aspiring entrepreneurs transform your business in 2 steps - step 2 creating a strategy roadmap and...

Building Blocks of Success

Mission:

To provide V a l u e - a d d e d B u s i n e s s

C o n s u l t i n g to Organizations at the

T r a n s f o r m a t i o n S t a g e , enabling

them to deliver their E n d e a v o r s with

E f f i c a c y

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Email: [email protected] | Web: www.lifeskillsconsultants.com

28/07/15 2 © Life Skills Consultants Pvt. Ltd.

• Business Intent -‐ WHATs

• Personal Aspira5ons

Capturing Aspira5ons

• Align Team & Priori5ze Ac5on Plan

• Deploy Ac5on Plan

Crea5ng a Strategy Roadmap

And Deployment

Strong Review Mechanis

ms

Monitoring and Review

Recap – Steps to Successful Business Transformation

Alignment with the team is extremely essenYal for success of deployment of any acYon plan

Business WHATs are converted to Business HOWS. Second and third level drilled down clearly defines specific acYon plans. Refer Examples in subsequent slides

Step 1 Step 2 Step 3


Step 2 – Creating a Strategy Roadmap��

And Deployment��

STEP 2.1

-‐ Intent To Delivery: CreaYng a Strategy Roadmap -‐ IdenYfying the PrioriYzed AcYon Plans -‐ Drill Down Level 2

Step

2.2

SegregaYng the acYon plans into -‐ Process and Systems requirements, implementaYon or correcYon -‐ People related –capability, competency, monitoring, or review -‐ Finance (Where substanYal money is required)

Step

2.3

Timelines and Measures of Success


Business Intent (WHATs) to Actions (HOWs)

Business Intent Providing Excellent value and service Deligh5ng Customers

Delivering profitability

Business HOWs – LEVEL 1

Engaged and efficient channel partners

EffecYve Supply chain management

Product, Pricing, innovaYon

Customer driven Product Planning

Resource planning and capability building

Infrastructure and systems support ConYnuous need assessment of customer to align product and systems EffecYve, Ymely communicaYon and resoluYon

Best product mix

OpYmum uYlizaYon of funds

EffecYve Cost Controls

Aligned OrganizaYonal Structure

EXAMPLE 1 : Intent To Delivery (ITD) for

a TexYle Company

Level 1 HOWs to achieve Business Intent


Prioritizing the Business HOWs – First Level

Strategy Matrix Im

portan

ce

Engaged and effi

cien

t chann

el partners

EffecYve Supp

ly chain m

anagem

ent

Prod

uct, Pricing, inno

vaYo

n

Custom

er driv

en Produ

ct Plann

ing

Resource plann

ing and capability bu

ilding

Infrastructure and

system

s sup

port

ConY

nuou

s need assessmen

t of

custom

er to

align prod

uct a

nd sy

stem

s

EffecYve, Ymely commun

icaY

on and

resoluYo

n

Best produ

ct M

ix

OpY

mum

uYliza

Yon of fu

nds

EffecYve Co

st con

trols

Organiza

Yonal aligne

d Structure

Total

Providing Excellent value and service 9 h h m h h h h h m m m m 702

Deligh5ng Customers 9 h h h h m m h h m m l m 630 Delivering profitability 9 h h h m h h m l h h h m 738 Total 243 243 189 189 189 189 189 171 135 135 117 81

Note: Life Skills facilitates the strategy roadmap sessions with aspiring organizaYons

PrioriYzed Business HOWs aher correlaYng them with Business Intent Business Intent


Second Level Drill Down of Prioritized HOWs

Second Level Drill Down Engaged and efficient channel partners

EffecYve Supply Chain Management

Product, Pricing, InnovaYon

Customer Driven Product Planning

Resource Planning and Capability Building

Infrastructure and Systems Support

ConYnuous Need Assessment of Customer to align product and systems

EffecYve, Ymely communicaYon and resoluYon

Second Level Priori5zed Ac5on Plan Channel Produc5vity focus Exploring new and alternate channels to reach out to target segment Product wise, partner wise contribu5on monitoring to reduce varia5on in Target Vs. Achievement Compe55on benchmarking on product, pricing, promo5ons, ac5vi5es Trend analysis to enhance accuracy of demand es5mates Inter-‐linked produc5on planning ensuring on-‐5me delivery resul5ng in good word of mouth of channel IT infra deployment to monitor product at every stage of supply chain integrated with communica5on to Channel Product composi5on to increase Net Realized Value Strong Management repor5ng, analysis and review mechanism New product launch in accordance with changing customer preferences Channel involvement and Feedback for enhancing value preposi5ons Accurate Procurement of orders against forecas5ng Assessment of requirement Vs. organiza5on structure Performance Driven Organiza5onal Culture Strategy linked Key Result Areas Effec5ve Warehouse Management, implementa5on of 5S and Lean principles Automa5on to reduce Non Value add ac5vi5es focusing building opera5onal efficiencies and scalability Warehouse Layout -‐ Time & Mo5on study Automa5on in Warehouse Vendor Management -‐ Finance Return, Defect & Credit analysis

Note: This is not a comprehensive list but only the top prioriYzed second level drilled down acYon plans. Measures derived around these acYon plans will ensure achievement of Business Intent

Segregate the Level 2 HOWs


Segregation of Action Plans

Second Level Priori5zed Ac5on Plan Segrega5on

Systems and

process Finance People

Channel Produc5vity focus b! b!Exploring new and alternate channels to reach out to target segment b!

Product wise, partner wise contribu5on monitoring to reduce varia5on in Target Vs. Achievement b!

Compe55on benchmarking on product, pricing, promo5ons, ac5vi5es b!Trend analysis to enhance accuracy of demand es5mates b!Inter-‐linked produc5on planning ensuring on-‐5me delivery resul5ng in good word of mouth of channel b!IT infra deployment to monitor product at every stage of supply chain integrated with communica5on to Channel b!

