259 vation or redesign projects, and track the overall evolution of the organization’s business mod- els. It should also manage the “master” business model that describes the entire organization. This master template could serve as the starting point for each business model project within the organization. The master business model would also help different functional groups, such as operations, manufacturing, or sales align with the organization’s overarching goals. } Manage synergies and conflicts One of the business model governance authority’s main tasks would be to align business models with each other to exploit synergies and avoid or manage conflicts. A Canvas document describing each business model in the organization would help illuminate the big picture and achieve better alignment. } Business model portfolio Successful, established companies should proactively manage a “portfolio” of business models. Many formerly successful companies in the music, newspaper, and automotive industries failed to proactively examine their business models and slid into crisis as a result. A promising approach to avoiding this fate is to develop a portfolio of business models whereby cash-generating businesses finance business model experiments for the future. } A beginner’s mindset Maintaining a beginner's mindset helps keep us from becoming victims of our own successes. We all need to constantly scan the landscape and continuously assess our own business models. Take a fresh look at your model regularly. You may need to overhaul a successful model sooner than you thought. cycle management, we all need to start thinking about replacing our current cash-generating business models with growth models for tomorrow’s marketplace. Dell disrupted the PC industry when it introduced the build-to-order format and direct online sales. Over the years, Dell grew so success- fully that it established itself as the industry leader. But the company failed to fully rethink its once disruptive business model. Now that the industry landscape has changed, Dell risks remaining stuck in a commoditized PC market, while growth and profits, generated elsewhere, lie outside its reach. Working from the Established Company Perspective } Business Model Governance Consider establishing a “business model governance” authority to help better manage business models across the enterprise. This group’s role would be to orchestrate business models, engage stakeholders, launch inno- informed design make tangible Directions Directions bmgen_final.indd 259 6/15/10 6:01 PM