How to organize a business that works Module 17 Track Business Unit Management

Learning objective
How to organize a business that works with a few simple rules

At the end of this track of the course
1. You will be able to design and operate a management program for your own project or unit.
2. You will be able to use the six best executives tricks to manage simply.

Program of the track

A. The 6 steps of the process of making profit
1. Get profit
1.1 Customer / marketing. Start with selling
1.2. Protect profit with costs decrease. then buy what you sold at lesser costs.
2. Get resources and innovation productivity
2.1. Resource human and information
2.2 Innovation
3. Get transactions. Operate at low costs and stable quality level
3.1 Sales automation
3.2 Production flexibility
B. The four tools of profit making.
1. Projets and processes.
2. Six figures.
3. Management cockpit.
4. Master management program






Questions
What are the six ways to divide a business in order to control it better ?

Clues for answering

1. Processes and projects, controlled by outputs
2. Manager's responsibility centers. Team members pure indicators controlled by KPIs
3. Small profit centers controlled by margin or contribution
4. Customer segments controlled by satisfaction
5. Taskforces controlled by results
6. Activities controlled by return on investments

Piloting a business for growth in 6 steps
Select and define the unit to pilot and its objectives
Select the business models and management rules to apply
Select the management tools to apply to use
Select the performance indicators and deploy them
Organize people responsibility and information transparency
Make team decisions at cockpit briefing

The material for the course
Reviewing 200 cases of businesses
Worldwide cases, focusing on small unit

Questions

1. How business units are classically structured and organized by lines, functions and reporting?
2. How managers works are structured in four steps to make things done?
3. How to structure and organize business information for managers as a piloting interface?

At the end of the BO course, your will have a good understanding of

30 frequently used business terms
30 frequently used management rules
30 frequently used business methods

Structure

1. How to manage sales activities
2. How to manage production quality and productivity
3. How to manage costs leadership
4. How to manage people satisfaction
5. How to manage customer satisfaction
6. How to manage non-human resources
7. How to manage innovation
8. How to manage profitability

The business organization

1. Business lines for local operations. Sales. Production. Supply
2. Business functions for global support. Corporate. Finance. Marketing. Resources (HR, IT)
3. Business reporting for activities and results. By geographies. By markets. By products

Managers functions (walls)

1. Planning, dividing works, setting objectives
2. Organizing resources allocation to activities
3. Leading to face obstacles
4. Controlling deviances from objectives

Managers activities (views)

1. Asking questions
2. Measuring indicators
3. Comparing values
4. Making decisions
5. Engaging rules
6. Taking actions

The structure, the walls

1. Will we reach our objectives?. What’s important or dangerous, finance, results, outputs
2. What are the levels of our availables resources? Productivity, quality, operations
3. What are the obstacles to our objectives? Markets, customers, competitors, external factors
4. Are we moving the right ways towards our objectives? Projects successes, processes and plans deviances, innovations, decisions, strategy

The business views

1. A frequent managers question. Are we selling harder?
2. A management rules. Sales person compensation variability should be at 30% of total compensation
3. Several performance indicators. Number of sales people with measurable objectives. Number of new sales persons
4. Values of the indicators. Trends, benchmarks, target objectives, limits for deviance alerts

What managers do?

1. They ask questions. Are we decreasing the complexity of our processes?
2. They measure indicators. Streamline index
3. They set objectives and compare values. Benchmarks, trends, targets
4. They make choices. What are the critical processes in this unit?
5. They apply management rules. Process streamline index should decrease
6. They take actions / activate tools. Suppressing steps in processes

What’s a management cockpit. Making and selling things to a market for a profit

1.  The profit control and protection functions
2.  The customer orientation functions
3.  The production quality enhancement functions
4.  The sales increase functions
5.  The costs contention functions
6.  The resources productivity functions

For each business situation

1.  What questions managers ask themself?
2.  How do they answer those questions?
3.  What management rules do they consider?
4.  What management tools/methods/programs do they activate?