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THE FOX THE PIG And
THE OWL MICHAEL BURDETTE
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THE FOX THE PIG and THE OWL First published in Australia in 2012 by Michael Burdette. Copyright Š 2012, Michael Burdette All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, in any form or by any means without the prior written permission of Michael Burdette, nor be otherwise circulated in any form of binding or cover other than that of which it was published and without a similar condition being imposed on the subsequent purchaser.
National Library of Australia Cataloguing-in-Publication Entry Burdette, Michael, 1954-. The Fox the Pig and the Owl. 22736
ISBN: 978-0-9775626-3-3
Dedication I have dedicated this Book to men who I have had as clients and later as loyal friends for the best part of fifteen years. These men all have the same attributes in common, that of Focus, Vision, Determination and Passion. Our relationship was not one of calm, subservient, and polite behavior. It was often fiery, heated, and explosive; however, these men never took anything personally. They were never too precious to accept criticism, to listen, to debate issues and to accept the difficult decisions that were necessary to make. These men are the very fabric of the kind of business people we need in the world. I not only respect these men immensely, but also love them like my own family. I have been blessed and privileged to work with each one of these men over the years and hope to continue our special friendship. A very special thank you to these wonderful men: Arthur Ioannou Alan Keller Brian Wildman Gary Down
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CONTENTS Dedication .......................................................................................................................................................... 3 CONTENTS....................................................................................................................................................... 4 Acknowledgements ............................................................................................................................................. 6 About The Author .............................................................................................................................................. 6 Introduction ....................................................................................................................................................... 6 Startup Capital .................................................................................................................................................. 7 Planning ............................................................................................................................................................ 7 Professional help ................................................................................................................................................ 8 Web Sites ................................................................................................................................................... 9 Management ...................................................................................................................................................... 9 The Meeting ..................................................................................................................................................... 12 Week 1..................................................................................................................................................... 12 The Confrontation ............................................................................................................................................ 13 Week 2..................................................................................................................................................... 13 Lesson One – The Fundamentals of Vision ........................................................................................................ 14 Week 3..................................................................................................................................................... 14 The Start.......................................................................................................................................................... 17 Week 4..................................................................................................................................................... 17 Lesson Two - Basic Elements of a Business ........................................................................................................ 19 Week 5..................................................................................................................................................... 19 Where the Sales Go ................................................................................................................................... 21 The Four Principles of Running Successful Companies ...................................................................................... 22 Top Down Bottom Up Mapping .................................................................................................................. 23 Lesson Three – Business Engines ...................................................................................................................... 24 Week 6..................................................................................................................................................... 24 The Business Engine .................................................................................................................................. 25 The Marketing Engine................................................................................................................................ 26 Lesson Four – Understanding Focus.................................................................................................................. 27 Week 7..................................................................................................................................................... 27 Lesson Five – The Realities of Marketing .......................................................................................................... 31 Week 8..................................................................................................................................................... 31 Lesson Six – The Value Chain ........................................................................................................................... 34 Week 9..................................................................................................................................................... 34 The Value Chain ....................................................................................................................................... 36 Analyzing Products and Customers.............................................................................................................. 37 Lesson Seven .................................................................................................................................................... 42 Week 10 ................................................................................................................................................... 42 Knowledge ............................................................................................................................................... 44 Risk ......................................................................................................................................................... 44 Risk Process ............................................................................................................................................. 45 Page 4 of 63
Risk Mapping ........................................................................................................................................... 46 Culture ..................................................................................................................................................... 46 Emotional Intelligence ............................................................................................................................... 47 Lesson Eight - Zeal ........................................................................................................................................... 51 Week 11 ................................................................................................................................................... 51 Week 12 ................................................................................................................................................... 54 Final Lesson ............................................................................................................................................. 54 Break Even Point....................................................................................................................................... 54 The Break Even Graph ............................................................................................................................... 54 Definitions ............................................................................................................................................ 54 Determining Fixed and Variable Costs ......................................................................................................... 55 THE BURDETTE Cash Ratio ..................................................................................................................... 56 THE BURDETTE GROWTH MATRIX ...................................................................................................... 57 The Killer Question ................................................................................................................................... 58 Further Information ......................................................................................................................................... 59
THE FOX a second hand mobile phone salesman and is one of those business people who knows it all and does not believe in seeking professional help.
