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  • What is the Business Hierarchy of Needs®?

    In Group50’s early days, we were working with the model shown in the picture to the left when we were doing strategic planning work.  It was simple, to the point and easy to talk about.  None of our clients were totally convinced that this image told the entire story.  It was missing a lot of information and only told the story of getting prepared to implement a company’s strategy.  This graphic didn’t include two key elements: …Read More

    This entry was posted in Business Hierarchy of Needs, on February 26, 2022
  • Video Explanation of the Business Hierarchy of Needs®

    90% of companies do a poor job executing their strategy 

    The Business Hierarchy of Needs® and and Strategy 5.0™ are part of Group50’s suite of strategic planning and execution tools.  In this 20 minute video, Jim Gitney, the Founder and CEO of Group50, summarizes how the Business Hierarchy of Needs®, a change management framework, can be used by Boards of Directors and senior leadership teams …Read More

    This entry was posted in Anti-Strategy, Business Hierarchy of Needs, Strategic Execution 5.0 ™, Strategic Planning 5.0, Strategy 5.0, on April 18, 2022
  • Strategy 5.0™ – Defining the Appropriate Organization Design for a Digital Future

    “𝑰𝒕 𝒊𝒔 𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒂 𝒑𝒂𝒓𝒂𝒅𝒊𝒈𝒎 𝒔𝒉𝒊𝒇𝒕 𝒊𝒏 𝒕𝒉𝒆 𝒘𝒂𝒚 𝒘𝒆 𝒍𝒐𝒐𝒌 𝒂𝒕 𝒕𝒉𝒆 𝒐𝒓𝒈𝒂𝒏𝒊𝒛𝒂𝒕𝒊𝒐𝒏 𝒔𝒕𝒓𝒖𝒄𝒕𝒖𝒓𝒆𝒔 𝒕𝒉𝒂𝒕 𝒘𝒊𝒍𝒍 𝒃𝒆 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅 𝒕𝒐 𝒔𝒖𝒄𝒄𝒆𝒔𝒔𝒇𝒖𝒍𝒍𝒚 𝒍𝒆𝒂𝒅 𝒂 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 𝒕𝒐 𝒂 𝒅𝒊𝒈𝒊𝒕𝒂𝒍 𝒇𝒖𝒕𝒖𝒓𝒆.”

    I just published an article on LinkedIn on the Appropriate Design for a Digital Future.  You can read it here.  For those of you who want a Schaum’s outline version, here we go.

    Today’s functional organization structure is no longer appropriate for serving the digital future.  Business processes are horizontal, not vertical.  So, as part of Group50’s approach to Strategy 5.0™, we are proposing that companies be organized in the following …Read More

    This entry was posted in Business Hierarchy of Needs, Organizational Development, Strategy 5.0, on April 3, 2022
  • Strategy 5.0™ – Where to Play, How To Win, Most Important Goal

    How many different strategic frameworks are there? Probably as many as there are consultants.  Most are difficult to explain to leadership, and they are impossible to explain to everyone else. While the development of a business strategy can be complex,  the focus of the the Group50® Strategy 5.0™ framework of Where to Play and How to Win provides a solution to this problem by keeping it simple: …Read More

    This entry was posted in Anti-Strategy, Business Hierarchy of Needs, Strategic Execution 5.0 ™, Strategic Planning 5.0, Strategy 5.0, on March 27, 2022
  • Cost Takeout as a Strategy

    Cost Takeout has been heard at one time or another in every C-suite and boardroom.  The primary objective of every leadership team is to improve profitability and while there are many ways to do that, every company should have cost takeout as a strategic imperative. Continuous Improvement concepts tell us that there are always ways to take out cost.  With that in mind, how does a leadership team develop a cost takeout strategy?  The first thing is to make sure everyone is clear on what a cost takeout strategy really is.  Let’s start with what it isn’t.

