Deploying Your Resources To Best Advantage


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Deploying Your Resources To Best Advantage

  1. 1. It’s not only about numbers John B Voorpostel chartered accountant Manage Your Resources For A Sustainable Competitive Advantage It’s also about Deploying your resources to best advantage Doing the right things in the right ways Organizing and preparing well This presentation is free for personal use but all other copyright of content and presentation is reserved
  2. 2. Operating my own practice since 1988, CA since 1985 Primary experience with owner operated businesses Academic background in economics www. iaccountant .ca Managing director of Teamstart ® www. teamstart .com Software website combination that together organize business know how Managing director of Info l inc www. infolinc .ca Commercializes intellectual property as InfoTools ® Continue(d) to learn about business from clients, colleagues, experts Authored articles, quoted in others Canadian Franchise Guide, Profit Magazine, Venture Source, Money Sense, TeamStart John B Voorpostel chartered accountant adding value, not just numbers Who am I ? Developed organized, ready to deploy business know how © 2006 John Voorpostel
  3. 3. What’s in this presentation for you? www. iaccountant .ca Where should you (your client) focus time and effort? I want to give you: Insight into the history and development and concept of business resources A unique and valuable framework you can use to organize and manage important resources Some interesting things along the way ?? ?? ?? ?? ?? © 2006 John Voorpostel
  4. 4. 1) Provide an understanding of what resources are The four things I’d like to accomplish in the next 59 minutes 2) Explain development of resources through time 3) Categorize important business resources in a meaningful way 4) What you might do with them www. iaccountant .ca This presentation is available electronically at Slide note copies are available to attendees today © 2006 John Voorpostel
  5. 5. www. iaccountant .ca Inputs The basics $ $ $ $ $ Outputs Your Business Inc With resources everywhere, there’s loss of detail, meaning and perspective © 2006 John Voorpostel
  6. 6. www. iaccountant .ca So what do we currently do about it? And focus on measuring activities and results Accounting and costing methods Ratios and Key Performance Indicators Balanced Scorecard Learn and apply management techniques Planning and forecasting techniques ie basic vision in head to more formal strategic planning & scenario planning Organization of people, methods, technologies © 2006 John Voorpostel
  7. 7. www. iaccountant .ca What’s missing? Many business do not look at all their inputs in an organized fashion In our modern, “resource rich” economy, resources are defined as “available means or capabilities of any kind” © 2006 John Voorpostel
  8. 8. www. iaccountant .ca So it’s not so much “ you can’t manage what you don’t measure” It is… You can’t manage inputs if you don’t know enough about them and, You can’t manage what you haven’t organized well © 2006 John Voorpostel
  9. 9. www. iaccountant .ca Business resources The basics and their development through time © 2006 John Voorpostel
  10. 10. Businesses deploy resources in order to make what they envision happen Business happens through people and activities and relationships Nothing happens unless someone does something The Basic Premises of Business Resources Our definition and description of activity www. iaccountant .ca Business resources are inputs used to create and sell a good or service © 2006 John Voorpostel
  11. 11. Early milestones 5,000,000 BC Physical body with brainstem and cerebellum Natural gifts and endowments of ancient biped hominids Looked out over and moved through their dominions of grasslands and savannah Binocular vision, opposable thumb, running, walking, climbing, reaching, grasping, handling Brain development and three part brain Brain stem – governs basic requirements of life Cerebellum – governs movement, muscles, balance, co ordination Cerebrum – co ordinates thought, emotion, memory Complexity evolves from interactions with community and environment www. iaccountant .ca © 2006 John Voorpostel
  12. 12. www. iaccountant .ca 500,000 BC Fire probably discovered as natural occurrence and they learned to carry it and re create it Community and basic language development Hunting and weapons….stone and metals, jabbing and throwing, dynamics of mass, location Food preparation, containers, implements Early milestones 2,000,000 BC Need and insight drives innovation Homo habilis first toolsartifacts for scraping, cutting and pounding © 2006 John Voorpostel
  13. 13. www. iaccountant .ca Evolvement into Sapien and our Prisca Sapiente Collective knowledge of our past 200,000 BC onwards Learning to speak and articulate ideas Aware and thinking life remembering and acting, using our minds to think Observers, incorporating memories and participating in our cultures People, learning, endeavors, aspirations, lasting achievements Lasting contributions Important discoveries and ideas Important religions and founders and beliefs © 2006 John Voorpostel