THE PIG on the other hand has a manufacturing business and embraces all the help offered. Pig employs the help of a consultant, called PHSYCO CHOOK.
AND
THE OWL is the wise deliverer of business wisdom, however, Owl speaks in academic speak which pig does not fully understand. That is where Psycho Chook comes in…….. PHSYCO CHOOK Page 5 of 63
Acknowledgements Thank you Lesley for creating the Owl, The Pig, and Psycho Chook characters and to all your patience while I finished this book. Resurrecting this book from 2006 has been a task far larger than creating it in the first place. To my mother Livia for teaching me the value of reading, writing and for the determination of acquiring knowledge. I am sure my late father ‘Taffy’ would have been very proud particularly as they both made personal sacrifices to ensure I had a decent education. To all those hundreds of companies I have dealt with over the years, as without you, I would never have had this strong desire to change the way we deliver education and training.
About The Author Accomplished Business Advisor and Educator with over 30 years experience in turning around underperforming operations and guiding businesses to greater success, both in executive leadership roles and as an external consultant. Commercially savvy, with an impressive record of accomplishment in start-up, high growth, and business turn-around scenarios. The key to Michael’s success is his unique ability of teaching others, at all levels. Strategic, visionary thinker with organizational agility and an intuitive sense for innovative problem solving, focused on delivering results. Able to build shared vision, source talent and unify individuals with diverse agendas. Adept change agent and commercial strategist with the ability to identify enhancement opportunities propel new business programs and anchor change. Skilled business advisor able to identify key issues to drive positive change and business momentum. Frequently interviewed on radio and heavily involved in business mentoring program for ABC television program, 8 Days a Week. Highly developed communication and negotiation skills, enabling achievement within Senior Executive assignments to deliver outstanding results for the most demanding boards. Powerful and engaging speaker with extensive experience lecturing at Universities and as keynote speaker for business groups and industry bodies.
Introduction With over 30 years in business and being involved with companies from the large corporate to small businesses, it is no surprise that so many small businesses rarely go on to big and better things. In fact, in the first 5 years most small businesses go into liquidation. Why is it that most small businesses always struggle and the owners never rewarded adequately for their efforts or investment? From a small business perspective, they would think, the whole world sux. Governments do not care, the tax departments are slugs, the banks are wankers, and big businesses are immoral manipulators! Most people entering into the small business arena go into business within an industry they fully understand and where they have relevant experience. Overnight they also think they have become experts in accounting, marketing, managing people, occupational health & safety and Page 6 of 63
financial management. This means that they do not need any external help because like our lovely teenagers they know it all! Sometime later, cash flow dries up, the banks refuse to help, and suppliers are tired of the excuses for non-payment. Miraculously, the light bulbs come on (Fluoro of course) and they finally seek help. In modern times, there is plenty of government and professional help available. The problem is none of this help involves a cash injection! Instead, business owners are offered subsidized training programs, consultants, or ‘special business workshops’, all of whom cost money rather than injecting money into the business. Now what do they do? They close the doors, borrow from friends and family, or if it is not already, mortgage the family home. Do Small Businesses have a point? No, they do not have a point at all! Small businesses are their own worst enemy. This book is a blunt frank and an amusing account of what the problems are.
