153 VIsuaL thInKIng desIgn 153 joint understanding Visualizing business models as a group is the most effective way to achieve shared understanding. People from different parts of an organization may deeply understand parts of a business model but lack a solid grasp of the whole. When experts jointly draw a business model, everybody involved gains an understanding of the individual components and develops a shared understanding of the relation- ships between these components. collective reference point We all hold tacit assumptions in our heads, and posting an image that turns those implicit assump- tions into explicit information is a powerful way to improve dialogue. It makes a business model into a tangible and persistent object, and provides a refer- ence point to which participants can always return. Given that people can hold only a limited number of ideas in short-term memory, visually portraying business models is essential to good discussion. Even the simplest models are composed of several building blocks and interrelationships. shared language The Business Model Canvas is a shared visual language. It provides not only a reference point, but also a vocabulary and grammar that helps people better understand each other. Once people are familiar with the Canvas, it becomes a powerful enabler of focused discussion about business model elements and how they fi t together. This is particu- larly valuable in organizations with matrix reporting structures where individuals in a working group or task force may know little about each other’s functional areas. A shared visual business model language powerfully supports idea exchange and increases team cohesiveness. Enhance Dialogue bmgen_final.indd 153 6/15/10 5:41 PM