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The Role of Business Leadership Through a Spiritual Lens

by Ross O’Brien

This article picks up where we left off last year in the series on Value Chain Analysis Through a Spiritual Lens. If you have not yet read the previous articles, let me encourage you to read at least the introductory article linked here, as it will set the foundation for this and all the other articles in the series.

As we continue examining the way the value chain analysis can be useful, we need to keep in mind that these activities do not operate in isolation or for their own purposes. The activities in one functional area impact other areas and must be coordinated to help the company achieve its overall strategic objectives.

For example, if a firm takes a differentiation strategy in which its products, services, brand and marketing messages are unique from its competitors, then every functional area must seek to add value to achieving that objective of uniqueness. A company like Apple spends significant money on R&D, quality components and exceptional advertising to set its products apart. Primary activities including inbound logistics (sourcing components), production (quality control processes), and sales and marketing (advertising) must all support this objective, as well as the support activities of procurement (spending the necessary money to ensure differentiation) and human resources management (hiring, training, evaluating and compensating the kind of employees who will maintain the standards of excellence needed).

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Value Chain Analysis Through a Spiritual Lens: Introduction

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with great content and resources. As we start the new year, we are highlighting articles which have stood out in the past 6 months.

Below is the “Editor’s Pick” for July to December 2018.

Please enjoy and thanks for following!

by Ross O’Brien

In his 1985 book Competitive Advantage: Creating and Sustaining Superior Performance, Michael Porter introduced the value chain analysis. Many business people are familiar with Porter’s Five Forces Framework as well as his three generic strategies. The five forces address industry-level issues that to a large degree shape the potential for a return on investment in any given industry. The generic strategies help business leaders select the appropriate strategy for operating within a given industry and market. Both are helpful tools in the strategy toolbox.

Many are not as familiar with the value chain analysis. This tool looks closely at each of the activities involved in a business to examine how each activity can add value to the company as it seeks to execute its strategy. These activities are divided into primary activities and support activities.

Primary activities are those in which employees are “hands on” with the product at any stage in its development or involved with the customer at any stage in the customer’s interaction with the company.

Support activities are those necessary for the business to carry out the primary activities.

It is important to see both primary and secondary activities as a whole system as well as component parts. In doing so, you can understand how a competitive advantage is only possible when the various activities operate in harmony, not in isolation. Below is an image showing each of these activities.

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Why We Need the Term Business as Mission, But Maybe Not Forever: A Response

by Ross O’Brien

Like Mats Tunehag in his original article Why We Need the Term Business as Mission, But Maybe Not Forever, I hope that one day followers of Jesus whom God has gifted for business will naturally recognize their vocational call to the marketplace as a call to fulfill the missio Dei, the mission of God.

God’s purpose in the world is to redeem all creation from the effects of sin and restore all creation back into right relationship with himself. As followers of Jesus we have the blessed privilege and responsibility of co-working with God in this mission. I agree with much of what Mats say in this article and in general.

However, I question a few points, which reflects some of my own mental pilgrimage on BAM.  Read more

Marketing and Customer Service through a Spiritual Lens

by Ross O’Brien

In part 1 and part 2 of this series, we began looking at Porter’s value chain as a useful tool for business people seeking to maximize the value they deliver to customers while also seeking to gain a competitive advantage as they execute their strategy. Beyond the traditional use of the analysis, we also sought to use the tool as a way to help a follower of Jesus steward the resources of God’s company. In this third part of the series, we examine marketing and service, the final two primary activities in the value chain.

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Operations and Outbound Logistics Through a Spiritual Lens

by Ross O’Brien

In Part 1 of this series, we began looking at Porter’s Value Chain Analysis as a useful tool for business people seeking to maximize the value they deliver to customers while also seeking to gain a competitive advantage as they execute their strategy. We looked at Inbound Logistics as one of the primary activities in the value chain.

Beyond the traditional use of the analysis, we also unpacked how the tool could be used as a way to help a follower of Jesus steward the resources of God’s company. After all, while our names might be on the legal documentation as “owners,” we realize that the business belongs to God and we are co-laborers with him in restoring creation throughout the marketplace.

In the second part of the series, we continue to examine the primary activities of the value chain, this time focusing on operations and outbound logistics.

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Value Chain Analysis Through a Spiritual Lens: Introduction

by Ross O’Brien

In his 1985 book Competitive Advantage: Creating and Sustaining Superior Performance, Michael Porter introduced the value chain analysis. Many business people are familiar with Porter’s Five Forces Framework as well as his three generic strategies. The five forces address industry-level issues that to a large degree shape the potential for a return on investment in any given industry. The generic strategies help business leaders select the appropriate strategy for operating within a given industry and market. Both are helpful tools in the strategy toolbox.

Many are not as familiar with the value chain analysis. This tool looks closely at each of the activities involved in a business to examine how each activity can add value to the company as it seeks to execute its strategy. These activities are divided into primary activities and support activities.

