Sme Business Factors C2 Version 25 July08

Business Tips for

Small Organizations

Eur, Ing., Dr Lee E J Styger

Copyright © Eur. Ing., Dr Lee E J Styger

the burning issue

on life, the universe & everything


Why Are We Here?

BASED ON

MAXIMUM

DELIVERY

ALL STRATEGY

SERVICE

FUNCTION

LIFESTYLE

POSITION

PROFITS

WHAT

STAKEHOLDERS

OWNERS TO DELIVER

AN

ADVANTAGE

WHY HAVE A BUSINESS?



Strategy

ADAPTIVE

CREATIVE

BIG PICTURE"HOW DO WE SECURE WHERE WE HAVE GOT TO?"

"HOW CAN WE GET THERE WITH RUTHLESS EFFICIENCY?"

"HOW CAN WE GO WHERE NO ONE ELSE CAN GO?"

"HOW CAN WE DELIVER AN ADVANTAGE TO OUR OWNERS?"

"WHAT DOES SUCCESS LOOK LIKE?"

ASKS

FORWARD LOOKING

MAKE

MONEY

TWO REASONS TO BE IN BUSINESS

STRATEGY

the

GENGHIS KHAN PRINCIPLE

the overview

Incase we forget


Forwarding

INNOVATION

LIFE CYCLE

CUSTOMERS VIEW

VALUE CREATION WHAT IS A PRODUCT?

WHAT IS BUSINESS?

101

102

ECONOMICS

FORWARDING

THE IDEA


Economics 102

In the Free Market EconomyOnly One Company Can be the Cheapest

the rest have to do something different

Go where no one else can goKnow the customer

Develop new products rapidly to meet customer demandDeliver those products with ruthless efficiency

Delight the Customer


Economics 101

Choose Customers Who Have The :

Demand&

Ability to Pay

for your products and services



Definition - What’s Business?

SUPPLIER

SUPPLIER

VALUE

ADDING

TRANSACTION

INTERNAL

VIEW

DEPARTMENT

DEPARTMENT

VALUE

ADDING

TRANSACTION SERVICES

GOODS

TRANSACTION

SERVICES

GOODS

TRANSACTION

EXTERNAL

VIEWWHAT'S BUSINESS?

Definition - What’s A Product?

PEOPLE

SERVICE

MADE

MANUFACTURED

WHAT'S A

PRODUCT?



Creating Value

INNOVATION

DELIVERY

FLEXIBILITY

COST

QUALITY

THE 5 VALUE MEASURES

Develop an advantage by

differentiating yourself in the eyes of

your customers

Higher Perceived Value

Increased Market Share

Increased Revenue

Improved Qualityof Design

Higher Prices

Higher Profitability

Improved Quality of Conformance

Lower Manufacturing & Service Costs

Redrawn from - Evans R, Lindsay W. Manufacturing for Quality and Performance excellence, Thomson South-Western, 2008. ISBN 13: 978-0-324-38227-3

Quality & Profitability - Or Getting As Much Cash As You Can

Serious stuff - it’s in the quality book


The 3 Key Considerations of Your Customer

CHEAPER

BETTER

FASTER

THE 3 KEY

CONSIDERATIONSAll Customers Are Fickle

they want all that value stuff and they

want it now!



Life Cycle

Time

Market

Share

Introduction

Growth

Maturity

Decline

The Life Cycle Curve

This is the one

they tell you about

All

Businesses / Products

Go Through This Curve


Sustainability - Or Riding the Curves

Total Market Share All Prodcuts

Market

Share

Life Cycle Sustainability

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Time

This is the one

they DON”T tell you about


Sustainability Market leaders try to create entry barriers by replacing products and maintaining intentionally short life cycles

Innovate - New Products / Services

Total Market Share All Prodcuts

Market

Share

Life Cycle Sustainability

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

Time

“Core business is the enemy of sustainability”K Atkinson 2007

Don’t let the business historians run

your business

This is the line that matters for your business

- its the sustainability and market share line


The Stages of Innovation & Commercialization

3 OH MY GOD2 THANK YOU GOD

1 PLEASE GOD

THE 3 STAGES OF

INNOVATION & COMMERCIALIZATION

High Dependency Original Stakeholders

High Dependency Supply Chain

Timeline of innovation cycle

1-Identification

2- Nurture / manage

3- Protect 4- Develop /grow

5- Benefit

the idea So What’s it

all about?


