Surf illustrations PDF 01-94files.designer.hoststar.ch/ac/c5/acc5d5b3-6929-4c99-8629... · 2019. 6. 8. · 100 1940 1950 100 M 10 M 1 M 100 K 10 K B 10 B 1 B US $ $42.4 B 9 $3.688

Smart Operational leadership

Figure1.1Topmanagement’sjobistwofoldVisionandstrategy:Toseethewavesofopportunitycoming.Operationalleadership:Toleadthecompanytoridethem.Betterthancompetition.


Figure1.2Valuechainofbusinessmanagement.Visionselectsthewavetoride.Strategydefinesthepositiontotakeonthewave.Theperformanceofbusinessfunctionsbringsustooperationalbusinessresults.Operationalplansguidefunctionstoperform.

Toseethewaves

ofopportunity,

OperationalBusinessResults

DetermineVisionandStrategy

OperationalLeadership

BusinessFunction

Performance

…andleadthecompanytoridethem.


OperationalPlanning

Figure1.3Strategy’saddedvalue:ProvideinformationrequiredforoperationalplansThreewellknownviewsofstrategyandtheiraddedvalueforsettingoperationalgoalsanddesigningoperationalplans.


Elementsofstrategy

Mintzberg(5Ps)

Porter(3strategies,5forces)

Soin(8stepbusinessplan)

Financialanalysis,3-to5yearobjectives

PatternsPosition

Perspective

CostValue

Segment

VisionCustomers

Products,ServicesProductstrategy

Ploy

Competitors:Existing

NewentrantsSubstituting

Competitivesituation

Operationalgoals

CriticalSuccessFactors

Competitors’Goals

andPlans


Figure1.4Operationalexcellence-TwoviewsLeader’sviewrecognizesoperationalexcellencefromthepointofviewoftheoutcome.Methodsexpert’sviewstressesmethodologies.

OperationalExcellence

OperationalLeader’sView:ThepurposeAbusinessoperatesatoperationalexcellence

ifitachieves,ineverygoalperiod(daily,weekly,monthly)it‘sto-dategoal.

MethodsExpert’sView:TheapproachOperationalExcellencestressestheapplicationofavarietyof

principles,systems,andtoolstowardthesustainableimprovementofkeyperformancemetrics.


Figure1.5HP:AshowcaseofoperationalexcellenceConstantgrowthinrevenueandearnings–basedonbest-in-classoperationalleadership.

100

19501940

100100MM1010MM11MM100100KK1010KK

B10BB

11BB

US$US$

Revenues FY1999$42.4B

FY1999$3.688B

EarningsfromOperations

1960

1970

1980

1990


Figure2.1FivetasksdonerighttoleadthebusinesstooperationalexcellenceFivetaskstobedoneright:Agileleadershipandasystemsviewarerequiredtoresolveconstraintsandmovethebusinessforward.




BusinessFunction

Performance

OperationalExcellenceAlwaysachieveto-date

operationalgoals5.Right


OperationalPlan

PLAN1.RightGoal2.RightPlan

EXECUTE3.RightExecution

CHECK4.RightReview


Figure2.2Scrumprocess:AgilesoftwaredevelopmentThebacklogcontainsalltickets.Thesprintplancontainstheticketsforthenextsprint.Duringsprintexecution,dailystand-upscrumscheckprogressandupdate.

ProductBacklog

SprintBacklog

SprintPlanning

Result

Sprint

DailyScrum

ReviewRetro-spective

Productownercreatesaprioritized

wishlist,theProductBacklog

Insprintplanning,theteampullsasmallchunkfromthetopofthatwishlist,asprintbacklog,anddecideshowtoimplementthosepieces.

Theteamhasacertainamountoftime-asprint(usuallytwotofourweeks)-to

completeitswork,butitmeetseachdaytoassessitsprogress(dailyScrummeetingor

DailyStand-upMeeting).

Thesprintendswithasprintreviewand

retrospective.

Asthenextsprintbegins,theteamchoosesanother

chunkoftheproductbacklogandbeginsworkingagain.


Figure2.3AgileleadershipinoperationalsprintsTheoperationalplancontainsallactionsrequiredtoachievethegoals-inquarterlysprints.Aftereachsprint,checktheplanforvalidityandadjustasrequired.

