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Business Design Concepts


A brief introduction to Business Design Concepts, LLC

A brief introduction to Business Design Concepts, LLC

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  • We want to thank you for taking time out of your schedule to learn about what we do and how it can help Hesco moving forward. As you will see we work with business leaders to develop a road map that addresses their concerns and positions the company to meet their goals. Todd, What are your primary concerns with Hesco? If you could snap your fingers and change two things what would they be? As we go through the presentation if either of you have any question or comments please interject. We welcome discussion.


  • 1. “ Better Performance by Design” Business Design Concepts, LLC November 10, 2008
  • 2. 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
  • 3.
      • BDC’s founders are:
      • Stan Kirkwood
      • Jim Boughey
      • Senior Consultant
      • - Walter Myers
    Basic Business Copyright: www.stankirkwood.com 2008
  • 4.
      • 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
  • 5.
      • 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
  • 6.
      • 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
  • 7.
    • The founders spent two years developing a Performance System known as Business Blueprints ™.
    Basic Business Copyright: www.stankirkwood.com 2008
  • 8.
    • 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
  • 9. 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
  • 10. 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
  • 11.
    • 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16.
    • 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
  • 17.
    • 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
  • 18.
    • 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
  • 19.
    • 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
  • 20.
    • 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
  • 21.
    • 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
  • 22.
    • 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
  • 23. 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
  • 24.
    • 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
  • 25. 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
  • 26. 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
  • 27. 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
  • 28. Business Blueprints ™ Market Performance
    • Focus on what is Important!
    • Which Market will you go after?
    Copyright: www.stankirkwood.com 2008
  • 29. Business Blueprints ™ Customer Performance
    • Focus on what is Important!
    Customers buy your product. Which customers will you appeal to? Copyright: www.stankirkwood.com 2008
  • 30. Business Blueprints ™ Product Performance
    • Focus on what is Important!
    Your products must have a compelling Value Proposition. Copyright: www.stankirkwood.com 2008
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. 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
  • 35. Business Blueprints ™ Deliverables Road Map Updated blueprints of your business Strategic Plan Governance Model Copyright: www.stankirkwood.com 2008
  • 36. 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
  • 37. 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