Forwarding

PEOPLE STUFF

ANALYSIS BEING THE BEST

MARKETS

FORWARDING

THE IDEA


A Thought That is Going to Fester

“It is not the taking part - its the winning that counts”

Time to deliver that advantage


On Markets & Being The Best

THEY CHOOSE THEIR

"BEST"

YOU DON'T GET TO

CHOOSE FOR THEM

CUSTOMERS WILL

PAY A PREMIUM FOR

"BEST"

EACH HAS ITS "BEST"

FOCUS ON

YOUR "BEST"

COUNTLESS

SMALL MARKETS

NO SINGLE "BEST"

MASS MARKET

MARKETS

&

BEING THE BEST


On Markets & Being The Best

Adapted from Godwin S: The Dip, Penguin Group, 2007, ISBN: 978-1-59184-166-1

PICK THE WRONG THING TO BE BEST AT

FOCUS ON SHORT TERM NOT LONG TERM

SETTLE FOR BEING

MEDIOCRE

LOOSE INTEREST / ENTHUSIASM

NOT SERIOUS ABOUT IT

GET SCARED

RUN OUT OF MONEY

RUN OUT OF TIME

7 REASONS -

YOU MIGHT FAIL TO BECOME

THE BEST IN THE WORLD

“Only talented people fret about mediocrity”


Copyright © 2008 - Eur. Ing., Dr Lee E J Styger - email: [email protected]

SWOT Analysis Model

Spend all your time on SWOT

and you have no energy for

business development

ECONOMIC CONDITIONS

MARKETPLACE CHANGES

EXTERNAL ROADBLOCKS

WEAKNESSES

THREATS

NEW TECHNOLOGIES

NEW PRODUCTS

ENVIRONMENTAL CHANGES

TRENDS

KNOWN

OPPORTUNITIES

VULNERABILITIES

EXTERNAL CRITICISM

WHAT COULD WE DO BETTER

WEAKNESSES

RESOURCES

ASSETS

OUR ADVANTGE

WHAT DO WE DO WELL

STRENGTHS

SWOT

This is where we are -

not where we are going to

mailto:[email protected]


Copyright © 2008 - Eur. Ing., Dr Lee E J Styger - email: [email protected]

The 4 Working Styles - HR and all that Stuff

Focus your business on who you are

now

and then team with the other styles as

your business grows

LOVES HANDS ON WORK

TASK ORIENTATED

IMPLEMENTER

CARRIES OUT TASK TO END

FOCUSED

DETERMINED

CLOSER ANALYTICAL

DETAIL ORIENTATED

METICULOUS

FACT FINDER

QUICKLY MOBILIZES ENERGY

SEE OPPORTUNITY

HIGHY ENERGETIC

QUICK STARTER

THE 4 WORKING STYLES



the payoff

How do we

manage

this lot?


