Business motivation model

From CEOpedia | Management online

Business Motivation Model (BMM) is a notation that allows you to capture and present business plans in a simple way. Models are created from a business perspective. Because of them you can understand the organization's motivations and factors which affecting it. BMM helps organizations determine their goal and make them go in a specific direction, using the resources they need, not in a chaotic and devoid of a plan way. It also allows you to take control of the factors that affect the company and its projects, to monitor these factors, respond to changes and adapt the organization. It indicates relationships between these factors and elements. In summury, BMM provides framework for developing, communicating, and managing business plans in an organized manner.

History

Business Motivation Model is a concept and specification created in 2005 by the Object Management Group (OMG) with the intention of future adoption by the International Organization for Standardization (ISO) as an international standard for management systems.

Version 1.0 was published by OMG in August 2008.

In May 2015, the BMM specification's version 1.3 was released. It is the newest and stable version[1]

Elements

The basic concepts of BMM are Final State (Ends) and Means. The final state is something that the organization wants to achieve. Generally, this is presented by the Vision of the company. The Goals result from the vision, and from these the specific Objectives. These elements answer the question "What?".

Means are everything that a company can use to achieve the desired vision. Most of all, it is the Mission of the organization. In order for the Mission to be carried out, Strategies and Tactics are planned. These elements answer the question "How?".

Other important elements are Influence Factors (Internal Influence Factor, External Impact Factor, Regulations, Organizational Impact). They can affect the Ends and Means, so it is worth taking them into consideration.

BMM creators indicate that it is important to link BMM with other elements that are outside the scope of the standard. These are:

  • Organizational cell,
  • Business process (Business Process Modeling and Notation - BPMN),
  • Business rule and dictionary of business concepts (Semantics of Business Vocabulary and Business Rules - SBVR).

Example

Example of BMM (source: own work)

Imagine that you received an order from a company selling waffles to prepare software for multimedia displays on which the products will be advertised. For the client, the world of displays and IT is an unseen mystery. How will you approach the topic? What will you ask him for? What do you think you will receive the information? You need the time to know the company. You analyze business plans using the Business Motivation Model. The effects below.

See how much information you obtained thanks to one drawing! You already know that in advertisements you have to show a wide range. That's what the customer is all about. Even if he forgot to tell you. You know (thanks to business rules) that you need to profile your ads depending on your location. Thanks to the impact factors, you know that you should include in your ads products that are currently in stock and do not run out. Just think how delighted your client can be when you predict all this! Not everyone will remember everything by providing you with requirements for the system.

Advantages of Business motivation model

Business Motivation Model (BMM) provides many advantages to organizations. These advantages include:

  • Clarity - BMM provides a clear structure and definition of the goals and objectives of the organization, making it easier to understand and communicate these goals.
  • Flexibility - BMM allows for a great degree of flexibility, as it can be adjusted to different organizational objectives. It can also be adapted to changes in the environment or the organization’s structure.
  • Efficiency - BMM helps organizations to use their resources in the most effective and efficient way, by identifying and managing relationships between the organization’s elements.
  • Visualization - BMM allows for a visual representation of the organization’s goals and objectives, making it easier to track progress and identify potential problems.
  • Improved Communication - BMM allows for better communication between different departments, making it easier for the organization to coordinate efforts and achieve its goals.
  • Improved Decision-Making - BMM helps organizations to make informed decisions, as it provides a framework for understanding the factors that affect the organization’s success.

Limitations of Business motivation model

  • Business Motivation Model (BMM) is not a comprehensive tool to cover many aspects of a business. It does not take into account the external environment, such as the market conditions, the industry trends, and the competitors.
  • BMM does not provide a complete picture of how a business should operate, as it does not consider the company’s internal processes, such as decision-making, resource allocation, and risk management.
  • BMM does not provide concrete solutions for problems. It provides only a framework for understanding and communicating the motivations and goals of a business.
  • BMM can be difficult to use for complex business plans, due to its limited scope and the need to create a large number of interconnecting elements.
  • BMM can be time consuming to create, as it requires careful consideration of the organization’s goals and objectives and their relation to one another.

Other approaches related to Business motivation model

  • Strategic planning: Strategic planning is a tool for developing a long-term vision for an organization, outlining the steps to achieve it, and assigning responsibility for the implementation of the plan.
  • Business Process Modeling: Business Process Modeling (BPM) is a method of mapping out the steps and activities that are necessary to meet a business goal. It helps to identify and define the roles, responsibilities, and communication pathways within a business.
  • Total Quality Management: Total Quality Management (TQM) is a system of organizational processes and practices aimed at achieving customer satisfaction through continuous improvement.
  • Balanced Scorecard: The Balanced Scorecard is a tool that helps organizations measure their performance in four key areas: financial, customer, internal process, and learning and growth.
  • Lean Management: Lean Management is a system of processes that focuses on eliminating waste, improving efficiency, and increasing customer value.

In summary, the Business Motivation Model is just one of the various approaches used to develop, communicate, and manage business plans. Other approaches include Strategic Planning, Business Process Modeling, Total Quality Management, Balanced Scorecard, and Lean Management. Each of these approaches provides an organized framework for achieving business goals and objectives.


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References

Przypisy

Author: Anna Pietruszewska