OperationalPlan

QuarterlyResult

QuarterlyOperational

Sprint

DeepReviewSprint

ReviewMeeting

MonthlyWorkPlan

QuickReviewMonthly

StandUpMeeting


Figure3.1SystemsviewrequiredIt’sthenetworkthatkeepsourbusinessaliveandhealthy.Itislikealivingbeingconsistingofmanyelements.




BusinessFunction

Performance

Distributors

CustomersTypeA

CustomersTypeB

ProductManagement Marketing

Manu-facturing

Sales

ProductDevelopment

Innovation

OrderProcessingSuppliers

TechnologyGurus

Ecosystem

Development-Partners

MARCOMServices Competitors

CallCenter


Figure3.2AbusinesssystemincludesallelementsinitsecosystemExample:Boeing’secosystemfortheDreamliner.http://missionsharingknowledge.com/supplier-network-behind-the-new-boeing-dreamliner/




BusinessFunction

Performance


Figure3.3Constraint:therootcauseoffailingtoachievetheoperationalgoalsInmostcases,onesingleorveryfewbusinessfunctionshavereachedtheirlimits.Unlesstheseconstraintsareresolved,achievingoperationalgoalsisimpossible.

Toseethewaves

ofopportunity,

…andleadthecompanytoridethem

0

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BusinessFunction

Performance

Constraint



Figure3.4Constraint:TherootcausebehindanetworkofsymptomsIncomeintroubleisthesymptom,forwhichtherootcauseistheconstraint,whichtriggerssymptomsinotherfunctions.Symptomsaretypicallyresolvedwhentherootcausehasbeenresolved.

ProductManagement

Marketing

Manu-facturing

Sales

ProductDevelopment

CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Eco-System


Value

Value

Value

Income

Income

Income


Rootcause

Symptom

Symptom

Symptom

Symptom

Symptom

Symptom

Symptom

Constraint

UndesiredEffect

Symptom

Incomeintrouble

0

20000

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60000

80000

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2003

2005

2007

2009

2011


Figure3.5Notjustamoneymakingmachine:AsocialsystemPeopleworkineachelement/function.Theirculture(valuestheyvalue)isthebasisforoperationalsuccess.




BusinessFunction

Performance

Distributors

CustomersTypeA

CustomersTypeB


Manu-facturing

Sales

ProductDevelopment

Innovation

OrderProcessingSuppliers

TechnologyGurus

Ecosystem



CallCenter

People

People

People

People

PeoplePeople

People

People

People

People

People

People

People

People

People

People


Figure4.1One:RightgoalsThat’swhereitallstarts.Startingwithwronggoalsmakesallothereffortsuseless.




BusinessFunction

Performance

OperationalPlan

5.RightOperationalLeadership



CHECK4.RightReview OperationalExcellence

Alwaysto-dateoperationalbusinessgoals

Rightgoals•  Goalsinthemanagementvaluechain•  Onesingleoperationalbusinessgoal•  Goalsforbusinessunits•  Sixrules•  Setbreakthroughgoals•  Donotinflategoals•  Incentivegoalsseparate•  Simplegoalcharts•  Intermediategoals•  Singleaccountableowners


StrategicGoals

FunctionalPerformance

Goals

OperationalBusinessGoals

Figure4.2GoalsviewedinthemanagementvaluechainTherearethreetypesofgoals:Operationalbusinessgoals,functionalperformancegoalsandstrategicgoals.

LongerRangeFinancialGoals

MarketPositionGoals

CompetitivePositionGoals

Units’BusinessGoals

HierarchicalUnits’BusinessGoals

MatrixUnits’BusinessGoals

Company(Toplevel)BusinessGoals




BusinessFunction

Performance

Necessary

Cond

ition


Figure4.3BusinessesarevaluegeneratingsystemsAnetworkofbusinessfunctionsworkinginflowtocreativelygeneratevalueforcustomers.Rewardedbyincomefromcustomers.Sufficientincomeistheprimaryoperationalgoal.

ProductManagement

Marketing

Manu-facturing

Sales

ProductDevelopment

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Ecosystem


Value

Value

Value

Income

Income

Income


CallCenter



Figure4.4ThreetypesofunitsinacompanyIncome-generatingunitsorganizedinhierarchyandmatrix.Cross-functionalunitsoperatehorizontallyacrossincome-generatingunits.

