Business Design Concepts Intro 1226410958794972 8

8/2/2019 Business Design Concepts Intro 1226410958794972 8

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BetterPerformanceby Design

Business

DesignConcepts, LLC

November 10, 2008


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Business Design Concepts (BDC), LLC wasformed in October of 2004.

BDCs mission:

Design our clients for success.

Business Design ConceptsBusinessBlueprints

Copyright: www.stankirkwood.com 2008
http://www.stankirkwood.com/http://www.stankirkwood.com/


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BDCs founders are:

Stan Kirkwood

Jim Boughey

Senior Consultant

- Walter Myers

Basic Business



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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



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Jim Bougheys 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



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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



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The founders spent two years developing aPerformance System known as Business

Blueprints.

Basic Business



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BDCs 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 industryand size of company.

Basic Business



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Customized Business DesignsBusinessBlueprints

Business Design Concepts, LLC

provides customized business designs

specifically tailored to meet our clientsgoals.

Your customers and shareholders are atthe core of everything we do



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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



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First TenetBusinessBlueprints

These cars may have been designedwith the same goals and strategies inmind but the level of performancepossible for each one is dictated by thedesign.

While strategies are important it is thedesign of the vehicle that will determineits top speed or how well it canmaneuver through tight spots.

The same strategies but different designs

Copyright Business Design Concepts, LLC

Design Dictates Performance



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BusinessBlueprints

Business Blueprints add value

Second Tenet

Management Team

Without a documented design what is the

likelihood that the people at this table willshare a common understanding? None.

And yet executives sit across the tablefrom each other for years without knowingthey do not share a common vision.

Designs must be Documented



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BusinessBlueprints

Business Blueprints add value

Implementation teamRemove the documented design from theimplementation team and what is the likelihood

that the team will build what the executive teamhad in mind? None.

This is why executives are continuallydisappointed by the outcome of projects.

Implementation teams can not know whatmanagement has in mind.

The fault lies with management!

Designs must be DocumentedSecond Tenet



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Third TenetBusinessBlueprints

Evolved Business Designed Business

Individual processes working independently Processes designed to work together

Finance

InformationTechnology

ProductDevelopment

Operations

ManagementLogistics

Sales

HumanResources

Everything is connected to Everything



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Importance of ProcessesBusinessBlueprintsWorld-class organizations know the importanceof 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 sustainablecompetitive advantage. That can be referredto as Process Excellence.



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Process ExcellenceBusinessBlueprintsFour keys to Process Excellence:

1. Quality of the overall process design

2. Implementation of the process design

3. Execution of the process design

4. Management of the process design.



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Importance of Business DesignBusinessBlueprintsWorld-class organizations know the importance ofdesign-centric management.

Customer and shareholder value defined andquantified

Processes designed to meet customer andshareholder expectations

Organization designed to execute processes

Systems designed to support organization

An aligned organization provides a competitiveadvantage and can be referred to as BusinessExcellence.



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Business ExcellenceBusinessBlueprintsFour keys to Business Excellence:

1. Quality of the overall business design

2. Implementation of the business design

3. Execution of the business design

4. Management of the business design.



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PromisesBusinessBlueprintsEvery 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 ConceptsConfidence



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ConfidenceBusinessBlueprintsWhat if you are:

Uncertain what to do next

Uncertain of where to go

What if you are:

Confident of what to work on

Confident of direction ofcompany

http://www.stankirkwood.com/http://www.stankirkwood.com/http://www.inmagine.com/pdsi019/pdsi019810-photo


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Business DesignBusinessBlueprintsWhat does a business design need to look

like to instill confidence?

