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“Better
Performance by Design”
BusinessDesign
Concepts, LLC
November 10, 2008
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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
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BDC’s 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
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
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The founders spent two years developing a Performance System known as Business Blueprints™.
Basic Business
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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
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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”
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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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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
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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
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Design Dictates Performance
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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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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
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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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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
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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
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Strategic Management
Business Design Concepts, LLC
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