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BUG Workshop People and Processes

BUG Workshop People and Processes. 23 February 2010 Scott Harvey Scott@peoplecatalysts.com. Aim. Address some people issues Look at some key business considerations Consider some key business processes But all mixed together!. 1. People. So who are the groups involved Customers

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BUG Workshop People and Processes

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  1. BUG WorkshopPeople and Processes 23 February 2010 Scott Harvey Scott@peoplecatalysts.com

  2. Aim • Address some people issues • Look at some key business considerations • Consider some key business processes • But all mixed together!

  3. 1. People So who are the groups involved • Customers • Shareholders • Members of staff • Owners • But also legal, tax and government and international standards and authorities eg CIPS EU UN etc. • ( eg the university answers to you as students, to HEFCE on behalf government, to Council as the senior body in the Institution and many others.

  4. 2. Generate Income • Marketing programmes (7 Ps) • Product • price, • Promotion • Place • Packaging (image) • Positioning (in customer mind) • people • New name sales and market understanding (who?) • Account development (maintaining and growing) • Distribution • Discounts and incentives (eg Ice cream in Winter)

  5. 3. Stop money going out • Buying effectiveness • Suppliers • Utilisation of materials and time • Operating decisions • Negotiation including with suppliers

  6. 4. Best use of people • Clear business goals (mission-vision-strategy-business plan) • Organisation structure (see Mintzberg models) • Roles and responsibilities • Information flow • Resource planning and scheduling • Evaluation/ training • Pay and incentives (eg performance bonus)

  7. 5. Optimum use of assets • Money, Property, People and Information • Depreciation • Gearing (Loans to owned capital) • Interest levels for loans • Stock (and cost of holding) • Capacity • Utilisation rates

  8. 6. Good money management • Credit control • Reduction of borrowings • Investment policy (return on investments)

  9. 7. Strong Intangibles • Quality • Reputation • Goodwill • Right first time every time • Customer relations (by all) • Public perception (eg of banks) • Good enough is not good enough (egOfsted)

  10. 8. Profit • Raise price – but what’s the trade-off in volume (elasticity) • Reduce costs – but what’s the focus on improvement • Improve product sales – sell what’s most profitable • Increase sales volume – But assess fixed cost impact • Reduce capital spending – but check impact on business value/ equity • Boston matrix, Ansoff matrix

  11. 9. 1% principle • Small changes over a number of areas can provide an aggregate benefit that exceeds dramatic change (Lindblom incremental change v step change) and solutions focus • 2,000,000 turnover (cost of sales and profit) • 167,000 profit (11.9% profit) 1,833,000 CoS • Apply 1% efficiency to CoS = • 1,814,670 CoS and an extra 18,330 profit

  12. 10. Summary • Generate income • Stop money going out • Best use of people • Optimum use of assets • Good money management • Strong intangibles

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