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Businesses are Run With Knobs

Businesses are run with knobs. Likewise this is the same for any system. A knob represents two things. The size of the knob presents how important it is to the system and how far you can turn the knob is based on how much authority you have to change the system. This business model is the derived from the work of Treacy and Wiersema, two business scholars.

This model is like any other business model. Above all if you model your business this way and put it up on a whiteboard it would give you a pretty good feel for your business. It would tell you what’s important and also how much you can change it. For example, you might say that culture would be a very big button that you cannot rotate very far.

Also by looking at that whiteboard full of knobs it might tell you that you have a lot of authority over the Operational Excellent knob but very little authority over the Customer Intimacy Knob.

This presentation gives you a little more detail about how to run your business with knobs:

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