Business Design Concepts, LLC: "Better Performance by Design"

Better Performance by Design
Business Design Concepts, LLC
November 10, 2008
Business Blueprints
Business Design Concepts
Business Design Concepts (BDC), LLC was formed in October of 2004. BDCs mission: Design our clients for success.
Copyright: www.stankirkwood.com 2008
Basic Business
BDCs founders are: Stan Kirkwood Jim Boughey
Senior Consultant - Walter Myers
Stan Kirkwood
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

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Jim Boughey
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

5
Walt Myers
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
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Basic Business
The founders spent two years developing a Performance System known as Business Blueprints.
Basic Business
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 industry and size of company.

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Business Blueprints
Customized Business Designs
Business Design Concepts, LLC provides customized business designs specifically tailored to meet our clients goals.
Your customers and shareholders are at the core of everything we do
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Four Tenets of BDC System
The foundation of any structure is important.
Here are the Four Tenets - the foundation upon which Business Blueprints are created
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Four Tenets of BDC System

Design dictates performance
You can not outperform your design All designs become obsolete A documented design provides context and a common understanding Without a documented design, solving a problem in one area can cause unintended results elsewhere You should not act as if you are in a vacuum All parts of the business touch each other and must be designed in order to achieve alignment There are structures and metrics common to every business
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Designs must be documented
Everything is connected to everything

All businesses have common fundamentals
Business Blueprints
First Tenet
Design Dictates Performance

While strategies are important it is the design of the vehicle that will determine its top speed or how well it can maneuver through tight spots.
These cars may have been designed with the same goals and strategies in mind but the level of performance possible for each one is dictated by the design.
The same strategies but different designs

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Copyright Business Design Concepts, LLC
Business Blueprints
Second Tenet
Designs must be Documented

Management Team Without a documented design what is the likelihood that the people at this table will share a common understanding? None. And yet executives sit across the table from each other for years without knowing they do not share a common vision.
Business Blueprints add value

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Business Blueprints
Second Tenet
Designs must be Documented

Implementation team
Remove the documented design from the implementation team and what is the likelihood that the team will build what the executive team had in mind? None. This is why executives are continually disappointed by the outcome of projects. Implementation teams can not know what management has in mind. The fault lies with management! Business Blueprints add value
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Business Blueprints
Third Tenet
Everything is connected to Everything

Evolved Business Designed Business
Logistics Management Human Resources Product Development Operations
Sales
Information Technology Finance
Individual processes working independently
Processes designed to work together
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Business Blueprints
Importance of Processes
World-class organizations know the importance of 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 sustainable competitive advantage. That can be referred to as Process Excellence.
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Business Blueprints
Process Excellence
Four keys to Process Excellence: 1. 2. 3. 4. Quality of the overall process design Implementation of the process design Execution of the process design Management of the process design.
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Business Blueprints
Importance of Business Design
World-class organizations know the importance of design-centric management. Customer and shareholder value defined and quantified Processes designed to meet customer and shareholder expectations Organization designed to execute processes Systems designed to support organization
An aligned organization provides a competitive advantage and can be referred to as Business Excellence.
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Business Blueprints
Business Excellence
Four keys to Business Excellence: 1. 2. 3. 4. Quality of the overall business design Implementation of the business design Execution of the business design Management of the business design.
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Business Blueprints
Promises
Every 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 Concepts Confidence
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Business Blueprints
Confidence
What 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 of company

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Business Blueprints
Business Design
What 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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Business Blueprints
Design x Execution = Performance

Competitive Environment
Designs become obsolete as the competitive environment changes
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100
Sub-standard Performance
Good Performance
Execution
Companies waste money with Execution Improvement Activities

Poor Performance Sub-standard Performance
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Design
Need current business design and good execution of the design to achieve performance goals
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Business Blueprints
Accomplished Quickly
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 all businesses
Common Structure Common Framework Common Building Block Common Metrics
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Business Blueprints
Structure:
Capstone Systems Model
Common Fundamentals
Building Block:
Organizational Model
Product Stakeholders - ROI Product Customers - VP - VP -
Process
Competitor
Ma Mo rket de l
s es roc del P o M
Metrics:
Framework:
Business Entity
- (VP) Value Proposition - Measure market satisfaction o Desirability o Cost o Quality o Lead time - (ROI) Return on Investment - Measure stakeholder satisfaction o Customer satisfaction o Financial Success o Operational Effectiveness o Management Effectiveness
Manage the Entity
Support the Entity
Create Demand
Fulfill Demand
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Business Blueprints
Structure:
Capstone Systems Model Organizational Model
Alignment
Alignment becomes possible only after the structure has been documented.
Each model must be designed to support each other.
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Ma Mo rket de l
s es roc del P o M
Business Blueprints
Capstone
Alignment (Structure)
Expectations of market for products / services Competitor offerings of products / services
How products / services designed to meet customer expectations
Market Performance Requirements
How processes designed to deliver products / services DQM Define Quantify Measure Manage
Process Performance Requirements
How organization designed to execute processes
Organizational Performance Requirements
How Systems are designed to support
System Performance Requirements
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Business Blueprints
Market Performance
Focus on what is Important!
Market Importance
45
40
35
30
25
20
15
10
0 K-12 Universities First Responder
Which Market will you go after?

