Do you have a feeling you’re not executing your strategy as well as you potentially could be? In this article we look at a framework to review all aspects of your business that may be resulting in lost potential or even failure…
The 6 Box Model is a framework used to analyse the effectiveness of a business in being able to execute a strategy. It identifies 6 areas where problems may occur and is used as a structure for undertaking a complete review.
The six areas are:
Purpose covers the reason your business exists and what you actually do in your marketplace. That may sound obvious but clarity around this issue can be a point of debate, especially if you have grown organically or developed some form of diversification strategy. Here are some considerations to help you:
If the above questions can be clearly answered then you have a set Purpose to fit into your 6 Box Model.
The Structure box focuses on the design of your business. This includes the relationships between team members, the different functional units and departments, and the management tiers. Some key questions to ask yourselves:
Structure can have a huge impact on the successful execution of any strategy. You need to be setup in a manner to take advantage of your strengths and opportunities.
Relationships can make or break a strategy. At their best, strong relationships can expedite execution, unblock issues, ensure people are treated well, and strengthen a company. When they’re negative, they can be toxic, difficult, obstructive and potentially fatal for your strategy. Consider the following:
Relationships can also refer to the interaction between team members and the business as a whole, including the technology, processes, and overall experience.
The Rewards box considers aspects that can have a big impact on motivation for your team. It covers the incentives and reward schemes for the business, including how you recognise the different contributions everyone makes towards your success. Some questions that may help:
If you get this box wrong you may end up with demotivated team members that ultimately will impact your overall culture and performance – so it’s certainly one to consider.
Although Leadership is a bit of a nebulous term that can mean different things to different people, it’s also an important topic. The Leadership box highlights the importance of a good, inspiring direction set within a business from the top. Some helpful questions:
Good leadership will mean the team pull in the same direction.
The final box is Helpful Mechanisms. You can think of these are the tools, processes and systems you use in order to successfully execute your strategy and grow your business. Consider the following:
Your Helpful Mechanisms can have a large impact on your ability to successfully execute a strategy and grow your business, as well as having a direct impact on your margins.
As the 6 Box Model focuses solely on the internal workings of your business, any external analysis tool will go well with it. Consider a PESTLE or Five Forces in advance of the 6 Box Model in order to get a clear understanding of your environment prior to your internal analysis.
The advantages of the Weisbord's 6 Box Model are:
The couple of disadvantages to Weisbord's 6 Box Model include:
There aren’t direct alternatives but similarly inward-looking tools include VRIO Framework, which looks at your Competitive Advantage, and VMOST Analysis, which looks at your strategy in conjunction to your business activity.
The 6 Box Model was developed by Marvin Weisbord in 1976. For more information you can take a look at his paper 'Organizational Diagnosis: Six Places to Look for Trouble with or without a Theory'
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