Startup Capital In most cases, people starting a small business have no idea how much start up capital they need and even less of how much working capital they will need in the first twelve months. The basic ‘sums’ are done on the back of a nice clean envelope, by the very people who have no experience at all. The up shod is they believe a few thousand dollars will do the trick and off they go. They are delighted because after only a few weeks they have their first order. A few months later they run out of money, because, firstly there were a lot more expenses involved, than what they first thought. Secondly getting an order is only the first part of the process. Remunerated for it is a completely different issue. Then to compound issues the first tax installment is due and their suppliers cut off supply until the account is up to date. If that is not bad enough, the customer has just returned the first order they got for credit! So far, having your own business is so much fun and definitely a bundle of laughs! So many businesses lurch from crises to crises, and those that do not fold, usually struggle for years effectively getting nowhere. The first lesson is to seek professional help before you start. Startup capital has two components, the costs required to ‘open’ the doors, and the working capital you will need to run the company for the first twelve months. If you cannot afford the professional help to start with, then do not start a business. Small businesses, who have struggled through for a few years, should take a pause in their rambling attempts at making money (which has so far failed) and review what working capital they need to stabilize the business and set a solid platform for the future.
Planning Small businesses are the privileged few who have no need for planning. We build buildings to a plan, we travel overseas to a plan, and we plan our meals and even make use of a shopping list before going to the supermarket. Plan for your business – what for, firstly we do not have time, and secondly it is all a load of codswallop. Lack of proper planning is the single most common reasons to fail in business. I am not a believer in structuring great novels of superfluous drivel commonly called a business plan; however, what is imperative is to have a comprehensive business strategy. A business strategy must include at least the following: Financial diagnostics and analysis of your past 3 to 5 year results Page 7 of 63
Operational Analysis of the past 3 years Marketing Strategy Research Return on marketing investment Digital marketing Product/customer analysis Budget Performance benchmarks Risk analysis Forecasts Financial Asset Cash Flow Benchmarking Reporting Implementation
Professional help All too often, small businesses can always justify a nice car, a new machine, flash premises etc. What they can never get their heads around is paying for professional advice! On the rare occasion when they do get help, they find the cheapest ‘consultant’ around. The ‘cheap professional’ help fails and then they are so happy, because they can now tell the whole world (this is the same world that sux) “See professional help does not work and is a waste of money!” The truth is, however, that using ‘cheap’ professional help never works and you would need to be brain dead to think it would. A tip for all you businesses out there, Cheap Professional help is cheap because the practitioners are under skilled, lack experience and quite often cannot get a job anywhere else! An interesting statistic: Eighty to eighty five percent of business consultants have never run a company of any decent size! There may be a subtle message here? If you do not get the message, retire immediately! What is a reasonable collection of good helpers? Accountant – Choose an accountant who is a management accountant, your business is not complicated enough to have your own personal tax accountant. You need to be profitable before you have a tax problem! Business Strategist – Depending on the business, this may be someone with a financial, marketing or operations specialty or even in some cases at least two or all three. What is very important with any professional help is to; Be clear about what you need. Choose your people carefully, and always work on outcomes. Remuneration should always be part retainer and part results. Select a board and have these people on it. It can just be a board of management. Projects manage the processes and ensure you work to milestones. Commercial Lawyer- a good commercial lawyer is mandatory for any business. For a start there is a need for a number of legal documents before you even open the doors for trading, such as; Page 8 of 63
Constitution. Shareholders agreement. Conditions of sale. Conditions of purchasing. Company policies. Government departments have a list of ‘accredited professionals’. Be warned! Anyone who relies on business from a government database may well be someone sub standard. This, however, is not always the case. My clients over the years have always paid in excess of $100,000 per annum; however, they have improved their profit by at least two to three times that. If you paid out a total of $300,000, but your profit increased by $1,000,000, would you do it? Of course, not, it is far better to pay $30,000 and go backwards so that you will not have a tax problem, right! Seriously, there is no question that without professional help you are destined to fail or at the very least struggle for many years to come.
