Business Management System: Structures, Processes and DECISIONS by design

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Structures, Processes and DECISIONS by Design

Business Management Systems


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Business Management System

Objective: To design the system by which the senior leadership team will make the business level decisions that are required to run the business.

•  What is being optimized: –  Required decisions and meetings to run the business –  Minimize the number of meetings that are required –  Manage the conversations around a topic

•  Key questions: –  What are the set of business level decisions that need to be made to run the

business? –  In what forums are those decisions made? –  What processes are needed to support those decisions?


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Decisions and Processes Systems View

It looks complicated but it can be broken down into discrete pieces


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Decisions and Processes

INNOVATION Decisions - Plan of Record Process -  Plan of Record -  Portfolio Process -  Pre Funnel Process -  NPD Gate Process -  IP Portfolio Process

PLANNING Decisions - Annual Operating Plan

Processes -  Strategic Planning Process -  Annual Operating Plan Process -  Financial Planning Process -  Quota Setting Process -  Corporate Budgeting Alignment Process

OPERATIONS Decisions -  Monthly S&OP Processes -  Forecast accuracy process -  Manufacturing Planning Process -  Customer Input Planning Process

REPORTING Decisions Processes -  Financial Reporting Process -  Financial Close Process -  TCE Measurement Process

MANAGEMENT Decisions - AOP evaluation and adjustment -  Pricing

Processes -  Monthly Fundamental Review Process -  Pricing Review Process -  AOP Review Process -  Internal Communication Process

EXECUTIVE STAFF Decisions -  Ad Hoc

Processes


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Timing of processes and meetings

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Innovation

Planning

Management

Portfolio

Pre Funnel

IP Portfolio

Stage Gate

Operational

Financial

Annual AOP

AOP Review

Pricing

Annual

Quarterly

Staff Meeting

Plan of Record

Strategic

Monthly Dashboard

Quota

Communication (I)


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Innovation Review Meeting

Lead: VP, R&D Accountable: Plan of Record VP, R&D

Portfolio VP, Finance NPD Gate VP, R&D Pre Funnel VP, Marketing IP Portfolio VP, R&D

Participants: President and Staff Process Teams

Outcome: Plan of Record. Product, Supplies, Service, Platform Investment Decisions. Inputs: NPD gate Process, Pre Funnel Process, IP Strategy Process, Portfolio process, Outputs: Decisions documented, CER Capital Committee Requests, Plan of Record Timing: Quarterly, Portfolio review semi-annual, IP review annual



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Annual Operating Plan Review Meeting

Lead: VP, Finance Accountable: Strategic Planning VP, Marketing

Operational Planning VP, Finance Financial Planning VP, Finance Quota Setting VP, Marketing Corporate Budgeting VP, Finance

Participants: President and Staff Outcome: Strategic Framework, 3 year Strategic Plan, Annual Operating Plans, Regional Quotas, Annual budgets, Organizational Alignment Inputs: Market Sizing, Strategic Themes, Opportunity identification, Competitive Analysis, Financial Planning Process, Functional Plans and Initiatives Outputs: Approved Annual Operating Plan, Strategies by Function, Initiatives by function Timing: Annual, at the conclusion of the annual planning process




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Management Review Meetings

Lead: VP, Finance Accountable: Monthly dashboard VP, Finance

AOP Review VP, Finance Pricing Planning VP, Marketing Int. Communication VP, Marketing

Participants: President

Staff members Outcome: Functional review of prior quarter performance. Financial and Operational. Monthly review of key metrics. Approved pricing plans Inputs: Financial Reporting Output, Operational Metrics. Financial Projections, Current Pricing by Channel, Product introductions and obsolescence Outputs: Ongoing business review. Feedback from President to staff. Approved Pricing by segment by channel. Internal Communication. Timing: Monthly (Dashboard), Quarterly (AOP review, Pricing review, Internal Communications).




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S&OP Monthly Review Meeting

Owner: Supply Chain Manager Accountable: VP marketing

VP Sales VP Operations

Participants: Channel Managers, Sales Force Representative, Finance. VP marketing, VP Sales and VP Ops for escalations. Outcome: Alignment of Sales Outlook, Manu forecast and Customer Input Inputs: Manu, Sales forecast, Demand Plan Forecast Outputs: Manu plan, Forecast accuracy report Timing: Monthly



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Innovation Processes

Process: Plan of Record Process

Purpose: The maintain an ongoing plan that is approved by the management staff and is used to make operational decisions. Process: Portfolio Process

Purpose: To integrate investment opportunities and create multiple perspectives and analytics to optimize overall investments in people, time and money. Process: Pre Funnel Process

Purpose: To explore technology, consumers and markets to identify new product, service, business opportunities. Process: NPD Gate Process

Purpose: To manage the flow of new products through the funnel. Process: IP Strategy Process

Purpose: To proactively manage IP development and commercialization.



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Planning Processes

Process: Strategic Planning Process

Purpose: To lead and facilitate the development of business level and functional objectives, strategies, tactics and initiatives. Create the annual operating plan. Process: Annual Operating Plan Process

Purpose: To leverage the strategic plan and establish the detailed plan for the next year. Process: Financial Planning Process

Purpose: To lead the process of developing financial targets that link corporate objectives and annual operating plans Process: Quota Process

Purpose: To bring together Sales, Marketing and Finance to negotiate top line revenue for the next year. Process: Corporate Budgeting Alignment Process

Purpose: To negotiate budgets between BU and Corporate




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Reporting Processes

Process: Financial Reporting Process Purpose: To analyze the monthly financial performance and help BU stakeholders understand that performance. Process: Financial Close Process Purpose: To create a legal and management financial view of BU income statements and balance sheets that meets US GAAP, using systematic and non systematic approaches. Process: TCE Measurement Process Purpose: To measure customer experience performance at all customer touch points over time. TBD.

REPORTING Decisions Processes -  Financial Reporting Process -  Financial Close Process -  TCE Measurement Process


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Management Processes

Process: Monthly Fundamentals Review

Purpose: To review key metrics on a regular basis for potential corrective action. Process: Pricing Review Process

Purpose: To analyze and evaluate pricing strategically to balance profit and market share. Process: AOP Review

Purpose: To review performance to planned initiatives and gain alignment on next quarter’s actions. Process: Internal Communication

Purpose: To create a forum to communicate from the staff to the management team and from the staff directly to all employees.




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Operations Processes

Process: Forecast Accuracy Process

Purpose: Understand demand and supply mismatches and variations. Process: Manufacturing Planning Process

Purpose: Keep the Supply Chain system optimized. Process: Customer Input Planning Process

Purpose: Alignment between sales and procurement.
