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1. Welcome and Introduction (David Hood, Competitive SME)2. Opportunity or Armageddon? Ready for the Economic Upswing?
(Jim Henderson, Shirlaws)3. An insight into Competitiveness for SMEs
(Brian Canavan & David Hood, Competitive SME )4. Collaboration for SMEs
(Jim Mather, former Minister for Enterprise, Scottish Government)5. Panel Session
6. Then stick around for networking afterwards, or dinner downstairs in the Cargo Restaurant (discount on meals using your new Cargo Business Lounge card you receive upon arrival).
: Agenda
Jim HendersonShirlaws
“Opportunity or Armageddon”Competitive SME Event - 30th August 2012
Black MondayMonday October 19, 1987
The “W”
The “W”
“W” Shaped RecessionsThere only have been 4 times when the markets dropped 60 %
• 1930 - 32• 1937 - 38• 1973 - 75
……and now 2007 - 09
11
The “W”
Prepare for the Third WaveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.
It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.
•Get your numbers right – prepare and plan
•Get your timing right – match your business stages to economic phases – investment returns take time
•Get your culture right and reconnect back to your vision
•Packaging and IP development
•Distribute into distinctly defined niche markets
http://www.shirlawscoaching.co.uk/stages
V = P x M
Time To Get PositiveThe business owner who’s educated, confident and secure about the economic cycle will be preparing their business for the next boom.
It’s this preparation over the next 12-18 months that’s business critical in maximising the benefits from the next boom.
•Get your numbers right – prepare and plan
•Get your timing right – match your business stages to economic phases
•Get your culture right and reconnect back to your vision
•Packaging and IP development
•Distribute into distinctly defined niche markets
David HoodBrian Canavan
Competitive SME
© Copyright David Hood / Competitive SME
© Copyright David Hood / Competitive SME
: De/Re-CONSTRUCT
© Copyright David Hood / Competitive SME
: De/Re-CONSTRUCT
© Copyright David Hood / Competitive SME
• Reactive• Resource focus• Legacy processes• Defined by industry• Make as much as we can• Make to and for margin
• Proactive• Opportunity focus• Adaptability / Resilience• Defined by market• Offer as much value• Make to need, order and demand
: P.A.T.Proposition
Accelerator
Tool:
... the simple andultimate test!
© Copyright Brian Canavan / Competitive SME
Changing the CurrencyWhat to Change What to Change to How to Change (Currency)Rolls-Royce:Engine downtime costs a lot of money to the client
Keep the engines upin the air; (‘performance based logistics’)
‘Power by the hour’
First Class Physiotherapy:The point of interaction and reference for the problem of staff absence
Stop people getting hurt rather than waiting for them to get hurt; caring!
‘Reduce absence’
Laboratory Services:We charge more than the competition and are not seen as worth the money
Do not charge the way the industry does, always has, and always will
‘Helping shift product for the client’
© Copyright Competitive SME
: P.A.T.Ask yourself....
..... “SO WHAT?”
© Copyright Brian Canavan / Competitive SME
ChairmanGael Ltd.
Jim Mather
Collaboration for SMEs
Jim Mather
My Messages
• Collaboration is a great survival strategy
• Competition is overstated and has been perverted
• Time for a new Beginning that resuscitates Trust
© Copyright Jim Mather - Gael Ltd
Two Problems with Collaboration
• Historical Connotations
• The Victory of “Competition is best” lobby– Competition - definition: The activity or condition of competing– Competitive - definition: Having or displaying a strong desire to be
more successful than others– Arguments:
• Competition has been overstated as a force for good, perverted & hijacked in some cases against the real economy and the consumer
• “Competition” often means “Lowest Price”
The Book The 14 Points Point 1:
Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
The Case for Collaboration It’s synonymous with Optimisation An attribute of the “competitive”
W. Edwards Deming
© Copyright Jim Mather - Gael Ltd
Worthy Altruistic Unifying
Goal
Determination to constantly optimise the whole system
ActiveMaintenance of
Relationships
Constant Referral to Community Interest
and Community Involvement
Involvement of external people and
organisations that could“Contribute or Benefit
From” the success of the “System”
Charles Ehin
Moving Target
© Copyright Jim Mather - Gael Ltd
Opposition
Unifying Worth Goal
Fair & Open Processes
CollaborationExperience
Relationship
Professor Ken Cloke’s Ladder of Unity
© Copyright Jim Mather - Gael Ltd
Collaboration Blending the Three Mind-sets
H1 – Status Quo – Business as UsualH2 – Gradual Evolution of Existing BusinessH3 – Radical Departure from Existing Business Model
© Copyright Jim Mather - Gael Ltd
WHAT THE HOPPER BROTHERS OBSERVED
The Puritan Gift
Likely reasons why change & innovation & change programmes fail
Future SME 2011
Lack of
Collaborative
ConversationsCommon Factor?
© Copyright Jim Mather - Gael Ltd
Likely Drivers of Innovation
Steve Johnson – Where Good Ideas come from
The Presence of
Collaborative
ConversationsCommon Factor?
© Copyright Jim Mather - Gael Ltd
The Stated Benefits of companies setting out to be competitive
Consumer / Economy• Choice• Lower Consumer Prices• Economic Growth• Spin-outs• Reinvestment• Role Models
Competitive Firm• Resilience –
– Ability to Endure & Grow– Attract & Retain Talent
• Generate intrinsic motivation– Continuous improvement &
innovation– Ability to challenge Orthodoxies
• Minimise waste
© Copyright Jim Mather - Gael Ltd
Current Issues with Competition• For Real Economy Businesses - Waste, Duplication
– Margins decimated– High Attrition Rate
• Nations – People, Communities & Countries left in lurch
• Consolidation and creation of Monopolies– David Korten – Nightmare Scenario
• Small number of Beneficiaries:-– Financial Markets– Professions – Legal, Accountancy, Purchasing
• Countries rejecting the Washington Consensus – Getting better results than compliant nations
© Copyright Jim Mather - Gael Ltd
The Case for a Two-Legged Walk- The Genius of Dee Hock
© Copyright Jim Mather - Gael Ltd
The Case for a Two-Legged Walk- The Genius of Dee Hock
© Copyright Jim Mather - Gael Ltd
The Case for a Two-Legged Walk- The Genius of Dee Hock
© Copyright Jim Mather - Gael Ltd
The Case for a Two-Legged Walk- The Genius of Dee Hock
© Copyright Jim Mather - Gael Ltd
Collaborate with whom?
How do we do it?• Take Margaret Wheatley’s advice• Blend Competitive & Collaborative Strategies
– Reject the Race to the bottom– Take pride in offerings and prices
• Read:- – The Shell Scenario Planners
• Ari de Geus and Adam Kahane– The man that studied how Toyota did it
• Mike Rother– The Hopper Brothers’ Hero
• William B. Given
• Resurrect Deming • Put the systems in place to move beyond good intentions
– Commitment to Quality, Continuous Improvement and Challenging Orthodoxies– Quality Management Systems – Collaboration Tools
© Copyright Jim Mather - Gael Ltd
Other Questions
• Can we create such a blend:-– Locally?– Nationally?
• Will Horizon 2020 Drive behaviour?• Can we educate:-
– Purchasing Managers?– The Accountancy Profession?
• And avoid The City and Wall Street creaming off the profits?
© Copyright Jim Mather - Gael Ltd
Want to join [email protected]@aperturemarketing.co.uk
@competitivesme