An organisation resembles the human body
A company resembles the human body more than you might think. As a director or business owner you want a healthy organisation and a healthy business model. You want to make prompt adjustments if results deviate from the objectives. All components of your company in an optimal condition. Only then will you leave the competition behind. Just like Usain Bolt and Daphne Schippers do.
Treat your organisation like your body
Before we can understand why your company resembles your body, first this. The relationship with the customer has become the most important economic capital of companies. To really be able to respond to this new trend, a new management framework is required. This framework creates an umbrella over the organisation and its Umfeld, and that offers certain benefits. It ensures that uniform definitions are used. It makes the digital strategy and transformation measurable.
Directors want increased insight into the progress of processes. The framework allows them to gain more control over the organisation and to let everyone work on the predetermined, common goals. These goals are required to allow the operating capital, the relationship with the (potential) fan or customer, to grow.
You train to run a marathon. Read or meditate to keep your mind in shape. Eat fruit and vegetables to remain healthy. What you pay attention to grows. As this applies to your body, the same applies to your company. This becomes apparent from the layers of the Business Acceleration Framework, which resemble bones, organs and limbs which are vital to your body.
Layer 1: the brain
The first layer is the so-called Brand Equity (brand value). This is the financial value that is contained in the brand, the product or service. Normally, it is assumed that the brand value reconciles with the cash value of the future cash flows that can be allocated to the brand. The profile characteristics of a company are in the brand value. It also shows which connections your company has with other parties in the ecosystem, and which characteristics these other parties have. The better you are aware of their characteristics, the better you are able to connect with all things present in the ecosystem.
This description strongly resembles the brain. The brain allows you to connect with others, as the brain makes it possible to interact with others. In addition, the brain determines your identity, how you are perceived by the outside world. They are an essential part of the body, just as the brand value has to be in order. You do not want a kink in your brain, just as you do not want to have a brand value which is faulty. Pay the same attention to your brand value, as you would to your mental health.
Layer 2: the heartbeat
The second layer is the Brand Reputation Performance (brand reputation). The tangible result of the approach is a handy graphic overview on a single A4. The Content Impact Model (we will look at this later) shows the approach of the project and the most important milestones. The Content Impact Model will show the rhythm of the communication concerning a product or service and creates the storyline. This rhythm is the digital heartbeat of an organisation. Without a heartbeat there is no life in the digital channels. The Content Impact Roadmap and the rhythm have a direct impact on the brand value.
The brand value depends on the digital heartbeat. Just like the brain depends on your heart to be supplied with blood to keep functioning. It is with reason that the brand reputation is at the core of your organisation. It is even the heart of your organisation. Just as you wish your heart to ensure that your body and brain keep functioning, you also have to keep an eye on your digital heartbeat.
Layer 3: the vital organs
The third layer of the framework is the Marketing Efficiency. The maintenance of the customer relationships, events, festivals or a fanbase generally incurs high marketing and communication costs. Marketing budgets are often still traditionally deployed, while the target group is digital. By providing context in the data and designing marketing and communication processes better, the marketing/communication budgets can be more efficiently spent.
Not wasting marketing budgets is of the upmost importance for an organisation. If you only had a functioning brain and a heart, you would not last for long. The heart and brain also work because oxygen is going through your body and your blood is cleared of toxic substances. In that respect, efficient marketing resembles your lungs, kidneys and intestines. They support your organisation, ensure that there is enough clean blood and oxygen. They are the organs that keep your body working. Just like efficient marketing keeps your company in the air.
Layer 4 and 5: the muscles
The fourth layer of the framework is the Business Acceleration. For an organisation the quick win is primarily in accelerating existing revenue models by internet technology. For this, they must do three things: centralise data, strengthen teams with knowledge and optimise the technological infrastructure. Also consider the Business Activation, which encompasses finding new revenue models, the introduction of, for example, mature eCommerce, the digital exploitation of content via video services of new networks such as Facebook or bots, and more.
Companies that can promptly accelerate revenue models or develop new revenue models have an advantage over the competition. They are more agile, faster and more dynamic. Just like Usain Bolt and Daphne Schippers are better equipped for a sprint. This is how you should design your organisation. It must be ready to very rapidly go in a certain direction, as soon as the starting signal has sounded. As legislation determines that you can no longer sell or produce a certain product, for instance, you have to adjust processes or develop another revenue model. This fourth and fifth layer could be called the muscles of your organisation. Therefore, keep your company fit and in shape.
Listen to your organisation
Just as you listen to your body, you listen to your organisation. Just as in real life you listen to the people, but also to the signals that you get from the systems. The senses in the layers of the framework constantly give you signals. You constantly monitor the complexity of the organisation with the framework. You intervene when the settings, the predetermined goals and objectives start to stray from reality. As a director you ensure the optimal function of all vital body parts and the company’s body stays healthy. After all, you can only manage effectively if you have the correct insights. Without essential insights into vital organs, you will not get very far.
Care for your organisation
Organisations that wish to make the difference must be healthier and smarter than their competitors. They have to manage and immediately respond when a deviation is detected. But they also have to be able to develop new business models to get ahead of the competition. Maybe even ones that can disrupt their industry. In any case it is the shortcut to direct contact with the fan or customer, which is essential if you want your organisation to survive in the relationship economy.
The method is the only solution for directors who wish to survive in the relationship economy. An economy which is increasingly becoming an automatic process. And where things need to change faster and automatically when negative deviations from the predetermined goals and objectives are in sight. Take care of the layers of the framework of your company the same way you would care for your brain and heart. If you do not do this, your organisation will ultimately perish.
- This post is a pre-read of Part 2 — Chapter 9 of my new book ‘Digital Assets’ the translation of the Dutch publication ‘Digitaal Vermogen’.
- Also read the publication ‘EDM and the Digital Domain’
