Presented this during a Discussion Session on Profitability through Productivity to SME owners at Young Entrepreneurs School (YES), Madurai, Tamilnadu on 18th July 2017. It also talks about CSense Management Solution's SME Consulting Support Approach.

1. Sustainable Business
Profitability thru Productivity

2. What is Sustainable Business?
● What is your Business?
● As a Business Owner – how long you can go off from your office?
○ 1 year?
○ 6 months?
○ 1 month?
○ <10 days?
● What was your growth target over past 5 years? How much you achieved?
○ > 80%
○ > 50%
○ ~ 10%
○ < 5%
● What is percentage of repeat orders and what is the percentage of dissatisfied customers?
○ Repeat order 30% & Dissatisfied 20%?
○ 20% & 30%
○ 10% & 0%

3. What is Sustainable Business?
● What is the one thing that differentiate your company in the market? What is the focus on leveraging
your differentiator?
● What are the emerging potential markets for your business and who is focussing on penetrating into
that territory?
● How could you disrupt your business model?
● Who is in-charge of tapping innovations in your company?
● What is the Cost of Poor Quality in your business?
● Are you working on reducing your Cash to Cash Cycle? What is your Cycle velocity and what is the
target?
● What are the major problems your company had faced in past 1 year and what did you learn?

4. Who starts a business?
The Manager
The Leader
The Technician
www.csensems.com

5. What is our Business?
Business
Manufacture
Trading IT Service
Other
Service
The Interaction zone is where
the business potential exists!!!
Idea / Technology /
Capability
Requirements
www.csensems.com

6. Why do we start a Business?
STRENGTH
I / We have a strength. An information
/ idea.
I have resources. I have some capital
DOMINANCE
I will be my boss
OPPORTUNITIES
There is sufficient demand in the
market.
SERVICE
I can serve the communitywww.csensems.com

7. How do we get our Money?
Raw Material Design Manufacturing Supply
GOAL
www.csensems.com

8. Business Cycle
Receive Customer Orders
Issue Purchase Order to
Suppliers
Receive Material from
Suppliers
Start Manufacturing
Transport Material to
Customer
Deliver Material to Customer
Complete Manufacturing
Receive Payment from
Customer
Pay to Supplier & Employees
00
Day
01
Day
07
Day
08
Day
31
Day
91
Day
92
Day
98
Day
128
Day
Cash Out
Cash In
Cash Out of
Pocket for 97
Days
www.csensems.com

9. D
O
O
W
M
I
T
Why Does Process Take Time?
Resources
Wasted as…
Transport
Movement of Material without any change in
size / shape / property of material
Inventory Material that are not attended - lying on floor
Motion
Movement of People and / or machines
without producing any change in size / shape
/ property of material
Waiting Material, Machine or Man waiting for
something
Over
Production
Producing more than orders in hand / more
than what next process can consume
Over
Processing
Process / activity that are not specified,
not required or not producing any change
in material size / shape / property
Defects
Products that are not meeting
requirements right at first time
www.csensems.com

10. Why are you experiencing these symptoms?
Are you….
● Unable to increase your profits due to lack of funds?
● Not comfortable with your market shares among your peers?
● Feeling the pressure from customers on cost reduction and delivery times?
● Losing out more because of some quality issues?
● Seeing that customers are dissatisfied with your delivery performance?
● Concerned about the increasing overheads?
● Seeing plant filled with inventory and want to control them?
● Having a lot of break-downs and your engineers are attending to them
daily?
● Wondering that profits have not grown despite the increase in volumes?
● Repeatedly trying to improve the morale of your employees?

11. What is happening?
Leader
ManagerTechnician
1
23
Leader Manager Technician
To Lead To Manage To Do
Sees Tomorrow Sees Today Sees Yesterday
Shares Vision Shares Plan Executes
Bold Tactful Hard working
Innovation Efficiency Output
Anxiety Stressful Strain
The Leader inside you is pulled
down by the Manager
And the Manager in you is pulled
down by the Technician
www.csensems.com

12. Where to Start?
Middle Level Management
Top Management
Work Force
Business is DONE at Workforce Level
www.csensems.com
www.csensems.com

13. Leverage Point
○ Constraint (or Bottleneck)
÷ The Point of Convergence
Muda
Bottleneck
Muri
Mura
Middle Management
Top Management
Work Force
Start from your
Bottleneckwww.csensems.com

14. Growth is not unidimensional
Standardise
Innovate
Improve
Growth
www.csensems.com

15. Roles of Leadership in the Journey
Enable them with your
Dream - Vision for the company & for their Carrier
Belief - Determination to achieve the goal
Challenge - Clearly stated Roles, Targets & Questions
Care - Assurance for their Carrier & Development
Leader is an Enabler
Encourage & Challenge them to Develop themselves
Help them to Solve Your Problems
www.csensems.com

16. 5 things to avoid
● Do not ask who is the cause for failure
● Do not ask why they had not done this before
● Do not jump in to judgement or push your solutions
● Do not say “we know that already and we were unable to achieve that last
time”
● Do not discourage when the team comes up with more problems.

17. Thank you!
Know more about
us / Contact us
• To know more about SME Support please click here!
• Visit our website www.csensems.com to know more
about us.
• View Mr. Kannan’s detailed profile at https://goo.gl/
cQEkcr
• View articles written by Mr. Kannan on the subject
at https://goo.gl/5e6fSc
Contact
LS Kannan
9940624918
kannan@csensems.com