    It is not: …Read More

    This entry was posted in Business Transformation, Cost Takeout, Information Technology, Strategy 5.0, Supply Chain Optimization, on March 2, 2022
  • Five Things You Need To Do To Drive Continuous Improvement – Introduction

    Change happens. Every business environment requires continuously changing strategies, processes, tools and skills. Implementing a Continuous Improvement program is one way a company can harness their response to change and create competitive advantage. As companies launch Continuous Improvement programs, they need to have a plan. Effective programs require the following 5 elements leading to successful and sustainable …Read More

    This entry was posted in Business Hierarchy of Needs, Business Transformation, Continuous Improvement, Driving Continuous Improvement Series, Global Initiatives, Manufacturing and Distribution, Organizational Development, Strategy 5.0, Supply Chain Optimization, Value stream mapping, on February 19, 2022
  • Five Things You Need To Do To Drive Continuous improvement – Part IV – Best Practices

    Focusing on one methodology for continuous improvement can limit progress, diminish innovation and restrain the organization’s ability to realize its full continuous improvement potential. In Part IV of this series, we talk about using the best practices and best tools for your Continuous Improvement program. Continuous improvement best practices include: …Read More

    This entry was posted in Business Hierarchy of Needs, Continuous Improvement, Driving Continuous Improvement Series, on February 18, 2022
  • What is a “ Brown Paper Exercise “ and What is its’ Value?

    At Group50, we have brought back to life an old form of Value Stream Mapping called the Brown Paper Exercise. Long before computers were invented, the only way to do Value Stream Mapping was on paper.  Utilizing paper allows you to be produce maps that are not limited to the size of a computer monitor or projection screen. It is interactive, fun and can be done via a hybrid model of in-person and virtual.

    Group50’s Brown Paper Exercise is an important tool that we use every day as part of our Value Stream Mapping process.  It provides an engaging, non threatening way for …Read More

    This entry was posted in Business Hierarchy of Needs, Continuous Improvement, Healthcare, Manufacturing and Distribution, Organizational Development, Strategy 5.0, Supply Chain Optimization, Value stream mapping, on February 16, 2022
  • Industry 5.0, People – Process – Technology – Cobotics

    The implications of Industry 5.0 and the Internet of Everything ( IoE ) are not fully understood by leadership teams.  How to get there is a larger challenge.  It needs to be a strategic discussion in the board room and in the C-Suite.  Its impact, while seemingly obvious is not! Technology …Read More

    This entry was posted in Blockchain IoT, Business Transformation, Information Technology, Manufacturing and Distribution, on February 15, 2022
  • Industry 5.0 – IoT and Blockchain – An Application Case Study – Flight Safety Parts

    A lot has happened since the creation of blockchain in 2009, including the great hype of 2014-2017, when hundreds of books were written and blockchain was continuously in the news – At that point, more of a fantasy than a practical business reality.  Over the last few years, blockchain systems have matured and are going mainstream with companies now accepting cryptocurrencies for payments, issuing fungible tokens for digital assets, and notable companies such as Maersk, IBM, Walmart, and others having implemented blockchain in their supply chains.  Just as the internet was in its infancy in the late 90’s, …Read More

    This entry was posted in Blockchain IoT, Business Transformation, Case Studies, Information Technology, Manufacturing and Distribution, Strategic Execution 5.0 ™, Strategic Planning 5.0, Strategy 5.0, Supply Chain Optimization, on January 28, 2022
  • Digital Transformation Case Study – Inflection Point

    $6M in annual savings, $15M in future cost avoidance, $2+M working capital reduction, 900% ROI

    Situation:

    A $300M per year in annual sales CPG company is experiencing significant growth and has hit an Inflection Point, where people, process, and technology were struggling to support the size of the business. The entire company, every function was using “brute force” to make things work. The company wants to increase sales by 50% in five years, but …Read More

