these in greater detail.

Sponsor

A Change Sponsor is the person in charge of the Change initiative.  The Change Sponsor ensures that the Change initiative is adequately staffed with competent and committed individuals and removes any obstacles that could impede its progress.  This person invests in the Change initiative, advocates for it, and possesses the ability to make it a reality.  Typically, the Sponsor is a prominent executive with significant authority over the system undergoing modification.  The Sponsor oversees progress and provides the Change Management team with feedback and direction.

Strategy

A Change Strategy provides a clear direction and roadmap for implementing the desired change.  These actions are designed to make it easier for stakeholders to accept change and resolve any potential problems.  A Change Strategy helps establish a sense of direction and purpose, which is crucial for gaining stakeholder buy-in.  It ensures that stakeholders are engaged and invested in the project, manages risks, and establishes measurable success criteria and metrics.

Straw Boss

In the context of Change Management, "Straw Boss" refers to an informal leader or influencer who may not hold a formal leadership position within the organization but has considerable influence over their colleagues.  This individual, with the support and assistance of the sponsor, drives the change initiative at the front lines.  Informal leaders can be a valuable ally in promoting change adoption within an organization by using their influence to encourage coworkers to adopt the change, serving as a role model, and providing change managers with feedback on what is and is not working.

Interested in learning more about the other keys to effectively managing Change? You can download an editable PowerPoint presentation on 5S Keys to Successful Change here on the Flevy documents marketplace.

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