Verne Harnish is a business coach and author who is known for his work on scaling up businesses. One of the tools he has developed to help businesses grow is the 7 Strata exercise.
The 7 Strata exercise is a way to assess the current state of a business and identify areas for improvement. It involves evaluating seven key areas of a business: strategy, execution, people, cash, customers, processes, and culture. By examining each of these areas in depth, a business can get a better understanding of its strengths and weaknesses, and develop a plan for growth.
Here's a brief overview of each of the seven strata:
Strategy: This stratum involves evaluating the business's long-term vision, goals, and plans for growth.
Execution: This stratum involves looking at how well the business is executing on its plans, including its systems, processes, and metrics.
People: This stratum involves evaluating the business's leadership and team, including its hiring, training, and retention practices.
Cash: This stratum involves analyzing the business's financial health, including its revenue, expenses, and cash flow.
Customers: This stratum involves evaluating the business's customer base, including its marketing and sales efforts.
Processes: This stratum involves examining the business's internal processes, including its operations, supply chain, and technology.
Culture: This stratum involves evaluating the business's culture and values, including its vision and mission.
By thoroughly evaluating each of these strata, a business can identify areas for improvement and develop a plan for growth. The 7 Strata exercise can be a powerful tool for any business looking to scale up and achieve success.