MatrixUnits

Income-GeneratingUnits

XYZCompany(JamesT.)

Skis(RobertK..)

Snowboards(WilliamK.)

U.S.Skis

U.S.Snowboards

CanadaSkis

CanadaSnowboards

InternationalSkis

InternationalSnowboards

U.S.(JohnW.)

Canada(JeanT.)

International(JohnW.)

Cross-functionalunits

Finance

HumanResources

InformationTechnology

Americas(MaryS.)


Figure4.5InternalandexternaloperationalbusinessgoalsInternalgoalsareforincome-generatingunitswithinthecompany.Externalgoalsareforthesourceofincome–customers/segmentsorcustomers’customers.

OperationalBusinessGoalsforIncome-Generating

Units

OperationalBusinessGoalsfortheEcosystem

Customers Customers’Customers


Figure4.6Goalchart:ThekeytoolforoperationalleadershipOnlytheprimarygoalofcontributionmarginistrackedingraphandtable.Allothergoals(necessaryconditions,incentivegoals)trackedseparately.

Total Owner J F M A M J J A S O N D

Contribution Margin, Goal 26 39 52 57 58 61 75 118 154 189 213.8 250

Contribution Margin, Actual

Americas Mary S. 8 13 18 23 24 25 30 59 80 104 118 140

International John W. 18 26 34 34 34 36 45 59 74 85 95.8 110

Skis Robert K. 14 19 24 25 26 27 35 70 92 117 132 152

Snowboards William K. 12 20 28 32 32 34 40 48 62 72 81.8 98

James T.

Regions and Countries

Products

0

100

200

J F M A M J J A S O N D

Con

tribu

tion

mar

gin,

M$

Our Goal

Contribution Margin, Goal


Figure4.7Onesingleaccountableowner(RACImodel)Singleownershipisakeysuccessfactorinanyproject.ClearunderstandingoftherolesintheRACImodelhelpsensurethatrolesareappliedproperly.

Role Responsibility

Responsible

Thosewhodotheworktoachievethetask.Thereisatleastonerolewithaparticipationtypeofresponsible,althoughotherscanbedelegatedtoassistintheworkrequired.

Accountable(alsoapproverorfinalapprovingauthority)

Theoneultimatelyanswerableforthecorrectandthoroughcompletionofthetask,andtheonewhodelegatestheworktothoseresponsible.Theremustbeonlyoneaccountablespecifiedforeachtask.

Consulted(sometimesCounsel)

Thosewhoseopinionsaresought,typicallysubjectmatterexperts,andwithwhomthereistwo-waycommunication.

Informed Thosewhoarekeptuptodateonprogress,oftenonlyuponcompletionofthetaskordeliverable,andwithwhomthereisjustone-waycommunication.


Figure4.8GoalsinmatrixorganizationsApplyingtheprincipleofundisputedsingleaccountability,matrixunitsaredefinedassub-unitswithinthehierarchy.

XYZCompany(JamesT.)

240

Americas(MaryS.)

140


110

ProductSales

Skis(RobertK.)

15292 60


9848 50

Matrixgoals

Hierarchicalgoals


Figure5.1AvoidingthetrapsofintuitionToavoidthetrapsofWYSIATI(whatyouseeisallthereis)andjumpingtoconclusions,checkproposalsoftheintuitiveSystem1usingthedatadrivenSystem2.




BusinessFunction

Performance

System2:Datadriven•  Slow&higheffort,notpleasant•  Lesspronetoerrors•  ChecksSystem1’sproposals

System1:Intuitive•  Fastandeasy–butpronetoerrors•  Trap#1:WYSIATI•  Trap#2:Jumpingtoconclusions

Decisions


Figure6.1RightoperationalplanOrganizedascausaltreetofocusalleffortsontheoperationalgoal.Ownedbyoperationalteams.Companyunitshaveautonomousplans.Systemicconstraintsownedathigherlevels.




