Creating a New Business Using AI and MVOSSTE Part VII

The final stage of the MVOSSTE (Mission, Vision, Objective, Situation Analysis, Strategy, Tactics, Execution) framework is Execution. This step involves the actions needed to put the strategy and tactics into motion. In step six we identified the resources needed to deploy the strategy that combined price, place, product and promotion to create value for our company, our customers and our collaborators. That is we now know, base on our research and planning, what products we will produce, how we will get the products to the customers when they need them, what price we will charge and how we will let the customers know the products exist and urge them to buy them. We also have identified the resources we will need to build the business and reach our objectives.

What we need to do now is have a process that will insure we will have a successful, sustainable business launch. For this we will have to have a plan for our resources (work force, financial resources, procedures and fixed assets) that is measurable and moves us toward achieving our objective. We will also need to know how these resources need to be organized, how they need to be directed and what controls need to be in place to insure we remain on larget to reach our goals.

The grid below shows the actions needed to plan, organize, direct and control those resources.

As you can see this is another sixteen square grid that requires the strategist to address each square. Once again, AI can be very helpful in providing initial options for consideration.

Below is a completed execution plan based on your “Implementing the Strategy” grid, with practical solutions aligned to your company's mission and objectives for delivering protective, high-quality solutions cost-effectively:

IMPLEMENTING THE STRATEGY – Execution Plan With Practical Solutions

	STRATEGIC WORKFORCE	STRATEGIC CASH REQUIREMENTS	STRATEGIC OPERATING PROCEDURES	STRATEGIC FIXED ASSETS
PLANNING	Define key roles (e.g., design, marketing, logistics). Use contractors/freelancers where cost-efficient.	Create rolling cash flow forecasts. Prioritize cash-efficient product/service launches.	Document SOPs for product development, testing, packaging, fulfillment, and service follow-up.	Use lease-to-own or shared-access models for machinery. Choose cloud-based tools over on-premise systems.
ORGANIZING	Build small cross-functional teams to increase agility. Outsource non-core tasks (e.g., accounting).	Schedule disbursements to align with revenue cycles. Implement credit terms for B2B sales.	Assign product dev and ops roles based on lean methodology. Automate repetitive tasks where possible.	Consolidate operations in co-working production spaces. Use mobile tools to reduce physical footprint.
DIRECTING	Track team output via KPIs like products/hour, errors/shift, or sales conversion. Use bonuses for targets.	Prioritize investment in revenue-generating areas (e.g., sales tools). Limit inventory spend.	Set performance dashboards with real-time tracking (orders/day, delivery rate, CSAT). Incentivize customer success.	Tie asset usage to ROI: e.g., machines must operate at 75%+ capacity. Delay capex until payback is clear.
CONTROLLING	Review performance monthly. Adjust workforce allocations based on load. Tiered pay tied to impact.	Review burn rate and margin monthly. Reallocate based on contribution margin by product line.	Perform quarterly process audits to identify bottlenecks. Continuously test and refine fulfillment and delivery steps.	Use asset tracking to ensure utilization. Replace or sell idle assets. Optimize via digital twins if possible.

Once again each of these usuggessted approaches will need to be analyzed to make certain that it makes sense. If the option makes sense then the option will need to be fully developed. For example, an organization chart for the business would be needed. Again AI can provide some assistance:

Here's a proposed organization chart for your business, structured to support the strategic objectives of delivering protective solutions with limited resources, while emphasizing quality, flexibility, and efficient scaling:

🏢 Organizational Chart for Protective Solutions Business

1. Executive Leadership

Founder/CEO
- Sets vision, strategic direction, manages investor and key partner relations.

2. Product Development

Product Manager
- Oversees design, innovation, and R&D for new protective products.
Design & Engineering Lead (can be freelance or contract)
- Focuses on material selection, protection testing, and prototyping.

3. Operations

Operations Manager
- Manages sourcing, logistics, production workflows, and fulfillment.
Supply Chain Coordinator
- Coordinates with vendors, manufacturers, and shipping partners.
Quality Assurance Specialist (part-time or consultant)
- Ensures products meet functional and safety standards.

4. Sales & Marketing

Marketing Director
- Leads brand development, positioning, digital campaigns, and customer acquisition.
Sales Manager
- Manages B2B accounts and eCommerce/retail channel relationships.
Customer Success Specialist (remote role)
- Handles support, feedback, and loyalty programs.

5. Finance & Administration

Finance Manager / Controller (outsourced or part-time)
- Oversees budgeting, accounting, financial forecasting, and cash flow.
HR & Admin Coordinator (shared service or contract role)
- Manages hiring, onboarding, and compliance.

