SYNERGIZING VALUE CHAIN - Modern Systems Approach to Value Chain Management (Ten3 SMART Mini-course)

Ten3 Smart Mini-course

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Synergizing Value Chain

Modern synergistic 360 approach to value chain management in the new knowledge-driven and rapidly changing business environment

200 PowerPoint slides +

200 half-page Executive Summaries

Learn & Teach – Fast!

Вy: Vadim Kotelnikov

Founder, Ten3 Business e-Coach

Our selected customers:

3M, ABB, Adidas, Alcatel, American Express, Bayer, Boeing, British American Tobacco, BP, Canon, Cisco, Colgate, Corning, Deloitte, Ernst & Young, Fujitsu-Siemens, GE, Goldman Sachs, HP, Hitachi, Huyndai, IBM, Intel, Johnson & Johnson, JP Morgan Chase, KPMG, Lufthansa, Microsoft, Motorola, Nokia, Oracle, Samsung, Shell, Sony, and Union Bank of Switzerland

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Contents

1. Sustainable Growth Strategies

The Tree of Business See the slide

10 Rules for Building a Sustainable Growth Business

New Economy: Key Features See the slide

Fundamental Management Changes Engendered by Internet

Business Model: 1+6 Components See the slide

10 Forces Behind New Business Models

6Ws of Sustainable Corporate Growth See the slide

Inclusive Company

Sustainable Growth Strategies

Competitive Strategies See the slide

Corporate Capabilities

Sustainable Competitive Advantage: Resource-based View

Sustainable Competitive Advantage: Synergy of Capabilities See the slide

Innovation Strategies for Top-line and Bottom Line Growth

Balancing Dynamic Organizational Dichotomies

The Tao of Business Success See the slide

Balancing Outside-In and Inside-Out Strategies

Lessons from Jack Welch: See Change as an Opportunity

Lessons from Jack Welch: Live Speed

Fast Company

Success Story: Charles Schwab

Best Practices: Charles Schwab's Corporate Guiding Principles

Owning Your Competitive Advantage

2. Modern Holistic Approach to Value Creation

Balanced Business System See the slide

Best Practices: 10 Lessons from Konosuke Matsushita See the slide

Success Story: Unique Customer Value Created by Amazon.com

Management: New Model vs. Traditional

The Tao of Balanced Management

Customer Value Proposition

The Tao of Customer Value Creation See the slide

Success Story: New Business Model of Dell Corporation

Customer Retention: Why Companies Lose Customers

New Company-Employee Partnership

Employee Empowerment: 3 Levels

Employee Satisfaction

Employee Motivation: Manager-Employee Motivation Index

Lessons from Jack Welch: Create a Learning Culture

Managing Knowledge Workers

The Wheel of Knowledge Management

Coaching in the Workplace: Key Benefits

Winning Organization: Learning – Teaching – Coaching

Innovation: The Key to Survival and Success

Case in Point: Intellectual Property Management by High-Growth Firms

Creating Sustainable Profit Growth: 9 Questions to Answer

Success Story: Innovative Revenue Model of Xerox

Economic Value Added (EVA)

Leading-Edge Three-Tier Reporting Model

3. Extended Enterprise and Value Chain

Changes That Call For a New Business Model

Extended Enterprise

Core Competencies

Strategic Alliances: Synergizing Resources and Capabilities

Business Process Outsourcing (BPO): Key Benefits

Virtual Integration: 3 Action Areas

Value Chain

Value Stream Analysis and Mapping

Lean Supply Chain and Customer Relationships

Supply Chain Management (SCM)

4. Values-based Organization and Leadership

Balanced Organization: 5 Basic Elements

7Ss - a Framework for Analyzing and Improving Organizations

Knowledge-driven vs. Industrial Enterprise

Innovation Drivers in Industrial and Knowledge-driven Enterprises

Results-based Leadership See the slide

Organizational Fitness Profile (OFP)