  14. 14. Land for food production for geographical advantage for water, minerals, gifts from the earth Labour slaves, beasts, tenant farmers soldiers guilds of producer providers merchants and traders Capital goods and inputs for basic goods Basic tools, techniques Metal, leather, wood, bone, stone, clay Early economies Post Ice Age 8,000 BC through Megalithic through Feudal age www. iaccountant .ca © 2006 John Voorpostel
  15. 15. Advances in Methods and techniques Materials Tools and technology Early advancements what you do and what with Passage of time and learning Changing conditions and circumstance Capable individuals and milestones www. iaccountant .ca Do not think our ancestors were dumb Great accomplishments in buildings maths, sciences, business, philosophy etc © 2006 John Voorpostel
  16. 16. Progression to modern times From Feudal to Mercantile Exploration, navigation, metals and trade goods Need to move and transport goods and people Pulleys, levers, gears, screws, basic man powered machines Political organization still around kings and aristocracy and military Development of more socioeconomic classes and wealth Seminal event Ghengis Khan, Kublai Khan and Cathay, led to Marco Polo Search for new trade routes as silk road control fragmented www. iaccountant .ca © 2006 John Voorpostel
  17. 17. Industrial revolution Scientific principles Geography and flora and fauna, metals Machinery and locomotive power Utilities, fuel, coal More complex capital goods More complex production machinery New materials, methods Widening varieties of economic endeavor, markets Political economic development Decline in ancient privileges in lands and government Economic thinking and theories and formshow are resources shared Government and economies www. iaccountant .ca © 2006 John Voorpostel
  18. 18. Technology revolution More scientific discovery and uses and applications Electricity, oil, more forms of power to move objects Natural resources, metals Materials, atomic structure Road rail sea and sky vehicles Biology, medicine, genetic codes Environment and geography and flora and fauna Widening opportunities to provide things Well formed capital markets Well educated human resources Wide variety of economic endeavor More complex ideas and concepts www. iaccountant .ca © 2006 John Voorpostel
  19. 19. www. iaccountant .ca Individual sector growth and advancement and complexity Technology revolution Plastics Automotive Parts Film & CD’s Drugs Paints Foods & Flavours Clothing Building Materials Soaps & Detergents Forensics Medical Research Furniture Fertilizers Etc. Resins & Adhesives Modern Chemical Industry – variety of applications © 2006 John Voorpostel
  20. 20. www. iaccountant .ca Business resources What’s coming in the foreseeable future © 2006 John Voorpostel
  21. 21. www. iaccountant .ca STRATEGIC BREAKTHROUGHS www. techcast .org What is coming in the next 25 years? © 2005 Techcast LLC used with permission is a v irtual t hink t ank that f orecast s the Technology Revolution
  22. 22. www. iaccountant .ca Energy and environment This crucial field should see major breakthroughs as the energy/environment challenge reaches critical levels over the coming decades. www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  23. 23. www. iaccountant .ca Space Space Tourism may be the next major advance in this field, followed by Moon/Mars projects about 2020 and exotic technologies much later. www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  24. 24. www. iaccountant .ca Major IT advances are likely to roll on for the next 2 decades, ending about 2020 with IT matures. Information Technology www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  25. 25. www. iaccountant .ca Ecommerce These forecasts suggest that various commercial uses of E-Commerce should reach 30% adoption levels by 2015 www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  26. 26. www. iaccountant .ca Manufacturing & Robotics TechCast follows only a few selected technologies as yet, and they all cluster at mid-range when manufacturing matures. www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  27. 27. Transportation www. iaccountant .ca A wave of breakthroughs is likely to revolutionize transportation over the next 20 years Latest Strategic Analyses www. techcast .org © 2005 Techcast LLC used with permission
  28. 28. Medicine & Biogenetics www. iaccountant .ca These forecasts show that medicine & biogenetics will take 2-3 decades to realize the vast potential of the DNA revolution. www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  29. 29. www. iaccountant .ca All fields www. techcast .org Latest Strategic Analyses © 2005 Techcast LLC used with permission
  30. 30. Modern economic resources Know what to manage and how www. iaccountant .ca © 2006 John Voorpostel