BusinessFunction

Performance

OperationalPlan





Alwaysachieveto-dateoperationalgoals

Rightoperationalplans•  Preventobstacles,remediateconstraints•  Causaltreesfromgoaltoaction•  One-pageplans•  Limitsoftop-downplanning•  Plansforbusinessunits•  Operationalizeplans


Figure6.2TwopurposesforoperationalplansToleadthebusinesssystemtotheoperationalgoalbypreventingobstaclesbeforetheyappear,andtoremediatealreadyexistingconstraints.

OperationalplanActionstolead

thebusinesssystemtothegoal

Identifyandpreventobstacles

beforetheyoccur

Identifyandremediateconstraints–existing

andpredicted

Foreseenobstacles

Existingconstraints

OperationalBusinessGoal


Figure6.3Operationalplanascausal/logictree–HowitselementsfittogetherCausal/logictreeofcriticalsuccessfactors,competitors’plans,necessaryconditions,obstaclesandcommitmentstoresolvethem.

CriticalSuccessFactor

NecessaryCondition

NecessaryCondition

Obstacle Obstacle Obstacle

Commitment Commitment Commitment Commitment


NecessaryCondition

NecessaryCondition

Obstacle Obstacle

CommitmentCommitment

CompetitorsPlans

Competitors’Plans



Figure6.4One-pageconstraint-focusedoperationalplanandoperationalteamCausal/logictreearrangedastable.Inpracticaluse,manyfindahorizontaltableeasiertohandlethantheverticaltreeformat.


CriticalSuccessFactorsCompetitor’sPlansNecessaryConditionsObstaclesCommitments

NecessaryCondition

NecessaryCondition

Obstacle

Obstacle

Obstacle

Commitment

Commitment

Commitment


NecessaryCondition

NecessaryCondition

Obstacle

Obstacle

Commitment

Commitment

Competitor’sPlans

Competitor’sPlans

Goal

Commitment



Figure6.5Hoshintable–ExampleHoshintablesareone-pagelogical/causaltreescontainingthevitalinitiativesrequiredtoachievethegoal.MichelMadec,CFOHPFrance,usedhispersonalHOSHINtablefortraininghispeople.

SituationIamahappy,healthyperson.However,ImissedtheplanetoAmsterdamlastTuesdaybecauseIcouldnotrunfastenough.MylifeexpectancyislowerandmychancetogetsickishigherifIhaveoverweight.Mywifemadecommentsaboutthefastshrinkingofmoderntextiles.

Goal Keyinitiatives Commitments

Target

Feelphysicallyhappy,

again.1) Eatless <=2000kcalperday2) Drinkless <=1glassofwineperday3) Cyclemore>=100kmperweek

Ownedby:MichelMadecDate:1.4.94Rev.:01

Year:1994 Division:Private Location/Department:---

Nr:.

74kgbyend1994



Figure6.6TheoperationalteamEachobligationinanoperationalplanisassignedtoanowner.Allownersofsuchobligationsconstitutetheoperationalteam.


CriticalSuccessFactorsCompetitor’sPlansNecessaryConditionsObstaclesCommitments

NecessaryCondition

NecessaryCondition

Obstacle

Obstacle

Obstacle

Commitment

Commitment

Commitment


NecessaryCondition

NecessaryCondition

Obstacle

Obstacle

Commitment

Commitment

Competitor’sPlans

Competitor’sPlans

Goal

Commitment

PaulK.

JackH.

JohnM..

SusanL.

JeanT.

PaulJ.

SusanP.

CarryS.

JannetK.

WilliamN.

MaryL.


Figure6.7Traditionaloperationalplanning:Top-downTopmanagementdefinestheoperationalfocusbasedontwoassumptions:(a)allunitshaveidenticalbusinesssystems;and(b)needidenticaloperationalplans.Neitheristypicallyjustified.

MatrixUnits

Income-GeneratingUnits

XYZCompany(JamesT.)

Skis(RobertK..)


AmericasSkis

AmericasSnowboards

InternationalSkis



Cross-functionalunits

Finance

HumanResources


Americas(MaryS.)

1.   MakeSnowboardXasuccess2.   Reducecostby10%3.   Deliverontime


XYZCompany(JohnW.)

InternationalSkis



AmericasSkis

AmericasSnowboards

Americas(MaryS.)

Figure6.8RightoperationalplansforbusinessunitsGoalstop-down,operationalplansandsystemicconstraintsbottom-up.Skisseemtofaceasystemicconstraint:thesameconstraintappearsinbothunits.

