Key Performance Indicators KPI Explained

A Key Performance Indicators (KPI) is a metric aligned to the key business goals. KPIs help companies manage performance and evaluate success of implemented initiatives. The below KPI diagram explains how to set KPIs for a company.

Diffusion of Innovation

Diffusion of innovation explains the rate at which new ideas and technology spread. The diffusion of innovation theory is used extensively by marketers to understand the rate at which consumers are likely to adopt a new product or service.

GE McKinsey Nine Box Matrix

The GE-McKinsey nine-box matrix is a strategy framework that offers a systematic approach for a corpora tion with multiple businesses or products to prioritize its investments. Business units are assessed by their appeal in the industry and strength relative to competition. Please see the below diagram for an example of Mckinsey 9-box matrix.

S Curves New Product Framework

The S-Curve is an effective framework that can be used to analyze the growth of companies at their different levels. The S-Curve of Business life cycle consists of two inflection points. The second is critical, as it signifies that a business has reached its growth potential. So how do you jump to the next level of the s-curve. The below s-curve diagram explains the movement from one level to the next with new innovations implemented.

Crisis Management Model

Crisis management is a field of business management with a focus on resolving crisis. So what do you do to manage crisis when it arises and how do you work through it? Below is the simple checklist that shows do and don’t of dealing with adverse situations. The dos include: becoming the trusted voice in the crisis, giving your full attention to resolving it, understand what you can delegate and what you need to do yourself to manage the situation. The don’ts include: lying, disappearing, minimizing the situation, not understanding the facts. The below is a good approach to dealing with any crisis.

DISC Personality Profile Diagram

DISC Personality types diagram below shows the 4 key personalities that can emerge both under the normal circumstances but also in the crisis. DISC stands for Dominant, Influential, Steady and Compliant personality types. Dominant is someone who is direct and decisive but may be demanding and appear not as a people person. Influential is someone who is inspirational and interactive but may appear irritating. Steady is someone who is stable and supportive but may appear slow and sensitive. Compliant is someone who is careful but may appear calculating. Dominant and Compliant are Task / Process focused while Influential and Steady are People focused. Dominant and Influential are Leadership / Active personality types while Steady and Compliant are more Reflective and Supportive types. DISC diagram below is a good summary of these personality types and can help one thrive in the organizational environment.

Sustainable Competitive Advantage


Sustainable Competitive Advantage – Sustainable Competitive Advantage Analysis – Sustainable Competitive Advantage Framework – Sustainable Competitive Advantage Business Methodology – Competitive Advantage is a favorable relevant position of a company in a market place above its competitors. This may include possession of a superior product, better supply chain, talented workforce, etc.

The sustainable competitive advantage is essentially a recurring or continuous favorable position in regards to competitors. Some argue that this is the holy grail of business, something everybody dreams of but no one is really able to achieve unless one is a monopoly in the market and is protected from other market participants. However, this does not mean one should give up trying and if location, operational, product and customer excellence are achieved, at least temporary, the customer value is created and the competitive advantage is achieved.

sustainable competitive advantage

Project Management


Project Management – Project Management Analysis – Project Management Stages – Project Management Framework – Project Management Business Methodology – Project Management model is one of the top business frameworks used for managing and leading projects and other kind of engagements. The model brings some structure to the project phases and makes it more organized.

The project stages include initiation, planning and design, executing or implementation, monitoring and controlling, closing. There may be other stages depending on the nature of the work. Work planning varies depending on the resources assigned, project timelines, etc. Below sample images are examples of Project Management stages.

project management

Time Cost Quality


Time Cost Quality – Time Cost Quality Analysis – Time vs. Cost vs. Quality Trade-offs – Time Cost Quality Framework – Time Cost Quality Business Methodology – Time Cost Quality model is one of the business strategy frameworks that states that you can provide a product which is either of low cost, high quality or delivered quickly or a combination of any of the two components. However, because of the trade-offs, you cannot have all three.

This has been disputed somewhat in recent history and many companies are trying to achieve all three. Think of an Apple’s Iphone when it first came out, it was so revolutionary that you could argue that it met all three criteria. New inventions and blue ocean ideas can sometimes break the tradeoffs associated with time, cost and quality and allow for all three to be present as part of one’s product. Below sample images are examples of Time vs. Cost vs. Quality frameworks used in business management.

time cost quality

Customer Lifecycle


Customer Lifecycle – Customer Life Cycle – Customer Lifecycle Analysis – Customer Lifecycle Framework – Customer Lifecycle Business Methodology – Client Lifecycle model is a key business strategy tool that shows the customer loop from the very initiation through purchase to advocacy. The importance of this framework is in the fact that the client goes through a number of stages and a business needs to be aware of these lifecycle stages and travel with the customer at each phase. There should be a tactic or a strategy for each of the customer phases that a company needs to think of.

Below sample Customer Life cycle chart is a useful business management tool. The stages include: awareness, knowledge, consideration, selection, buying, satisfaction, loyalty and advocacy.

customer lifecycle

Porters Value Chain


Porters Value Chain – Porter’s Value Chain Analysis – Porters Value Chain Framework – Porters Value Chain Business Methodology – Porters Value Chain model is an approach developed by Michael Porter to complete an internal analysis of a company focusing on its value chain: its primary and secondary activities. Primary activities include logistics, operations, marketing and sales. Secondary activities include infrastructure, human resources, technology and procurement.

Understanding all of these business processes helps develop a business strategy for the company and improve its operations. Below sample images are examples of Porters Value Chain used in business management.

porter value chain

Priority Matrix


Priority Matrix – Priority Matrix Analysis – Priority Matrix Framework – Priority Matrix Business Methodology – Priority Matrix model is one of the frameworks that is useful for setting business priorities by categorizing them by their importance and time to completion.

This is very useful not only for one’s business but also personal life. How do you identify the right priorities in life and make sound decisions? How do you make sure that whatever that you spend your time is actually important? Below sample images are examples of Priority Matrix used in business management.

priority matrix

Roadmap


Roadmap – Roadmap Analysis – Roadmap Framework – Action Plan – Action Plan Chart. Roadmap is a company’s action plan to realizing a certain business strategy consisting of concrete steps to be undertaken for realization of business goals and priorities.

Roadmap includes a timeline and intiatives categorized by a certain work stream. Below sample images are examples of roadmaps used in business management.

roadmap

Business Strategy


Business Strategy – Business Strategy Analysis – Business Strategy Framework – Business Strategy
Methodology – Business Strategy model is an approach to developing a company’s strategy and ultimately resolving business problems and creating a unique market position.

The business strategy development process starts with understanding of one’s mission, beliefs and values. Then company needs to understand where it currently stands, e.g. via a conducting a SWOT analysis. Then the company is to set goals and priorities, establish targets and measures and finally develop a roadmap or an action plan. Below sample images are examples of Business Strategy development cycle used by company’s management.

business strategy

BCG Matrix


BCG Matrix – BCG Matrix Analysis – Bcg Matrix Framework – Bcg Matrix Business Methodology – Bcg Matrix model categorizes companies and products by the type of market they are in. Matrix has four quadrants divided by the market growth and market share on each of the axis.

Each of the quadrants in the bcg matrix represents a certain market position and is depicted by a symbol a star, which stands for high growth, high market share; the cow (also known as a cash cow) stands for high market share and low growth, a dog for low market share and low growth and a questin mark, which represents high growth but low market share. BCG Matrix developed by the BCG consulting company is one of the top business frameworks. Below sample images are examples of bcg matrix used in business management.

bcg matrix