Web Sites Freddie Fool got three quotes for their new web site, one was $1,500 one was $5,000 and the third was for $7,500. Freddie Fool ordered the $1, 500 website and consequently got what he paid for, a useless picture on the web that no search engine can find. Which one should Freddie Fool have gone for? The short answer is none of them. Web marketing is a far more complex and involved process than people understand. It can really work for companies but requires a lot more than uploading pictures, sales blurb, and contact details. There are issues around how search engines find your site, how do you get into the top 10, are your ad words what people look for on search engines etc. A web site that enhances your marketing effort, effectively, will cost $10,000 to $15,000. Oh, horrors everyone cries, this man must be crazy! Not crazy at all, but believe me I have learned this from bitter experience. The web site is the most crucial tool in modern business today. The web site creates the most cost effective leads to companies who purchase the whole web site package, than any other form of lead generation.
Management Management of most small businesses is well below par. Good management is the key to successful businesses. Management is a strict discipline of clear deliverables at every level. The important issue is to have a management strategy in place updated at least quarterly. Management strategies should include Financial Cash flow Employees Suppliers Customers Inventory Part of management is to keep everyone focused on the main game, be clear how everyone involved with the company is clear about how they contribute to the overall success of the company. Page 9 of 63
This book covers the major issues in why some make it in business, whereas most do not. This book is written as a humorous, story, even a bit juvenile at times. Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful talented men. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated failures. Persistence and determination alone are omnipotent. Calvin Coolidge 1872 to 1933
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Book Structure
There are four key elements to being successful in business. This book discusses those four elements in detail as a humorous narrative between fictitious characters, namely, THE FOX, THE PIG, and THE OWL. A few other characters are introduced, such as PHYCHO CHOOK (the consultant) and Mr. OVEE DRAFT (the bank manager). There is only one character who fully understands what these four elements involve, namely OWL, who attempts to mentor FOX and PIG into becoming business experts, which proves to be somewhat of a challenge. Although the characters in this book are fictitious and do not represent anyone in particular, either deceased or living, they do unfortunately represent typical business stereotypes that exist and are alive and well in the world today. If this book helps to save one company from insolvency, then it has done its work. Any others are a bonus.
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Part 1 - Vision The Meeting Week 1 It was 6:45 am at Fox creek railway station. It was cold and wet. The train was late, as usual. As the train rolled into the station, Pig and Fox boarded the train in the second carriage from the front, sat in the third row facing the front, sitting together. This was their regular ritual, day after day and had been for a number of years. They were just settling down, when they noticed a new passenger, neither of them had seen before, sitting opposite them. This new passenger was none other than an owl! They all nodded politely towards each other, smiling as they did so. “How is business?” asked Fox. “Oh much the same” replied Pig, “We are plodding along, although we never know where sales will come from in the future. There are more and more opposition companies springing up everywhere, what with this globalization era we seem to be part of now. Our margins are reducing just so that we can secure sales. Who knows where it will all end up? We are also struggling to get paid on time which is forcing our overdraft up and the bank are not happy about it. How about you Fox?” “Sales are going really well, but we are still stretched for cash, which I cannot understand. One would think that if sales are going well we should have plenty of money in the bank. My employees are not pulling their weight either, which is frustrating. I am onto my 3 rd sales clerk in 2 months!” declared Fox. “The tax department is pressuring us to keep up to date with our tax payments. The Bank is threatening to call in our overdraft, which would really give