The dictionary defines viability as: the ability to live and work successfully...to survive and thrive.
Hence, it can be said that the goal of every organisation is to be "viable'.
Business models and management models
An organisation, like an organism, has an external environment, with which it exchanges value, and it has an internal environment that needs to be structured to facilitate this value exchange.
The business model is how value is created, delivered and captured. The management model is the means by which choices are made about:
- What objectives are set
- How to motivate people
- How to co-ordinate activity
- How to allocate resources.
Making the management model viable
For an organisation to survive and thrive, the management model which structures the internal environment needs to have sufficient flexibility to adapt quickly in response to changes externally.
Increased flexibility requires an organisation to self-regulate.
To be able to self-regulate, an organisation needs capable, trustworthy people to make good decisions quickly and without top-down direction.
Capable, trustworthy people want to contribute to the success of their organisation, so their worth needs to be acknowledged and talents applied to meaningful ends.
So it involves people and processes, outside and in.
For more about management models, how problems with them can manifest and, more importantly, how to make well informed decisions about your own management model to help your organisation survive and thrive, get your copy of the Viable Map Workbook now.