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To truly become a managed and integrated business development unit, management and business developers must spend the adequate time and resources on defining the overriding purpose, role and areas of responsibility of business development. In other words, an answer to the question: "what should be the contribution from business development in one year, three years and five years time?' is a good place to start.
All evidence supports that this is a vital starting point for any business development unit struggling to find its foothold in the organisation, and it is an excellent way for management to make the most of their investment in business development.
B. Organising business development
The second element of managing business development successfully relates to the organising logic through which business development is delivered. During the course of our work, we have experienced many different kinds of organising logics for business development functions. We have seen
oDiversified conglomerates with both corporate and divisional business development functions as well as large- scale in-house project and programme offices
oLarge global corporations with only one business developer acting as the analytical mind of the CEO and organised as a board secretariat
oMedium-sized Scandinavian companies with large teams of business developers with a skill base ranging from business management, corporate finance to legal profiles
oSmall start-ups with 4-5 assigned senior industry specialists or subject matter experts organised with direct report to the top management
The need for formalised organisational processes and strong integration between business development and the strategy management process is low, and the business developers will typically play the role as analytical capacities and strong executers.
Similarly, the larger and more mature company will need business development to be more biased towards the role of "All-round strategist" with enough capacity within the unit to fulfil all four areas of responsibility simultaneously.
"Similarly, the larger and more mature company will need business development to be more biased towards the role of "All-round strategist" with enough capacity within the unit to fulfil all four areas of responsibility simultaneously"
At the other end of the spectrum we find the "Turnaround manager" where either the company or individual business units are under commercial and financial pressure. Here, the business development effort needs to be biased towards analysing the severity of the crisis, re-establish a profitable portfolio and define new and smarter ways of working. Typically, business development will play the role as being supportive of the turnaround in the form of providing fresh strategic insight, analytical power and strong execution abilities to rethink the business model, design the financial restructuring (if needed), identify the opportunities for divestment, off-shore or improve existing business activities.
As such, a business development unit may take on different roles at the same time, and it may change role from time to time.
When defining, or redefining, the areas of responsibility and role within the organisation, the following checkpoints are useful to keep in mind
•Is the role of the unit clear and communicated to its stakeholders?
•Is the area of responsibility clearly defined and delimitated?
•Are roles and responsibilities aligned with the overall strategy of the organisation?