**December 6, 2022** #### #### Links [Transistor](https://share.transistor.fm/s/8269d329) [Spotify](https://open.spotify.com/episode/4piokJO9ZWbQc0YxhNPlTF) [Google Podcasts](https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy50cmFuc2lzdG9yLmZtL2Vzc2VudGlhbC1keW5hbWljcy13aXRoLWRlcmVrLWh1ZHNvbg/episode/YjhiODM3YjgtNWU0Ny00ZTgwLWI2M2YtNTE0MDhlMTA5ZWZk?sa=X&ved=0CAUQkfYCahcKEwiwhY38sOX7AhUAAAAAHQAAAAAQFw) [Apple Podcasts](https://podcasts.apple.com/ca/podcast/ann-mactaggart-the-business-model-is-the-boss/id1542392917?i=1000589046481) [Podcast Addict](https://podcastaddict.com/episode/https%3A%2F%2Fmedia.transistor.fm%2F8269d329%2F1a1bd215.mp3&podcastId=3153944) #### Summary Business models take down silos, help communication, and aid decision-making. You should create one! #### Concepts - [[Value Creation System]] #### Quotes >If you don't understand where you are, you also may not be able to plan where you're going. >If you know where you are and how things work in your business you can do a better job at guiding the business to that goal. >When you think about it in terms of the business being a system, no one really understands the whole system - [this] is really the problem. >If you step back...if you do enough work you can create a system view of an organization by using what we call a business model. >Pieces of a system are not the system. >If you don't have a theory about how your business is supposed to operate, you don't have a hypothesis to test. >A business model is an opportunity to create a new mindset in an organization. I haven't seen strategies do that, but I've seen business models do that. >We're going to build a model, and the model's going to be the director, and it's going to house the strategy and the decisions (and it's going to be the rubric) and the boss might have ideas about changing the business model, but until the business model is changed, the business model is the boss, and that is pretty profound. >One of the first three pieces of paper you get is an organization chart, which is like the "Chart of Silos". When we document a business model we always try to get to a value chain, which is a process flow, at the highest level, which is how we take the inputs the organization purchases and, step-by-step, creates the value that the customer is looking for and will pay for. >To get pushed off your business model at the whim of any particular person is probably not the best idea. #### See also - Blog post: [[The Value Creation System]] - [[Management Attention]] - [[Systems Thinking]]