Business Design Concepts Intro 1226410958794972 8
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Transcript of Business Design Concepts Intro 1226410958794972 8
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BetterPerformanceby Design
Business
DesignConcepts, LLC
November 10, 2008
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Business Design Concepts (BDC), LLC wasformed in October of 2004.
BDCs mission:
Design our clients for success.
Business Design ConceptsBusinessBlueprints
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BDCs founders are:
Stan Kirkwood
Jim Boughey
Senior Consultant
- Walter Myers
Basic Business
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Stan Kirkwood:- Co-founder of Business Design Concepts, LLC
- Former VP and CIO for La-Z-Boy Incorporated
- MBA from University of North Carolina
- 25 years in IT management, strategic planning,
consulting, process reengineering and project
management
- Certified in Business Process Reengineering- Mountain Home Training and Consulting
- CPIM certification with APICS
Stan Kirkwood
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Jim Bougheys bio: Co-founder of Business Design Concepts, LLC
Director of Business Engineering for La-Z-Boy
Incorporated
25 years in manufacturing, consulting,
business model design and strategic planning
Hammer and Company Process Master
Business Process Reengineering certified Mountain Home Training and Consulting
APICS CPIM certified
Jim Boughey
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Walt Myers bio: Former Vice President of Manufacturing, Materials &
Distribution for Calphalon Corporation
Seasoned management professional with a background
in business strategic and tactical planning Developed and planned processes to effectively
manage both service and manufacturing operations
Skilled in systems design, implementation and execution
Excellent project management skills and experience Experienced with world class techniques
APICS CPIM certified
Walt Myers
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The founders spent two years developing aPerformance System known as Business
Blueprints.
Basic Business
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BDCs system can be used for: For-profit corporations
Non-profit corporations
Publicly traded organizations
Privately held organizations Government agencies
Single business units
Departments within an organization
Employees
Business Blueprints is independent of industryand size of company.
Basic Business
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Customized Business DesignsBusinessBlueprints
Business Design Concepts, LLC
provides customized business designs
specifically tailored to meet our clientsgoals.
Your customers and shareholders are atthe core of everything we do
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The foundation of any structure is important.
Here are the Four Tenets
- the foundation
upon which Business Blueprints are created
Four Tenets of BDC System
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First TenetBusinessBlueprints
These cars may have been designedwith the same goals and strategies inmind but the level of performancepossible for each one is dictated by thedesign.
While strategies are important it is thedesign of the vehicle that will determineits top speed or how well it canmaneuver through tight spots.
The same strategies but different designs
Copyright Business Design Concepts, LLC
Design Dictates Performance
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BusinessBlueprints
Business Blueprints add value
Second Tenet
Management Team
Without a documented design what is the
likelihood that the people at this table willshare a common understanding? None.
And yet executives sit across the tablefrom each other for years without knowingthey do not share a common vision.
Designs must be Documented
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BusinessBlueprints
Business Blueprints add value
Implementation teamRemove the documented design from theimplementation team and what is the likelihood
that the team will build what the executive teamhad in mind? None.
This is why executives are continuallydisappointed by the outcome of projects.
Implementation teams can not know whatmanagement has in mind.
The fault lies with management!
Designs must be DocumentedSecond Tenet
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Third TenetBusinessBlueprints
Evolved Business Designed Business
Individual processes working independently Processes designed to work together
Finance
InformationTechnology
ProductDevelopment
Operations
ManagementLogistics
Sales
HumanResources
Everything is connected to Everything
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Importance of ProcessesBusinessBlueprintsWorld-class organizations know the importanceof process-centric management.
Costs are reduced
Cycle times are improved Productivity soars, and
Customer satisfaction increases
All of which adds up to a critical and sustainablecompetitive advantage. That can be referredto as Process Excellence.
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Process ExcellenceBusinessBlueprintsFour keys to Process Excellence:
1. Quality of the overall process design
2. Implementation of the process design
3. Execution of the process design
4. Management of the process design.
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Importance of Business DesignBusinessBlueprintsWorld-class organizations know the importance ofdesign-centric management.
Customer and shareholder value defined andquantified
Processes designed to meet customer andshareholder expectations
Organization designed to execute processes
Systems designed to support organization
An aligned organization provides a competitiveadvantage and can be referred to as BusinessExcellence.
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Business ExcellenceBusinessBlueprintsFour keys to Business Excellence:
1. Quality of the overall business design
2. Implementation of the business design
3. Execution of the business design
4. Management of the business design.
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PromisesBusinessBlueprintsEvery business has an inherent promise to
its customers:
Coke Refreshment
Kodak Memories
La-Z-Boy Comfort
What is your promise to your customers?
