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[Title of the course] The Business Motivation Model

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1 [Title of the course] The Business Motivation Model
17-Apr-17 [Title of the course] Goal Modelling The Business Motivation Model Copyright © NameOfTheOrganization. All rights reserved.

2 Purpose of Goal Models Describing the goals of an enterprise
17-Apr-17 [Title of the course] Purpose of Goal Models Describing the goals of an enterprise Goal Showing how the goals are interrelated Finding influencers that have an impact on goals and means Influencer Finding means to achieve the goals Means A goal model has many different purposes, where the most important one is to identify the goals of an enterprise. For a company, there can be goals like being the market leader in its industry, having an image as a low-cost provider, and providing top-level customer service. A goal model should also show how goals are interrelated to each other. For example, a goal can be divided into subgoals. It can also happen that some goals are in conflict with each other, i.e. they cannot all be achieved at the same time. A goal model should also identify the means that an organisation uses to achieve its goals. Examples of means for achieving the goal of good customer service are to call customers personally, to ensure that waiting times are short, and to deal with customers in a friendly way. Finally, a goal model should identify so called influencers. These are states of affairs that have an impact on goals and means. One kind of influencers are threats that may make it difficult to achieve a goal or use some means, e.g. if new competitors have appeared it may become difficult to increase the market share. Another kind of influencers are opportunities that make it easier to achieve certain goals and use certain means, e.g. new technology may make it easier to provide good customer service. En målmodell har flera syften, det viktigaste är att identifiera de mål en verksamhet har. För ett företag kan det t.ex. vara att maximera vinsten, att öka omsättningen eller att gå in på nya marknader. Vidare skall en målmodell visa hur målen hänger ihop med varandra. Det kan vara så att visa mål inte kan uppnås samtidigt, att de ligger i konflikt med varandra. Men det kan också vara så att ett mål stödjer ett annat mål. Modellen skall identfiera problem som kan göra det svårt att uppnå ett visst mål. Om ett företag har fått nya konkurrenter kan det t.ex. vara svårt att öka omsättningen. Till sist skall modellen också visa på möjligheter som finns, möjligheter som kan göra det lättare att uppnå vissa mål. Det kan t.ex. vara så att det kommit fram en ny teknik och den gör det lättare att uppnå något mål. Copyright © NameOfTheOrganization. All rights reserved.

3 A Goal Model for a Pizzeria
17-Apr-17 [Title of the course] A Goal Model for a Pizzeria Goal1: To have high customer satisfaction Means1: To deliver pizzas in an expedient amount of time partOf Means2: To provide high quality pizzas Influencer1: There is traffic congestion threatFor To make the concepts of a goal model more concrete, we take an example for a pizzeria. We assume that the pizzeria wants to have high customer satisfaction, so this becomes a goal in the goal model. The goal of high customer satisfaction can be decomposed into two subgoals. One subgoal is to deliver the pizzas in an expedient amount of time. Another subgoal is to provide high quality pizzas. We can find a means that supports the goal of providing high quality pizzas, namely to use ingredients of very high quality. Going back to the first means, we can find two influencers that have an impact on it. The first is a threat, that there is often traffic congestion, which means that it may become difficult to deliver pizzas to the customers’ homes. The second influencer is an opportunity, that other companies offer inexpensive delivery services that the pizzera can use for home delivery. Of course, this slide shows only a small part of a realistic goal model. It needs to be fleshed out by adding more goals, breaking them down, as well as adding more means and influencers. We will see how this can be done, but first we move to some definitions. Influencer2: Inexpensive delivery services exist opportunityFor Means3: To use top quality ingredients supports Copyright © NameOfTheOrganization. All rights reserved.

