**December 20, 2022** #### #### Links [Transistor](https://share.transistor.fm/s/e7da6783) [Spotify](https://open.spotify.com/episode/4w1wHpXLXa9FOBCGqa3pUN) [Google Podcasts](https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy50cmFuc2lzdG9yLmZtL2Vzc2VudGlhbC1keW5hbWljcy13aXRoLWRlcmVrLWh1ZHNvbg/episode/ZWM5M2JlZjMtY2VkOS00NjJiLWE1ZWMtNTI0ZDhmOTI0NTVh?sa=X&ved=0CAUQkfYCahcKEwjouI2PuYj8AhUAAAAAHQAAAAAQKQ) [Apple Podcasts](https://podcasts.apple.com/ca/podcast/ann-mactaggart-value-creation-and-the-business-model/id1542392917?i=1000590750851) [Podcast Addict](https://podcastaddict.com/episode/https%3A%2F%2Fmedia.transistor.fm%2Fe7da6783%2Fef7d3204.mp3&podcastId=3153944) #### Summary Ann and Derek extol the virtues of the business model in value creation as well as leadership, management, and aligning the people. #### Concepts - [[Value Creation System]] - [[Customer Value]] - [[Value Chain]] #### Quotes >Richard Rumelt: Bad strategy flourishes because it floats above analysis, logic, and choice, held aloft by the hot hope that one can avoid dealing with these tricky fundamentals and the difficulties of mastering them. >A strategic plan is what you do if you don't have a business model... Without the understanding of how the interrelated components come together to add customer value, all you have left is, like you said, a book of intentions. >The business model is the mindset, or it's the boss, because it allows people to align and understand the purpose, but it also allows you to use it to validate your choices. >The mindset, using the business model, also allows less finger-pointing between the silos, because success is what comes out of the one system and not ...the one department. >Having a clear purpose and a clear value chain gives people the opportunity to see themselves in the process of creating value. >That stuck point is really what we talking about when we talk about getting "unconstrained." >The time and investment by the organization should be in the business model because that's the foundational piece. The strategic plan can be... part of the communication... of your intentions knowing full well that you've got this systems view of your business model that's going to make it happen. >If you're not actively predicting and making decisions to accomplish a goal, you're not managing. A business model is a fundamental management tool. It's also a fundamental leadership tool in the sense that it's based on a chosen direction, a purpose that you want, and it's tightly integrated with the purpose. >Everyone wants to see their place in the creation of value in organizations. #### See also - [[Episode 61 Ann MacTaggart - The Business Model is the Boss]] - [Good Strategy Bad Strategy: The Difference and Why It Matters](https://www.goodreads.com/book/show/11721966-good-strategy-bad-strategy) - Blog post: [[The Value Creation System]] %% When you have a business model that everyone understands, and they understand how they contribute to the system, then there's an opportunity to make better decisions... up and down the levels of an organization, because it's all about optimizing this process that creates value in an organization. It's the human component that really adds the value.