us more headaches. They are such ignorant, uncaring parasites. It makes me sick to think that we have to work so hard, take the risks, and then we have to pay tax and interest to both those blood suckers!” Owl, sitting opposite them, was looking intently directly at them (as owls do) saying nothing but smiling warmly. There was a pensive silence for a few seconds, before the loudspeaker, shattered the pensive mood with the announcement, ‘Pig Wash station coming up’. Pig and Fox gathered their fur and bags, and as they stood up, Pig asked the owl, “are you in business too, owl?” “I was for many years,” replied owl. They nodded farewell to the owl, before alighting from the train, when owl said, “A struggling business is a symptom of poor management.” They both spun around, but owl was reading as the train whistled past them, heading for its next destination. “What did you make of that?” enquired Pig. “Not a lot really” said Fox”, but who is this owl? Where does owl come from I wonder? Anyway my friend I will see you this afternoon back at the station, have a great day Pig.” Walking towards the factory, the words of the owl disturbed Pig all day. Fox on the other hand dismissed them and never gave it another thought. That evening Pig had great difficulty in sleeping, the words of owl haunting the mind. Fox on the other hand slept like a contented Fox. Page 12 of 63
The Confrontation Week 2 At the same time Fox and Pig met at Fox Creek station and when they boarded the train, took their seats, they realized with dismay that owl was already there, in the same seat as before opposite them. “Good morning Pig and Fox are you both well this morning?” hooted owl, with that same intent look. “Oh, hello owl” stammered Pig. “Who are you and where do you come from”, enquired Fox. “Oh I am but a humble owl, and come from the forests” was the friendly reply. Fox and Pig settled into their usual daily conversation about the trials and tribulations of their businesses. “What business are you in my friends?’ asked owl quietly. Both Fox and Pig looked up startled. “My company manufactures supplies and installs all ancillary equipment for Pig sty’s, such as feeding and drinking troughs, automatic cleaning equipment, and dry pig food,” declared Pig. “My company sells reconditioned cell phones”, replied Fox. “We buy old phones, recondition them, and sell them.” Owl was looking at them intently head nodding as they spoke. “Now please tell me my new found friends, do you both have a clear vision for your companies, are you focused, passionate, and determined?” hooted owl. “Oh yes”, responded Fox immediately, “I want to be the largest mobile phone company in the world”. “I see”, nodded owl thoughtfully. “What about you Pig?” “Well” grunted Pig thoughtfully, “not really, we just plod along and try to stay afloat. That in itself is a full time job. I don’t have time to worry about much else.” “Hmm” mooted owl thoughtfully, still looking intently at them both, “that is such a typical response Pig. Have you ever thought about how much time you spend being reactive, however, you spend no time on being proactive? “To be successful in business you must have a clear and definitive vision, have passion, be focused and posses a steely determination” said owl with authority and wisdom. “Vision is like going on a long journey with a definite destination and time frame in mind. The journey needs meticulous planning, with predetermined stops along the way. These stops in the business world are referred to as goals and the final destination is your final goal. At every stop (milestone), you need to evaluate your progress and reassess your future stops (goals). As with a long journey, planning in business is imperative. Planning, however, is not much use if you do not learn from the past. Learning from the past sets the foundation for achieving your ultimate vision for the future. Vision must include innovation, research, and foresight.” There was a pensive silence for a few seconds, before the loudspeaker, shattered the silence with the same announcement, ‘Pig Wash station coming up’, when fox blurted out.” What a load of bullshit!” They alighted from the train with owl looking intently at them, pig looking embarrassed fox scowling. Once they were on the platform, Pig turned to Fox and said, “You were very rude fox, but did you understand what owl was saying?” Page 13 of 63
“Not at all” said Fox, “Owl is probably one of those frustrated retirees with nothing to do all day, and talks’ bullshit so I wouldn’t worry about it”. Pig, however, was even more troubled and could not stop thinking about the words from owl.
