It’s true. Many large organizations, from Eli Lilly to SAS to the Department of Defense, use models to help them improve their businesses.
The most common is a model of the processes that the organizations use to accomplish their goals. This is followed closely by information models (often called data models) that show what information is needed to execute each process and organization models that show who is involved in each process and what information they need.
Some organizations build “as is” versions of these models as a baseline from which to improve, and then “to be” models to show where they want to go. These models are particularly useful in large organizations, where lots of people in various locations (and maybe speaking many languages) need to be involved in the business improvement. For small businesses, this extra effort is rarely necessary – the business owner and key individuals usually know the “as is” business and need only model the future, or “to be” state.
The most helpful use of these models is to take one area of the business, for example, SELL PRODUCT, where performance needs to be improved. The three models are built (process, information and organization) and each component of the models is evaluated for effectiveness. The parts of business that need to be improved become very clear as a result of this work. Enhancements can be made at the model level first and then implemented in a controlled way to evaluate the effectiveness of the improvements. Frequently, one or two improvements to the models can create significant results in terms of new customers, increased revenue per customer visit or a boost in “long-term value” of each customer.
So while Crawford, Beckham and Banks may not be able to help your business, other models may beautify your profit and loss statement and your balance sheet.
Click here to watch a short video on process modeling for small business success.
Tags: Modeling for Success
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