Date post: | 15-Jan-2015 |
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Every Opportunity Every Employee Every Time SM
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NOWMANAGING IN THE
The Overview
BUSINESS AT THE SPEED OF NEED
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1920 1930 1040 1950 1960 1970 1980 1990 2000 2010 2220
The Era ofMASS PRODUCTION The
GREATRECESSION
The Era ofMASS CUSTOMIZATION
www
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The Era ofMASS PRODUCTION
THEN
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The Era ofMASS CUSTOMIZATION
NOWwww
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NOWTHENSITUATION
It wasn’t just a
RECESSIONit was also a turning point
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The shift from Mass Productionto Mass Customization is
HUGEGARGANTUAN and
HUMONGOUS
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NOWTHEN
COMPLICATION
High Volume, Low Cost
Customized, Low Cost
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MINDSET
NOWTHENDRIVER
ORGANIZATION
DECISIONS
IMPROVEMENT
USE OF DATA
PROBLEM SOLVING
SPEED
Customer Need
Process Centric
Decentralized
Micro-Improvements
Everyone
Standardized, Fact Based
Fast
Managerial Hierarchy
Functional
Centralized
Big Ideas
Management
Ad Hoc, Intuitive
Slow
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YESThe ULTIMATEVALUE PROPOSITION
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REVENUE
CITIZENEXPECTATIONS
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NOWCustomer Need
Process Centric
Decentralized
Micro-Improvements
Everyone
Standardized, Fact Based
Fast
INNOVATIONDRIVEN
ECONOMY
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NOWTHEN
IMPLICATIONS
BIG IDEAS LITTLE IDEAS(micro ingenuity)(macro ingenuity)
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0 10 20 30 40 50
MANUFACTURING
SERVICE SECTOR
GOVERNMENT
% of Operating Costs That
Add No Value
25-30
30-40
40-50
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IDEAIDEA
IDEA
IDEAIDEAIDEA
IDEA PIT
Where all the IDEAS
go to DIE
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29%
40%
31%ACTIVELY ENGAGED
DISENGAGED
ACTIVELY DISENGAGED
Data Courtesy of The Gallup Organization
Failing miserably
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While our workforce lives in
the NOW, it does NOT have the tools, knowledge,
skills or permission to act in the NOW.
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Management today
doesn’t live in the NOW, let alone manage in it. (It is consumed by the past and barely has time to work on the future)
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With no one managing the NOW, organizations are systematically letting opportunity after opportunity slip away
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no one manages the NOW
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Unless we fix these problems…
We are so:
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Every OpportunityEvery Employee
Every Time
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What is the NOW
?
Meeting
Phone Call
Posting
Improve
Customer
Experience
Accelerate
Growth
Reduce Costs
TRIGGERS OPPORTUNITIES
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An idea that saves:
In a process done each day:
By others who do the same work:
Who work each year:
$2.00
10 times
12 colleagues
260 days
$62,400 savings
How many $2.00 ideas does your organization have?
Micro-Ingenuity and Micro Economics
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That DOG
Don’t HUNT
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Management’s work MUST BE COMPLETE
before the NOW Moment arrives.
M O M E N T ℠
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Prioritize, connect, enable, and drive the execution of all work, ensuring that every resource is focused
on the goals and that every human being has the
maximum authority to act
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Theoretical Underpinnings
Elimination of Fear
Reduction of Variation
Theory of Constraints
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FEART R U S T
ORDER FREEDOM
If the way this place works makes sense to me
And I can see how to put my ideas to work
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Improved Customer
Experience
Reduced Costs
Accelerated Growth
FUNDAMENTALSThe Routine Work
TARGET REVIEWS
7-STEP PROBLEM SOLVING
SYSTEM ELEMENTS
BREAKTHROUGHSThe Strategic Initiatives
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ON THE BUSINESSWe can spend more time on the work that delivers NEW VALUE to our Customers
The Source of Resources
CREATING COMPETITIVE ADVANTAGE
INTHE
BUSINESS
If we can reduce the time
we need to spend on the
ROUTINE work of the business
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FUNDAMENTALSThe Routine Work
SYSTEM ELEMENTS
BREAKTHROUGHSThe Strategic Initiatives
MANAGEMENT SYSTEM MAP℠ STRATEGY MAPPER℠
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NOW Fundamentals℠
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SCORECARDS
OUTCOME & PROCESS
FACTS REVEAL TRUTH
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NOW FUNDAMENTALS℠PURPOSE
To get the routine work done effectively with the least possible resources
To connect every individual to what matters to the organization
To transfer accountability for results to those who do the work
To create complete transparency about fundamentals performance
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NOW Breakthroughs℠
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NOW BREAKTHROUGHS℠PURPOSE
To become highly proficient at planning and delivering on initiatives, up and down the organization
To set clear expectations and clear rationale to guide interdependent action
To create complete transparency about initiative performance
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NOWTARGET
REVIEWSCLOSING THE PERFORMANCE GAP
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OUTCOME MEASURES STATUS TREND STRATEGIC STATUS TRENDO-1 Revenue
O-2 Total Return to Shareholders
O-3 Top Quartile EBITDA
O-4 Cash on Hand
O-5 Ideas Implemented Per EE
O-6 Customer Retention
O-7 Customer Referrals
O-8 New Product Revenue
O-9 Volunteer Hours
O-10 Dollars Contributed
O-11 Turnover
O-12 Engaged Workforce
PROCESS MEASURES STATUS TREND TACTICAL STATUS TRENDOP1 MARKETING1.1 New Product Ideas Approved
1.2 Column Inches Coverage
1.3 Leads Generated
1.4 Leads Converting to Prospects
OP2 SELLING
2.1 Prospects in the Funnel
2.2 Qualified Leads
2.3 Proposals Presented
T2 Sales Proposals Effective
T3 Key Financial Controls Validated
S4
T1 Cross Sell ing Adds Revenue
FUNDAMENTALS
S1
S2
S3
Fundamentals Disciplines Routine
Employees Implement Their Ideas
New Product Development Delivers on Promises
BREAKTHROUGHS
TARGET REVIEWS
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NOW TARGET REVIEWS℠PURPOSE
To close the loop on performance (how did we do?)
