If you Google business management process, you'll get a Wikipedia page and you'll see that Wikipedia
page has the most concerns raised by editors.
In fact, if I'm not mistaken, they even use the words weasel words on the page in that in Wikipedia
terminology means words that are put together that just sound intelligent but actually have no meaning.
And the reason I mention this is because business management process is one of those things that means
multiple things to different people.
So we're going to introduce one definition, but it's far better than the one on Wikipedia, which is
so bad that the editors are calling for substantial changes and verification in a manner of speaking.
It makes very simple business management process is a continuous process of thinking about what your
strategy is, setting a target and then trying to beat it.
That's what it is.
That's your strategy.
These are the key performance indicators that you need to focus on.
But trucks delivered per day, that's a target for a KPI.
This is the gap between where you are now in the KPI and where you need to be.
And this is what you need to do to close that gap.
And then you constantly review how you're doing it.
And that's all it is.
Now, you can almost think of the business management process as fitting in within the balanced scorecard
because a balanced scorecard gives you key performance indicators, performance targets.
But the business management process about what do you need to do to close the gap?
So while many companies practice business management process as a separate tool, we don't actually
see it that way.
We see it as an in any implementation you do is a process of figuring out what's your target?
Where are you now?
What's the gap?
How are you going to close it and then constantly reviewing it.
In fact, step one is what is your strategy?
What are the objectives?
And then you cascade that across different parts of the organization.
So if the overall strategy is to decrease the turn on equity by five percent, how does that impact
each division?
Said key performance indicators across your division, not just at the top, but key performance indicators
for every part of the organization to help them increase or contribute to an increasing ROIC by five
percent then for each of the indicators set targets.
That's simple enough.
Figure out where you are now for each KPI relative to your target.
Some of them will be big.
Some of them will be small.
But those are all targets.
Where are you now?
So let's target a set up performance improvement initiatives and chase them.
And if you've watched the corporate strategy training section, we use the concept of plan.
Do review.
So again, planet, do it, review it.
It's a cycle that keeps on going forward like that.
But the hands.
But we have the biggest criticism of this entire process.
The biggest criticism is managerial frustration because it's a continuous cycle.
It never, ever seems to stop.
And I'll give an example of a company that uses this very effectively to imitate people.
What a client I work with would do is I'd say BNP, but in a very different way.
They'd come to their many managers of each facility and say, let's assume your average steel produced
was 100 tons for the last four months.
We want you in the next four months, the next quarter to increase it by 10 percent.
That's the outcome in the next four months.
Increase in new targets by 10 percent.
And keep on doing this now for the first year.
Maybe you can do that when it comes the next year.
It doesn't stop was I'll come back and I'll say another 10 percent, then another 10 percent, then
another 10 percent.
And you get this pattern going on like that.
This leads to a lot of frustration amongst managers and a lot of turnover at these Klyde facilities.
It's quite high.
So the reason they pick 10 percent measures, it is not too big, but you throw your hands up in disgust,
but it's not too small that it's meaningless.
10 percent is pretty substantial.
Now, we've spoken a lot about strategy implementation.
The most important thing you have to understand is that we as management consultants types of processes
with false processes to sit on our hypothesis.
Hypothesis based approach.
So if you watch the lab find out strategy project for the United States, watch the tech merger strategy,
you know, we basically just apply to core processes in strategy.
What's the strategic approach?
Well, the way we go about structuring issues, the objective function, the decision tree prioritizing
the core branches from prioritizing the branches, developing a hypothesis from the developer, storyboard
from there, developing a task to test out that hypothesis from the test.
We know what data we need.
We develop a data plan and that's the core process.
There's also the business case process, which is the way we tackle business cases.
That's very different.
And it's about really making sure business cases are not to financially document, but a document that
splits double splits between a top down approach, which tells us the magnitude of the saving and a
bottom up approach, which is the models, the mechanics of achieving saving.
Those are the two approaches we always have.
And everything you've learned sits on that.
It's not repeating.
Up, for example, I want to go in and understand how a company could be more innovative.
I'm not going to say we're gonna use the Hammil strategy.
Now I'm going to take issues into consideration and apply the general strategy process when it comes
to mapping the benefits, the general benefits tracking process.
That's the thing to remember.
None of these are replacements or substitutes for the techniques we teach, but they raise important
considerations we include in our analysis.
This is meant to be a high level overview.
Strategy and operate operations and implementation, more strategy and implementation operations will
be separate training.
And it won't be quite as high level, but it will be quite detailed.