    This entry was posted in Business Transformation, Case Studies, Inflection Point, Manufacturing and Distribution, Market Effectiveness, Strategy 5.0, on October 17, 2021
  • Inflection Point and the Wealth Effect – 2 Strategies

    I was recently having a conversation with Jim Gitney, the CEO of Group50 Consulting and he was talking about the Inflection Point of one of his clients. The company is a 2nd generation manufacturer, who is in a significant growth mode. Mom and Dad still own a majority of the company, with 2 of their 3 children running the day-to-day activities. This company has hit an inflection point with its growth plans though. Their systems, people and processes are strained …Read More

    This entry was posted in Exit Planning and Transition, Inflection Point, on October 3, 2021
  • Solemn Memorial Day

    I am not going to wish you “Happy Memorial Day”, I am going to wish all of us a “Solemn Memorial Day”.
     
    During this weekend, I have been touched by the thought of Freedom. Over the last 16 months, we have not been “totally” free. We have tasted what it is like to be restricted in our freedoms, reminded of what it must be like for billions of people around the world who can’t enjoy the freedoms we expect and mostly take for granted. The pandemic, like many other attempts to restrict our freedoms is behind us, but not for billions of people around the globe.

    …Read More

    This entry was posted in Weekend Thought, on May 31, 2021
  • Strategy Doesn’t Matter – Unless You Can Execute It…

    Studies indicate that 90% of all companies do not execute their strategic plans effectively. So, only 10% of companies execute their strategies!? Why is there a problem with Strategic Execution™; the ability to implement strategy effectively and sustainably? Is it because they don’t care? Feel like strategy is a check the box activity?

    There are multiple issues here that companies need to deal with: …Read More

    This entry was posted in Inflection Point, Market Effectiveness, Strategic Execution 5.0 ™, Strategy 5.0, on May 2, 2021
  • Don’t Sell Products, Sell Systems – The Product Lifecycle Revenue Model

    The concept of “system selling” is applicable to all products and services. System selling extends the lifecycle revenue of products and services. The wisdom of offering products and services that don’t stand alone, but which intimately fit into a greater system for the end user or client, continues to be sound and exploitable by marketers. It is a necessary element in OMNI channel strategies, product management and the Product Lifecycle Revenue Model. Why? …Read More

    This entry was posted in Manufacturing and Distribution, Market Effectiveness, Product Development, Strategy 5.0, on April 25, 2021
  • Is Your Company at an Inflection Point?

    Every company comes to at least one business or economic Inflection Point during its lifecycle.  Inflection points are when a company’s size is straining its people, processes and technologies. This typically happens at revenue ranges of $10, $25, 50, $125m $250 and $500 million in annual revenues, i.e., when they double in size, but it can also happen at an economic inflection point where a downturn in the economy has caused the company to downsize and it struggles to handle the growth from an economic upturn.

    The challenge of an inflection point is that it takes time for leadership teams to …Read More

    This entry was posted in Inflection Point, Strategy 5.0, on March 12, 2021
  • Strategic Maturity – An Imperative at This Economic Inflection Point

    Strategy and its execution are a challenge for every organization, especially now with the economic inflection point every company and consumer is facing. Strategic Maturity is where a company develops a cohesive strategy and executes it through the participation of all stakeholders (Board of Directors, employees, suppliers, customers, end users and contractors). Being a class B company further complicates the matter. Strategic maturity is now more important than ever and has become an imperative. Without it, companies will not be able to …Read More

    This entry was posted in Inflection Point, Strategy 5.0, on March 4, 2021
  • Podcast With Jim Gitney on What to do About Moving Through an Inflection Point

    Growing a business is not as simple as applying a sales formula or launching an innovative product. The approach for growth changes as your business evolves through its business life cycle. Each time a company doubles in size, it hits an inflection point: a time in a company’s life cycle where its people, processes, and technologies are struggling to support the business.  When that happens, …Read More

    This entry was posted in Business Transformation, Inflection Point, Strategy 5.0, on February 12, 2021
  • Strategic Planning Playbook