MatrixUnits

Income-GeneratingUnits Cross-functionalunits

Skis(RobertK..)


Finance

HumanResources



Figure6.9Operationalization-IntentionandDoDDoDdescribesthestatetobeachieved,whatitwilllooklikewhendone.Intentiondescribesthegeneraldirectiontotake.OnlyDoDcanbetrackedinexecution.

Intention DoD(Deliveredondone)

Increaseopportunitywinrate

>60%winrateinA-opportunities

Developproductsfaster

<3monthsforphase1to3

Aggressivelymarkettoconsumers

$15millioninsalesfromconsumersin2016

Speeduprepairs <=5hourstime-to-repair(TTR)


Figure7.1CriticalsuccessfactorsThenon-negotiablestatestowhichthebusinesssystemmustbebroughtinordertoachievetheoperationalgoal.Maybeinternalorinecosystem.Needtocheckallsystemdomains.




BusinessFunction

Performance

OperationalPlan






Criticalsuccessfactors•  Non-negotiableconditionsfortheoperationalgoal•  Flexiblebyunit•  Anywhereintheentirebusinessecosystem•  Sixrules•  Forshortandlongtermgoal•  Phraseassystemstates•  Includesocialdimension•  Checkentireecosystem•  Ensurecausalnecessity•  KeepseparatefromNCs


OurInternalBusiness

System

Figure7.2Criticalsuccessfactors–foundanywhereintheentirebusinessecosystemExample:SomecriticalsuccessfactorsthatHPfacedwhenenteringtheprinterbusiness.

OurCustomers‘Customers

OurCustomers

Income Income IncomeCustomer‘sCustomer

CSF

CustomerCSF

OtherCSF

InternalCSF


Focusedbusinessteam

Attractivetochannel

Easytouseproducts

Productmeetssafety

laws


Figure7.3Criticalsuccessfactors–ExampleAvoidtheWYSIATItrap:Considerallelementsofthebusinesssystem,includingitssocialdomain.Avoidjumpingtoconclusions:Checkcausalconnectiontooperationalbusinessgoal.

Ifnotreached… Criticalsuccessfactors Systemdomain Operationalbusinessgoal

Noopportunityforpremiumpricing

Advantageintrendsinuserneeds

Customers’Customers

Ecosystem

ContributionMargin2015:$250m

2016:$280m

Ineffectivemarketcoverage

Highlyeffectivebusinesspartnerships

Customers

- None Other

Cannotpricecompetitively

Worldclasslowcostorganization

Functions

Internalsystem

Slowproductcycles

Highlyfocusedproductlineteams

Culture


Figure7.4Designingaone-pageoperationalplan–Step1:NotecriticalsuccessfactorsTakingtheCSFsselectedintheworksheet,beginbuildingtheoperationalplan

Commitments Obstacles Necessaryconditions Competitors'plans Criticalsuccessfactors Operationalbusinessgoal

1.Advantageintrendsinuserneeds

2.Highlyeffectivebusinesspartnerships

3.Worldclasslowcostorganization

4.Highlyfocusedproductlineteams

Contributionmargin2015:$250m2016:$280m


Figure8.1Competitors’plansCompetitors’intentistoconstrainusfromachievingourgoal.Tocope,understandtheirperformance,initiativesandspeed,basedondata.




BusinessFunction

Performance

OperationalPlan






Competitors’plans•  Competitorscausingconstraints•  Understandingtheirgoalsandplans•  OODAloop•  Threerules•  Selectkeycompetitors•  Operationalizecompetitor’splans

•  Searchtheentirebusinesssystem


Figure8.2Competitors–SystemsviewCompetitors’plansconstraintheabilitytoreachcriticalsuccessfactors.Knowtheseplanstopreventivelyneutralizetheirinfluence.


Manu-facturing

Sales

Prod.Dev. CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Eco-System


Value

Value

Value

Income

Income

Income






Competitors’Plans

Competitors’Plans

Competitors’Plans


Figure8.3CompetitorcausingaconstraintforourincomeInthecustomer’sview,thecompetitorperformsfarbetterinon-timedelivery.Thisdifferenceconstrainstheabilitytowinbusinessfromthiscustomer.

