Operating model tool

Which part of your business is worth improving first?

Lay your business out as a value chain, rate each activity on the six things that matter, and the tool finds your hotspot: the activity where a big capability gap sits on something strategically important, valuable and risky. It shows the maths, so you can see why.

Rate each activity 1 to 5 on all six dimensions. The hotspot score weights the gap between strategic importance and capability most heavily, because that's the fixable distance between how much an activity matters and how good you are at it. Add your own activities, or edit the value chain below.

New to this? What a value chain is and what each column means

You're breaking your business into its main activities and rating each one. Every column is scored 1 (low or weak) to 5 (high or strong). The plain-English meaning of each is below, so you don't need to know the framework.

  1. A value chain is just the list of the main things your business does to turn inputs into something a customer pays for, from getting supplies in, through delivering the work, to marketing, sales and after-sales. The rows are already filled with a typical set; rename them, or add your own with + Add activity.
  2. Mark each activity Primary (it directly creates and delivers what you sell) or Support (it helps the primary work happen, like IT, HR or finance).
  3. Rate each activity 1 to 5 on all six columns. 1 means low or weak, 5 means high or strong.
  4. The tool finds your hotspot: the activity where a big capability gap sits on something that also matters strategically, financially and to customers. That's usually the best place to improve first.
Primary vs Support
Primary activities directly make and deliver what you sell (operations, delivery, sales, service). Support activities keep the primary ones running (systems, people, admin, procurement).
Capability
How good you actually are at this activity, honestly. 1 = weak or unreliable. 5 = genuinely excellent.
Strategic importance
How much winning in your market depends on this activity. 1 = barely matters. 5 = you can't win without it.
Customer value
How much your customers notice and care about it. 1 = invisible to them. 5 = a big part of why they buy.
Financial impact
How much money runs through this activity, in revenue or cost. 1 = tiny. 5 = a large share of the numbers.
Risk exposure
How much risk is concentrated here (a single point of failure, a key person, a fragile supplier). 1 = low. 5 = high.
Differentiation
How distinct you are here versus competitors. 1 = the same as everyone. 5 = clearly better or different.
Confidence
How sure you are of the ratings in that row. Low confidence trims the hotspot score so a guessed row doesn't outrank an evidenced one.
Hotspot score
The tool weights the gap between strategic importance and capability most heavily, because that's the fixable distance between how much an activity matters and how good you are at it, then adds the financial, risk and customer weight. The higher the score, the more worth fixing first.
Activity Type Capability Strategic
importance
Customer
value
Financial
impact
Risk
exposure
Differ­entiation Conf. Hotspot

Your #1 hotspot

Marketing & sales

15.2 hotspot score

Every activity, ranked by hotspot score

Biggest capability gaps

    Important, but undifferentiated

      Turn the hotspot into a plan →

      A Commercial Assessment builds this from evidence; the Competitor Scorecard tests whether your strong activities are actually differentiated, and the APG Platform turns the top hotspot into an owned, valued initiative.

      A structured judgement aid, not a causal model. The value chain is a snapshot: activities interact, and improving the top hotspot can shift the binding constraint elsewhere, so treat the ranking as where to look first. Scores are your own judgement, so rate honestly; marking everything strategically vital tells you nothing. The hotspot score uses the four self-contained terms of APG's model (capability gap ×2, financial, risk, and 0.75 × customer value) with a confidence multiplier. Not financial advice.

      Being good at something is not the same as it mattering. The hotspot is where the two diverge most.

      A value-chain read turns 'the business needs to get better' into one specific activity, for specific reasons. A Commercial Assessment is where that becomes a costed, owned move.

      Start with a Commercial Assessment →

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