It depends Goals

Competitive environment

Desired strategies Existing business design

Execution by organization



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Design x Execution = PerformanceBusinessBlueprints

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

Competitive Environment

Sub-standardPerformance

GoodPerformance

PoorPerformance

Sub-standardPerformance

Design

Execution

5

10

5 101

100



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Accomplished QuicklyBusinessBlueprints 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 allbusinesses

Common Structure Common Framework

Common Building Block

Common Metrics



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CommonFundamentals

Metrics:

Framework:

Building Block:

BusinessBlueprintsStructure:

- ROI - - VP -

ProcessProduct

- VP -

Product

Capstone

OrganizationalModel

Proc

ess

Model

MarketModel

SystemsModel

Manage the

Entity

Support the

Entity

Create

DemandFulfill Demand

Business

Entity

- (VP) Value Proposition- Measure market satisfactiono Desirabilityo Costo Quality

o Lead time

- (ROI) Return on Investment- Measure stakeholder satisfactiono Customer satisfactiono Financial Successo Operational Effectivenesso Management Effectiveness

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AlignmentBusinessBlueprints

Capstone

OrganizationalModel

Proc

ess

Model

MarketModel

SystemsModel

Alignment becomespossible only afterthe structure hasbeen documented.

Each model must be

designed to supporteach other.

Structure:



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Alignment (Structure)BusinessBlueprints

Capstone

MarketPerformanceRequirements

ProcessPerformanceRequirements

Organizational

PerformanceRequirements

SystemPerformanceRequirements

Expectations of market for products / services

Competitor offerings of products / services

How products /services designed tomeet customerexpectations

How processesdesigned todeliver products

/ services

How organization

designed to executeprocesses

How Systems aredesigned to support

DQM

Define

Quantify

Measure

Manage



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BusinessBlueprints Market Performance

Focus on what is Important!

Which Market will you go after?

0

5

10

15

20

25

30

35

40

45

K-12 Universities First Responder

Market Importance



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BusinessBlueprints Customer Performance


Customers buy your product. Whichcustomers will you appeal to?

Customer Rankings - Pie

Police

Fire

EMS



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BusinessBlueprints Product Performance


Your products must have a compellingValue Proposition.

0

5

10

15

20

25

30

35

40

Std Duty Heavy Duty Turnout Storage

Products



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BusinessBlueprints Process Performance

The Process designs mustsupport Market designHow are your processesdesigned?

Process Designs affect:- Lead time- Quality- Cost



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BusinessBlueprints Organizational Performance

Organizations execute Processes

Right People on BusWrong People off Bus

Right People, Right Seats

Does your organizationhave the right:- Skills- Talents- Knowledge- Experience?



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BusinessBlueprints Systems Performance

Organizations use Systems to execute Processes

Are your IT systemsdesigned to support yourorganization?

Do you have theright equipment?



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BusinessBlueprints Business Performance

To have maximumperformance partsmust be aligned

Dont start with IT

systems and workyour way up. IT is

not the silver bullet.

Markets Aligned to Goals

Processes Aligned toMarkets

Organizations Aligned toProcesses

Systems Aligned toOrganizations

Markets Aligned to Goals

Processes Aligned toMarkets

Organizations Aligned toProcesses

Systems Aligned toOrganizations

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BusinessBlueprints Deliverables

Road Map

Updated blueprints of your business

Strategic Plan

Governance ModelCompetitive Environment

Goals

ChangeGoal

Existing

Design

Strategies

ExecuteStrategy with

ExistingDesign

PerformanceCapabilities

Strategic Plan&

RoadMap

No

Yes

ModifyDesign,Goa l,or

Strategy

ChangeDesign

ChangeStrategy

B

A

C

B

C

PerformanceRequirements

A

ExecuteDesign

A

Howto achieveGoals

Steps toperformance:

-Setstrategic goals incontextofthe environment

-Identify strategies youwishtoexecute toachieve those goals-Update the existingdesignofthe business tobe able toexecute those strategies-Implementthe newdesign-Execute the strategies.

ExecuteStrategies

Copyright:Business Design Concepts,LLC 2004

StrategicManagement

BusinessDesign Concepts,LLC

Copyright: www stankirkwood com 2008

Documents

Business Design Concepts Intro 1226410958794972 8