BUSINESS 101

BUSINESS TOOLS

STEVE CLARK

ABOUT STEVE

• CHRISTIAN

• HUSBAND / FATHER

• FISHER AND PAYKEL APPLIANCES

• BUSINESS EXCELLENCE

• NZ FRANCHISE AWARDS

• FPA LEADERSHIP TOOLS

3 TOOLS: AGENDA

1. LEVELS OF PERSPECTIVE

2. A3 PROBLEM SOLVING

3. BUSINESS EXCELLENCE FRAMEWORK

TOOL 1: LEVELS OF PERSPECTIVE

• LEADING YOUR TEAM EFFECTIVELY

• HIGHEST LEVEL OF INFLUENCE

• HIGHEST LEVERAGE FOR CHANGE

• SUSTAINABLE CHANGE

• EFFECTIVE TIME MANAGEMENT

• EFFECTIVE PROBLEM SOLVING

LEVELS OF PERSPECTIVE

L

E

V

E

R

A

GE

Systemic Structures

Vision

Patterns of behaviour

Events

Mental Models

MENTAL MODELS

• MADE UP OF OUR BELIEFS, VALUES

AND ASSUMPTIONS.

• DRIVE OUR PERFORMANCE.

• ARE RESISTANT TO CHANGE.

• CANNOT SEE THEM CLEARLY OURSELVES.

• NEED RICH, SKILFUL, DAILY FEEDBACK TO HELP US REFLECT ON OUR MENTAL MODELS.

SAMPLE MENTAL MODELS

• PLAYERS AND COACHES MUST BE TIGHT AND ON THE SAME PAGE.

• ALL OF US MUST BE “BULLET-PROOF” AND ABLE TO ADAPT TO ANYTHING THROWN AT US.

• REMOVE EVERY EXCUSE FOR YOUR PLAYERS NOT TO SUCCEED.

• IF YOU DON’T MAKE TRAINING REPLICATE SOME ASPECT OF COMPETITION,YOU ARE NOT PUTTING YOUR ATHLETES UNDER ENOUGH PRESSURE.

SO WHAT…..

At what level am I dealing with a problem?

At what level am I thinking?

At what level am I communicating?

At what level am I leading?

EXAMPLE

Vision: Its easy for customers to make an insurance claim

Mental Models (Values, beliefs and Assumptions:

OLD – Claims cost us money

NEW - Happy Customers stay and we make money in the long run

Systemic Structures: Induction training, claim forms, systems,

phone scripts, policies

Patterns of behaviour: Increased customer churn

Events: Difficult Claim

TOOL 2: A3 PROBLEM SOLVING

• TOYOTA / FISHER & PAYKEL

• SYSTEMATIC PROBLEM SOLVING

• KNOWLEDGE CAPTURE

• MAKE THINKING VISIBLE

• MAKE VALUES, BELIEFS AND ASSUMPTIONS

VISIBLE

• COLLABORATION

• CLEAR PROBLEM STATEMENT

• ALIGNED VISION

• ADDRESS TRUE ROOT CAUSE

• SYSTEMIC SOLUTIONS

• LASTING IMPROVEMENTS

A3 PROBLEM SOLVING

Look: Problem Description

Ask: Root Cause

Model: Multiple solutions / desired mental models

Discuss / Align: Recommendation

Act: Detailed Implementation Plan

Act: Pilot / Trial - Short Term Action Plan

Follow-up: Review, learn, iterate

Look: (Problem Description)- Background

- Problem Statement or vision

- Measures of success

Ask: (Root Causes)- Identify the root cause

- Identify the current mental models

- Current reality (results / processes /systems /

structures … .)

Model:- Desired mental models

- Visualise the learning

- Identify System / Structures / processes gaps

- Develop multiple potential solutions

- Identify what needs to be learnt to select the best

solution

Discuss / Align: (Recommendations)- Seek feedback

- Recommend a solution

Act: (Detailed Implementation Plan- Detailed implementation plan for testing and

implementing the best solution

Follow up:- Review against targets and goals

- Capture learning

- Iterate again if necessary

Vis

ion

Menta

l M

od

els

Syst

em

ic S

truct

ure

s

Pa

ttern

s of

Beh

avio

ur

&

Even

tsSyst

em

icStr

uct

ure

s

Act: (Short Term Action Plan)- Short term action plan (progress the A3)

what we need to learn before making a

recommendation

Iterate Iterate

Iterate Iterate

Iterate Iterate

Iterate Iterate

Iterate Iterate

A3 / Levels of Perspective Process

Problem Description:

Background:

Vision:

Root Causes – Analysis

1. Using Levels of Perspective:

2. Current Reality: What is the current state. ( ie the current system, structures, and processes)

Alternative Remedies:

1. Desired Mental Models

2. Make our systemic understanding visible:

3. Systems / Structures: Which need to be created or improved

Recommendations and Detailed Implementation Plan:

Short Term Action Plan:

When Who What

Follow Up Plan:

Mental Models: Current

Mental Models: Desired

Systems / Structures: Which need to be created or improved.

1.

2.

3.

4.

AUCKLAND TRAFFIC

• THE PROBLEM WITH AUCKLAND TRAFFIC IS….

• IN MY DREAM AUCKLAND TRAFFIC WOULD....

• THE REASON IT IS A PROBLEM IS....

• TO FIX THIS PERMANENTLY WE NEED TO....

