As we try to adjust to an environment of constant technological change, where we\u2019re spending a lot more time at home in a \u201chybrid\u201d model, some businesses are doing exceptionally well (in at least some cases, probably because they conduct a regular business assessment<\/a> to determine how to take advantage of that change), while others are on the brink of extinction.<\/p>\n In addition, with the advent of a generative AI influence upon all sectors of the economy, businesses are \u2013 of necessity \u2013 looking to creatively integrate AI into their offerings while simultaneously trying to avoid being wiped out by AI-enforced obsolescence.<\/p>\n Most of today\u2019s shifting macroeconomics \u2013 including the geopolitical environment and global economic volatility (sometimes marked by spiking unemployment and inflation rates) are outside our control.<\/strong> These factors can potentially challenge the very foundation on which you built your business.<\/p>\n What you can control, however, is how you prepare your business and how you react to these factors. To do that effectively, businesses should reevaluate their business processes<\/a> and operating models.<\/p>\n A business assessment can help your business at any time, especially when preparing for a business transformation<\/a> or during turbulent times \u2014 when your business is likely undergoing a mini-transformation to keep up.<\/p>\n Before diving into how to evaluate your business, you need to understand a few basics.<\/p>\n A business model<\/strong> is a company\u2019s plan for making a profit. It identifies the products or services the business will sell, the identified target market, and the anticipated expenses.<\/p>\n Every business model has a product or service at its center that focuses on a customer\u2019s needs and wants. Simply put, you can call this your \u201cvalue proposition\u201d or \u201ccustomer-focused value streams.\u201d<\/strong> So, before even turning to your business model, you need to ask yourself some basic questions related to your value proposition and targeted customer segments.<\/p>\n This step means answering the \u201cwhat\u201d of the business\u2019s existence \u2013 how is your business structured, who are its key stakeholders, what are its sources of income?<\/p>\n Operating models<\/strong> describe how business structures can produce customer value streams and targeted business outcomes for the organization while serving as a critical foundation for future improvements.<\/p>\n The operating model determines how a business can deliver upon the value described by your business strategy by using people, process, metrics, and technology.<\/strong> The representation below shows different components that constitute the company\u2019s operating model. This means it turns the \u201cwhat\u201d into the \u201chow.\u201d<\/p>\n I recommend starting with a relevant business value assessment or business process assessment exercise, or both. While these can help you develop an implementable roadmap across people, process, metrics, and technology, they will also:<\/p>\n If the recent pandemic taught us anything, it\u2019s that every business must consider ways to optimize costs and operate more efficiently to prepare more effectively for unforeseen factors. This type of proactive planning can help you become more resilient as an organization and help you establish a competitive advantage.<\/strong><\/p>\n A detailed business assessment should also help provide your business with a succinct and clear representation of the current capabilities of your business<\/a> across key business functions, including:<\/p>\n To get started on your business assessment and transformation, conduct a self-assessment geared toward today\u2019s post-pandemic climate. Here are 11 critical questions<\/a> you can reflect on now:<\/strong><\/p>\n g 9. How do your customers describe doing business with your company?<\/p>\nAssessments for Business Transformation<\/h2>\n
What Is a Business Model?<\/h3>\n
What Is an Operating Model?<\/h3>\n
Reevaluate with a Business Assessment<\/h2>\n
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Business-Assessment Questionnaire<\/h2>\n
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