Business Motivation Model In A Nutshell

The Business Motivation Model (BMM) is a means of developing, communicating, and managing business plans in an organized fashion. The Business Motivation Model is one of many frameworks that seek to fill a gap between strategic planning and execution. This gap is usually the result of a lack of communication between departments. Communication is also hampered when different departments describe problems using different terminology. 

Understanding the Business Motivation Model

To that end, the BMM seeks to standardize business plan communication within an enterprise. It also encourages businesses to construct tools that help them store, cross-reference, and report on the key elements of business plans.

There are two main purposes of a BMM:

  1. To make decisions that are visible to all decision-makers and explain the rationale for making them. Businesses should also improve decision-making ability by reflecting on the experience and learning.
  2. To provide references from the decisions to their effects on business operations. This may include changes to roles, responsibilities, or processes.

Key components of the Business Motivation Model

To help communicate the change associated with implementing a business plan, the BMM has a vocabulary of 22 core concepts.

These core concepts are defined in terms of five key areas:

  1. Ends – what does the business want to accomplish? Goals and objectives are commonly referenced.
  2. Means – how does the business intend to accomplish it? The means may be a particular strategy, tactic, or mission.
  3. Directives – what are the rules and policies that constrain or govern the means?
  4. Influencers – defined as any factor an enterprise believes may affect it. This includes internal influencers (infrastructure, resource quality) and external influencers (customers, regulation, competition).
  5. Assessments – or the risk and reward associated with an influencer causing a significant impact on the enterprise. The assessment often involves a SWOT analysis to assess internal and external factors.

Conceptually, the relationship between the Ends, Means, and Influencers helps the business answer two fundamental questions:

  • What is needed to achieve what the enterprise desires to achieve? Here, decision-makers need to identify the Means necessary to achieve the desired Ends.
  • Why does each element of the business plan exist? In other words, which End does each Mean serve? What are the Influencers that provide the foundation for each choice?

Business Motivation Model best practices

It should be noted that the BMM is not a methodology but a blueprint designed to support a range of methodological approaches.

The only stipulations for creating a BMM include:

  • A business-driven requirements development process.
  • Organized business plans being a fundamental deliverable in any such process.
  • Incorporating business rules and business processes as non-negotiable elements. This helps the business guide the performance of the work and provide an adequate fallback position if some aspect of the plan fails. Rules are also important in resolving conflict that occurs when goals or objectives contradict each other.

Key takeaways:

  • The Business Motivation Model is a framework for recording important governance decisions in business plans and associated change management. It also provides a means of connecting decision-making to business operations.
  • The Business Motivation Model contains 22 core concepts that help streamline communication. Each core concept occupies one of five key areas of activity within an organization.
  • The Business Motivation Model is not a methodology but a blueprint designed to support several approaches. With only three general stipulations, the BMM approach is a flexible approach to a variety of business contexts.

Read Next: SWOT AnalysisPersonal SWOT AnalysisTOWS MatrixPESTEL AnalysisPorter’s Five ForcesTOWS MatrixSOAR Analysis.

FourWeekMBA Business Toolbox

Tech Business Model Template

A tech business model is made of four main components: value model (value propositions, missionvision), technological model (R&D management), distribution model (sales and marketing organizational structure), and financial model (revenue modeling, cost structure, profitability and cash generation/management). Those elements coming together can serve as the basis to build a solid tech business model.

Web3 Business Model Template

A Blockchain Business Model according to the FourWeekMBA framework is made of four main components: Value Model (Core Philosophy, Core Values and Value Propositions for the key stakeholders), Blockchain Model (Protocol Rules, Network Shape and Applications Layer/Ecosystem), Distribution Model (the key channels amplifying the protocol and its communities), and the Economic Model (the dynamics/incentives through which protocol players make money). Those elements coming together can serve as the basis to build and analyze a solid Blockchain Business Model.

Asymmetric Business Models

In an asymmetric business model, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.

Business Competition

In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.

Technological Modeling

Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.

Transitional Business Models

A transitional business model is used by companies to enter a market (usually a niche) to gain initial traction and prove the idea is sound. The transitional business model helps the company secure the needed capital while having a reality check. It helps shape the long-term vision and a scalable business model.

Minimum Viable Audience

The minimum viable audience (MVA) represents the smallest possible audience that can sustain your business as you get it started from a microniche (the smallest subset of a market). The main aspect of the MVA is to zoom into existing markets to find those people which needs are unmet by existing players.

Business Scaling

Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.

Market Expansion Theory

The market expansion consists in providing a product or service to a broader portion of an existing market or perhaps expanding that market. Or yet, market expansions can be about creating a whole new market. At each step, as a result, a company scales together with the market covered.



Asymmetric Betting


Growth Matrix

In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).

Revenue Streams Matrix

In the FourWeekMBA Revenue Streams Matrix, revenue streams are classified according to the kind of interactions the business has with its key customers. The first dimension is the “Frequency” of interaction with the key customer. As the second dimension, there is the “Ownership” of the interaction with the key customer.

Revenue Modeling

Revenue model patterns are a way for companies to monetize their business models. A revenue model pattern is a crucial building block of a business model because it informs how the company will generate short-term financial resources to invest back into the business. Thus, the way a company makes money will also influence its overall business model.

Pricing Strategies

A pricing strategy or model helps companies find the pricing formula in fit with their business models. Thus aligning the customer needs with the product type while trying to enable profitability for the company. A good pricing strategy aligns the customer with the company’s long term financial sustainability to build a solid business model.

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