Business Design Concepts

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Information about Business Design Concepts
Business & Mgmt

Published on November 11, 2008

Author: stankirkwood

Source: slideshare.net

Description

A brief introduction to Business Design Concepts, LLC

“ Better Performance by Design” Business Design Concepts, LLC November 10, 2008

Business Design Concepts (BDC), LLC was formed in October of 2004. BDC’s mission: “ Design our clients for success.” Business Design Concepts Business Blueprints ™ Copyright: www.stankirkwood.com 2008

BDC’s founders are: Stan Kirkwood Jim Boughey Senior Consultant - Walter Myers Basic Business Copyright: www.stankirkwood.com 2008

BDC’s founders are:

Stan Kirkwood

Jim Boughey

Senior Consultant

- Walter Myers

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 Copyright: www.stankirkwood.com 2008

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

Jim Boughey’s 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 Copyright: www.stankirkwood.com 2008

Jim Boughey’s 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

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 Copyright: www.stankirkwood.com 2008

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

The founders spent two years developing a Performance System known as Business Blueprints ™. Basic Business Copyright: www.stankirkwood.com 2008

The founders spent two years developing a Performance System known as Business Blueprints ™.

BDC’s 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. Basic Business Copyright: www.stankirkwood.com 2008

BDC’s 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.

Business Design Concepts, LLC provides customized business designs specifically tailored to meet our client’s goals. Customized Business Designs Business Blueprints ™ “ Your customers and shareholders are at the core of everything we do” Copyright: www.stankirkwood.com 2008

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 Copyright: www.stankirkwood.com 2008

Design dictates performance You can not outperform your design All designs become obsolete Designs must be documented A documented design provides context and a common understanding Without a documented design, ‘solving’ a problem in one area can cause unintended results elsewhere Everything is connected to everything 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 All businesses have common fundamentals There are structures and metrics common to every business Four Tenets of BDC System Copyright: www.stankirkwood.com 2008

Design dictates performance

You can not outperform your design

All designs become obsolete

Designs must be documented

A documented design provides context and a common understanding

Without a documented design, ‘solving’ a problem in one area can cause unintended results elsewhere

Everything is connected to everything

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

All businesses have common fundamentals

There are structures and metrics common to every business

First Tenet Business Blueprints ™ 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. 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. The same strategies but different designs Copyright © Business Design Concepts, LLC Design Dictates Performance Copyright: www.stankirkwood.com 2008

Business Blueprints ™ Business Blueprints ™ add value Second Tenet 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. Designs must be Documented Copyright: www.stankirkwood.com 2008

Business Blueprints ™ Business Blueprints ™ add value 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! Designs must be Documented Second Tenet Copyright: www.stankirkwood.com 2008

Third Tenet Business Blueprints ™ Evolved Business Designed Business Individual processes working independently Processes designed to work together Everything is connected to Everything Copyright: www.stankirkwood.com 2008

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.  Importance of Processes Business Blueprints ™ Copyright: www.stankirkwood.com 2008

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. 

Four keys to Process Excellence:   Quality of the overall process design Implementation of the process design Execution of the process design Management of the process design.   Process Excellence Business Blueprints ™ Copyright: www.stankirkwood.com 2008

Four keys to Process Excellence:

 

Quality of the overall process design

Implementation of the process design

Execution of the process design

Management of the process 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.  Importance of Business Design Business Blueprints ™ Copyright: www.stankirkwood.com 2008

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. 

Four keys to Business Excellence:   Quality of the overall business design Implementation of the business design Execution of the business design Management of the business design.  Business Excellence Business Blueprints ™ Copyright: www.stankirkwood.com 2008

Four keys to Business Excellence:

 

Quality of the overall business design

Implementation of the business design

Execution of the business design

Management of the business design. 

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 Promises Business Blueprints ™ Copyright: www.stankirkwood.com 2008

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

What if you are: Uncertain what to do next Uncertain of where to go Confidence Business Blueprints ™ What if you are: Confident of what to work on Confident of direction of company 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

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 Business Design Business Blueprints ™ Copyright: www.stankirkwood.com 2008

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

Design x Execution = Performance Business Blueprints ™ 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 Copyright: www.stankirkwood.com 2008

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 Accomplished Quickly Business Blueprints ™ Copyright: www.stankirkwood.com 2008

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

Common Fundamentals Metrics: Framework: Building Block: Business Blueprints ™ Structure: - (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 Copyright: www.stankirkwood.com 2008

Alignment becomes possible only after the structure has been documented. Each model must be designed to support each other. Alignment Business Blueprints ™ Structure: Copyright: www.stankirkwood.com 2008

Alignment (Structure) Business Blueprints ™ Expectations of market for products / services Competitor offerings of products / services How products / services designed to meet customer expectations How processes designed to deliver products / services How organization designed to execute processes How Systems are designed to support DQM ² Define Quantify Measure Manage Copyright: www.stankirkwood.com 2008

DQM ²

Define

Quantify

Measure

Manage

Business Blueprints ™ Market Performance Focus on what is Important! Which Market will you go after? Copyright: www.stankirkwood.com 2008

Focus on what is Important!

Which Market will you go after?

Business Blueprints ™ Customer Performance Focus on what is Important! Customers buy your product. Which customers will you appeal to? Copyright: www.stankirkwood.com 2008

Focus on what is Important!

Business Blueprints ™ Product Performance Focus on what is Important! Your products must have a compelling Value Proposition. Copyright: www.stankirkwood.com 2008

Focus on what is Important!

Business Blueprints ™ Process Performance The Process designs must support Market design How are your processes designed? Process Designs affect: - Lead time - Quality - Cost Copyright: www.stankirkwood.com 2008

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? Copyright: www.stankirkwood.com 2008

Business Blueprints ™ Systems Performance Organizations use Systems to execute Processes Are your IT systems designed to support your organization? Do you have the right equipment? Copyright: www.stankirkwood.com 2008

Business Blueprints ™ Business Performance To have maximum performance parts must be aligned Don’t start with IT systems and work your way up. IT is not the silver bullet. Copyright: www.stankirkwood.com 2008

Business Blueprints ™ Deliverables Road Map Updated blueprints of your business Strategic Plan Governance Model Copyright: www.stankirkwood.com 2008

Three Products Business Blueprints ™ In-Sight - Executive Assessment - Three weeks total time, three days client time In-Depth - Deliverables - Current business design - Analysis of current business design - Customer Choice Model - Four weeks total time, four days client time In-Ovation - Deliverables - Updated business design - Strategic Plan - Road Map - Governance Model - Four weeks total time, four days client time Copyright: www.stankirkwood.com 2008

Business Blueprints ™ More information Learn more concepts about the idea of Business Design. Visit the following sites: www.businessdesignconcepts.com - www.stankirkwood.com Copyright: www.stankirkwood.com 2008

www.businessdesignconcepts.com - www.stankirkwood.com

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