4 Basic Concepts of Goal Models
17-Apr-17 [Title of the course] Basic Concepts of Goal Models GOAL - Something a business seeks to accomplish - A desired future state or condition partOf conflicts MEANS - Something used to achieve a goal - Can be an instrument, device, capability, technique, or method supports implements ASSESSMENT - Tells how an Influencer impacts a Means or a Goal This slide shows the basic concepts of a goal model. First, there are goals that express something a business seeks to accomplish, a desired future state or condition. Like being the market leader in an industry or having a profit of more than 1 million euros. Goals can be decomposed, i.e. one goal can be a part of another goal. Furthermore, there are means , i.e. something that can be used to achieve a goal. A means supports a goal. Means can take different forms, they can be instruments, devices, capabilities, techniques or methods. A means states what an organisation will do or use to achieve a goal, while a goal tells what the organisation views as desirable. Then there are influencers, i.e. states of affairs that can impact an enterprise in its employment of means or achievement of goals. Note that an influencer expresses an objective state of affairs, it just exists, and there is not much the organisation can do about this. In contrast, a goal is something that an organisation decides about – it wants to accomplish the goal. Similarly, a means is something that the organisation chooses itself – it decides to use a means to achieve a goal. Influencers can be positive or negative, they can make it easier or more difficult to achieve a goal. In fact, the same influencer may make it easier to achieve one goal and at the same time make it more difficult to achieve another goal. In order to tell how an influencer impacts a goal or a means, we use assessments. For example, we say that an influencer is a threat for achieving a certain goal, or an opportunity to employ a certain means. We will return to assessments, but before that we will look at one more example. En målmodell kan man rita upp som en graf med tre olika sorters noder och tre olika sorters kanter. De viktigaste noderna i modellen är målen. Ett mål uttrycker ett önskat framtida tillstånd, hur man önskar att världen skall se ut i framtiden. Det kan t.ex. vara “vinsten skall nästa år vara 20%” eller “omsättningen skall nästa år vara 10% högre än i år”. En annan typ av nod är problemen. Ett problem är ett sakförhållande som gör det svårt att uppnå ett mål. Ett problem ges alltså av ett faktum om världen som vi inte själva kan göra något åt, det bara finns där och påverkar oss. Ett mål, däremto, är något som vi själva beslutar oss för, vi vill att målet skall uppnås, bestämmer oss för det. Den tredje typen av nod är möjligheterna. Och en möjlighet är ett sakförhållande som kan hjälpa till att uppnå ett mål. På samma sätt som ett problem så ges en möjlighet av ett faktum om världen. Men en möjlighet är något bar eftersom det hjälper oss att nå ett mål, medan ett problem är dåligt för det hindrar oss att nå ett mål. Sedan finns det det kanter, relationer mellan noderna i målmodellen. Vi har en support-relation om ett mål eller möjlighet stödjer ett annat mål. Och vi har en hinders-relation om ett mål eller problem hindrar ett annat mål. Det kan också finnas en konflikt-relation mellan två mål om man inte kan uppnå båda målen samtidigt. INFLUENCER - A state of affairs that can impact an enterprise in its employment of Means or acheivement of Goals Copyright © NameOfTheOrganization. All rights reserved.

5 An Example Goal 1: To be a low cost provider conflicts Goal 2:
17-Apr-17 [Title of the course] An Example Goal 1: To be a low cost provider conflicts Goal 2: To have a luxury image supports supports Means 1: To outsource production Means 2: To invest in brand marketing Here is an example of a small part of a goal model for a company. It has set up two goals: to be a low cost provider and to have a luxury image. These are states that the company views as desirable, the company wants to achieve these states. The model also shows two means that the company will use to accomplish its goals. In order to be a low cost provider, the company will outsource production. So Means 1 supports Goal 1. Similarly Means 2 supports Goal 2, i.e. in order to have a luxury image, the company will invest in brand marketing. There is also a conflict relationship between the two goals, because they cannot both be achieved at the same time – if you are seen as a low cost provider you cannot have a luxury image and vice versa. Copyright © NameOfTheOrganization. All rights reserved.