Primary activities are those in which employees are “hands on” with the product at any stage in its development or involved with the customer at any stage in the customer’s interaction with the company.

Support activities are those necessary for the business to carry out the primary activities.

It is important to see both primary and secondary activities as a whole system as well as component parts. In doing so, you can understand how a competitive advantage is only possible when the various activities operate in harmony, not in isolation. Below is an image showing each of these activities.

Read more

How Startup Success Starts with You

by Stu Minshew

Highlights from the Archives

Success Starts With You

Why would a post on starting and growing your business focus on YOU? A good product or service is all it takes, right? While it is important to have a good product or service, the most important factor in the success or failure of your business is you!

Most businesses don’t fail because of poor products or fierce competition. They fail when finances are mismanaged, passion is lacking, and expectations are unrealistic. By starting with an in-depth look at yourself – including your passions, strengths, weaknesses, expectations, and financial literacy – you can take the critical first steps to launching a successful business.

Identify and Test Your Assumptions

We all have an idea of what our successful business will look like in the future. At this point, that picture might be a little blurry if your business is only a concept. However, getting a clearer picture of that vision is important for your success. It is going to provide you with a general target for how you grow your business.  Read more

Making a Pivot

by Michelle McDonald Pride

Before a strategic rebrand, our business was called Trading Hope. We were growing, but well aware of looming trends in the marketplace and patterns in our business that indicated a future decline in revenue. A mentor to me half joked and half warned that if we did not change something, we would soon be called Fading Hope. Our rebrand was an outward representation of a major strategic pivot.

Some of the most well known brands have successfully pivoted. Wrigley Gum used to give away pieces of gum on the soap they sold. Facebook and YouTube began as dating sites. Even Avon began as a book business that gave away free perfume with a purchase. While these examples are drastic, they are all incredible pivots that recognized the advantage of changing strategy.

Being able to pivot as a social enterprise is one of the most important, yet difficult concepts to approach. How do you pivot your social enterprise without sacrificing your impact? Most social entrepreneurs do not begin their business based on a market need and opportunity; they begin based on targeting a social problem or a particular community group in need. The entire business model is often upside down. For this reason alone, pivots are of critical importance for social enterprises.

What is a pivot

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Are We Drifting? The Dangers of Secularization for a BAM Company

by David Skews

The Problem

While we can talk about the dangers of “mission drift” or the “secularization of BAM businesses”, I would argue that it is not really the mission that drifts, nor do businesses, come to think about it!

Recently, while talking to the owners of a failed start-up I was advised that the reason the “business failed” was that there was not enough customers to buy their products. I mused, “How was that the business’s fault?” You may accuse me of being too particular about the use of language. However, our use of language can sometimes be a mask that causes us to deceive ourselves. Sometimes it is easier to blame “something”, anything, before fully examining ourselves.

I would argue that any “drift” or “secularization” for a BAM company is more likely to be our drift from our personal relationship with God and His people, over any external influence.

So why did that business fail? It would help if we could apply the “5 Whys” method for getting to the core issue. We can apply this method anywhere, whether it to our mission, our business, our marriage, church, school etc. Some people ask 6 or even 7 whys, like I have here:

  • Why did the business fail? (failed to plan)
  • Why did the market move? (markets do)
  • Why did you not see that before? (failed to research)
  • Why did you not do the research? (failed to appreciate the importance of research)
  • Why did you feel it was not necessary? (sales, quality, environment, staff were taking my time)
  • Why did you fail to prioritize? (failed to take time for the important things)
  • Why did you not do the important things? (failed to balance life)

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Don’t Lose Your Way: The Importance of the Business Development Process

AND THE AWARD GOES TO...

Our goal is to provide the BAM Community with the best content and resources available. As we head into winter we are highlighting various articles and resources which have stood out in the past 6 months. Below is the “Staff Pick” for August to December 2017.

Please enjoy and thanks for following!

How can BAM companies avoid losing their way? On the one hand, many BAM startups lose momentum, fail to break even, or simply get aborted. On the other hand, some BAM companies that reach financial success find themselves in danger of losing sight of the non-financial goals and objectives that led them to start their BAM venture in the first place. Although there are as many different reasons for BAM failure as there are struggling, closed, or misdirected BAM companies, I believe there is a common antidote to keep companies from getting off track: an ongoing rigorous business development process.

What happens to a company in the absence of an ongoing rigorous business development process? It then becomes a challenge to grow or lead the business forward in a way consistent with its BAM vision, goals, and objectives. This is often the result of two common business development failures:

1. The leader failed to articulate a sustainable BAM vision and robust strategy to begin with.

2. The leader failed to execute against the strategy and has not been held accountable to it.

The good news for BAM practitioners is that there are plenty of resources available to help with the first challenge – and putting together the right team and structures can help overcome the second. Read more

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