Theory of the Business.

Drucker suggested that every organisation has a theory of its business. It consists of its understanding of the environment including customers and what they value, it’s specific mission and core competencies that will achieve that mission.

I think this is the most powerful framework we can use for an organisation. The breakthrough starts with thinking of it as a theory. Which means there are assumptions like any other theory. These assumptions must be tested and validated.

Best of all to keep the theory valid we need to continue to test the assumptions but do two specific things. One,  systematic abandonment of things any organisation does due to inertia and two, understand its non-customers which will enable a new theory.

In my experience combining this with a adaptive strategic framework like Roger Martin’s strategic choice framework and going deeper with a business model canvas is a consistent way to creste and implement the strategy.

Humanomics Value Creation

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