Lesson One – The Fundamentals of Vision Week 3 Fox and Pig waited at the station as habit demanded, waiting early in the morning for the train to arrive, late again. When the train finally arrived, Fox was watching to see if owl was on board again. Sure enough owl was sitting in the same seat and waved as the train swept by, screeching to a halt. They both boarded and greeted owl as they sat down. “Tell me more about vision, determination, Passion and Focus,” asked Pig. “Your words yesterday have been troubling me.” “I do apologize,” said owl surprised, “I didn’t mean to trouble you at all, so I do apologize”. “That’s quite ok,” replied Pig“, but I would like to know more, if that’s alright with you? We are struggling with sales, cash flow, and profit.” “Why on earth were you troubled?” asked Fox, “I didn’t give it any further thought. My sales are going through the roof.” “I was troubled because Owl struck a chord with me about my company”, was the terse reply. “Please explain it further Owl”, pleaded Pig. “You need to start with Vision. To have vision”, said owl”, is like embarking on a long, difficult journey. Before you embark on the journey you need to in the first instance be clear about where your final destination is, when you want to arrive there and what you will do once you arrive.” “Secondly you need to research what you will need for the journey”, “Thirdly you need to know exactly what hurdles and challenges you may have to overcome along the way.” “How does that translate into a business environment?” asked Pig. “That my dear friend is what you have to work through”, smiled owl wisely. Then the same announcement shrilled out, ‘Pig Wash station coming up’ They bid farewell to owl again before alighting from the train. Once they were on the platform, Fox turned to Pig and said, “I wouldn’t take much notice of owl; all these riddles are meaningless chatter from an obviously eccentric old owl”. Fox turned to watch the train pulling out of the station and noticed owl looking intently at them. A shiver went down Fox’s fur. It was like the owl could read their minds! Pig went straight to the office and summonsed all the senior Pigs to the board sty. Once all the senior Pigs were seated, a little confused by the uncharacteristic urgency involved in having this meeting, Pig told them of what owl said. “What I want to know”, asked Pig, “is what on earth does all this mean?” There was a lot of discussion about what owl had said, however, no one really came up with any sensible interpretation. After a few hours of discussion, financial controller Pig (CFO Pig) thumped on the table and snorted for silence. Page 14 of 63
“It is obvious none of us are able to interpret what the wise owl has said, it is however, immensely important that we find out. What I suggest Fellow Pigs is to consult the advice of Psycho Chook. Psycho chook is an expert in solving riddles within the business community, particularly those of wise owls.” All the senior Pigs nodded in silence, taking the words of CFO Pig on board, but secretly thinking that this was all just a waste of time. “That is a splendid idea”, snorted Pig in agreement. “Please contact psycho chook and see if he is available today.” At 3pm, sharp all the senior Pigs were again assembled in the board sty, only this time strutting around at the head of the table was none other than psycho chook. “Okay Piggy’s, you want to know what owl meant” crowed psycho chook. “Like any problem we need to firstly break it down into components, look at those components, work out what they mean and then put it all together. “ “The first element Owl mentioned is vision. Vision is made up of five components: Goals may typically be Sales, Profit, Market position, Exit strategy or a combination of these. Timing should involve a primary goal and a series of secondary goals (milestones). Innovation helps reach your goals more efficiently. Resources required meeting these goals. Planning for the journey ahead A vision is like going on a long journey with a clear destination and time frame in mind, a lot of planning, thinking of innovative ways of overcoming potential hurdles, and determining the resources required to embark on this journey.”
END GOAL
Innovation Innovation Innovation
MILESTONE 1
STARTING POINT
Planning Consolidation
MILESTONE 2 Planning
Planning T h e
MILESTONE 3 Planning
J o u r n e y
TIME
Goals must be realistic and achievable. Goals would typically involve more than one. Profit goals would need to have a corresponding sales goal. Exit strategies need to be specific i.e. Selling the company or floating on the stock market. Page 15 of 63
Timing needs to be definitive, such as 5 years. Whatever the overall timeframe is, it needs to be carved up into milestones. Innovation is an ongoing activity. Innovation does not only involve products, but also processes, purchasing strategies and labor efficiencies. Resources are a critical factor in this journey. They would typically include people, financing for growth, inventory levels, and space.
Planning the whole journey in meticulous detail is essential. Circumstances along the journey will change, so detailed planning should be reserved for each milestone as, and when you get to it. An overall plan is still essential. “That my dear friends are what the owl is telling you”, screeched psycho chook. There was silence for a few minutes before Pig stood up and said, “Heavenly pork, we have never thought of any of that before. Thank you psycho chook, we all appreciate your knowledge and interpretation skills.” Psycho chook smiled and strutted off (As chooks do) “What do we do now”, enquired CFO Pig. “We will all need to think about what we have just learnt, smiled Pig “and we will all meet tomorrow at 9 am sharp to discuss how we will tackle these issues Psycho chook has bestowed upon our porker business community.” Pig walked out of the board sty with a new spring in the step and beady pink eyes that seemed to come alive. The other Pigs looked at each other with dismay, said nothing, and followed Pig out of the board sty. Meanwhile at Sly Fox Cell Phones Inc. Fox and CFO Fox were having a heated discussion about the financial position of the company. “Fox you cannot keep ignoring the fact that we don’t have enough cash to pay our bills” stammered CFO Fox.