To ensure transparency on performance challenges (where are we falling short?)
To cause intervention where needed (so, what are we going to do about it?)
Te recognize progress
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STATUS: R/Y/G TREND:
1
2
3
4
5
6
7 Reflect & Learn
PROBLEM STATEMENT:Agree on the Problem
PROCESS or OUTCOME:
MEASURE:
OWNER:
TARGETED PERFORMANCE:
WHERE IS THE PROCESS BREAKING DOWN?
WHAT DO THE FACTS PROVE IS CAUSING THE PROBLEM?
WHAT CONTROLS HAVE WE PUT IN TO PREVENT THIS CAUSE FROM REOCCURING?
WHAT LESSONS DOES THIS PROBLEM TEACH US?
WHO WILL DO WHAT BY WHEN TO IMPLEMENT THE SELECTED SOLUTIONS?
Uncover & Prove the Root Cause
Map the Current Process
MOST RECENT ACTUAL RESULTS:
If the solution has not yet been implement, attach a workplan to show how it will be implemented.
WHAT SOLUTION(S) APPEAR TO BE MOST VIABLE AND WHY?Develop Solutions
Implement Solutions
Hold the Gain
OUTCOME or PROCESS measure in
RED or YELLOW?
7-StepPLAN
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OUTCOME MEASURES STATUS TREND STRATEGIC STATUS TRENDO-1 Revenue
O-2 Total Return to Shareholders
O-3 Top Quartile EBITDA
O-4 Cash on Hand
O-5 Ideas Implemented Per EE
O-6 Customer Retention
O-7 Customer Referrals
O-8 New Product Revenue
O-9 Volunteer Hours
O-10 Dollars Contributed
O-11 Turnover
O-12 Engaged Workforce
PROCESS MEASURES STATUS TREND TACTICAL STATUS TRENDOP1 MARKETING1.1 New Product Ideas Approved
1.2 Column Inches Coverage
1.3 Leads Generated
1.4 Leads Converting to Prospects
OP2 SELLING
2.1 Prospects in the Funnel
2.2 Qualified Leads
2.3 Proposals Presented
T2 Sales Proposals Effective
T3 Key Financial Controls Validated
S4
T1 Cross Sell ing Adds Revenue
FUNDAMENTALS
S1
S2
S3
Fundamentals Disciplines Routine
Employees Implement Their Ideas
New Product Development Delivers on Promises
BREAKTHROUGHS
TARGET REVIEWS
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ENABLINGTRANSFORMATION
CHANGE MANAGEMENT
APPLIED LEADERSHIP
TECHNOLOGY
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EverydayWorld
Call toAdventure
SupremeOrdeal
Crossing the First
Threshold
Master ofTwo Worlds
Refusal ofThe Call
MeetingThe Mentor
Road of Trials
Crossing The Return
Threshold
RefusalTo Return
The Boon
SIMPLICITY SIMPLICITYCOMPLEXITY
ABYSS
Joseph Campbell’s
HERO’S JOURNEY
Human Transformation
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NOW APPLIED LEADERSHIP℠• Understanding the NOW System• Modeling New Behaviors• Asking a New Set of Questions• Teaching NOW Business Principles• Aligning Focus• Creating Clarity About What Matters• Understanding How the Business Really Operates• Identifying Needed Capabilities• Adopting a New Set of Tools
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Every Opportunity Every Employee Every Time SM
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WHY?MORALSOCIAL
ECONOMIC
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Based on the coming book by
JOHN BERNARDChairman & CEOMASS INGENUITY
If you would like to follow development of the book, please give us your business card