By Claire West
This Wednesday lunchtime the Chancellor will unveil his long awaited comprehensive spending review, and it doesn’t take a rocket scientist to predict that those businesses supplying the public sector, and the long supply chains sitting behind them, might have rather less attractive businesses by Wednesday afternoon.
Tim Latham, of Unconsultancy (www.unconsultancy.com), is a business model specialist — he helps business leaders to visualize how the jigsaw pieces of their business model fit together and then helps them to design new models more appropriate to changing conditions. Latham says “The new reality facing many UK businesses on Wednesday afternoon and Thursday morning will be that if they choose business as usual then that business will be a fraction of its previous scale if they were at all dependent upon government contracts. This reduction in scale will probably be enough to send many businesses to the wall”. But he suggests that the smart ones will grasp the opportunity to redesign their business models.
“How many business leaders can describe their business model robustly on a single side of A4? Not many. An intuitive but wooly picture of the current way that a business creates and delivers value means that designing a better future is near on impossible” said Latham.
“Given difficult conditions and a dramatic reduction in orders most businesses react by trying harder to push their product or service. Whilst I’m a fan of hard work unfortunately there are some situations that hard work alone won’t turn around. Changing the model can frequently be the precursor to far greater success” said Latham.
So by all means hope for the best in the comprehensive spending review, but whatever happens don’t dismiss the opportunity to rethink your business model to survive and thrive..