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JK
SecuriTech has developed the Business Results Wheel as the basis for
modeling a business.
The
Results Wheel identifies the four areas of a business where
transformational change results can be targeted and measured. It also
identifies the process linkages between the operations areas implied by
the double arrows around the perimeter of the wheel, and the metric target
linkages between the operations and finance areas implied by the double
headed arrows in the center of the wheel.
The
Results Wheel graphically illustrates several business principles.
* In order for a business to experience stable growth, the wheel must
"roll" smoothly. This can only happen when the wheel is in
"balance". Ensuring a balance in capability and capacity among
each of the four results areas is a key requirement for achieving
sustainable growth. A relative weakness in one or more of the areas will
stop the wheel from rolling.
* Each result area "touches" the other three results areas,
either through process linkage at the operations perimeter, or through
metric target linkage in the center. Any decision or action in one result
area has an impact on the other three areas. A business dedicated to
growth must understand the dependent relationship of the four results
areas, and resist the tendency to believe that each of the four results
areas can operate in independent "silos". A "silo"
orientation breaks the process and metric linkages and prevents the wheel
from rolling.
* Even though a business must have results area balance, successful growth
companies leverage expertise in one of the operations areas to achieve
sustainable growth. Examples of this principle include:
IBM
leverages its MARKET knowledge of manufacturing businesses to develop
computer systems and software. Business customers of IBM actually design
their business process structure around the IBM model incorporated in its
hardware and software packages. IBM's growth is clearly tied to its
manufacturing company MARKET KNOWLEDGE, requiring that IBM know
manufacturing companies MIS needs and processes better than its customers.
Intel
leverages its PRODUCT knowledge of micro-processor design and manufacture
to drive its business. Intel actually designs and introduces the next
generation of products, and obsoletes the current generation, before its
competition has a chance to compete against the current product
generation. Intel's growth is clearly tied to its PRODUCT CAPABILITY of
providing higher functionality, at lower cost, faster than its
competition.
Walmart
and Microsoft leverage their DISTRIBUTION knowledge of who their customers
are and how to reach them most effectively to drive their businesses.
Neither company claims to provide the "best" products available,
but they do ensure that they have cost competitive products immediately
available wherever they have customers willing to buy. Walmart and
Microsoft's growth are clearly tied to their DISTRIBUTION CAPABILITY of
providing products to potential customers better than their competition.
Applying
these Results Wheel principles to a client's business is the foundation
for JK SecuriTech's business growth modeling.
Copyright©2001 JK SecuriTech, L.L.C. All rights
reserved.
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