  31. 31. Modern economic resources Definition of a business Ideas and concepts Embedded in solutions provided to purchasers By provider producers operating in and subject to markets and Economic, political, social, cultural and religious privileges and controls www. iaccountant .ca © 2006 John Voorpostel
  32. 32. www. iaccountant .ca Work = Time + Effort + Focus Modern economic resources Equations of economic achievement Planning = Knowledge + Vision + Wisdom and the right questions Execution = Will power + Motivation + Skills + Tactics Success = Capabilities + Strategies + Experience + Reputation © 2006 John Voorpostel
  33. 33. Business happens through people and activities and relationships deploying resources in order to make what they envision happen www. iaccountant .ca Modern economic resources Definition of business activity © 2006 John Voorpostel
  34. 34. Entrepreneurial Resources Modern economic resources www. iaccountant .ca A business is an entity capitalizing on an opportunity, operated by people with particular skill sets and capabilities, organizing resources to achieve their plans deploying: Proprietary Resources Operating Resources Now, putting a framework to resources used by a business, we can classify the terms according to inherent characteristics of business © 2006 John Voorpostel
  35. 35. www. iaccountant .ca Time Effort Skills Capabilities Ingenuity Know how Methods Reputation Experience Networks Information Legal Rights Plans & Strategies People Facilities Technology Networks Capital Entrepreneurial Resources Operating Resources Proprietary Resources Modern economic resources © 2006 John Voorpostel Opportunity Vision
  36. 36. Entrepreneurial Resources Opportunity, Vision, Ingenuity and know how, Time, Effort, Skills & capabilities Modern economic resources Unique to the individual Controllable Education and self improvement Recognition and understanding of opportunity Ability to envision complex steps and solutions Uncontrollable Birthright, health www. iaccountant .ca Useful strategies Attend course, seminars, trade shows, industry events, Network with sources of information, inspiration Read informative, relevant publications Assemble libraries of useful information Buy expertise © 2006 John Voorpostel
  37. 37. Where do you concentrate your efforts? Modern economic resources How can you make yourself better? What don’t you have do you need? How do you decide? How can you better exploit your capabilities? How you do things, management tools and techniques Time you spend on productive activities Return on time Longer term planning Survival of enterprise and recurring cash flow Learn how to do the right things in the right ways It's all about who you learn from www. iaccountant .ca Entrepreneurial Resources Opportunity, Vision, Ingenuity and know how, Time, Effort, Skills & capabilities © 2006 John Voorpostel
  38. 38. Proprietary Resources Networks, Methods, Reputation, Experience, Information, Legal Rights Modern economic resources Developed over time Strong networks, relationships Experience, capabilities, reputation Available in market strategic information, people, legal rights Trade marks, Copyrights, Patents, Industrial Design Marks www. iaccountant .ca Useful strategies Public relations, community work, branding Building alliances, relationships Deepen customer relationships, solve issues quickly Network for information, influence Contract for strategic exclusivity © 2006 John Voorpostel
  39. 39. Modern economic resources Embedding strength into: organization and operations reputation and branding customer relationships legal agreements and rights Where do you concentrate your efforts? www. iaccountant .ca Proprietary Resources Networks, Methods, Reputation, Experience, Information, Legal Rights © 2006 John Voorpostel
  40. 40. Operating Resources Plans and Strategies, People, Facilities, Technology, Capital, Networks Modern economic resources For these, there is a highly developed market of inputs Many available alternatives Competitive pricing, terms, conditions in use www. iaccountant .ca Useful strategies Comparison shopping for price, terms, delivery logistics Deepen supplier relationships Staff training Make methods more effective Upgrade technology Use facilities better © 2006 John Voorpostel
  41. 41. Modern economic resources How do you do more of what you do right? How effective are you? How do you get more right the first time? How efficient are you? The basics Product – customer must perceive quality and competitive price Marketing – convince customer to deal with you and make the cash register ring People – staff must be capable and well instructed, well motivated and well equipped Operations – be good at what you do and continue to learn to get better Where do you concentrate your efforts? www. iaccountant .ca © 2006 John Voorpostel Operating Resources Plans and Strategies, People, Facilities, Technology, Capital, Networks
  42. 42. Modern economic resources Where to you keep your overhead? www. iaccountant .ca © 2006 John Voorpostel Operating Resources Plans and Strategies, People, Facilities, Technology, Capital, Networks As much as possible
