Roger Martin questions these 3 business models

Roger Martin, still the world’s leading management thinker, has studied fourteen models for his new book ‘A New Way to Think’. How do you use them in your business? Do you get what you need from that model? If not, why are you still doing it?

A logical question from Martin, but he points out that in practice many models continue to be used that do not give the results that people want. He himself gives three examples at the Danish Presidents Summit.

# 1 Turn that pyramid around

The pyramid is the dominant model for a company: control and coordination. The strategy is devised at the top, so everyone must follow and implement that strategy. Therefore, a lot of time is spent on coordination and control, including reports and meetings.

In the store, customers do not think about how to organize coordination and control in your business

Do you get the desired results out of it, Martin wonders. He points out that managers in this model are primarily concerned with coordination and control, but not with the customer. ‘If you buy an anti-dandruff shampoo, do you buy it from Henkel, P&G or Unilever? Do you think customers are committed to your business? ‘

When choosing in the store, no account is taken of how you organize coordination and control in your company. Consumers choose a particular brand. “The competition is not at the top of the pyramid, but at the bottom. That’s where customers ‘choices are made.’

According to Martin, there is a more efficient model for a business. That model helps to beat the competitors, but at the place where the decisions are made: at the bottom. Whether you win the customer or not, that’s what matters.

The only job that every business team has up there is not control and coordination, but rather to help them compete better: advertising, building relationships with customers, getting the shampoo on the shelf and so on.

‘If the top layers can not help, then they should not exist. Then they damage the place where the competition takes place. This is a fundamentally different concept for a company’s role, but it also leads to doing completely different things. ”

# 2 Talent can not be held back with money

The dominant model for companies is: to attract, retain and motivate talents with money. HR spends a lot of time figuring out what the highest salary in the industry is, what the bonuses are, what incentives they can provide in the short and long term.

A company that primarily pays ignores what is much more important: talents want to feel special

‘The model behind this is: If we pay enough talent, it stays. This is a wrong model, which mainly causes the mobility of talent. A company that mainly pays for talent ignores what is much more important: talents want to feel special. ‘

A better model according to Martin is: to give talent that special feeling. How do you do it? He gives three lines. The first is: never just reject their ideas. ‘He who works hard to develop his talent takes it seriously. If you reject their idea, you ignore them as a person, “he explains.

That does not mean you have to accept every idea now, because everyone can have a bad idea. Or maybe your business is not ready for it at the moment. You can argue for that. “But rejecting ideas means you’ll lose talent no matter how much you pay them.”

Also read: Ten business models to beat the market with

Second rule to make talent feel special according to Martin: Never stop their development. Real talents work hard, they build a career where they can make a difference. If a talent wants to develop further, do you help them or do you block them?

‘How often do leaders say to such a talent: We want you to stay in this position a little longer because it’s convenient and easy for us. It is difficult to find a replacement. How will that talent feel? That he or she should go somewhere else ‘.

Rule Three: Never miss an opportunity to compliment your talents. Do not think that talents do not need a pat on the back. “They have talent, they know they’re successful, so as a manager you think you do not have to tell them they did something right. They need it just like everyone else. In fact, they need it even more because they have worked so hard to be special. ”

# 3 The danger of making decisions based on data

A decision is only good if it is based on a thorough analysis of data. According to Martin, this is the dominant model for the last fifty years. ‘But when you analyze something, one hundred percent of that data is already obsolete. They come from the past ‘.

So if you make a decision based on that data, you’re actually assuming that the future is the same as the past, Martin says. “But it’s never like that. That’s why it’s a terrible model. ‘

The effect of analyzing data: you become convinced that the future will be the same as the past

In fact, the effect of analyzing data is that you become convinced that the future will be more of the same. “It means you do not decide the future, it will someone else. The more you trust data analysisthe more you guarantee that someone else will decide the future. ‘

You have no data to prove that new things work, he explains. Therefore, one does not continue with it. ‘Who makes the new one then? Two children in a garage, ”he refers to startups.

Also read: Before doing so, ask your data team the right questions

When it comes to innovation and anticipating the future, you do not need analytical decisions, you need imagination. Imagine the different options and choose the one you have strong arguments for.

Formulating a hypothesis is therefore a creative act. Only then can you let go of science: design and experiment with products or services, collect data, perform analyzes and draw conclusions.

Do not ignore the deviant one anymore, but give it the necessary attention

‘The most ironic thing about this model? I believe that innovation comes from being aware of deviations, irregularities, outsiders. That’s exactly what we’re not aware of, it’s the opposite of the model we use. ‘

We think of anomalies as random things that do not matter, but they are clues as to what is coming, says Martin. ‘Look at customers who behave differently than most customers. Are they just weird, or are they the pioneers of the future? If one salesperson says something completely different from the rest of the team, what does that man or woman see then that the others do not? Do not ignore that deviation, but give it the necessary attention. ‘

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