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“I keep telling you CFO Fox everything will be fine. We will definitely get a nice big order from the vulture clan next week,” snapped Fox, “You worry too much, which gives me the shits, so please leave me to get on with selling more phones”. CFO Fox shook his head angrily and stormed out of Fox’s den. An hour later Fox got a call about the order he was so confident of getting from the Vulture clan. “Yes hello”, hissed Fox, “I want to speak to purchaser vulture please!” “Hello Fox” said purchaser vulture, “you got my message then?” “Yes” hissed Fox, “I can’t understand why you gave the order to someone else when we were the cheapest by the proverbial Fox’s mile?” “Well” said purchaser vulture, “Whilst your quote was indeed far cheaper, the problem was that we were concerned about using 2nd hand cell phones as you well know. To confirm our fears, the three sample phones you gave us, ALL failed within two weeks!” “Why didn’t you let me know”, pleaded Fox, “I would have replaced them!” We did alert sales manager fox to the problems, but got nowhere. The point is that your products were unreliable and your service was appalling, so we purchased new phones, we knew will work, and where we get good after sales service,” said purchaser vulture. “Good bye Fox”. Fox heard the click of the phone disconnecting. “Bastard” yelled fox, fur standing on end.” I will make you pay for this, you useless bunch of vultures!”
The Start Week 4 Same time same station train late. “Good morning to you both”, hooted owl as Fox and Pig settled down into their usual seats. “Hello owl” grunted Pig kindly in jovial mood. “Do you have to sit with us every morning” hissed Fox, in a decidedly foul mood. “Fox!” snapped pig. “Whatever got into you today? Mind your manners please!” “Oh its quite okay” smiled owl“, Fox has a lot of issues to sort out” Owl was looking intently at Fox. “No I don’t, snapped Fox“, what would you know and besides mind your own business?” There was a silence for a while when finally Pig said “Owl, I took on board what you said yesterday, and called in an expert to help us unravel your words of wisdom.” “Fantastic said” owl “and what did you learn?” Pig went on to tell owl everything that had happened with psycho chook, and the more pig spoke the wider owl’s eyes became. Owl with fluffed up feathers, said proudly “you have now learned the first important lesson of being successful in business, and that is to ASK FOR HELP, when you are faced with issues you are either not experienced enough, or are beyond your scope of expertise. There is not a business creature on the planet who knows everything there is to know. Smart business creatures seek advice from experts. Congratulations Pig, you are on your way to far greater success.” Pig beaming from ear to ear said, “Thank you owl, however, I now realize there is much to learn.” Page 17 of 63
“What a load of Pigs trotters”, snapped Fox glaring at owl. Owl looking back calmly but still with that intent look, replied politely “That is your opinion Fox, which of course you are entitled to. By the way, what are you going to do now that you lost that big order you were expecting to get?” “How in hoots name did you know about that?” hissed Fox angrily, spinning around looking at Pig accusingly. Then the same announcement shrilled out, ‘Pig Wash station coming up’. As they disembarked from the train, Fox turned to Pig and snapped, “Why did you tell owl about that order I lost. I thought what we discussed was confidential?” “Fox get your fur together, you didn’t tell me about the order you lost, and even if you had there is no way I would discuss it with anyone, as you quite rightly said, what we discuss is confidential. Besides that, the only time I ever talk to owl is when I am with you on the train!” said Pig annoyed. “If you are not telling me porkpies, then how in the name of Fox did owl know about it? Pleaded Fox and then added, “Unless owl works for the vulture clan?” “You better ask owl that question, because I know as much about owl as you do”, snorted Pig. Soon after Pig arrived at the office, collected some hot slop, sat down, and started writing out an agenda for the meeting at 9am. At 9am sharp, all the senior Pigs were ready and waiting. Pig sat at the head of the board sty