0

2

4

6

8

10Technology

Quality

ResponsivenessDelivery

Cost

Proactive conformance to

requirements

Leading technology roadmaps

Continuous improvement of cost/value

On-time faultless delivery

Rapid resolution of

problems

CompetitorA

Yourperformance


Figure8.4OODALoop(Boydcycle):WinningincompetitionEachminuteaheadoftheopponentcreatesanadvantage.

Observe•  Presentsituation•  Unfoldingcircumstances•  Previousdecisionsandresults

Decide•  Determinecourseofaction•  Assignobligations

Orient•  Changes/triggers•  Impact•  Certainties/Assumptions

Act•  Communicate•  Implement

Feedback


Figure8.5OperationalleadershipviewedasOODAloopTowinagainstthecompetition,gothroughtheOODAloopfaster.

Observe•  Internalsituation•  Situationinecosystem

•  Triggersandwaves•  Customers•  Competitors

Decide•  Necessaryconditions•  Obstacles>Commitments•  Milestones

Orient•  Goals•  Criticalsuccessfactors•  Competitor’sgoalsand

initiatives

Act•  Communicate•  Execute

Feedback


Figure8.6Understandingcompetitors’operationalperformanceandspeed-WorksheetWholesystemscheck–whichoftheirfunctionsrelatetocriticalsuccessfactors?Whichperformancegoalsdotheyaimfor?Whichchangeinitiativesaretheyplanning?Howfastarethey?

Suppliers Enablers Customers Op.Leadership Service SupplyChain Sales&Mktg Products

(B)Perf.Goal:

Topservicerating

>TTF<3days

(ongoing)

>65%partson

stock(12-15)

(A)Perf.Goal:

Stable12mths

product

development

cycle

ongoing

1.Advantage

intrendsinuser

needs

(B)Perf.Goal:

$8msales/head

>50/50incentive

scheme

>Salesworkfrom

home

Bothongoing

2.Highlyeffective

salesfunction

(A)Perf.Goal:

Costofmaterial<

15%

>Newsupplier

contracts(12-15)

(B):Perf.Goal:

Final

configurationex

works

>Customerconfig

viaWeb(06-15)

3.Worldclass

lowcost

organization

(A),(B)Perf.Goal:

Profitbycountry

Ongoing.Noplans

forseparateunits

byproductlines.

4.Highlyfocused

productline

teams

Critical

success

factors

Ecosystem Internalsystem

Competitors'performanceandplansintheirrelatedbusinessfunctions


Figure8.7Designingouroperationalplan-Step2:Notekeycompetitors’plansPerformanceandspeedincompetitors’functions,asrelatedtoourcriticalsuccessfactors.


(A)Perf.Goal:

Stableproductdevelopment

cycle

>12mths,ongoing

(B)Perf.Goal:Topservice

rating

>TTF<3days(ongoing)

>65%partsonstock(12-15)

(B)Perf.Goal:

$8msales/head

>50/50incentivescheme

>Salesworkfromhome

Bothongoing

2.Highlyeffective

salesfunction

(A)Perf.Goal:

Costofmaterial<15%

>Newsuppliercontracts(12-

15)

(B):Perf.Goal:

Finalconfigurationexworks

>CustomerconfigviaWeb

(06-15)

(A),(B)Perf.Goal:

Profitbycountry,ongoing.

Noplansforseparateunitsby

productlines.

4.Highlyfocused

productlineteams

Contributionmargin

2015:$250m

2016:$280m

1.Advantage

intrendsinuserneeds

3.Worldclass

lowcostorganization


Figure9.1NecessaryconditionsTheMUSTACHIEVEsystemstatesforreachingcriticalsuccessfactors.




BusinessFunction

Performance

OperationalPlan






Necessaryconditions•  Mustachieveperformancelevelsofthebusinesssystem•  Fourrules•  OperationalizeNCs•  MakesurethatnootherNCsexist

•  Preemptorneutralizecompetitors’plans


ProductManagement

Marketing

Manu-facturing

Sales

Prod.Dev. CallCenter

Innovation

OrderProcessing

Distributors

CustomersTypeA

CustomersTypeB

Suppliers

TechnologyGurus

Ecosystem


Value

Value

Value

Income

Income

Income


Figure9.2Necessaryconditions-SystemsviewThestatesofthebusinesssystembywhichcriticalsuccessfactorsarereachedwhileneutralizingcompetitors’plans.