6. Technology Support

IT & eCommerce Lead (freelancer or agency)
- Maintains website, analytics, and technology integrations (CRM, inventory, etc.)

🧩 Notes on Structure:

Roles like Design, IT, QA, and Finance can be outsourced or project-based initially.
Use freelancers and fractional executives to maintain quality without full-time costs.
Promote cross-functional communication between product, marketing, and ops to stay agile.

After an organization chart and reporting relationships are agreed upon, standards of performance and metrics for each positions will need to be established that support the organizational objectives. AI can provide assistance here as well.

Below is a structured table outlining responsibilities, standards of performance, and metrics for each position in your organizational chart, tailored to support your business’s strategic objectives (quality, protection, affordability, scalability, and profitability).

🏢 Roles, Responsibilities, Standards & Metrics

Position	Key Responsibilities	Standards of Performance	Key Metrics
Founder/CEO	Set vision, secure resources, lead strategic growth, manage key relationships	Vision alignment, milestone achievement, fiscal accountability	Revenue growth, net margin, partner satisfaction score
Product Manager	Manage product roadmap, customer insights, lead development cycles	On-time launches, alignment with customer needs, product viability	Time-to-market, product adoption rate, customer satisfaction (CSAT)
Design & Engineering Lead	Design products to meet protection, style, and cost targets	Functionality tests passed, production-ready prototypes	% products passing QA, cost per design iteration, prototype cycles
Operations Manager	Oversee fulfillment, supply chain, production planning	On-time delivery, supplier performance, low waste	On-time delivery rate, order error rate, fulfillment cost/order
Supply Chain Coordinator	Vendor liaison, inventory control, procurement	Just-in-time inventory levels, cost control, vendor reliability	Inventory turnover, vendor defect rate, procurement cost per unit
Quality Assurance Specialist	Test and monitor products for durability, consistency, and safety	100% compliance with quality standards, zero-defect delivery	Defect rate, returns due to quality, audit pass rate
Marketing Director	Brand management, lead generation, customer engagement strategy	Campaign ROI, lead conversion, brand visibility	CAC (Customer Acquisition Cost), ROAS (Return on Ad Spend), NPS
Sales Manager	Manage sales channels, close deals, nurture B2B/B2C relationships	Sales quotas met, pipeline health, customer feedback	Sales volume, average deal size, close rate, sales cycle length
Customer Success Specialist	Handle onboarding, service issues, retention, feedback	Fast response time, satisfaction, repeat customer growth	CSAT, NPS, response time, retention rate
Finance Manager / Controller	Budgeting, forecasting, cash flow, compliance	Timely reports, budget adherence, risk mitigation	EBITDA, burn rate, forecast accuracy
HR & Admin Coordinator	Recruit, onboard, administer policies and compliance	Smooth onboarding, compliance rate, team satisfaction	Time to fill, onboarding time, turnover rate
IT & eCommerce Lead	Manage website, CRM, analytics, integrations	Site uptime, smooth UX, analytics insights	Site uptime %, conversion rate, bounce rate, cart abandonment rate

Each square of the grid should have the same level of analysis. After the analysis is completed the solutions for the squares should be examined and tested to insure they support each other and the overall objective of the company.

AI can assist in tieing workforce requirements to profitability requirements. Here is an example:

Here is a refined version of the table, now focused on metrics that directly support a profitable operation, mapped to the appropriate positions. These metrics are designed to track profitability drivers: revenue growth, cost efficiency, cash flow health, asset productivity, customer value, and workforce output.

💼 Profitability-Driven Metrics by Role

Role	Profit-Driven Metrics	Why It Matters
Founder/CEO	- Net Profit Margin (%) - Revenue Growth Rate - ROE (Return on Equity)	Tracks overall financial health and efficiency of value creation and leadership decisions
Product Manager	- Contribution Margin per Product - % of Revenue from New Products	Ensures each product adds profit and innovation drives top-line growth
Design & Engineering Lead	- Cost per Product Developed - % Designs Approved for Production on First Review	Controls design costs and speeds up profitable product launch
Operations Manager	- Fulfillment Cost per Order - Production Efficiency (Units/Hour)	Directly ties operational efficiency to gross margin preservation
Supply Chain Coordinator	- COGS Variance from Target - Inventory Turnover Ratio	Keeps procurement and holding costs aligned with profitability targets
Quality Assurance Specialist	- % of Defective Units < 1% - Cost of Returns and Replacements	Reduces quality-related losses that eat into margin
Marketing Director	- CAC (Customer Acquisition Cost) - ROAS > 3:1 - CLV:CAC Ratio > 3	Ensures efficient marketing spend and long-term profitability of customer relationships
Sales Manager	- Gross Revenue per Rep - Average Order Value (AOV) - Sales Conversion Rate	Drives revenue performance per salesperson and per transaction
Customer Success Specialist	- Retention Rate > 80% - Churn Rate < 5% - Customer Lifetime Value (CLV)	Enhances repeat sales and reduces cost of acquiring new customers
Finance Manager / Controller	- Cash Conversion Cycle (CCC) - Operating Cash Flow Margin > 10%	Tracks liquidity and operational profit generation
HR & Admin Coordinator	- Revenue per Employee - Workforce Cost as % of Revenue	Maintains labor cost efficiency aligned with scaling requirements
IT & eCommerce Lead	- eCommerce Conversion Rate > 2% - Uptime > 99% - Revenue per Visitor	Ensures the platform reliably generates revenue with low friction for buyers