TOOL 3: FRAMEWORK FOR PERFORMANCE EXCELLENCE

• FRAMEWORK TO LOOK AT BUSINESSES

• ANSWER QUESTIONS IN YOUR CONTEXT

• 6 PROCESS CATEGORIES

• 1 RESULTS CATEGORY

ORGANISATION EXCELLENCE PRINCIPLES

• Visionary Leadership

• Customer-Driven Excellence

• Organisational and Personal Learning

• Valuing Employees and Partners

• Focus on the Future

ORGANISATION EXCELLENCE PRINCIPLES

• Managing for innovation, agility and learning

• Management by Fact

• Social, ethical and environmental responsibility

• Focus on Results and Creating Value

• Systems Perspective

6 BUSINESS PROCESS CATEGORIES

• APPROACH - HOW DO YOU…...

• DEPLOYMENT - HOW DO YOU CONSISTENTLY…

• LEARNING - CONTINUOUS IMPROVEMENT

• INTEGRATION - PROCESS LINKS AND CONNECTIONS

FISHER & PAYKEL FINANCE

Business Improvement Framework

Business Improvement Framework

BRIAN’S LAWN MOWING

LEADERSHIP

1.1 How do you set Business Direction, Values and Behaviours?

$ in the door, flexible hours with Katie

1.2 How do you establish Performance Expectations?

Own Values, Pride in work, Professional Attitude

1.3 How do you Monitor and Improve Performance ?

$, # of Customers, No Complaints, Ask

1.4 How do you meet Legal, Regulatory and Public

Responsibilities?

ACC, Tax

STRATEGY

2.1 How do you set Business Objectives and Plans, including

reflecting customer needs?

Goals at start of year, self reflection, number of new customers

2.2 How do you Communicate your Plans, ensuring

understanding and commitment?

Discuss with Katie

2.3 How do you convert objectives into action plans?

Self Motivation

2.4 How do you Monitor Performance to Plans and

continued committment?How many Customers, $, Self motivation, Family

CUSTOMER AND MARKET FOCUS

3.1 How do you know what customers want and that your products /

services meet these?

Ask

3.2 How do you obtain new customers?

Referrals, Some Letter Box drops

3.3 How do you satisfy existing customers, increase repeat business

and retain loyal customers?

Do a good job – on time, courteous

3.4 How do you obtain and respond to customer complaints and learn

from these?

Phone back/talk, remedy the issue immediately

3.5 How do you determine whether or not your customers are

satisfied?

Ask

DATA, ANALYSIS AND KNOWLEDGE MANAGEMENT

4.1 What business information do you use to manage the performance

of the business?

Bank Account, Wave Small Business Shareware

4.2 How do you use this information to make business decisions?

Spend more, spend less, need more customers

4.3 How do you ensure that business information and data is reliable,

accurate and timely?

Wave is cloud based, Internet Banking

4.4 How is information and data made available to customers and

partners/suppliers, where appropriate?

N/A

4.5 How is information and data made available to your

workforce for decision-making in their daily activities?

Diary, Banking and Billing

PEOPLE

5.1 How do you organise work and jobs in the business?

Planning diary

5.2 How do you manage and monitor workforce performance?

Customer comments, diary cycle

5.3 How do you address the training and development of your workforce?

Learnt basic equipment maintenance

5.4 How do you establish and maintain a safe and healthy work

environment and provide support for your workforce?

Ear muffs, glasses etc….running, diet, less sugar

5.5 How do you monitor the levels of satisfaction and

engagement of your workforce?

How do I feel in the mornings!

PROCESSES

6.1 What are your key processes that enable you to provide products and/or

services to your customers?

Quoting, Diary planning, Mow the Lawn, Equipment maintenance

6.2 How do you determine the customer’s requirements for these key

processes?

Ask

6.3 How do you monitor process performance and identify improvement

opportunities to increase the efficiency and effectiveness of your key

processes?

Ask

RESULTS

• LEAD AND LAG

• POINT IN TIME

• TREND

• TARGET

• BENCHMARK 0

5

10

15

20

25

30

35

40

45

Customers

Results

2013 2014 2015 2016 Target

Benchmark

Target

7.1 Customer and Product Results

Number of Customers: 0-20-30-40-50-60

Zero complaints

7.2 Financial and Markets Results

$ in the bank

7.3 People Results

PB at 5k runs, ½ Marathon, lost weight, no more kidney stones

7.4 Business Process Results

No Lawns over due

7.5 Information and Knowledge Results

Wave and Online banking always available, Diary Up to date

LEAD AND LAG INDICATORS

LEAD LAG

Number of customers – 50 up by 10%# Customer Enquiries / Leads – 1000 up by 2%

Customer Conversion rate - 5% up by 0.5%

Products purchased per customer - 1.5 up from 1.25

Avg Price per purchase - $10 up from $9.5Profit - $1.5m up from $1.25m

Leadership

Planning

Customers

Markets

Products / Services

People

Processes

Data

Financials

SUMMARY

• LEVELS OF PERSPECTIVE:

• FOCUS ON HIGHEST LEVERAGE WORK

• A3 PROBLEM SOLVING:

• STRUCTURED VISIBLE THINKING

• COLLABORATIVE PROBLEM SOLVING

• BUSINESS EXCELLENCE FRAMEWORK:

• PICTURE OF A BUSINESS

• CONTINUOUS IMPROVEMENT