How we use the
3 System Model

We find that the 3 system model is a useful tool for describing the capabilities a company needs to achieve sustainable, profitable growth. It gives us a framework for quickly identifying where a client is on their journey to profitable growth and where they likely need to focus their efforts.

The model is descriptive, not prescriptive. It is a useful guide to the patterns of growth that we have found to be most effect. However every client is unique, so we will help you tailor the model to fit your company's needs.

Putting the 3 System Model to Work

Stablize Your Business First

A company with a product that could revolutionize an entire industry approached us seeking advice on how to grow their business. The owner had run up a sizeable debt to bring the product to market, had only shown a profit in one month in the past three years. Their business processes were not efficient. We advised the owner to stabilize the current business and getting it profitable before launching a growth initiative.

Focus on a Well Defined Target Market

A company with a service offering that was less expensive and produced a better result for its customers approached us seeking advice on how to grow their business. The owner was making a good living at his current level of sales, but saw the opportunity to expand nationally. We advised him to focus on one geographic market first and establish a dominate postion, then move into additional geographic markets.

Unlock your Company's Hidden Value

Too often companies fail to realize their full potential. They do not focus every aspect of their company on delivering what their customers believe is most important.  

We help our clients unlock this hidden value by developing a deep understanding of their customer needs. Then we help them organize their marketing and operations to deliver what their customers value. 

We believe that companies must master three systems to achieve profitable growth. These three systems are essential building blocks that need to be developed in the proper order.

Three Systems that Drive Growth

System 1 – Operations Excellence:

System 1 focuses on stabilizing a company’s operations and optimizing its profitability. The objective is to make the company systematically profitable and prepared for growth. Growth stresses a company’s people, systems and business processes. Growth can easily mask problems that emerge quickly when growth slows; a time when a company is least able to deal with difficulties. Growth also stresses cash flow as investments are made in working capital and capacity. Putting a solid operational foundation in place before launching a growth initiative minimizes operational problems as a company grows and reduces the investment required to finance growth.

System 2 – Market Segment Domination:

System 2 focuses on selecting and dominating a specific target market segment. Companies achieve better results more quickly when they focus their resources on a target market segment, rather than spreading their resources across the entire market. Focus enables a deep understanding of important customer needs. With this knowledge our clients design products, services, marketing and operations to meet their customer needs in the most efficient and effective way possible. This leads to increased market share and maximum pricing power.

System 3 – Adjacent Market Expansion:

System 3 focuses on developing the capability to systematically repeat the success of System 2 in adjacent market segments. With experience, the process of identifying and penetrating new markets becomes a core competency that can help a company adapt to the opportunities presented by ever-changing market conditions.

 

At Business Navigation Systems, our focus is to help our clients chart their own unique course to profitable growth by systematically implementing and fine-tuning these three essential growth systems. If you are passionate about achieving profitable growth, we would like to work with you.