Forwarding

MEASURING THE BUSINESS

CONTROLLING THE BUSINESS

SALES

MARKETING

TIME MANAGEMENT

SUPPLIER MANAGEMENT

CASH FLOW

FORWARDING

THE PAYOFF



Cash Flow

Cash is King - cash is king -

cash is king

DO NOT LOAN

TO

YOUR CUSTOMERS

FAST

YOUR MONEY

COLLECT

CUSTOMER BASE

LEADS

PROSPECTS

PIPELINE

BUILD

CASH RETAINED

CASH OUT

CASH

FLOWCASH IN

MANAGE

CASH IS KING

CASH IS KING

CASH

IS

KING

CASH IS KINGTHE 3

MOST

IMPORTANT POINTS

CASH FLOW


Types of Cost

Drive out cost from your business

- not quality and not value

ALL RESOURCES OBTAINED

IN A GIVEN TIME FRAMETOTAL

RESOURCES USED

IN NON-PRODUCTION

PERIOD

USED TO

PRODUCE PRODUCT

COST OF RESOURCES PRODUCT

FOR RESOURCES

CASH PAYMENTS

OUT-OF-POCKET

CURRENTLY OWNED

ASSETS

PAST PAYMENTS

ACTUAL

FUTURE BENEFITS

FORECAST PAYMENTS

EXPECTED

THE 6 TYPES OF COST


Supply Chain Management

You stand or fall because of your suppliers

MATERIALS

TRANSPORT

LANDLORD

PHONE COMPANY

PROFESSIONAL ASSOCIATION

IT PROVIDER

LAWYER

ACCOUNTANT

BANKS

YOUR SUPPLIERS

THE SHADOW SIDE OF

YOUR BUSINESS

You manage them -

don’t let them manage

you


Time Management - [tM]

BE MANAGED

TIME MUST

EVERYTHING

TIME IS

MONEY

TIME IS

TIME MANAGEMENT

You are a business -

time keeps working when you do not


Thoughts on the Pink & Fluffy - [Marketing]

YES

YES

YES

ACCESS

YOUR

MARKET

YES

DEFINE

YOUR

PRODUCT

YES

KNOW YOUR

MARKET NOT

BROCHURE

NOT

T SHIRT

NOT

TOOLS

WWW

NOT

LOGO

MARKETING

&

the FLUFFY STUFF

Don’t spend too much time on the

tools and forget about the job in

hand


Sell - Sell - Sell - [or generating a transaction]

Don’t be afraid to ask for the order

ASK FOR THE ORDER

CLOSE

TO YOUR PRODUCT

THE NEED / VALUE

LINK

THE NEED

FIND

QUESTIONS

ASK

RAPPORT

ESTABLISH

THE 5 STEP SALES PROCESS


Keeping Control CUSTOM

PAPER

SAP

JOB SHOP

WINDCHILL

TEAM CENTRE

PLM

PAGE MAKER

SAGE

ACT

MYOB

DOCUMENTOR

NUMBERS

EXCEL

TOOLS FOR BUSINESS CONTROL

KEEP A SINGLE

DATABASEYOU MUST -

keep control of your business

Keeping Control - A Popular Example (DATABASE)

KPI's & DATA ANALYSIS

STOCK CONTROL

LETTERS

FAX

EMAIL

BASIC MARKETING

SALES FUNCTIONS

PAYROLLHR

SUPER

TAX

GST

LEGAL REPORTING

BILLING HOURS

SUPPLIERS

CUSTOMERS

RECORDS

MYOB

A BUSINESS CONTROL

SYSTEM


So much more than

invoicing and tax payments

2008

Master

Monthly ExpenditureMonthly ExpenditureDate Description R&D / IP Tax / GST Prof Services Post Stationery Communications Travel (Australia) Travel (Overseas) Accommodation Hospitality Car Parking Consumables Capital Equipment Journals Prof Subs Other Total Mileage

1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

13 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

27 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

28 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

29 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

31 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Totals 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORMNOTE: MULTIPLE SIMILAR EXPENSES (I.E. CAR PARKING) ACCRUED ON THE SAME DAY ARE ENTERED AS A SIMGLE TOTAL IN THE FORM

MONTHLY TOTAL "CONSUMABLESMONTHLY TOTAL "CONSUMABLES 0

“t” = invoiced sales - consumables / number of hours worked“t” = invoiced sales - consumables / number of hours worked“t” = invoiced sales - consumables / number of hours worked“t” = invoiced sales - consumables / number of hours worked