Product composi5on to increase Net Realized Value b!Strong Management repor5ng, analysis and review mechanism b! b!New product launch in accordance with changing customer preferences b!Channel involvement and Feedback for enhancing value preposi5ons b! b!Accurate Procurement of orders against forecas5ng b!Assessment of requirement Vs. organiza5on structure b!Performance Driven Organiza5onal Culture b!Strategy linked Key Result Areas b! b!Effec5ve Warehouse Management, implementa5on of 5S and Lean principles b! b!Automa5on to reduce Non Value add ac5vi5es focusing building opera5onal efficiencies and scalability b! b!Warehouse Layout -‐ Time & Mo5on study b!Automa5on in Warehouse b! b!Vendor Management -‐ Finance b!Return, Defect & Credit analysis b!


Identifying Areas and Allocating Action PlansCh

anne

l Related

• ProducYvity • Channel Efficiency • Channel Wise ContribuYon to sales and profitability

• Channel Expansion – Retail penetraYon

• Channel Engagement Pr

oduct R

elated

• Product innovaYon to facilitate demand forecasYng, producYon efficiencies and Ymely delivery (Go to market)

• Product wise planning – designing efficiencies Yll profitability contribuYon (realized rates) Sy

stem

s Peo

ple related • Order to Cash

process automaYon

•  Inventory automaYon

• MIS reports of all criYcal process steps to iniYate improvements

• Management Dashboards

• Annual OperaYng Plan based on various input reports

• On field acYvity tracking – retail expansion

Inventory and Wareh

ouse • Visibility of

product wise SKU wise and ageing segregaYon of inventory. Analysis and acYon planning

• Linking producYon with Sales through order to cash process opYmizaYon

• Never out of stock concept for on Yme delivery of products

• Lean and 5S implementaYon in Inventory

• Strong MIS and IT support for accuracy of data

1 2 3 4


Action Plans – Allocated and Deployed

ü  Introduced Channel and sales scheme to bring something new into the system but primarily push STANDARDISATION of Sales Norms (commissions, discounts etc.)

ü  Sourcing of PV and shir5ng to tap into new retail outlets and then place PW

ü  This year introduc5on of MOBILE APPLICATION for SALES Team to track Sales visit and online Order booking.

ü  Channel Expansion across India. Going into direct retail. Tapping new retail outlets through PV/Shir5ng and gradual introduc5on of PW

ü  Channel Engagement to get regular feedback about designs

ü  Retail expansion and tapping into newer geographies brought in several insights into customer trend and requirements. Image of discounted brand changed to emerging strong brand providing quality product

Channel Related

ü  ERP built in to bring in transparency at all levels from produc5on 5ll dispatch. Concept of order to cash brought systems changes from designing 5ll collec5ons

ü  Process created using LEAN thinking and systems approach. End to end processes iden5fied and executed through system. Customiza5on requirements given and followed through 5ll implementa5on

ü  ERP strengthened for all processes. Strengthening is s5ll in progress

ü  Sampling 5ll designing, Order to cash, Financial planning budge5ng and analysis processes closed and rolled out with all system changes

ü  PLI introduced gradually ü With systems performing well KRAs have been

introduced with quarterly review and PLI impact crea5ng a performance driven culture

ü  Expansion focus brought in. Organiza5on structure changed. Concept of Head order to cash brought in.

ü  Organiza5on structure changed within Finance and at Produc5on

Systems –People Related


Action Plans – Allocated and Deployed Contd.

ü Price Correc5on. Introduc5on of new merchants in available space “900-‐1500/-‐) bracket. Compe5tor Analysis

ü Product innova5on. Moving into concept of Never out of stock to ensure efficiencies in produc5on and stock liquidity (round the year sales)

ü New Merchandize, IN shop branding ini5a5ves to engage channel

ü New range, new designs and filling the gaps in price range provided the much needed entry

Product Related

ü Lean deployment in Warehouse. Bins created. System modified to cater to iden5fica5on of stock and area where stock is lying

ü Non value added ac5vi5es (manual driven) automated. Mistake proofing done to drive efficiencies

ü Inventory management put in place. Stock reports varia5on nullified.

ü Dispatches today touching 70% of order. Industry benchmark is 80%

ü Inventory levels reduced discoun5ng and liquida5on thus impac5ng realized rate

Inventory and Warehouse


Move to 3rd Step

• Business Intent -‐ WHATs

• Personal Aspira5ons

Capturing Aspira5ons

• Align Team & Priori5ze Ac5on Plan

• Deploy Ac5on Plan

Crea5ng a Strategy Roadmap

And Deployment

Strong Review

Mechanisms Monitoring and Review

Alignment with the team is extremely essenYal for success of deployment of any acYon plan

Business WHATs are converted to Business HOWS. Second and third level drilled down clearly defines specific acYon plans. Refer Examples in subsequent slides

Step 1 Step 2 Step 3


Starting Point for You !!

•  Define your business intent •  Create a strong strategy roadmap for the next financial year •  Align the organizaYon towards the strategy roadmap and acYon plans •  Make organizaYon ready for scalability for next financial year •  Ensure achievement of business intent

“Intent to Delivery” model can also be used to derive a FUNCTIONAL INTENT into AcYon Plan

Life Skills conducts the “Intent to Delivery” session to translate business aspiraYons into acYonable business plan for organizaYons aspiring to grow.

To discuss how our team can help your business contact us at: Email: [email protected] Web: www.lifeskillsconsultants.com

aspiring entrepreneurs transform your business in 2 steps - step 2 creating a strategy roadmap and...

Small Business & Entrepreneurship