Strategy Dynamics

30/08/2023

I recently made the case in another post that a digital twin business model is the KPI system that explains how the system is performing, and will likely perform in future.

But how to get there, when you already have a system of KPIs?

This is too big a story for a short item here, so check out my blog post that explains ... https://lnkd.in/eyYPkBsE.

10/08/2023

Stronger strategy implementation with digital twin business models. (Get the full article at the end of this post)

I've followed "Beyond Meat Inc" a bit (been making non-meat products as meat-like as possible since 2016). Their basic strategy looks like it should have been fine, but things haven't gone so well lately. And guess what? Many other big companies also face failures and short-comings with their strategies.

But why is that? Well, if the strategies themselves are OK, maybe the implementation isn't done right.

Consultants' advice, books on the issue, and business school courses miss the mark. We need strategies for functions and for significant initiatives you need to take, not just for the overall strategic plan. We need to know how to build and evolve the detailed timed action plans that actually make strategy happen. Things change fast, and we can react fast too, so we need those action plans to run on a fast time-clock - weekly or even daily - not the typical quarterly progress reviews.

The problem is, the methods we typically use to figure out action plans aren't fit-for-purpose. Most business model frameworks are just descriptive pictures. Financial models don't connect to the guts of the business. Balanced scorecards lack a rigorous foundation. All this leaves us having to get our timed action plans from subjective judgment and debate.

But there's a solution! ... a "digital twin" business model - a simulated version of the real business, showing everything from finances to customers, marketing, product development, customer service, and more. It is a living, quantified picture that actually looks like the business system itself, with all its causal dependencies and with time-charts showing how and why everything is changing as it is.

The best part is, it's not even complicated. Just follow a reliable process to track down cause-and-effect relationships, with simple software that self-validates as we go.

This digital twin actually IS the timed action plan, in as much detail as you want. It's a real-time control panel for your team. And it doesn't need more work for you and your staff, because it replaces KPIs, scorecards and other reporting with a single solution that is easier and faster to create and maintain.
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Download the full article at http://sdl.re/implementPDF.

01/08/2023

I just remembered a shock that a top executive from a US Bank had in a workshop I gave.

She explained a worthy aim for her organisation - to increase representation of minority ethnic groups among their senior staff from 10% to 25% in five years, to better reflect the wider population.

And they had gone big on this promise, publicly!​​

That only means switching 3% of the cohort each year. So surely that would be do-able right?

Unfortunately not!

The "physics" of the system just would not let that happen.

See why in my blog post https://kimwarren.com/an-impossible-staffing-transition-thwarted-by-physics/.

PS - Why not get these insights direct - sign up at https://www.sdcourses.com/f/newsletter/.

04/07/2023

Kim Warren & Martin Lycko's webinar on Digital Twin Business Models for Strategy and Operational Management is now available to System Dynamics Society members at https://systemdynamics.org/digital-twin-business-models-for-strategy-and-operational-management/

10/05/2023

Join Kim Warren on THURSDAY, May 11th: 7am PST / 10am EST / 3pm UK BST for a 2 hour Digital Twin” Dynamic Business Modeling Workshop.

Not your time-zone? ... the workshop will be available for 2 days more, but only if you register.

The workshop will show how you could lift your modeling capability to a whole new level. Build time-based models in half the time, with fewer errors, and tackle challenges and plans that are just too complex to do any other way!

Introducing the “Digital Twin” Dynamic Business Modeling Process…

A simple, 4-step process to create a virtual replica of any business issue, initiative, challenge or plan, showing with crystal clarity why and how the system works and performs the way it does. So management can play out the future and make much better, joined-up plans, strategies and decisions.

A simple, 4-step process to create a virtual replica of any business, system, or process helping you better understand, optimize and predict performance with laser-precision accuracy. Say goodbye to spreadsheets and hello to powerful living models! In this free “Digital Twin, Ultimate Planning Too...