6 Goal Decomposition - And
17-Apr-17 [Title of the course] Goal Decomposition - And AND-decomposition Goal 1: To have a high quality restaurant Goal 2: To have appropriate facilities Goal 3: To have a good chef Goal 4: To have agreements with quality suppliers Means 1: To identify a number of good chefs Means 2: To design an offer that attracts a good chef If you have an abstract goal it is often useful to decompose it into goals on a lower, more concrete level. Concrete goals are needed in order to get some guidance for what means to employ – if the goals are too abstract you cannot know how to achieve them. There are two kinds of goal decomposition, and-decomposition and or-decomposition. In and-decomposition, you take a goal and decompose it into a number of subgoals – and all of these subgoals have to be fulfilled for the higher level goal to be fulfilled. In this figure, we have a high level goal of having a high quality restaurant. This can be decomposed into a number of subgoals, to have appropriate facilities, to have a good chef, to have high quality suppliers. And it is not sufficient that one of these goals is fulfilled for us to have a high quality restaurant – all of the subgoals have to be fulfilled. Now, we are at such a low level that we can identify means for accomplishing the goals. In order to have a good chef, we use two means - to identify a number of good chefs, and to design an offer that attracts a good chef. In principle you can continue breaking down goals forever, but in practice you stop when you are able to identify appropriate means, as illustrated in this example. Copyright © NameOfTheOrganization. All rights reserved.

7 Goal Decomposition - Or
17-Apr-17 [Title of the course] Goal Decomposition - Or OR-decomposition Goal 1: To have an unusual restaurant Goal 2: To have the restau- rant under water Goal 3: To have an unusual menu Goal 4: To have a strange interior decoration The other form of goal decomposition is or-decomposition. Here you take a goal and decompose it into a number of subgoals, and it suffices that only one of these subgoals are satisfied for the higher level goal to be satisfied. In this figure, the top level goal is to have an unusual restaurant, which is a goal that can be accomplished in different ways. The restaurant can be under water, the menu can be unusual, or the interior decoration can be strange. And it is sufficient that just one of the goals is satisfied for the top goal to be satisfied. And at this lower level, we can start identifying means for achieving the goals. Means 1: To serve roasted insects Means 2: To serve paleo food Copyright © NameOfTheOrganization. All rights reserved.

8 Types of Influencers External influencers Internal influencers
17-Apr-17 [Title of the course] Types of Influencers External influencers Competitor Customer Regulation Technology Internal influencers Habit Infrastructure Resource In order to understand how influencers can impact goals and means, it is useful to distinguish between two types of influencers, external and internal. An external influencer exists outside the organisational boundaries of an enterprise. It can be about a competitor, that is taking market shares from an organisation. It can be about customers that have recently started to do business with an organisation. It can be about new laws and other regulations issued by some authority like a government body. Or it can be about new technology that enables or restricts certain activities in the enterprise. There are also internal influencers that exist within an enterprise. It could be a habit, i.e. a customary practice or use. For example that managers are generally promoted from within the organisation. It could be about the infrastructure of the enterprise or about its resources. For example, that the quality of some facilities is high while that of others is low. Copyright © NameOfTheOrganization. All rights reserved.

9 Types of Assessments Internal Strength Weakness Favourable
17-Apr-17 [Title of the course] Types of Assessments Internal Strength Weakness Favourable Unfavourable We can distinguish between four types of assessments by categorising them along two dimensions: whether they are external or internal, and whether they have a favourable or an unfavourable impact. An internal influencer that has a favourable impact is called a strength. An example is a strong R&D department in a company that can provide technological advantages for the company. An internal influencer with a negative impact is called a weakness. An example could be a company having many old facilities that need much repair and restoration. An external influencer that has a favourable impact is called an opportunity. It could be the emergence of a new technology that enables a company to develop a new product. An external influencer with an unfavourable impact is called a threat. For example, new competitors that enter the market. It should be noted that an influencer is just something that is out there, in itself it is neutral, and we need to make a conscious assessment about how it affects our goals and means. When doing this it is helpful to use this figure to find out exactly what impacts the influencer has. Opportunity Threat External Copyright © NameOfTheOrganization. All rights reserved.

10 An Exercise : To have high quality education : To have many stu-
17-Apr-17 [Title of the course] An Exercise : To have high quality education : To have many stu- dents that graduate : There are fewer young people : To have high quality teaching : To have high throughput : To have many applicants Here is an exercise, where we have a skeleton of a goal model. The task is to classify the boxes into goals, means and influencers, and to specify the relationships between these. : To develop multi- media teaching : Hire good teachers : The IT boom is over Copyright © NameOfTheOrganization. All rights reserved.