📌 Summary of Key Profitability Metrics Across Roles:

Metric	Target	Impact
Net Profit Margin	≥ 15%	Ensures all operations support profitability
Contribution Margin per Product	≥ 30%	Ensures sufficient margin to cover overhead
Customer Acquisition Cost (CAC)	≤ $50	Keeps marketing spend efficient
Customer Lifetime Value (CLV)	≥ $150	Justifies CAC and supports growth
Fulfillment Cost per Order	≤ $5	Improves margin efficiency
Inventory Turnover	≥ 6/year	Reduces holding costs
Retention Rate	≥ 80%	Drives stable recurring revenue
Revenue per Employee	≥ $150,000/year	Assures labor productivity and scaling

You can also use AI to provide specific metrics for each position in the organization:

To estimate revenue and profit based on the metrics in your operating structure, we’ll make reasonable assumptions tied to your staffing plan, contribution margins, and customer economics.

🔧 Assumptions Based on the Metrics & Strategy

1. Sales Volume & Pricing (per initial Blue Ocean + pricing sensitivity work)

Average Price per Product: $75
Monthly Orders: 1,500 units
Annual Orders: 18,000 units

2. Revenue

Annual Revenue = 18,000 units × $75 = $1,350,000

3. Cost Structure Estimates

Cost Category	Estimate Per Unit	Total Annual Cost
COGS (materials + production)	$30	$540,000
Fulfillment (packaging/shipping)	$5	$90,000
Marketing / CAC	$35 per new buyer	$157,500 (assuming 4,500 new customers/year)
Labor	Fixed at ~$360,000/year	Based on essential roles (contract/outsourced blend)
Other Overhead (Tech, Rent, etc.)	—	$75,000
Total Costs	—	$1,222,500

4. Profit Estimate

Gross Profit = Revenue – COGS – Fulfillment = $1,350,000 – $540,000 – $90,000 = $720,000
Operating Profit = Gross Profit – Marketing – Labor – Overhead = $720,000 – $157,500 – $360,000 – $75,000 = $127,500

📊 Key Metrics

Metric	Value
Revenue	$1,350,000
Gross Margin	53%
Operating Margin	~9.4%
Profit (Before Tax)	$127,500
Revenue per Employee	~$150,000
Customer Lifetime Value	~$150
CLV:CAC Ratio	3:1

This shows the business can be profitable at relatively modest volumes if it:

Maintains a hybrid workforce structure (lean internal team, quality outsourcing),
Focuses on margin control (especially COGS and CAC),
Builds a strong customer retention base (to improve CLV and reduce CAC).

Would you like a cash flow projection or scenario modeling (e.g., lower sales volume, higher CAC) next?

You can also use AI to compare this analysis with your previous pricing analysis to show consistency and point out potential weaknesses:

Let’s tie this profitability model back to the earlier pricing sensitivity and workforce affordability analysis to ensure alignment and identify any conflicts or risks.

🧩 What the Pricing Study Previously Showed

From our earlier analysis:

Lower Price Ranges (e.g., $50–$75):
- ✅ Increased accessibility and market size.
- ❌ Limited ability to afford a full in-house team with needed competencies.
- Required hybrid models (outsourcing, automation, freelancers).
Higher Price Ranges (e.g., $100+):
- ✅ Allowed in-house hiring and richer service/support models.
- ❌ Smaller accessible market and more price sensitivity.

