Theory: Early Margin Maturity Model (M3)

Margin initiatives follow a recognizable pattern. Tracking initiatives across this pattern assists in effective planning.

This may be a little premature, but initiatives undertaken in the margins of corporate practice have seem to follow a recognizable pattern. They grow from nothing into semi-recognized efforts and finally become official, corporately-sponsored activities. Below is my initial take on the major stages along this continuum.

1. Idea - Before anything happens, an operation outside the margins of the organization begins as an idea. "Hey, what if we did this?"
2. Test - Initial activities are usually exploratory. "Let's see if this works."
3. Ramp-up - If the test produces some positive results, it is time to invest. Initial activities are expanded, often with little refinement. "Wow, I wonder if we can do that again?"
4. Codify - As activity levels expand, more information is available to refine operations and standardize practices. "How about if we did it this way?"
5. Inculcation - Institutional pressures from heightened activity volumes and a growing track record of success push the effort into standard operational swim lanes. "This should really be part of the XYZ division."

Serial margin managers, such as myself, begin to outsource the effort by stage 5 where traditional management functions are required so that we can focus on other initiatives maturing in stages 1-4.