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The Death
of the
Business
Plan
Implications for
Organisational design
Chris Catto
The Disconnect
Business Plan
or Fanciful
Treasure map?
PESTAL
SWOT
5 Forces
BSC
Chris Catto
The Disconnect
The Construct
 The Business Plan Audience
 What about what the customer wants?
 Who deals with the customer?
 Hierarchy and span of control?
 Perception?
 Motives?
 Professional Managers v Industry Experts (the consumer
inside?)
Chris Catto
What is his View?
How much does
his view matter?
Chris Catto
The Application
• Budgets &
Forecasts
• Performance
Appraisals
• KPIs & KRAs
• Individual
Bonuses
• Salary Bands
• Gaming
The Disconnect
Chris Catto
Business Model v Business
Modality
Natural Business
State
Solid v Fluid?
Static or Moving
Parts?
Chris Catto
What is the Modality of
your Industry?
What parts require:
Updating?
Maintenance?
Re-engineering?
Replacing?
Each industry has a
particular tried and
tested methods of
revenue generation,
product development,
manufacturing, service
delivery and customer
service.
While the fundamental
principles of the
business modality
remain constant,
tactics for delivery
are continuously
improved, challenged,
refined and enhanced
with the introduction
of new technology and
change in social norms
Chris Catto
Is your Industry Modality
Changing?
When does the Modality Die?
When the vehicle for servicing
the “need” changes
If the Need no longer exists,
Then The need you were
servicing was a fad!
How often has your
Modality been reinvented
or even completely
substituted across
History?
Chris Catto
The Collective
The Artisans of the 21stCentury
Individuals form Teams within the Business Modality –
Modality is formed of natural overlapping
components.
Teams have collective Skill sets that complement the
Modality Components.
Modality Components include: Sales, Marketing,
Product development, engineering, manufacturing,
Logistics, service delivery, Administrative Support
Leaders within the teams are self determined by
combination of skill Mastery and as the facilitators of
Collaboration. Ultimately Leaders act as natural
catalyst for problem solving.
Chris Catto
The Collective
McGregor: Theory X Theory Y
Maslow: Hierarchy
of Needs
Argyris: Theories of
Action, double loop
learning
Organisational Performance
is a function of Environment
The Collective Mastery of
skill in a favourable Human
Environment
Principle for individual
Performance is mirrored
Mastery of required skill
placed in a favourable
human Environment
Chris Catto
The Critical mass
Each business has
a tipping point
A critical mass
required to;
first - to break
inertia
Second - to
continuously
service the
critical mass to
maintain
momentum
The momentum in
business is
represented by
the Flow of
sustainable Cash
The Implication
for
Organisational
design is to align
the collective
skills with the
Business
modality;
That generates
the cash flow
momentum; That
exceeds the
Sustainable
Business tipping
point
Chris Catto
The Critical mass
Just as seasonal rains bring
life to the living environment
The Focus of Organisation
Design is to maintain momentum
of Cyclical
*Self improvement
*Advancement of Collective
knowledge
*Innovation
*Product Development
*Infrastructure reinvestment
*Positive Market Engagement
The Rain that maintains the
momentum of the water wheel
The Conclusion
The Business Plan as we know it is
as useful as a message in a bottle
• Designed for Wrong Audience
• Insular,
• hopeful,
• A Limited communication Medium
• Practically direction less,
• beholden to the currents that
surround it
Chris Catto
Alternative:
Strategic Modality Statement
1) Understand the Modality
that services the core need
2) Align the Collective
3) Recognise change and
Sustain Critical mass
Implications for
Organisational Design
The Artisan Organisation
Designed around Teams of Skill
and mastery optimised in a
favourable Human
Environment
Chris Catto
The Author
Chris Catto
Director & Chief Performance
Partner – Putney Breeze
Business Advisors
Author of Premiership Business
For more information, strategic facilitation or Speaking
engagements contact info@putneybreeze.com.au

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The "Death" of the Business Plan

  • 1. The Death of the Business Plan Implications for Organisational design Chris Catto
  • 2. The Disconnect Business Plan or Fanciful Treasure map? PESTAL SWOT 5 Forces BSC Chris Catto
  • 3. The Disconnect The Construct  The Business Plan Audience  What about what the customer wants?  Who deals with the customer?  Hierarchy and span of control?  Perception?  Motives?  Professional Managers v Industry Experts (the consumer inside?) Chris Catto
  • 4. What is his View? How much does his view matter? Chris Catto
  • 5. The Application • Budgets & Forecasts • Performance Appraisals • KPIs & KRAs • Individual Bonuses • Salary Bands • Gaming The Disconnect Chris Catto
  • 6. Business Model v Business Modality Natural Business State Solid v Fluid? Static or Moving Parts? Chris Catto
  • 7. What is the Modality of your Industry? What parts require: Updating? Maintenance? Re-engineering? Replacing? Each industry has a particular tried and tested methods of revenue generation, product development, manufacturing, service delivery and customer service. While the fundamental principles of the business modality remain constant, tactics for delivery are continuously improved, challenged, refined and enhanced with the introduction of new technology and change in social norms Chris Catto
  • 8. Is your Industry Modality Changing? When does the Modality Die? When the vehicle for servicing the “need” changes If the Need no longer exists, Then The need you were servicing was a fad! How often has your Modality been reinvented or even completely substituted across History? Chris Catto
  • 9. The Collective The Artisans of the 21stCentury Individuals form Teams within the Business Modality – Modality is formed of natural overlapping components. Teams have collective Skill sets that complement the Modality Components. Modality Components include: Sales, Marketing, Product development, engineering, manufacturing, Logistics, service delivery, Administrative Support Leaders within the teams are self determined by combination of skill Mastery and as the facilitators of Collaboration. Ultimately Leaders act as natural catalyst for problem solving. Chris Catto
  • 10. The Collective McGregor: Theory X Theory Y Maslow: Hierarchy of Needs Argyris: Theories of Action, double loop learning Organisational Performance is a function of Environment The Collective Mastery of skill in a favourable Human Environment Principle for individual Performance is mirrored Mastery of required skill placed in a favourable human Environment Chris Catto
  • 11. The Critical mass Each business has a tipping point A critical mass required to; first - to break inertia Second - to continuously service the critical mass to maintain momentum The momentum in business is represented by the Flow of sustainable Cash The Implication for Organisational design is to align the collective skills with the Business modality; That generates the cash flow momentum; That exceeds the Sustainable Business tipping point Chris Catto
  • 12. The Critical mass Just as seasonal rains bring life to the living environment The Focus of Organisation Design is to maintain momentum of Cyclical *Self improvement *Advancement of Collective knowledge *Innovation *Product Development *Infrastructure reinvestment *Positive Market Engagement The Rain that maintains the momentum of the water wheel
  • 13. The Conclusion The Business Plan as we know it is as useful as a message in a bottle • Designed for Wrong Audience • Insular, • hopeful, • A Limited communication Medium • Practically direction less, • beholden to the currents that surround it Chris Catto Alternative: Strategic Modality Statement 1) Understand the Modality that services the core need 2) Align the Collective 3) Recognise change and Sustain Critical mass Implications for Organisational Design The Artisan Organisation Designed around Teams of Skill and mastery optimised in a favourable Human Environment Chris Catto
  • 14. The Author Chris Catto Director & Chief Performance Partner – Putney Breeze Business Advisors Author of Premiership Business For more information, strategic facilitation or Speaking engagements contact info@putneybreeze.com.au