The Change Maestro's Roadmap Strategy Guide Part 8

?Welcome to the TLS Continuum Change Maestro’s Roadmap newsletter. A new edition will be released every Tuesday on LinkedIn. It is by nature an interactive newsletter. What do I mean? My initial intention was the development of a dialogue pertaining to the concept of a change roadmap. I was looking for interaction between those of us here as to what each phase so far meant to you. It appears as though you would prefer to be passive readers, so be it. However, let me reiterate that as we progress through the roadmap if you have something you want to contribute, feel free to comment on any issue that perks your thoughts.

As part of his Ph.D. Thesis, Alexander Osterwalder created the Business Model Canvas in 2008. If we take the canvas, (It is available under Creative License for general use in the marketplace) it can be the basis for the strategy map for the roadmap. With this edition and the subsequent edition for the next seven weeks we will walk through the canvas components and its implications.

Business Model Canvas Steps

1.??? Define the value proposition

2.??? Stakeholder Identification and inputs

3.??? Stakeholder relationships

4.??? Stakeholder Segments

5.??? Key Resources

6.??? Organizational segments

7.??? Revenue streams

8.??? Cost Structure

Step 8 Cost Structure

Osterwalder suggested in his original business canvas that as cost structure was concerned, we should be concerned with four succinct questions.

First, what are the most important costs inherent in our business model

You have a product or service you are making available to the marketplace. Think of the process and what is the most important step and what does that step cost you? Do you have clear metrics on that cost?

Second, what key resource is the most expensive

Everything is going to cost something. One key factor we must consider is the cost of ownership. Let me give you an example. Which is less expensive t own? A windows machine or an Apple machine? Most of you would jump in with the feeling that the windows machine was cheaper, but you maybe wrong.

Today I could walk into Best Buy and purchase a windows compatible machine for around $600. I could go into Best Buy and purchase a MacBook Pro for $1500. So, does that make the windows machine cheaper to own? ON the face of it yes. But there is another side to the picture.

With a windows machine, there always seems to be another cost. Additional software. Additional support. With the Mac, there is free support for as long as you have the machine for software support all just a phone call away. The software is for the most part free. For instance, you can download from the app store the office equivalents for free.

Third, which key activities is the most expensive

You have a problem to resolve. Take a careful look at the steps that you are undertaking and see which one is the largest source of expense. Can you find a better way to resolve the problem and save monies at the same time. If you can speed up the process so it does not take as long, does that have an effect on the total cost?

Fourth, are you more cost driven, or value driven

Here is a critical point. Who is driving the solutions to your problem? Is it the penny pusher in finance who looks only at the bottom line or is it the subject matter experts who looks at how we are meeting the voice of the customer and as such adding value to back to the customer which should enable you to raise revenue?

?Next week we will look at the balanced scorecard and its influence on our strategy

An Invite: We have started a new group on LinkedIn. It is the TLS Continuum - The Human Connection. We want to start a conversation regarding how we get around the ASSUMPTION that our human capital assets understand the improvement process and how we can bring them into the game. No selling allowed, just open dialogue. Join the dialogue, invite your network to become involved. https://www.dhirubhai.net/groups/13059813

An Invite: We have a Daniel Bloom & Associates, Inc. company page visit and follow for the latest on our services to the business community to enhance the organizational change initiatives. https://www.dhirubhai.net/company/daniel-bloom-&-associates-inc./

Looking for the perfect model for improving your organizational processes? Order your copy of the TLS Continuum Field Guide - How the Theory of Constraints, Lean and Six Sigma will transform your operations and Program flow to be released in February of 2024

About the author:?Daniel Bloom?knows HR and Change Management. He’s a speaker on transformational HR, a strategic HR consultant and trainer. Thank you for subscribing to this newsletter. The best strategy that I ever undertook was earning my SPHR and the Six Sigma Black Belt. You can take the same path with our Road to Organizational Excellence Seminar. Starting July 15,2024 you can start the same path as we present live our Road to Operational Excellence - The Human Capital Edition for the following six weeks.

For more information visit https://dbaiconsulting.com/tls-continnuum-master-seminars

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