Business Design ConceptsConfidence
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ConfidenceBusinessBlueprintsWhat if you are:
Uncertain what to do next
Uncertain of where to go
What if you are:
Confident of what to work on
Confident of direction ofcompany
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Business DesignBusinessBlueprintsWhat does a business design need to look
like to instill confidence?
It depends Goals
Competitive environment
Desired strategies Existing business design
Execution by organization
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Design x Execution = PerformanceBusinessBlueprints
Designs become obsolete as
the competitive environment
changes
Companies waste
money with Execution
Improvement Activities
Need current business design
and good execution of the design
to achieve performance goals
Competitive Environment
Sub-standardPerformance
GoodPerformance
PoorPerformance
Sub-standardPerformance
Design
Execution
5
10
5 101
100
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Accomplished QuicklyBusinessBlueprints How long does it take to document a business
design?
Typically four to six weeks
How does BDC accomplish that task so quickly?
Use a unique system of common elements within allbusinesses
Common Structure Common Framework
Common Building Block
Common Metrics
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CommonFundamentals
Metrics:
Framework:
Building Block:
BusinessBlueprintsStructure:
- ROI - - VP -
ProcessProduct
- VP -
Product
Capstone
OrganizationalModel
Proc
ess
Model
MarketModel
SystemsModel
Manage the
Entity
Support the
Entity
Create
DemandFulfill Demand
Business
Entity
- (VP) Value Proposition- Measure market satisfactiono Desirabilityo Costo Quality
o Lead time
- (ROI) Return on Investment- Measure stakeholder satisfactiono Customer satisfactiono Financial Successo Operational Effectivenesso Management Effectiveness
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AlignmentBusinessBlueprints
Capstone
OrganizationalModel
Proc
ess
Model
MarketModel
SystemsModel
Alignment becomespossible only afterthe structure hasbeen documented.
Each model must be
designed to supporteach other.
Structure:
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Alignment (Structure)BusinessBlueprints
Capstone
MarketPerformanceRequirements
ProcessPerformanceRequirements
Organizational
PerformanceRequirements
SystemPerformanceRequirements
Expectations of market for products / services
Competitor offerings of products / services
How products /services designed tomeet customerexpectations
How processesdesigned todeliver products
/ services
How organization
designed to executeprocesses
How Systems aredesigned to support
DQM
Define
Quantify
Measure
Manage
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BusinessBlueprints Market Performance
Focus on what is Important!
Which Market will you go after?
0
5
10
15
20
25
30
35
40
45
K-12 Universities First Responder
Market Importance
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BusinessBlueprints Customer Performance
Focus on what is Important!
Customers buy your product. Whichcustomers will you appeal to?
Customer Rankings - Pie
Police
Fire
EMS
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BusinessBlueprints Product Performance
Focus on what is Important!
Your products must have a compellingValue Proposition.
0
5
10
15
20
25
30
35
40
Std Duty Heavy Duty Turnout Storage
Products
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BusinessBlueprints Process Performance
The Process designs mustsupport Market designHow are your processesdesigned?
Process Designs affect:- Lead time- Quality- Cost
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BusinessBlueprints Organizational Performance
Organizations execute Processes
Right People on BusWrong People off Bus
Right People, Right Seats
Does your organizationhave the right:- Skills- Talents- Knowledge- Experience?
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BusinessBlueprints Systems Performance
Organizations use Systems to execute Processes
Are your IT systemsdesigned to support yourorganization?
Do you have theright equipment?
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BusinessBlueprints Business Performance
To have maximumperformance partsmust be aligned
Dont start with IT
systems and workyour way up. IT is
not the silver bullet.
Markets Aligned to Goals
Processes Aligned toMarkets
Organizations Aligned toProcesses
Systems Aligned toOrganizations
Markets Aligned to Goals
Processes Aligned toMarkets
Organizations Aligned toProcesses
Systems Aligned toOrganizations
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BusinessBlueprints Deliverables
Road Map
Updated blueprints of your business
Strategic Plan
Governance ModelCompetitive Environment
Goals
ChangeGoal
Existing
Design
Strategies
ExecuteStrategy with
ExistingDesign
PerformanceCapabilities
Strategic Plan&
RoadMap
No
Yes
ModifyDesign,Goa l,or
Strategy
ChangeDesign
ChangeStrategy
B
A
C
B
C
PerformanceRequirements
A
ExecuteDesign
A
Howto achieveGoals
Steps toperformance:
-Setstrategic goals incontextofthe environment
-Identify strategies youwishtoexecute toachieve those goals-Update the existingdesignofthe business tobe able toexecute those strategies-Implementthe newdesign-Execute the strategies.
ExecuteStrategies
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StrategicManagement
BusinessDesign Concepts,LLC
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