  43. 43. Modern economic resources 79 - VS Strategic Planning 75 - SS CRM 73 - VS Benchmarking 73 - SS Outsourcing 72 - VS Customer Segmentation 72 - SS Mission and Vision Statements 65 - VS Core Competencies 63 - SS Strategic Alliances 62 - SS Growth Strategies 61 - SS Business Process Reengineering 61 - SS TQM 59 - NS Change Management Programs 57 - SS Balanced Scorecard What kinds of management tools do others use? Bain & Company Survey 2005 – Percent age of surveyed (larger companies) using tool and satisfaction levels Very Satisfied - VS , Satisfied - SS, Not Satisfied - NS www. iaccountant .ca 56 - VS Supply Chain Management 54 - NS Knowledge Management 54 - SS Scenario and Contingency Planning 52 - NS Activity Based Management 44 - SS Economic Value Added Analysis 40 - NS Loyalty Management 36 - SS Price Optimization Models 34 - SS Six Sigma 33 - SS Off shoring 26 - NS Open Market Innovation 24 - NS Mass Customization 14 - SS RFID 2005 Annual survey Bain & Company news release – see Operating Resources Plans and Strategies, People, Facilities, Technology, Capital, Networks
  44. 44. Political economic cultural environment Taken as a given as part of the fabric of our society, the grander scheme of things i.e Markets and market conditions Government policies and plans and spending Taxation Business and industry organizations and networks Modern economic resources Are there opportunities, ideas, concepts etc we can use How can we capitalize on situation Are there issues of concern Impact and what can be done Are there natural allies and like minded people Organization, message and communication What are the long term trends Impact from market, customer, industry www. iaccountant .ca © 2006 John Voorpostel
  45. 45. The basic resource? If I was to pick Modern economic resources Ingenuity and know how, ability to act Envision solutions and means to organize people and activities to make desired events happen www. iaccountant .ca Resourcefulness © 2006 John Voorpostel Fuels advances in Methods and techniques Metals and materials Tools and technology
  46. 46. Modern economic resources www. iaccountant .ca Summary of today It begins by understanding what resources you have Entrepreneurial resources, Proprietary resources, Operating resources Using those resources to best advantage Embed strength into your organization to convince more people to do business with you NOTE this includes moreetter customers, suppliers, employees Organizing your business know how well You cannot manage what you don’t know about or haven’t clearly perceived © 2006 John Voorpostel
  47. 47. www. iaccountant .ca Modern economic resources Summary of today Entrepreneurial resources build a business You recognize the opportunity, generate the vision, and take the time and effort to build the business Proprietary resources strengthen a business These resources are key to building a sustainable competitive advantage and lead to success Operating resources deliver the product or service These resources are traditionally measured and managed for effectiveness and efficiency and profit © 2006 John Voorpostel
  48. 48. Modern economic resources www. iaccountant .ca Rotary International Four Way Test Is it the truth Is it fair to all concerned Will it build goodwill and better friendships Will it be beneficial to all concerned Summary of today To improve improve your personal capabilities Network for information, influence, inspiration Know who to ask and what questions matter Improve yourself and better use your capabilities Actively search for good information. Keep asking why? If? Is? Learn how to do the right things in the right ways Knowing what questions to ask, what judgments to make, how to best apply your time and effort © 2006 John Voorpostel
  49. 49. www. iaccountant .ca John B Voorpostel chartered accountant adding value, not just numbers Thank you for your attention and attendance © 2006 John Voorpostel Currently Available Presentations For Downloading APO – Available Payout From Operations, The Measure That Matters Resources – Entrepreneurial, Proprietary and Operating Resources Strategies – Leadership, Culture, Crafting Strategy, Execution WWW – Internet Development, Governance, Operation, Presence TopTenTax – Tax Planning for Owner Managers KPI – Balanced Scorecard, Activity Based Costing, Ratios If you think you’ve learned something useful today, you might visit my website and link to these powerpoint presentations From my website. Free for personal use
  50. 50. Organized business know how, here, and on your desktop. Strategy Management Software Think of our software as power organizers, business organizers on steroids, overviews stuffed with best practices and smart content, ready to be put to use, executing your tasks and strategies, and communicating with your business teams and networks. Website Resources Vetted links to web resources, business news and articles, newsletter, forum © 2006 John Voorpostel Organized business know how