In a previous blog I wrote about the four Function Diamonds of the Business Diamond Framework™: Leadership, Support, Value-Add, and To-Market.
The layout of the Framework is intentional. This layout allows Framework practitioners to not only understand the business from the perspective of each of the four functions, but also from the perspective of the organizational structure and the value chain. This this blog, we’ll look at the value chain.
The horizontal axis represents the business’ value chain (a concept pioneered by Michael Porter of Harvard Business School). Raw materials and information begin on the left and move through the business until they are sold and distributed on the right. Here we see a very basic value chain…
… and the Framework practitioner’s job is to fill out the value chain in detail and then place it onto the Framework. Here we see it integrated into the Framework:
Here’s why this is important: Understanding the value chain is essential to running an efficient, competitive business. But understanding how the functions of the business interact with and contribute to the value chain is even more valuable. And there’s more you can do with the value chain in the Business Diamond Framework (and I’ll talk about that in an upcoming post).