Business Pyramid

The Business Pyramid represents the Four Foundational Systems of any business

The Full Spectrum Business Development program is designed around the structure of the business itself, so the definition of a business "A business is a system for providing value to customers" is our starting point.
 
The structure we have developed is the Business Pyramid, and the diagram to the right shows you the first level of systems of a business. These are "foundational" systems because they form the foundation of the business. There are many other levels of systems, and we'll get to them in a while.

The customer focused systems - "getting customers" and "satisfying customers"- are the two triangles stacked on each other in the middle of the large pyramid. They are the marketing and production functions of a business.

The business focused systems - "running the business" and "supporting the business" are the two triangles forming the base of the pyramid. They are the management and resources functions of the business.

The two customer focused systems deliver value to customers and are the engine that creates profits and the market value of the business itself. Notice that they form a diamond shape. We call this the "value diamond" because it is here that the business generates value.

The two business focused systems support the business overall and enable the value diamond to actually deliver value to customers. We call these two business focused functions the "pillars of support". The value diamond couldn't stand upright, and the whole pyramid would collapse if the pillars of support were not there to hold them up.

Let's look at the next level of systems in a business:

The Ten Strategic Systems of a business

Within the four foundational systems are ten other systems that are universal to all businesses. These are "strategic" systems because they form major parts of the business, and the ability of the business to achieve its Strategic Intent depends on all of them functioning at high levels of effectiveness. The expanded pyramid includes the ten strategic systems listed below:

Marketing Systems

• Market Research (work that enables you to understand markets, select your target markets, and determine your target customers' needs)
• Marketing Reach (work that enables you to reach your target markets through the right channels with messages that will attract and persuade them)
• Marketing Relationships (work that interacts directly with potential customers, converts them to actual customers, and then manages customer relationships)

Management Systems

• Leadership (work that establishes strategy and business plans, builds the business culture, inspires the business's people to do their best for customers, the business, and themselves; being a creative force in the business)
• Systematics (working with employees to create systematic processes for doing the work of the business; organizing the business and its systems; viewing the business first as a system of systems, and second as a network of people; approaching problems as opportunities for creating effective systems rather than occasions for blame and punishment)
• Supervision (the work of overseeing and mentoring the people in the business; developing them; finding the effective balance of autonomy and micro-management; making the best use of the people of the business; designing an effective system of rewards and discipline that taps into the motivations of people)

Resource Management Systems

• Financial Resources (managing the business's money and reporting its financial results to management and other interested parties, or "stakeholders")
• Humane Resources (getting, developing, evaluating, compensating, and disciplining the people needed to operate the business)
• Business Resources (providing and managing the facilities, supplies, technology support, management information, and other services needed to run the business effectively)

Production Systems

• Production and delivery systems (performing services, and/or making or buying products and getting them into the hands of customers)

Some of the terms we use may be unfamiliar to you, yet we use them for a purpose.

For instance, "marketing reach" includes all the ways the business reaches out to customers and potential customers, such as advertising, public relations, web sites, and the like. Marketing reach is one-way communication designed to attract customers to you and your products.

"Marketing relationships" are all those activities that happen when a connection has been made - sales, customer information, demonstrations, and any other activity that is interactive with customers and potential customers.

"Humane resources" is more than a play on the word humane. It is a reminder that, while one view of the people of the business is that of productive assets to be deployed where they'll be most effective, people must first and foremost be valued as individuals deserving of respect and compassion.

"Systematics" is an expansion of the word "systematic" and means the management practice of developing, installing, and monitoring business systems.

Find out how the Top Ten Principles, Four Foundational Systems and Six Strategic Sysytems are incorporated into the Full Spectrum Business Development Program.

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