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In the September 2005 Harvard Business Review magazine there was a very important, yet simple, statement:
"The purpose of a business is to create and capture value and to sustain it into the future".

In other words a business is no more than a process for creating, capturing and sustaining value. That then begs the question:
How does this process work?
At the heart of the Linnergy business improvement process, and what we see as the answer to that question, is the Linnergy Business Success Model¹.

The Linnergy Business Success Model defines the components needed to run a successful business. The basic theory behind the model is as follows:

• There are two building blocks to any business. Success depends on how these building blocks are leveraged, improved and grown. The two building blocks are:
  1. Leadership and Management and
  2. Strategic Assets.
• The role of leadership and management is to leverage the strategic assets to develop core business processes that produce distinctive capabilities that underpin the business' value strategy to customers/clients.
• The value strategy, in turn, underpins the business' competitive advantage (SCA).
• The SCA, in turns, provides revenue and profit growth ($).

This model has been explained in a linear format, for simplicity reasons. The real power of the model comes from understanding it as a combination of dynamic components that are all interacting with each other.

We see the value strategy as the starting point to making this model work in your business. Understanding what value you are looking to create, capture and sustain. For whom? Once you are clear on these critical issues you can start moving backward and forward through the model to develop an aligned business.

1. The Linnergy business success model is a model we have developed/adapted from a paper we came across written by John Barton, Department of Management Monash University in March 2000 titled "Personal Development Through Further Studies: Systems Thinking and Organisational Learning".