This month one member of the SPS LinkedIn group asked a question on the lips on many downturn-affected businesses – How do you assess business model risk in the strategic planning process?
The discussion provoked a variety of responses, including one member who put forward “inability of the organisation to actually specify its own business model” as the primary factor.
“What an interesting question,” wrote one member. “I guess it all comes back to ‘why’ you want to be in business.”
Another member argued that the original query should be amended. “The right question might be ‘Does the organisation address the expectations of all its stakeholders?’ If not, there is a risk somewhere which may become major.”
An alternative view cited a performance management system (PMS) that does not cover all features of the business model as an important consideration. “A lack of attention to improving top-down and bottom-up communication other than prescribed steps within formal administrative system will lead to PMS (strategic risk and operating risk) being disconnected, for example in financial institutions.”
Why not join in the debate, with over 6,000 members of the SPS LinkedIn group.