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BUSINESS MODEL ENGINE Culture vs. BUSINESS PLAN Culture: Who Will Win this Clash of Organizational Culture?

Today, there is a growing dichotomy in organizational culture regarding the planning, organization, and management of new business projects. Established companies have a "Business Plan" culture where improvement projects are approved and implemented based on a business plan. Established companies focus on business model improvement and scaling. In contrast, startups are eschewing the traditional business plan and focusing on visually presenting and managing emerging, innovative (yet-to-be-discovered but potentially highly profitable and disruptive) business models or "business model engines." Below, I present the two apparently conflicting cultures. Who Will Win In this Clash of Cultures Especially in Your Organization?

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BUSINESS MODEL ENGINE Culture vs. BUSINESS PLAN Culture: Who Will Win this Clash of Organizational Culture?

  1. 1. Checklist of Topics for Business Modeling & Business Planning “The PDDR Cycle Describes How Great Organiza;ons Rapidly Solve Pains, Learn, and Get Risky Jobs Done.” q  WHEN (Time) q  WHERE (Space) ENVIRONMENT (Space) Domain/Project/Game/Job To Get Done: ….................. Tool/Product/Service: ….................. P: PAIN (WHO) E: Empathize D: Define (Measure; Analyze) q  PROBLEM (Fitness; Survival) q  Customers (Unknown Pains) q  Partners/Strategic Alliances q  Suppliers; Channels q  Advisors/Mentors/Sponsors q  DEFECTS/ERRORS/MISTAKES q  WASTE; GROWTH; ALIGNMENT q  CompeStors; Complementors q  Investors/Shareholders q  Board of Directors P: PLAN (HOW) I: Ideate (Improve) q  SOLUTION (Fit Business Model) q  OperaSons (Strategy; TesCng) q  ProducSon (Prototyping) q  MarkeSng (Customer Dev.) q  Finance (OpCon Financing) q  MISSION/VISION/PURPOSE q  Goals/ObjecSves q  Strategies/AcSviSes q  TacScs/Targets/Measures q  Programs/IniSaSves/Projects D: DO (WHAT) P: Prototype (Build) T: Test (Measure) q  EXPERIMENT (for InnovaCon) q  Novel/DisrupSve Product (Bet) q  Build-Measure-Learn Loop q  Passion/MoSvaSon/Drive q  ConnecSng/Social Networking q  EXECUTION (for Improvement) q  Improved Product/Service q  Plan (Completed AcCons/Tasks) q  Brand/Culture/Core Values q  Infrastructure: Demand/Supply R: REVIEW (WHY) R: Reflect (Learn) (Control) q  INNOVATION ACCOUNTING q  Learning Metrics: TracCon (“Pirate” Metrics); Cycle Time q  Validated Learning (Habit) q  Decision: Persevere or Pivot? q  FINANCIAL ACCOUNTING q  Financial Metrics: ROI; Revenue; Cost; Market Share q  Benchmarking (Best PracCce) q  Gap Analysis: Deficit? QuesSoner Planner Doer Reviewer 4 Actors (For Every Pain Solving Cycle) World’s First SoIware for Ideal Community Pain Solving & Design (CPSD) “Eliminate Pain. Accelerate Learning.” Dr. Rod King. rodkuhnhking@gmail.com & @rodKuhnKing RELIEF/SOLUTION (Space) PAIN/PROBLEM (Space) BUSINESS MODEL ENGINE CULTURE (Lean Startup/Ambidextrous Company) BUSINESS PLAN CULTURE (Classic Company) Design Thinking Lean Startup; Six Sigma

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