Lessons from Jack Welch: Put Values First

Values-based Leadership

Shared Values

Best Practices: Disney's Shared Values

Best Practices: GE Values Guide

Best Practices: HP Values

Best Practices: Building a Flexible Culture at Dell Computers

Innovation-friendly Organization: 6 Components

Success Story: Creating a Most Competitive Enterprise See the slide

Best Practices: 25 Lessons from Jack Welch

Lessons from Jack Welch: Involve Everyone

Lessons from Jack Welch: Instill Confidence

Lessons from Jack Welch: Energize Others See the slide

Lessons from Jack Welch: Make Business Fun

Lessons from Jack Welch: Make Everybody a Team Player

Team Building: a Dream Team

Building Trust

Employee Performance Management: Holistic Approach

Coaching Style: Skill / Will Matrix

Inspiring People See the slide

5. Harnessing Diversity and Building Synergies

Shift from Linear to Systemic Innovation

Systemic Innovation: 7 Areas See the slide

Leading Systemic Innovation

Creating Cross-functional Teams

Systemic Innovation: Engaging Cross-functional Innovation Teams

New Product Development by Cross-functional Teams

The Tao of Intellectual Cross-Pollination

The Tao of Leveraging Diversity

Harnessing the Power of Critical Opposites

Creative Leadership

Business Architect See the slide

Business Architect: Cross-functional Expertise Requirement

Systems Thinking

Cross-functional Excellence

6. Enterprise-wide Business Process Management

Business Process: Definition and Characteristics

Process Management: Shift from Functional to Cross-functional Model

Payoffs of Process Approach to Business

Process Thinking

Assessment Form

Eight Essential Principles of EBPM

Cross-functional Management (CFM)

The Tao of Business Process Innovation

E-Business: Integrating IT

Aligning IT and Business

Business Process Management System (BPMS)

11 Traits of a True IT Leader

7. Lean Production and Continuous Improvement

Continuous Improvement Firm (CIF)

3 Basic Principles of Continuous Improvement

Japanese Suggestion System: Goals and Benefits

Japanese-style Individual-based Suggestion System

STRIDES: a Model for Solving Complex Problems

Kaizen: Job Functions as Perceived by Japanese Managers

Kaizen Mindset

Kaizen: 7 Conditions for Successful Implementation See the slide

Quick and Easy Kaizen

Best Practices: Practicing Kaizen at Fidelity Investments

Best Practices: Employee Empowerment at Fidelity Investments

Kaizen and Radical Innovation

Lean Production: Removal of Waste Activities

3 Basic Types of Waste

Lean Production: 7 Wastes To Be Eliminated

Lean Production: Typical Benefits

Lean Value Chain

Lean Production: An Overview

Components of Lean Production System

Just-In-Time (JIT) Manufacturing

Best Practices: Toyota Production System (TPS) See the slide

Best Practices: 7 Principles of Toyota Production System (TPS)

Best Practices: Canon Production System (CPS)

Best Practices: Canon Production System (CPS) – Key Structures

Case Study: Lean Manufacturing at GSEP Ltd. (India)

Case Study: Lean Manufacturing at Automotive Companies (USA)

10 Commandments of Lean Production and Improvement

Cleaner Production Strategies

The Tao of Cleaner Production

80/20 Principle

Success Story: GE Work-Out

Best Practices: 7 Steps to Implement Work-Out

8. Quality Management

Customer's Perception of Quality

Computing the Cost of Quality

Total Quality Management (TQM)

Deming's 14 Point Plan for TQM

Kaizen and TQM

Areas Targeted by TQM in Japan

Japanese TQM Model

Best Practices: 14 Slogans for TQM at Pentel. Japan

Lessons from Jack Welch: Live Quality

8 Rules for Managing Quality

Six Sigma: Benefits of Reaching Higher Sigma Levels

Case Study: Impact of Six Sigma Implementation at GE

Case Study: Making the Six Sigma Process Work at GE

Integrating Six Sigma With Business Process Management

Integrated Environmental and Quality Management System (EQMS)

EQMS: Common Statement of Policy

9. Marketing, Selling, Service-Profit Chain

Synergistic Marketing and Selling See the slide

Designing Your Core Marketing Message (CIMM)

Differentiation Strategy: 3 Parts

Weak and Strong Differentiating Strategies

Strategic Brand Management

Brand Building and Product Marketing

Effective Advertising

Differentiating With Different Types of People

Market Development Trends

Psychographic Classification of Customers

Service-Profit Chain

Customer Intimacy

Lessons from Dell Computers: Segmentation by Customer

Customer Relationship Management (CRM)

