Future-proofing your business model for constant change

In a world of constant disruption, business models must align with what really matters to pave the way for future growth and profitability, writes Sinead Donovan

What factors do leaders need to consider in the design of their business model? How can they make it fit for purpose when seemingly everything around them continues to change at pace?

By aligning these four core elements, an effective business model can allow an organisation to create, deliver and capture value efficiently:

• a clear value proposition;
• the strategic alignment of organisational design;
• agility; and
• a strong, performance-oriented culture.

Clear value proposition

A clear value proposition focuses on “what the customer wants” and identifies the business’s unique selling point (USP).

Whether your business operates in professional services, retail or hospitality, your USP will constantly evolve as customers demand quicker, more responsive engagement and easier access to products and services.

Adopting technology can help businesses deliver quickly in a fast-changing environment and ensure their offerings can serve the global market.

As such, cost—the traditional USP of ten to 20 years ago—is no longer enough. 

Constantly shifting customer expectations around delivery and speed means companies need to re-evaluate their USP annually to ensure it remains fit for purpose.

Ultimately, to achieve any sort of longevity, the USP must become synonymous with their brand. Otherwise, it could become redundant before it is even mastered.

Strategic alignment of organisational design

Successful organisational design assesses teams, leadership and processes, with the aim of delivering your value proposition efficiently and effectively.

Processes within organisations can change dramatically, so it is advisable that your leadership team remains in place for a period of at least three years.

It could be argued that strategic organisational design cannot be accurately forecast beyond three years, as leadership roles and responsibilities evolve with the business landscape.

This should be reviewed with each new strategy to ensure the focus is on the correct roles.

Agility and strategic timeframes

Condensing strategy timeframes is perhaps the most crucial characteristic of a successful business model today.

As the business environment around us continues to adapt to rapid change in technology, such as the adoption of like artificial intelligence, and the wider socio-economic environment, companies must ensure they are constantly open to iterative design shifts.

Rather than a “set it and forget it” approach, effective business models must be updated regularly.

Greater resilience is also needed so that businesses can withstand so-called “black swan events”.

These rare occurrences bring extreme and widespread impacts but are falsely rationalised in hindsight as having been foreseeable, thus falling outside the scope of typical risk modelling practices.

The ability to withstand the effects of market volatility is extremely important, suggesting that the operating models we will be using ten years from now will differ significantly from those in use today.

A strong, performance-oriented culture

A performance-oriented culture should consistently promote accountability and align with a company’s strategic goals.

This culture will likely be value-led and value-driven, and it is widely held that an organisation’s values should remain constant for a period of five to eight years, before they are reviewed and tweaked.

If these values underpin an organisation’s brand, ethos and desired culture, these tweaks will be limited.

The ability to maintain an abiding performance-oriented culture is perhaps the one that will have the greatest longevity in today’s operational and business model setup.

Hence, it is critical that business leaders devote adequate time and resources to getting their organisation’s culture right.

Sinéad Donovan is Strategic Board Advisor at Barden Executive Search