    We recently published a blog on Virtual Strategic Planning and have received many inquiries from readers for more information.  We believe that getting your strategic plan right for 2021 and beyond is the most important thing a company can do.  Because of that we have decided to offer our strategic planning playbook free to anyone who requests it.  If you want a copy, send us a request to info@group50.com or request it here. …Read More

    This entry was posted in Exit Planning and Transition, M&A, Manufacturing and Distribution, Market Effectiveness, Organizational Development, Playbooks, Product Development, Strategy 5.0, on November 20, 2020
  • Virtual Strategic Planning and Strategic Execution

    The majority of our consulting work has been virtual and like everyone else we have adapted by developing a virtual strategic planning and strategic execution process. To us and our clients, this remote workforce thing has not been as bad as people feared. Many leaders believe that employees are more productive when working from home and several companies are reducing office space and headcount because of it – one part of their strategic plan. They all agree that executing strategy has presented more challenges because …Read More

    This entry was posted in Business Transformation, Global Initiatives, M&A, Manufacturing and Distribution, Market Effectiveness, Organizational Development, Product Development, Strategy 5.0, Supply Chain Optimization, on September 30, 2020
  • Navigating Growth Through an Inflection Point

    We recently worked on a project that required the integration of two $30M companies. Both had grown to this size in a short period of time and had systems that supported their individual sizes relatively well. When the two were combined, they pushed across an inflection point. An inflections point is when a company’s systems, business processes and organization structure are struggling to support the size of the company and are incapable of supporting future growth to the next inflection point. …Read More

    This entry was posted in Business Hierarchy of Needs, Business Transformation, Inflection Point, Strategy 5.0, on September 14, 2020
  • Managing Your Way Through 2020 and Beyond – Part II

    By: Admin   |   Leave a Reply

    It has been a wild ride the last 6 months and most companies have completed the first of three phases:  Stabilize, Reconfigure, Recover. Strategic and tactical planning for the next 12-18 months will be critical for companies.  Senior leadership teams need to focus on the Reconfigure stage and define how they will redefine their business models in preparation for the Recover phase. In the video below, Jim Gitney, the CEO of Group50 Consulting, discusses the key …Read More

    This entry was posted in Business Transformation, Market Effectiveness, Re-Opening Your Business, Strategy 5.0, on September 5, 2020
  • Market Effectiveness – Marketing That Doesn’t Erode Your Profit Margins

    It’s not how much money you make; it’s how much you get to keep. Unfortunately, as the cost of labor, materials and shipping goes up your profit margins go down and you get to keep less and less of your revenue. The natural response to this dilemma for many organizations is to raise prices, reduce services, cut overhead or just accept lower margins and hope to make up for it in volume. Any one of these options has risks that must be weighed very carefully. If only there was a way …Read More

    This entry was posted in Market Effectiveness, on August 27, 2020
  • Post Merger Integration ( PMI ) Playbook

    It is reported that 70-90% of mergers & integrations don’t deliver the value that justified the acquisition. There are many reasons, but the primary ones that tank ROI are a lack of focus related to Strategy, Culture, Project Management, Customers and Sales. Post merger integration failures typically fall into what we call the 5th stage of M&A: Alignment and Optimization which completes the integration.   In order to help companies understand the depth of this challenge, Group50 has developed a post merger integration ( PMI ) playbook …Read More

    This entry was posted in M&A, Manufacturing and Distribution, Playbooks, Strategy 5.0, on July 14, 2020
  • Supply Chain Playbook

    The development of a global world class supply chain is a challenge in good times, but is really tested when a supply chain is significantly disrupted. During periods of supply and demand disruptions, like we are currently experiencing, the concept of world class is severely tested. As companies are attempting to understand the resiliency of their supply chain, …Read More

    This entry was posted in Information Technology, Manufacturing and Distribution, Playbooks, Supply Chain Optimization, on July 13, 2020

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