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Business Blueprints
Customer Performance
Customer Rankings - Pie
Police Fire EMS
Customers buy your product. Which customers will you appeal to?
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Business Blueprints
Product Performance
Products
40
35
30
25
20
15
10
0 Std Duty Heavy Duty Turnout Storage
Your products must have a compelling Value Proposition.

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Business Blueprints
Process Performance
The Process designs must support Market design How are your processes designed?
Process Designs affect: - Lead time - Quality - Cost

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Business Blueprints
Organizational Performance
Organizations execute Processes
Right People on Bus Wrong People off Bus Right People, Right Seats Does your organization have the right: - Skills - Talents - Knowledge - Experience?
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Business Blueprints
Systems Performance
Do you have the right equipment?
Are your IT systems designed to support your organization? Organizations use Systems to execute Processes
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Business Blueprints
Business Performance
Dont start with IT systems and work your way up. IT is not the silver bullet.
Processes Aligned to Markets
Markets Aligned to Goals
To have maximum performance parts must be aligned
Organizations Aligned to Processes
Systems Aligned to Organizations
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Business Blueprints
Deliverables
Updated blueprints of your business
Strategic Plan
Road Map
Business Design Concepts, LLC Strategic Management
B
Execute Design Strategic Plan & Road Map
Goals
C
Execute Strategies Yes
Competitive Environment Performance Requirements Strategies
Execute Strategy with Existing Design
How to achieve Goals

A
Change Design
Existing Design No Performance Capabilities Modify Design, Goal, or Strategy Change Goal
B
Governance Model
2004
Steps to performance: - Set strategic goals in context of the environment - Identify strategies you wish to execute to achieve those goals - Update the existing design of the business to be able to execute those strategies - Implement the new design - Execute the strategies. Change Strategy
C
Copyright: Business Design Concepts, LLC
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Better Performance by Design

Business Design Concepts, LLC

November 10, 2008

Business Design Concepts

Copyright: www.stankirkwood.com 2008

Senior Consultant - Walter Myers

Copyright: www.stankirkwood.com 2008

- CPIM certification with APICS

APICS CPIM certified

Copyright: www.stankirkwood.com 2008

Business Blueprints is independent of industry and size of company.

Customized Business Designs

Copyright: www.stankirkwood.com 2008

Four Tenets of BDC System

The foundation of any structure is important.

Copyright: www.stankirkwood.com 2008

Four Tenets of BDC System

Designs must be documented

Everything is connected to everything

All businesses have common fundamentals

Design Dictates Performance

The same strategies but different designs

Copyright Business Design Concepts, LLC

Designs must be Documented

Business Blueprints add value

Designs must be Documented

Everything is connected to Everything

Information Technology Finance

Individual processes working independently

Processes designed to work together

Copyright: www.stankirkwood.com 2008

Copyright: www.stankirkwood.com 2008

Importance of Business Design

Copyright: www.stankirkwood.com 2008

What 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 of company

Design x Execution = Performance

Companies waste money with Execution Improvement Activities

Copyright: www.stankirkwood.com 2008

How long does it take to document a business design?

How does BDC accomplish that task so quickly?

Manage the Entity

Support the Entity

Copyright: www.stankirkwood.com 2008

How products / services designed to meet customer expectations

Market Performance Requirements

Process Performance Requirements

How organization designed to execute processes

Organizational Performance Requirements

How Systems are designed to support

System Performance Requirements

Copyright: www.stankirkwood.com 2008

0 K-12 Universities First Responder

Which Market will you go after?

Copyright: www.stankirkwood.com 2008

Police Fire EMS

Copyright: www.stankirkwood.com 2008

0 Std Duty Heavy Duty Turnout Storage

Your products must have a compelling Value Proposition.

Copyright: www.stankirkwood.com 2008

Process Designs affect: - Lead time - Quality - Cost

Organizations execute Processes