Business Design Concepts


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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.
  • Business Design Concepts

    1. 1. “ Better Performance by Design” Business Design Concepts, LLC November 10, 2008
    2. 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: 2008
    3. 3. <ul><ul><li>BDC’s founders are: </li></ul></ul><ul><ul><li>Stan Kirkwood </li></ul></ul><ul><ul><li>Jim Boughey </li></ul></ul><ul><ul><li>Senior Consultant </li></ul></ul><ul><ul><li>- Walter Myers </li></ul></ul>Basic Business Copyright: 2008
    4. 4. <ul><ul><li>Stan Kirkwood: </li></ul></ul><ul><ul><li>Co-founder of Business Design Concepts, LLC </li></ul></ul><ul><ul><li>Former VP and CIO for La-Z-Boy Incorporated </li></ul></ul><ul><ul><li>MBA from University of North Carolina </li></ul></ul><ul><ul><li>25 years in IT management, strategic planning, </li></ul></ul><ul><ul><li>consulting, process reengineering and project </li></ul></ul><ul><ul><li>management </li></ul></ul><ul><ul><li>Certified in Business Process Reengineering </li></ul></ul><ul><ul><ul><li>Mountain Home Training and Consulting </li></ul></ul></ul><ul><ul><li>CPIM certification with APICS </li></ul></ul>Stan Kirkwood Copyright: 2008
    5. 5. <ul><ul><li>Jim Boughey’s bio: </li></ul></ul><ul><ul><li>Co-founder of Business Design Concepts, LLC </li></ul></ul><ul><ul><li>Director of Business Engineering for La-Z-Boy </li></ul></ul><ul><ul><li>Incorporated </li></ul></ul><ul><ul><li>25 years in manufacturing, consulting, </li></ul></ul><ul><ul><li>business model design and strategic planning </li></ul></ul><ul><ul><li>Hammer and Company Process Master </li></ul></ul><ul><ul><li>Business Process Reengineering certified </li></ul></ul><ul><ul><ul><li>Mountain Home Training and Consulting </li></ul></ul></ul><ul><ul><li>APICS CPIM certified </li></ul></ul>Jim Boughey Copyright: 2008
    6. 6. <ul><ul><li>Walt Myers bio: </li></ul></ul><ul><ul><li>Former Vice President of Manufacturing, Materials & </li></ul></ul><ul><ul><li>Distribution for Calphalon Corporation </li></ul></ul><ul><ul><li>Seasoned management professional with a background </li></ul></ul><ul><ul><li>in business strategic and tactical planning </li></ul></ul><ul><ul><li>Developed and planned processes to effectively </li></ul></ul><ul><ul><li>manage both service and manufacturing operations </li></ul></ul><ul><ul><li>Skilled in systems design, implementation and execution </li></ul></ul><ul><ul><li>Excellent project management skills and experience </li></ul></ul><ul><ul><li>Experienced with world class techniques </li></ul></ul><ul><ul><li>APICS CPIM certified </li></ul></ul>Walt Myers Copyright: 2008
    7. 7. <ul><li>The founders spent two years developing a Performance System known as Business Blueprints ™. </li></ul>Basic Business Copyright: 2008
    8. 8. <ul><li>BDC’s system can be used for: </li></ul><ul><ul><li>For-profit corporations </li></ul></ul><ul><ul><li>Non-profit corporations </li></ul></ul><ul><ul><li>Publicly traded organizations </li></ul></ul><ul><ul><li>Privately held organizations </li></ul></ul><ul><ul><li>Government agencies </li></ul></ul><ul><ul><li>Single business units </li></ul></ul><ul><ul><li>Departments within an organization </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><li>Business Blueprints ™ is independent of industry and size of company. </li></ul>Basic Business Copyright: 2008
    9. 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: 2008
    10. 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: 2008
    11. 11. <ul><li>Design dictates performance </li></ul><ul><ul><li>You can not outperform your design </li></ul></ul><ul><ul><li>All designs become obsolete </li></ul></ul><ul><li>Designs must be documented </li></ul><ul><ul><li>A documented design provides context and a common understanding </li></ul></ul><ul><ul><li>Without a documented design, ‘solving’ a problem in one area can cause unintended results elsewhere </li></ul></ul><ul><li>Everything is connected to everything </li></ul><ul><ul><li>You should not act as if you are in a vacuum </li></ul></ul><ul><ul><li>All parts of the business touch each other and must be designed in order to achieve alignment </li></ul></ul><ul><li>All businesses have common fundamentals </li></ul><ul><ul><li>There are structures and metrics common to every business </li></ul></ul>Four Tenets of BDC System Copyright: 2008
    12. 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: 2008
    13. 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: 2008
    14. 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: 2008
    15. 15. Third Tenet Business Blueprints ™ Evolved Business Designed Business Individual processes working independently Processes designed to work together Everything is connected to Everything Copyright: 2008
