Free Enterprise Model
The Free Enterprise Model is universal and allows all types of managers in all types of industries to work with an idea, and either bring it to fruition, or decide to ban the idea.
First, it begins with an IDEA that moves the manager to some form of action. The idea begins to take shape as the OPPORTUNITY is sized up and analyzed. The manager then begins to communicate his or her idea to others, and conducts further analysis of the opportunity. This analysis is required to realize just how viable the opportunity may or may not be.
Once it is determined that there exists a fairly practical opportunity, the manager then begins to design a plan for gathering the proper RESOURCES. In this case, the resources are those elements that are needed to turn an opportunity into reality.
The resources required here may vary from organization to organization, but there are a few basic resources to consider: Tools, Technology, Capital, Industry Best Practices, Partners, Suppliers, Value Added Resellers (VAR’s), and most important People, or staff–not the management team. Resources are vastly important in the overall success of making the opportunity a reality.
After the Resources have been identified and even allocated, the next step is to formulate the TEAM that will be responsible for driving the entire concept into a formidable, moneymaking opportunity. The team is made up of individuals who will be held responsible for the success (or heaven forbid, failure) of the opportunity.
As you go through the exercises of sizing up an opportunity, gathering the proper resources and assembling the best management team, four very important elements should not be overlooked as the process continues. Those four elements are:
- Plan of Action
Communication is paramount throughout the entire process. If communication breaks down, the process breaks down and will ultimately fail. Several years ago, I introduced the Power Planning Model™ for strategic planning, in which I explain that communication is the foundation of all successful planning operations. Pay close attention to the communication between members of the planning committee and management. Keep a close watch that someone is driving the process forward and that no backbiting or undermining is occurring.
Develop a Plan of Action and see the fruits of your planning labors. This is where you will actually begin to implement what you have designed. Your Action Plan is your Implementation Strategy.
How will you put into practice what you have committed to writing? Although the Strategic Plan itself is a call to multiple forms of action, a succinct Plan of Action to get things moving is also required. It outlines the steps you will be taking, your milestones you and your team will be achieving, who is responsible for the completion of the milestone, start and end dates, and a budget for each element.
Strategy is defined as 1 a (1): the science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war (2): the science and art of military command exercised to meet the enemy in combat under advantageous conditions b: a variety of or instance of the use of strategy 2 a: a careful plan or method: a clever stratagem b: the art of devising or employing plans or stratagems toward a goal 3: an adaptation or complex of adaptations (as of behavior, metabolism, or structure) that serves or appears to serve an important function in achieving evolutionary success.
And Stratagem is defined as 1 a: an artifice or trick in war for deceiving and outwitting the enemy b: a cleverly contrived trick or scheme for gaining an end.
Whether it comes down to war, winning a game or beating your competition, formulating a strategy is the first step to achieving success.
Assessment and Reviews should occur after you have implemented your plan. You will need to assess how well your plan is working. You should review with your team what things are working and which things are not.
- Has the plan been implemented?
- What are the bumps in the road that have occurred?
- What changes should you make?
- Who should you reward if things are going well? (Don’t forget this item…people like to be recognized for doing a good job.)
So, now that you have learned about the Free Enterprise Model, how does this help you understand how business flows?_________________________________________________
What is your business IDEA? ____________________________________________________
What RESOURCES do you need to make it work? ___________________________________
How will you find/gather these Resources? _________________________________________
Who are the players on your TEAM? ______________________________________________
What are their strengths (including yours)? __________________________________________
What are their weaknesses (including yours)? _______________________________________
Can you think of others (not on your payroll that will play a role in the overall success of your venture (i.e. your attorney, CPA, insurance agent, marketing consultant, etc.)? ____________________________________________________________________________
What are your plans to find out if this IDEA that you have will really work? _________________
Where will you find the data to assess the real market OPPORTUNITY? __________________
Spend a few minutes answering these questions, and thinking through how the Free Enterprise Model will help you grow your business. Good luck!