Understanding the DNA of your business

Home Page

Firstly, what do we mean by the DNA of a business.
Every business carries the "culture" of the CEO, therefore every business operates with characteristics that reflect the ideas, values, and strategies of the CEO. Even if businesses are outwardly identical in what they do, the way they are run or as we call it, their business DNA will be different. This DNA must be understood by all senior Management and staff to be able to optimise business operations.
So what are the components of the business DNA and how do you build it.
The Action Management view is that everything that a business does can be viewed as an "action". These "actions" can then be structured into a hierarchy as they are cascaded down through the business operations. Top-level actions are called "Key Actions", then the 2nd level actions are "Business Actions", then come "Operational Actions", followed at the lowest level by "Procedures". The combined view of all these Actions and their operating characteristics becomes the business DNA (view a simple Excel example).
The business DNA then becomes the nucleus that drives all aspects of the business and quickly determines what your people should be doing and where improvements are required to optimise business performance.
Your business DNA can be built in ONE DAY.

  • Key Actions are the five key operations that strategically drive the business. Actions like "Make Sales", Manage Stock, Look After Employees, etc, are some examples.
  • Business Actions are the five strategic sub-actions that underpin the Key Actions. For example under the Key Action "Make Sales" there may be a Business Action of "Build Client Relationship", or "Develop Target Market", etc. All Business Actions also possess "Action Characteristics" (see below). The summary of Key Actions and Business Actions can now be viewed in a "strategic matrix" and we call this the "Business-on-a-Page" or the "Business 5x5".
  • Operational Actions are the five major operational actions that are necessary to implement a Business Action. All Operational Actions will also possess "Action Characteristics" (see below).
  • Action Characteristics are the detailed make-up of each Operational Action and include Description, Method, Measure, Target, Report, Projects, and Risk Assessment.

 Next Step

 

is to
assign the
accountability
for all DNA
Actions to
your people