As we try to adjust to an environment of constant technological change, where we’re spending a lot more time at home in a “hybrid” model, some businesses are doing exceptionally well (in at least some cases, probably because they conduct a regular business assessment to determine how to take advantage of that change), while others are on the brink of extinction.
In addition, with the advent of a generative AI influence upon all sectors of the economy, businesses are – of necessity – looking to creatively integrate AI into their offerings while simultaneously trying to avoid being wiped out by AI-enforced obsolescence.
Most of today’s shifting macroeconomics – including the geopolitical environment and global economic volatility (sometimes marked by spiking unemployment and inflation rates) are outside our control. These factors can potentially challenge the very foundation on which you built your business.
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 and operating models.
A business assessment can help your business at any time, especially when preparing for a business transformation or during turbulent times — when your business is likely undergoing a mini-transformation to keep up.
Before diving into how to evaluate your business, you need to understand a few basics.
A business model is a company’s plan for making a profit. It identifies the products or services the business will sell, the identified target market, and the anticipated expenses.
Every business model has a product or service at its center that focuses on a customer’s needs and wants. Simply put, you can call this your “value proposition” or “customer-focused value streams.” 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.
This step means answering the “what” of the business’s existence – how is your business structured, who are its key stakeholders, what are its sources of income?
Operating models 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.
The operating model determines how a business can deliver upon the value described by your business strategy by using people, process, metrics, and technology. The representation below shows different components that constitute the company’s operating model. This means it turns the “what” into the “how.”
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:
If the recent pandemic taught us anything, it’s 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.
A detailed business assessment should also help provide your business with a succinct and clear representation of the current capabilities of your business across key business functions, including:
To get started on your business assessment and transformation, conduct a self-assessment geared toward today’s post-pandemic climate. Here are 11 critical questions you can reflect on now:
g 9. How do your customers describe doing business with your company?
Among other things, a well-targeted, proper business assessment can help you find the root cause of a serious problem – whether it’s flagging customer satisfaction, worrisome costs, or high employee turnover rates – rather than a surface fix to a single incident. From there, you can set departmental objectives to address the root cause and establish actionable goals to achieve that objective.
One caveat, though. Comprehensive business assessments are great for isolating problems, but you can make the most of your business assessment findings if you review the results in their entirety. Look beyond what you need to improve and pay attention to ensure all aspects of the business function effectively. Taking this kind of holistic view of the assessment will inform your business-change decision making.
As the first step in any business transformation, it’s important to recognize that assessments are ongoing and, hence, subject to change. While I hope you did a business assessment to help your company through the pandemic crisis, you should continue performing assessments to meet the present moment and, if possible, anticipate future realities.
Ask yourself this: “Do I want to be better prepared for the next macroeconomic challenge?” If the answer is yes, then a business assessment should be part of your business operations.
Business resilience requires preparation and adaptability. Our 11-question assessment can help you determine how resilient you currently are and next steps for improvement.