T =

2008

Master

PROJECTS

CLIENT & TITLE R&D

Date Work Description TBP 801 801 TBP 801 802 TBP 801 803 TBP 801 804 TBP 801 805

1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

12 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

13 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

15 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

16 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

25 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

26 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

27 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

28 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

29 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

31 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Totals 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Invoiced Sales 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

MONTHLY TOTAL HOURS WORKEDMONTHLY TOTAL HOURS WORKED 0

Other Charges (i.e. Flights)

MONTHLY TOTAL INVOICED SALESMONTHLY TOTAL INVOICED SALES 0

KISS Principle

Kiss business control - simple spread sheet

controls all billing hours and outgoings + “t”

the “historians” keep it legal!



What to Measure

STAFF TURNOVER

ATTAINMENT OF FORMAL CPD

CUSTOMER PERCEPTION

OPERATIONAL EFFICIENCIES

SUPPLIER PERFORMANCE

CAPITAL EQUIPMENT UTILIZATION

T =

PRODUCTION OUTPUT

DEBIT DAYS

CREDIT DAYS

OPEN & CLOSED

ACTUAL NUMBERS

NON-CONFORMANCE REPORTS

SALES GROWTH & MARGIN

SOME

TYPICAL

KPI'S

Glodratt EM, Cox J. The Goal, Gower Publishing Second Edition 1993. ISBN 0-566-07418- 4

Throughput =Invoiced Sales - Consumables

Number of Hours Worked

A Simple Measure

“A simple - live measure - on how your business is doing”

The higher “t” the more cash

you are making!


the close



Adapted from Scott Adams

The 13 Great Management Lies YOUR INPUT

IS IMPORTANT TO US

OUR PEOPLE ARE THE BEST

WE'LL REVIEW YOUR

PERFORMANCE IN 6 MONTHS

I HAVEN'T HEARD ANY RUMORS

TRAINING IS A HIGH PRIORITY

WE DON'T SHOOT THE MESSENGER

PERFORMANCE WILL BE REWARDED

WE REWARD RISK TAKERS

THE FUTURE IS BRIGHT

WE'RE REORGANIZING

TO BETTER SERVE OUR CUSTOMERS

YOU COULD EARN MORE MONEY

UNDER THE NEW PLAN

I HAVE AN OPEN DOOR POLICY

EMPLOYEES ARE OUR

MOST VALUABLE ASSETS

THE 13

GREAT MANAGEMENT LIES

If you are still wondering why you are

running your own business..

remember these

On Direction

“It doesn’t matter how slowly you go as long as you do not stop”

Confucius



The Business Tips

SENCE OF HUMOR

OBJECTIVITY

PROFESSIONALISM

INTEGRITY

MAINTAIN

BELIEF IN THE PRODUCT

YOUR FAITH

KEEP

HUNT YOUR GOALS

REWARDS

DELIVERY

TIMES

SET GOALS

YOU ARE A BUSINESS

TIME

MANAGE

DELIGHT ALWAYS

OVER DELIVER

UNDER PROMISE

CUSTOMER EXPECTATIONS

MANAGE

DO NOT SET LIMITS

INCENTIVIZE THEM

MOTIVATE

YOUR PEOPLE

MANAGE

VERY CLOSELY

CLOSELY

CASHFLOW

MANAGE

TELL YOUR MARKET

TELL YOUR WORLD

WHAT

YOU DOTELL THE WORLD

SELL SELL SELL

& BE DIFFERENT

WHAT MAKES YOU DIFFERENT

DECIDE

& FOCUS ON THEM

EXPOSE

YOURSELF

RELENTLESSLY

WHO ARE YOUR CUSTOMERS

DECIDE

& DO IT

WHAT YOU DO

DECIDE

KEY POINTS

thank you for your time

www.connect2.biz


Sme Business Factors C2 Version 25 July08

Business

Transcript of Sme Business Factors C2 Version 25 July08