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Business Design Concepts

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A brief introduction to Business Design Concepts, LLC
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1 “Better Performance by Design” Business Design Concepts, LLC November 10, 2008
Transcript
Page 1: Business Design Concepts

1

“Better

Performance by Design”

BusinessDesign

Concepts, LLC

November 10, 2008

Page 2: Business Design Concepts

2

Business Design Concepts (BDC), LLC was formed in October of 2004.

BDC’s mission:

“Design our clients for success.”

Business Design ConceptsBusiness Blueprints™

Copyright: www.stankirkwood.com 2008

Page 3: Business Design Concepts

3

BDC’s founders are:– Stan Kirkwood– Jim Boughey

Senior Consultant

- Walter Myers

Basic Business

Copyright: www.stankirkwood.com 2008

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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

Copyright: www.stankirkwood.com 2008

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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

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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

Copyright: www.stankirkwood.com 2008

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

Basic Business

Copyright: www.stankirkwood.com 2008

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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

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Customized Business DesignsBusiness Blueprints™

Business Design Concepts, LLC provides customized business designsspecifically tailored to meet our client’s

goals.

“Your customers and shareholders are at the core of everything we do”

Copyright: www.stankirkwood.com 2008

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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

Copyright: www.stankirkwood.com 2008

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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

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First TenetBusiness 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

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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

Page 14: Business Design Concepts

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Business Blueprints™

Business Blueprints™ add value

Implementation teamRemove 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

Page 15: Business Design Concepts

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Third TenetBusiness Blueprints™

Evolved Business Designed Business

Individual processes working independently Processes designed to work together

Finance

InformationTechnology

Product Development

Operations

ManagementLogistics

Sales

HumanResources

Everything is connected to Everything

Copyright: www.stankirkwood.com 2008

Page 16: Business Design Concepts

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Importance of ProcessesBusiness Blueprints™

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. 

Copyright: www.stankirkwood.com 2008

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Process ExcellenceBusiness Blueprints™

Four 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. 

Copyright: www.stankirkwood.com 2008

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Importance of Business DesignBusiness Blueprints™

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. 

Copyright: www.stankirkwood.com 2008

Page 19: Business Design Concepts

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Business ExcellenceBusiness Blueprints™

Four 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. 

Copyright: www.stankirkwood.com 2008

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PromisesBusiness Blueprints™

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

Copyright: www.stankirkwood.com 2008

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ConfidenceBusiness Blueprints™

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

Copyright: www.stankirkwood.com 2008

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Business DesignBusiness Blueprints™

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

Copyright: www.stankirkwood.com 2008

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Design x Execution = PerformanceBusiness 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

Competitive Environment

Sub-standard Performance

Good Performance

Poor Performance

Sub-standardPerformance

Design

Ex

ec

uti

on

5

10

5 101

100

Copyright: www.stankirkwood.com 2008

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Accomplished QuicklyBusiness Blueprints™

• 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

Copyright: www.stankirkwood.com 2008

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Common Fundamentals

Metrics:

Framework:

Building Block:

Business Blueprints™

Structure:

- ROI -

CustomersStakeholders

- VP -Process

Product

- VP -

Product

Competitor

Capstone

Organizational Model

Process

Model

Market Model

SystemsModel

Manage the Entity

Support the Entity

Create Demand

Fulfill Demand

BusinessEntity

- (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

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AlignmentBusiness Blueprints™

Capstone

Organizational Model

Process

Model

Market Model

SystemsModel

Alignment becomes possible only after the structure has been documented.

Each model must be designed to support each other.

Structure:

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Page 27: Business Design Concepts

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Alignment (Structure)Business Blueprints™

Capstone

Market Performance Requirements

Process Performance Requirements

Organizational Performance Requirements

System Performance Requirements

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

DQM²

• Define

• Quantify

• Measure

• Manage

Copyright: www.stankirkwood.com 2008

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Business Blueprints™ 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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Business Blueprints™ Customer Performance

Focus on what is Important!

Customers buy your product. Which customers will you appeal to?

Customer Rankings - Pie

Police

Fire

EMS

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Business Blueprints™ Product Performance

Focus on what is Important!

Your products must have a compelling Value Proposition.

0

5

10

15

20

25

30

35

40

Std Duty Heavy Duty Turnout Storage

Products

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Page 31: Business Design Concepts

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Business Blueprints™ Process Performance

The Process designs must support Market designHow 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 BusWrong People off BusRight People, Right Seats

Does your organization have the right:- Skills- Talents- Knowledge- Experience?

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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?

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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.

Markets Aligned to Goals

Processes Aligned to Markets

Organizations Aligned to Processes

Systems Aligned to Organizations

Markets Aligned to Goals

Processes Aligned to Markets

Organizations Aligned to Processes

Systems Aligned to Organizations

Copyright: www.stankirkwood.com 2008

Page 35: Business Design Concepts

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Business Blueprints™ Deliverables

Road Map

Updated blueprints of your business

Strategic Plan

Governance ModelCompetitive Environment

Goals

Change Goal

ExistingDesign

Strategies

Execute Strategy with

Existing Design

PerformanceCapabilities

Strategic Plan &

Road Map

No

Yes

Modify Design, Goal, or Strategy

Change Design

ChangeStrategy

B

A

C

B

C

PerformanceRequirements

A

ExecuteDesign

A

How to achieve Goals

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.

ExecuteStrategies

Copyright: Business Design Concepts, LLC 2004

Strategic Management

Business Design Concepts, LLC

Copyright: www.stankirkwood.com 2008


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