How can you benefit from this "Magic Business Triangle?"
In your business do you often feel that you are running out of time, stretched to the limits and still not achieving what you set as your goal? Here's why...
While considering existing or new project or venture, I always analyse it with the famous "resources-timeframe-benefits" triangle.
This model has come from the software development world. When it comes to making business decisions, I can't recommend this technique highly enough.
Blended with business knowledge this approach saved me so much time and prevented me from going into lengthy, time consuming business projects with questionable benefits.
The essence of the Magic Business Triangle theory is this:
Anything you are trying to achieve requires time, which is TIMEFRAME for your project.
You have certain RESOURCES to achieve it whether yourself by using your knowledge or by deciding to leverage your time using OPK - Other People Knowledge.
Your goal has defined characteristics, properties or BENEFITS.
Now, as shown on the picture, these three nodes are interlinked with "rubber" strings and tightly related. Here's how it works:
1. If you decide to go for the maximum BENEFITS in any given project, there are two things you can manipulate:
- RESOURCES (throw in a lot of your own time, hire extra staff to do it for you, leverage on someone else's experience and pay them a lot of money)
- TIMEFRAME - how long does it take to complete the project. It may take longer if you don't have much RESOURCES and not willing to compromise on BENEFITS
2. If you have set or limited (as we all do - sigh) TIMEFRAME there are only two things you can work with:
- BENEFITS - you may consider reducing your expectations with regards to benefits, by sacrificing non essential ones. (As one famous leader once said: "We wanted to do it better, but did it as usual"...
- RESOURCES - again throw in a lot, if you can afford it. Then you may not need to reduce the benefits.
3. If you are short on RESOURCES there are only two things you can adjust:
- BENEFITS - once again don't expect a lot from that project unless you have unlimited timeframe.
- TIMEFRAME - well, as you can see if you have limited resources and not willing to reduce the BENEFITS, you can extend the TIMEFRAME - I wouldn't go with this option personally, unless there's clearly defined and substantial benefit.
Now imagine how you would feel in the ideal scenario: you have unlimited RESOURCES. You aim for maximum BENEFITS, and do it in the shortest possible TIMEFRAME.
This simple theory had helped many of my clients to avoid frustration when implementing something new in their business or thinking about new venture.
By developing robust business systems (including sales and marketing systems) you will be able to leverage your RESOURCES, shorten your TIMEFRAME and get maximum BENEFITS.
If you’d like to learn more on how to apply these strategies - go here now.
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