🔗 Alignment with Current Plan

Element	Pricing Sensitivity Result	Current Plan Based On $75 Price	Alignment or Gap
Workforce	Hybrid required at $75 or less	Using contract/freelance blend	✅ Aligned
Volume Needed for Profit	~1,500 units/month for viability	1,500 units/month modeled	✅ Aligned
Customer Value (CLV)	Must be ≥ 2–3× CAC	CLV = $150, CAC = $35	✅ Aligned
Gross Margin Target	Must stay > 50% to be sustainable	Gross Margin = 53%	✅ Aligned
Labor Cost Sensitivity	High fixed labor hurts margin	Labor kept flexible/contracted	✅ Aligned
Pricing Flexibility	Limited room to drop below $75	Pricing held at $75	✅ Aligned

⚠️ Potential Gaps or Risks to Monitor

Risk	Impact	Mitigation Needed
CAC increases (above $50)	Could kill margins	Improve targeting, referrals, SEO, UGC
Volume drops (e.g., to 1,000/mo)	Margins get too thin	Raise prices or add higher-margin SKUs
Supplier cost hikes	Shrinks gross margin	Lock in long-term contracts or nearshoring
Retention < 50%	Reduces CLV below viable level	Focus on loyalty, quality, support

✅ Conclusion

The $75 pricing sweet spot used in your current revenue and profit model is completely consistent with the earlier pricing sensitivity analysis—as long as you execute a lean, hybrid workforce strategy and keep marketing and COGS under control.

Would you like to model an alternative pricing scenario (e.g., $65 or $85) to test sensitivity?

Role	Objective	Metric (KPI)	Target	Frequency
Founder/CEO	Drive profitable growth	Net Profit Margin	≥ 15%	Quarterly
Founder/CEO	Ensure strategic alignment	Strategic Objective Completion Rate	100%	Quarterly
Founder/CEO	Steward resources effectively	Cash Flow Coverage Ratio	≥ 1.5x	Monthly
Product Manager	Build profitable products	Contribution Margin per SKU	≥ 30%	Monthly
Product Manager	Accelerate innovation	Time-to-Market	≤ 90 days	Quarterly
Product Manager	Ensure product-market fit	Customer Satisfaction Score	≥ 4.5/5	Monthly
Design & Engineering Lead	Develop high-quality designs	% First-Pass Approval	≥ 90%	Monthly
Design & Engineering Lead	Minimize design cost per unit	Design Cost per Product	≤ $5/unit	Monthly
Operations Manager	Optimize fulfillment	Units Produced per Hour	≥ 20	Weekly
Operations Manager	Manage order costs	Fulfillment Cost per Order	≤ $5	Monthly
Operations Manager	Minimize delays	On-Time Delivery Rate	≥ 95%	Monthly
Supply Chain Coordinator	Control stock costs	COGS per Unit	≤ $30	Monthly
Supply Chain Coordinator	Increase inventory efficiency	Inventory Turnover	≥ 6	Quarterly
Quality Assurance Specialist	Reduce defects	Defect Rate	≤ 1%	Monthly
Quality Assurance Specialist	Lower rework cost	Cost of Rework/Returns	≤ 2% of Revenue	Monthly
Marketing Director	Efficiently acquire customers	CAC	≤ $35	Monthly
Marketing Director	Maximize ROI	ROAS	≥ 3:1	Monthly
Marketing Director	Grow audience	Subscriber Growth Rate	≥ 10% MoM	Monthly
Sales Manager	Maximize revenue	Revenue per Rep	≥ $150,000/year	Quarterly
Sales Manager	Convert leads	Sales Conversion Rate	≥ 20%	Monthly
Sales Manager	Increase order value	Average Order Value	≥ $75	Monthly
Customer Success Specialist	Retain customers	Retention Rate	≥ 80%	Monthly
Customer Success Specialist	Improve CLV	CLV	≥ $150	Quarterly
Customer Success Specialist	Reduce churn	Churn Rate	≤ 5%	Monthly
Finance Manager	Maintain liquidity	Operating Cash Flow Margin	≥ 10%	Monthly
Finance Manager	Optimize working capital	Cash Conversion Cycle	≤ 30 days	Monthly
HR & Admin Coordinator	Ensure efficiency	Revenue per Employee	≥ $150,000	Quarterly
HR & Admin Coordinator	Control labor costs	Labor Cost as % of Revenue	≤ 25%	Quarterly
IT & eCommerce Lead	Maximize eSales	Website Conversion Rate	≥ 2%	Monthly
IT & eCommerce Lead	Platform reliability	Uptime	≥ 99%	Monthly
IT & eCommerce Lead	Monetize visitors	Revenue per Visitor	≥ $1.50	Monthly

When completing all seven stages of the MVOSSTE framework you should have a plan that can be followed by all in the organization that is based on the company's mission, vision and objective.

If you or your company would like to use this approach, GWR Research can provide support and direction that will result in a complete strategic plan and budget for your organization. We can also hold training sessions for those involved in planning for your organization. Contact us by visiting us at our website gwrresearch,com, click on the services tab and leave a message or you can contact me directly at gary@gwrresearch,com.

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