    16. 16. <ul><li>World-class organizations know the importance of process-centric management.   </li></ul><ul><li>Costs are reduced </li></ul><ul><li>Cycle times are improved </li></ul><ul><li>Productivity soars, and </li></ul><ul><li>Customer satisfaction increases </li></ul><ul><li>All of which adds up to a critical and sustainable competitive advantage. That can be referred to as Process Excellence.  </li></ul>Importance of Processes Business Blueprints ™ Copyright: 2008
    17. 17. <ul><li>Four keys to Process Excellence: </li></ul><ul><li>  </li></ul><ul><li>Quality of the overall process design </li></ul><ul><li>Implementation of the process design </li></ul><ul><li>Execution of the process design </li></ul><ul><li>Management of the process design.   </li></ul>Process Excellence Business Blueprints ™ Copyright: 2008
    18. 18. <ul><li>World-class organizations know the importance of design-centric management.   </li></ul><ul><li>Customer and shareholder value defined and quantified </li></ul><ul><li>Processes designed to meet customer and shareholder expectations </li></ul><ul><li>Organization designed to execute processes </li></ul><ul><li>Systems designed to support organization </li></ul><ul><li>An aligned organization provides a competitive advantage and can be referred to as Business Excellence.  </li></ul>Importance of Business Design Business Blueprints ™ Copyright: 2008
    19. 19. <ul><li>Four keys to Business Excellence: </li></ul><ul><li>  </li></ul><ul><li>Quality of the overall business design </li></ul><ul><li>Implementation of the business design </li></ul><ul><li>Execution of the business design </li></ul><ul><li>Management of the business design.  </li></ul>Business Excellence Business Blueprints ™ Copyright: 2008
    20. 20. <ul><li>Every business has an inherent promise to its customers: </li></ul><ul><li>Coke – Refreshment </li></ul><ul><li>Kodak – Memories </li></ul><ul><li>La-Z-Boy – Comfort </li></ul><ul><li>What is your promise to your customers? </li></ul><ul><li>Business Design Concepts – Confidence </li></ul>Promises Business Blueprints ™ Copyright: 2008
    21. 21. <ul><li>What if you are: </li></ul><ul><li>Uncertain what to do next </li></ul><ul><li>Uncertain of where to go </li></ul>Confidence Business Blueprints ™ <ul><li>What if you are: </li></ul><ul><li>Confident of what to work on </li></ul><ul><li>Confident of direction of company </li></ul>Copyright: 2008
    22. 22. <ul><li>What does a business design need to look like to instill confidence? </li></ul><ul><li>“ It depends” </li></ul><ul><ul><li>Goals </li></ul></ul><ul><ul><li>Competitive environment </li></ul></ul><ul><ul><li>Desired strategies </li></ul></ul><ul><ul><li>Existing business design </li></ul></ul><ul><ul><li>Execution by organization </li></ul></ul>Business Design Business Blueprints ™ Copyright: 2008
    23. 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: 2008
    24. 24. <ul><li>How long does it take to document a business design? </li></ul><ul><ul><li>Typically four to six weeks </li></ul></ul><ul><li>How does BDC accomplish that task so quickly? </li></ul><ul><ul><li>Use a unique system of common elements within all businesses </li></ul></ul><ul><ul><ul><li>Common Structure </li></ul></ul></ul><ul><ul><ul><li>Common Framework </li></ul></ul></ul><ul><ul><ul><li>Common Building Block </li></ul></ul></ul><ul><ul><ul><li>Common Metrics </li></ul></ul></ul>Accomplished Quickly Business Blueprints ™ Copyright: 2008
    25. 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: 2008
    26. 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: 2008
    27. 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 <ul><li>DQM ² </li></ul><ul><li>Define </li></ul><ul><li>Quantify </li></ul><ul><li>Measure </li></ul><ul><li>Manage </li></ul>Copyright: 2008
    28. 28. Business Blueprints ™ Market Performance <ul><li>Focus on what is Important! </li></ul><ul><li>Which Market will you go after? </li></ul>Copyright: 2008
    29. 29. Business Blueprints ™ Customer Performance <ul><li>Focus on what is Important! </li></ul>Customers buy your product. Which customers will you appeal to? Copyright: 2008
    30. 30. Business Blueprints ™ Product Performance <ul><li>Focus on what is Important! </li></ul>Your products must have a compelling Value Proposition. Copyright: 2008
    31. 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: 2008
    32. 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: 2008
    33. 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: 2008
    34. 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: 2008
    35. 35. Business Blueprints ™ Deliverables Road Map Updated blueprints of your business Strategic Plan Governance Model Copyright: 2008
    36. 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: 2008
    37. 37. Business Blueprints ™ More information Learn more concepts about the idea of Business Design. Visit the following sites: <ul><li> - </li></ul>Copyright: 2008
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