11 Goal or Means? A desired state
17-Apr-17 [Title of the course] Goal or Means? A desired state Something that the organisation only partially can influence GOAL A course of action, an instrument or method Something that the organisation essentially can control MEANS High profit Goal: To have a profit of 10 million euros Sometimes it may be difficult to determine whether something should be modelled as a goal or as a means. If you have something that can be viewed as a desired state and the organisation only partially can influence it, then it is appropriate to make it into a goal. If it is rather a course of action, or an instrument, and the organisation really can control it, and decide whether to use it or not, then it should be made into a means. Let us consider a few examples. High profit. This is clearly a desired state. And it is also the case that the organisation does not have full control of getting high profit, lots of other factors influence this. So high profit should be modelled as a goal, and we write it doen more precisely. Market campaign. This looks more like some course of action, and it is essentially under the control of the organisation, so this would become a means. Qualified personnel. Having highly qualified personnel is a state we want to achieve. And it is only partially under our control, so it is best modelled as a goal. Market campaign Means: To launch a market campaign in North America Qualified personnel Goal: To have qualified personnel Copyright © NameOfTheOrganization. All rights reserved.

12 17-Apr-17 [Title of the course] An Exercise Per runs a campaign for president. His main opponent is Eva. Construct a goal model for the following. Note that you need to determine how each item should be modelled – as a goal, means, or influencer. Victory in the election Support from EU supporters Support from EU critics Denigration of the opponent Per has misused credit cards Eva has misused credit cards Many TV commercials Large campaign budget Financial support from big business Image as independent Image as trustworthy Here is a slightly larger exercise. It is recommended that you make a pause, read the text, and try to construct your own solution before going on. Copyright © NameOfTheOrganization. All rights reserved.

13 More on Goals in BMM Be the city’s favourite pizzeria
17-Apr-17 [Title of the course] More on Goals in BMM An image of what the organisation wants to be or become Be the city’s favourite pizzeria A desired future state or condition – more focused and narrow than a vision To deliver pizzas in an expedient amount of time Sofar, we have not gone into all the details of the Business Motivation Model. There are many more concepts in the BMM, and one of the most important is the classification of goals into different levels. BMM uses the term “End” for something an organisation seeks to accomplish. The most high level type of an End is a Vision, which is an overall image of what an organisation wants to be or become. A vision is typically long term and it is often not possible to determine whether a vision has been achieved or not. In contrast, a goal is more focused and narrow and typically oriented towards some specific business problem. The most concrete type of Ends is the Objective, which is an attainable, time-targeted and measurable target according to BMM. This means that ther should always be a timefram indicating when the Objective has to be met. Furthermore, it should be possible to measure objectively whether the target has been met or not. Finally, BMM defines relationships between Visions, Goals, and Objectives. A vision is said to be amplified by a Goal, while a Goal is quantified by an Objective. An attainable, time-targeted, and measurable target On January 1, 2008, 99% on-time pizza delivery Copyright © NameOfTheOrganization. All rights reserved.

14 More on Means in BMM Provide pizzas to customers city-wide
17-Apr-17 [Title of the course] More on Means in BMM The ongoing operational activities of the organisation Provide pizzas to customers city-wide An approach for achieving a goal - long term and broad in scope Deliver pizzas to the location of the customer’s choice BMM also classifies Means into different levels. The most high-level one is the mission, which describes what the organisation will be doing on a day-to-day basis, i.e. the ongoing operational activities. The next level is course of action, which is an approach or plan for using the resources of the organisation in order to achieve some desired result. There are two kinds of courses of action, strategies and tactics. A strategy is typically long term and broad in scope and directed towards goals, while a tactic is more short term and more narrow in scope and often oriented towards an objective. A tactic is used in order to implement a strategy. An approach for achieving an objective - short term and narrow in scope Hire drivers with their own vehicles to deliver pizzas Copyright © NameOfTheOrganization. All rights reserved.


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