Introducing the Management Model Canvas© - Part 1: Overview
Updated: Feb 6, 2018
An important tool in management model design is the Management Model Canvas©. It is the tool we use to describe, challenge and improve management models.
We start here with an overview of the canvas and a first look at each of its 11 building blocks.
1. Purpose & Direction
Why the organisation exists and how it broadly aims to fulfil its purpose. A strong sense of purpose and clarity about your strategic direction is the foundation of a good management model.
How the organisation defines success in terms of the results it aims to achieve. Results are the observable (and measurable) manifestation of an organisation’s purpose in the outside world. They are also the ultimate indicator of management performance.
3. Business Model
How the organisation delivers value to customers expressed by its business model or portfolio of business models. An organisation exists to create value for customers - and the business model describes how it intends to do that.
4. Execution Capabilities
The organisational capabilities the organisation needs to execute its business model(s). In a sense, the business model is only a statement of intent. To bring it to life and actually deliver what it promises, an organisation needs to develop a set of specific capabilities uniquely related to its business model.
5. Innovation Model
How the organisation innovates business models, products, services & management itself. Execution is critical, but not enough. An organisation needs to constantly think about the future and create tomorrow’s business models, products, services and even management methods. The innovation model describes how an organisation does that systematically.
6. Innovation Capabilities
The organisational capabilities the organisation needs to innovate. Just as the business model is only a statement of intent, so is the innovation model. The organisation also needs to cultivate the right capabilities to actually be able to innovate successfully.
Who contributes what and how collaboration works. This is a critical aspect of organisation design. Even if an organisation is crystal clear on what it wants to achieve as a whole, it still needs to define what its individual parts are and what each needs to contribute. And it needs to develop a sound understanding of how these parts collaborate to achieve the common goal.
8. People & Leadership
How people are enabled to perform as individuals & teams. In a sense this is the heart of the matter. Without people able and willing to give their best every day, an organisation is dead. Leaders play a critical role in this. How they behave and interpret their roles determines whether people enjoy coming to work. And bring their full selves with them - or not.
9. Decision Making
How decisions are made and who makes them. It is a hallmark of good management that an organisation carefully thinks about how it makes decisions, including how it frames questions and problem statements and defines the solution space. The timing of decisions is also important, as is the question of who makes which decisions and why.
How resources are developed, shared and allocated across the organisation, including people, information, investment, tangible & intangible resources. Development and sharing of resources has a significant impact on an organisation’s true potential - and how well it actually uses that potential.
How the need for change is identified and how change is designed and scaled. In particular: scaling its own innovation & responding to changes in its environment.
This concludes the canvas overview. Future articles in this series will look at the canvas’ inner logic and dynamic, examine the building blocks in more detail and present examples for each. The series will culminate in a few full-blown case examples. We hope you’ll check back often as the series progresses!