The Business Model Test - the narrative and the numbers
Fifteen years ago, Joan Magretta (HBR) observed that all business models must satisfy two tests: the narrative – does the story make sense – and the numbers – does the P&L stack up? This remains the standard today.
The rule of three and four
Scanning the newspapers recently, I noticed that the revenues of our three largest telecoms players – Telstra, Optus and Virgin – were respectively $16.4B, $9.4B and $5.3B. Why did that capture my interest? It looked like it might satisfy BCG’s rule of ‘three and four’.
Free is not a business model
“Free is not a business model” declared the CEO of Box, a cloud based enterprise storage and collaboration company, feeling the price pressure of the competitive battle between Amazon and Google in the storage space. While his lament is self-evidently true, it does open the broader question: what is a business model?
5 tips for better strategic decision making
Imagine you are a major retailer planning to enter an ‘adjacent’ $50B retail market, and you specifically want to attack the market leader for ‘strategic’ reasons. But there’s a catch.
Twiggy's folly
Twiggy is a larger-than-life figure in Australian business and has done much that should be admired. But his latest call for governments – any government will do – to ‘do something’ sits right there alongside his call for Australia’s iron ore majors to form a cartel.
Take a deep breath - iron ore markets are doing what you should expect
I remember attending an AICD forum a few years ago when one of the presenters, a non-executive Director of a mining services company, boldly declared “the iron ore price won’t fall below $100/t while I’m still around – trust me”. I hope his health proves more robust than his forecast.
Being 'right' is never enough
Two stories in 8 days – Emeco and iiNet – confronting the same issue. In each instance the Board has supported a strategy which is now being roundly questioned – or condemned – by major shareholders.
Want to grow – Deepen your position
Michael Porter famously remarked, “The pressure to grow is among the greatest threats to business”. And yet there are few executives who haven't felt that pressure. So what are the best growth options?
'Playing to Win' as a strategy process framework
A friend was looking to engage a consultant to guide their business through a strategy process. We chatted about it over a few drinks one night, and a few days later he asked: what do you think of the framework in ‘Playing to Win’? Here’s what I told him: maybe you’ll find the advice useful.
Towards master strategist...
As I began my closing remarks to the MBA business strategy class, I wondered: How do you summarise 45 hours of teaching to an MBA class? It’s impossible, of course.
How much value did 'Excellence' create? Lots!
As Clayton Christensen was explaining his theory of innovation someone asked: “it clearly applies to the history of the disk drive industry. But does it apply to its future as well?”
Building a Growth Platform
Bain has extracted some key messages from the growth performance of the Global 2000 companies. It’s not pretty.
Horizon 2 - 'no man's land'
There's a reason Horizon 2 was referred to as 'no man's land' in a recent HBR article. It is the catalyst for organisational transformation, but it presents unique challenges for senior managers.
Growth & Organisational Renewal - the work of Horizon 2
McKinsey's three horizon strategy model highlights the distinct elements of strategy which tackle the challenges across different time horizons.