10. Value Innovation

Lessons from Jack Welch: Constantly Focus on Innovation

The Tao of Value Innovation See the slide

Customer Partnership

Lessons from Michael Dell: Turn Your Customers Into Teachers

Best Practices: New Product Design: 5-Step Methodology by IDEO

Customer-driven Innovation: 7 Practice Tips

New Product Design: Observing People

Lessons from IDEO: Keeping Eyes Open for Inspiration

New Product Design: 7 Reasons for Shifting to New Approaches

Blue Ocean Strategy vs. Red Ocean Strategy

Best Practices: Characteristics of the Most Successful Companies

Innovation vs. Operations Management

Radical vs. Incremental Innovation

Internal and External Ventures

Lifestyle vs. Venture Management

Success Story: Spinouts of Thermo Electron Corporation

Success Story: In-company Ventures by Corning

Success Story: Corporate Venture Investing by GE Equity

Best Practices: GE Equity – Critical Success Factors

Business Synergies Approach to Project Management See the slide

Project Management: Two Approaches See the slide

Best Practices: Innovation Process Attributes in Silicon Valley

Innovation System

New Product Metrics

Keys To Successful Market Learning

Experimentation – The Key To Discovery

The Jazz of Innovation See the slide

The Jazz of Innovation: Key Components

The Fun Factor

The Jazz of Innovation: 11 Practice Tips See the slide

Value Chain Management: SYNERGIZING VALUE CHAIN (Ten3 Mini-course - 200 slides)

10 Chapters

Sustainable Growth Strategies
Modern Holistic Approach to Value Creation
Extended Enterprise and Value Chain
Values-based Organization and Leadership
Harnessing Diversity and Building and Synergies
Enterprise-wide Business Process Management
Lean Production and Continuous Improvement
Quality Management
Marketing, Selling, Service-Profit Chain
Value Innovation

Sample Ten3 SMART Lessons (Slide + Executive Summary)

What Is Extended Enterprise?

The term "extended enterprise" represents a new concept that a company is made up not just of its employees, its board members, and executives, but also its business partners, its suppliers, and its customers. The notion of extended enterprise includes many different arrangements such as virtual integration, outsourcing, distribution agreements, collaborative marketing, R&D program partnerships, alliances, joint ventures, preferred suppliers, and customer partnership.

Why Extended Enterprise?

Previously organizations have been thought of as linear entities, each with a linear value chain that consisted of all the activities required to design, market, sell, produce, deliver and support products and services. Suppliers and customers were thought to be "outside" the organization's domain. And the organization was depicted as a hierarchy of reporting relationships, primarily functionally aligned.

The new economy, with high-tech companies rapidly evolving and "old economy" enterprises embracing new ideas, brought tangible reality and urgency to new organizational forms. With globalization of markets, productivity pressures, scarce resources, intensifying competition, blurred industry boundaries and rapid technology change, new relationships and structures have emerged in all sectors of the economy. Modern organizations create new ways of delivering value to customers, new approaches to collaborating with suppliers along with critical thinking about organizational structure and purpose.

The Role of Information Technology

Technology plays a strategic role in the extended enterprise - in some cases driving the opportunity for change and in others facilitating collaborative relationships and inter-organizational operation. IT enables the openness, immediacy, information sharing, flexibility and adaptability that the extended enterprise demands. Information technology also enables customer responsiveness, speedy decision making, superb inventory control and greater visibility across the extended organization for demand planning. (Source: IDC)

Business Process Management: New Cross-funtional Management Model

Transforming the Traditional Functional Mindset

Excerpts from "BPM - Approaches & Best Practices" by Andrew Spanyi

In far too many organizations, senior management's traditional functional mindset represents one of the most significant barriers to change. Indeed, there is reason to believe that the traditional functional paradigm has done more to impede customer focused, business performance improvement over the past two decades than almost any other factor.

This way of thinking stands in the way of executives understanding and improving the flow of cross-functional activities which create enduring value for customers and shareholders. It promotes the type of thinking that impedes the effective deployment of enabling information technology. It promotes also 'silo behavior' and turf protection, and an undue pre-occupation with organization structure. This mindset contributes to the mistaken belief that if it was somehow possible to properly define the boxes on the organizational chart, and fill in the names of the "right" people in the key boxes - then the organization's performance will automatically improve. Yet, little is further from the truth. Further, it encourages a distorted view of performance measurement and executive rewards, shifting focus away from meaningful measures such as the timeliness and quality of services provided to customers, and towards less significant measures around functional departmental performance.

It reinforces a task focus and traditional command and control behavior, where questions such as 'What is the scope of my responsibility?' and 'Who are the key subordinates who can help me look good?' are foremost and top of mind. Moreover, traditional functional thinking has also led to outdated management practices in the areas of goal setting and problem solving and it stifles innovation. So what to do? How can you transform the traditional functional mindset such that your organization is designed to make it easy for customers to do business with the company and easier for employees to better serve the company's customers?

An effective way of transforming the traditional functional mindset is to embrace enterprise business process thinking and install enterprise business process management (EBPM) practices. What does this involve? Frankly, it requires a lot of very hard work, and concepts which will make some of your executives very, very uncomfortable. Why do it? Simply because the benefits of making this mental model transition are significant.

And

much

more!