Why I love frameworks
When I first became interested in business frameworks I didn’t know what to call them. Are they toolkits, models, strategy structures, processes – or simply frameworks? My publisher preferred the term “models” hence my book is “The Business Models Handbook”. I was never convinced by this. A business model to me is the way a company seeks to make a profit. Ryanair’s business model is a low-cost airline, Waitrose’s is a high value supermarket, Amazon’s is the everything shop. A framework is a structured approach or conceptual tool that is used to analyse, and understand business problems. The framework usually goes further and suggests steps by which the problem can be solved. Whether we are talking about models or frameworks, I love them. I offer you six good reasons for this:
1 Structure and Clarity: Business frameworks offer a clear methodology that helps us break business challenges into manageable components. This structure provides a sense of clarity and direction, making it easier to analyse problems, identify solutions, and communicate ideas effectively.
2 Efficiency and Consistency: Frameworks provide a systematic and efficient way of approaching common business issues. They offer tried and tested methodologies and best practices that have been developed and refined over time. By following a recognised framework, individuals and organisations can save time and resources by leveraging established approaches rather than reinventing the wheel for each problem they encounter. It also promotes consistency in decision-making and problem-solving across different teams and projects.
3 Decision Support: Business frameworks include analytical tools that assist in decision-making processes. These tools help gather and analyse data, evaluate options, and assess potential risks and benefits. By applying frameworks, we can make more informed decisions based on data-driven insights rather than relying on intuition or subjective judgments.
4 Communication and Alignment: Business frameworks serve as a common language and reference point within organizations. They provide a shared understanding and vocabulary for discussing and addressing business challenges. Within an organisation people begin to understand the shorthand for the term “value proposition” or “SWOT analysis”. This understanding gives everyone the confidence that there has been a suitable analysis,
5 Learning and Development: Business frameworks offer a structured learning path for developing problem-solving skills. They provide a foundation of knowledge that we can build on and refine through practice and experience. By mastering various frameworks, we can enhance our analytical thinking, strategic planning, and decision-making abilities.
6 Credibility and Validation: Established frameworks lend credibility to business strategies. Many frameworks have been developed by renowned experts, consulting firms, or academics, and have been tested and applied in real-world scenarios. By employing recognised frameworks, we can leverage the credibility associated with those frameworks, increasing confidence in our proposals.
Overall, business frameworks (or whatever you want to call them) offer structure, efficiency, decision support, facilitate communication, opportunities for learning and validation, making them attractive tools for us to navigate complex business challenges. An effective framework aligns a value proposition with target customers and so creates a revenue stream, optimises resources and generates profits. At the end of the day that is what marketing is all about.