Developing New Revenue Streams using Option Solving

 

Let’s think of any well established business that’s trying to build new revenue streams. It brings to mind a successful company that already has two well established and profitable legs to its business and believes it should have a third one. One of its senior executives is assigned to initiate the issue, so he pulls out his copy of “Smart Decisions” (see Order Book) and gets to work.

His first task is to pull together an appropriate group of people from across the company and then put the issue of finding a third revenue stream before them. It took them a good 40 minutes to hash out the appropriate question (see Latest Example): the book also has some useful tips on how to approach establishing the right question.

With this in place the group of eight participants brainstormed about appropriate “bookends” to tease their intuitive minds into becoming as creative as possible. Because, with bookends like: “Just stick with existing core business” and at the other end “Commit to very aggressive expansion” (see Latest Example): there was no way either would fly with their CEO.

Now they had a good framework to come up with the most compelling alternatives from which they could independently and confidentially make their choice (see Latest Example). You will see they came up with six alternatives, although we won’t see them all so you won’t be tempted to second guess their choices. (NOTE: They are in the best position to understand their particular circumstances and their specific alternatives. We just need a flavor of their thinking, so that any of us can take a fresh perspective with our own situation.)

Once they had come up with their own Option Solving scenario, they were then in a position to share it with their CEO and their other colleagues. It certainly created a lot of debate in the company and eventually an approach was decided upon. The whole technique got most people’s attention and a good degree of input. This company is now ready to move ahead and pursue its next distinctive revenue stream.(Next posting in 2 weeks: Revisiting Giving Advice through Option Solving…Please also make COMMENTS for connecting with the author.)

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