Competitors’Plans

Competitors’Plans

Competitors’Plans

DoD

DoD

DoD DoD


Figure9.3Ownershipfornecessaryconditions–assignedbydegreeofchangeinperformanceThebiggerthechange,thehigherupintheorganizationtheassignedownerneedstobe.

MaintainPerformance

(Functionowner)

ImprovePerformance

(Middlemanagement)

BreakthroughPerformance

(Topmanagement)

DoD

DoDDoD


Figure9.4Definingnecessaryconditions-Worksheet(Example)Thekeyperformanceindicatorsdefinedforcompetitivedifferentiationwithincriticalsuccessfactors.Entireecosystem(bothinternalandexternal)andculturaldomainarechecked.

Suppliers Enablers CustomersOp.Leadership

EdwardE.Service

ThomasT.SupplyChainWilliamW.

Sales&MktgFrankF./MaryM.

ProductDev'tJamesT.

<6monthsnewproductcycleBT(01-16)

(A)Perf.Goal:Stableproductdevelopment

cycle>12mths,ongoing

<8hourstimetofixIP(03-16)

(B)Perf.Goal:Topservicerating>TTF<3days(ongoing)

>65%partsonstock(12-15)

Marketing:+15%RFQsbyweb

marketingBT(12-15)

Sales:$60m

keyaccountsalesIP(FY-16)

<$25mCOGSIP(12-15)

(A)Perf.Goal:Costofmaterial<15%

>Newsuppliercontracts(12-15)

Inventorydrivencost<14%ofrevenue

IP(03-16)

(B):Perf.Goal:Finalconfigurationex

works>Customerconfigvia

Web(06-15)

Separateorganizationsfor

valuechainsofPLAandBBT(07-15)

(A),(B)Perf.Goal:Profitbycountry

Ongoing.Noplansforseparateunitsbyproductlines.




Necessaryconditions

(B)Perf.Goal:$8msales/head>50/50incentive

scheme>Salesworkfrom

homeBothongoing

Criticalsuccessfactors

1.Advantageintrendsinuser

needs

2.Highlyeffectivesalesfunction


Externalsystem InternalsystemCompetitorsCultural

domain


Figure9.5Designingtheoperationalplan–Step3:NotenecessaryconditionsExpandingtheplan’scausaltreebyaddingthenecessaryconditions–throughcompetitors’plans–tothecriticalsuccessfactors.


1.1Productdevelopment:<6monthsnewproductcycle

JamesT.BT(01-2016)

(A)Perf.Goal:Stableproductdevelopment

cycle>12mths,ongoing

1.2Service:>8hourstimetofixThomasT.IP(03-16)

(B)Perf.Goal:Topservicerating

>TTF<3days(ongoing)>65%partsonstock(12-15)

2.1Marketing:+15%RFQsbywebmarketing

MaryM.BT(12-15)

2.2Sales:$60mkeyaccountsales

FrankF.IP(FY-16)

3.1Manufacturing:<$25mCOGS

EdwardE.IP(12-15)

(A)Perf.Goal:Costofmaterial<15%

>Newsuppliercontracts(12-15)

3.2Supplychain:Inventorydrivencost<14%ofrevenue

WilliamW.IP(03-16)

(B):Perf.Goal:Finalconfigurationexworks>CustomerconfigviaWeb

(06-15)

4.1Companymanagement:Separateorganizations

forvaluechainsofPLAandBEdwardE.BT(07-15)

(A),(B)Perf.Goal:Profitbycountry,ongoing.

Noplansforseparateunitsbyproductlines.



(B)Perf.Goal:$8msales/head

>50/50incentivescheme>Salesworkfromhome

Bothongoing

1.Advantageintrendsinuserneeds

2.Highlyeffectivesalesfunction


Documents

Surf illustrations PDF 01-94files.designer.hoststar.ch/ac/c5/acc5d5b3-6929-4c99-8629... · 2019. 6. 8. · 100 1940 1950 100 M 10 M 1 M 100 K 10 K B 10 B 1 B US $ $42.4 B 9 $3.688