table and said, “Right fellow executive Pigs are we ready to discuss the events of yesterday?” They all nodded and snorted that they were ready. Pig sensed that they all thought this was a waste of productive time. “What I believe we should do “declared Pig “is split up into teams. The teams I think will work best are CFO Pig and Sales Director Pig should tackle A sales goal A profit goal A market position goal, such as 30% of the market. A goal to float our company on the stock market. Identify the milestones and milestone goals. How much cash will be required to achieve each milestone? Market research to ensure our products is what the market expects and demands. Sustainable profitability at each milestone. Operations Pig and HR Pig should tackle Staff resources that will be required, for each area of the business. A solid communications structure that will communicate to; All the staff, so that they become part of the solution and not become part of the problem. To the market about your products’, benefits and points of difference. Introduction of low cost opposition Increases in pricing for critical utilities, such as power, vital raw materials etc. Retaining key members of staff. Availability of new skills for growth. Balancing new technology with sound commercial gain. I will tackle Page 18 of 63
How political decisions may affect our company, locally and abroad. The status of disposable income, measured by economists. Succession issues. Are there any other thoughts?” They all shook their heads slowly, but looking totally bewildered. “Any questions then?” asked Pig. “I am not sure any of us are sure of what to do,” stammered Sales Director Pig, however, nor do we see the relevance of it all. I could be out selling and getting some orders.” “Yea, yea” was the grunted response from the others. “How truly porky of you all”, exclaimed Pig. “Owl has made me realize that our company has become reactive, rather than proactive. We have no plan, we have no real goals, and when did we last develop a new product? You all know that we are struggling to compete with products that exceeded their useful life cycle, and all we have left to compete with is price. This will eventually cause us to become insolvent. We will reconvene in one week to measure our progress.” Meanwhile at the Fox den things were not going at all well. CFO Fox stormed into Fox’s office snapping his teeth together. “I thought you were going to get that order from the Vulture Clan,” demanded CFO Fox. “We don’t have enough money to pay all our bills as it is. What in the name of Fox are we going to do now?” “Everyone will have to wait until we have more cash,” yelled Fox back at CFO Fox.” Besides we didn't need their business, there are far more lucrative contracts to secure.” “In that case I resign from my position, with immediate effect,” said CFO Fox, storming out of the office. Fox sat stunned for a few minutes, before going after CFO Fox. It was too late. CFO Fox had stormed out and bounded into the woods, gone forever.
Lesson Two - Basic Elements of a Business Week 5 Same time, same station and wait for it, train on time! “Oh Fox droppings” said Fox with gnashing teeth, “What is that pompous Owl doing here again! Why is Owl stalking us like this?” “Fox, why are you being so belligerent?” asked Pig angrily. “Oh please don’t worry about Fox” said Owl cheerfully. “I would be feeling just like Fox if I had just lost my CFO in similar circumstances. I will say this though, cash flow is a symptom of management, and it is NOT a cause. Good cash flow indicates good management. Conversely bad cash flow indicates bad management.” “Shut your beak,” barked Fox. Owl smiled at him looking even more intently into Fox’s beady cunning eyes. Ignoring Fox, Pig said to Owl, feeling pleased with itself, “I have started to put some things in place with my senior pigs”. “Fantastic” hooted owl, “please tell me exactly what you have done”. Pig told Owl the whole story, without missing a single detail. As Pig was talking Owls’, expression became thoughtful and even looked a bit concerned. Once Pig had finished Owl took a deep breath and said. Page 19 of 63
“Your intentions are certainly correct; however, your team has never done something like this before. You need to give them some direction. Part of good management leadership and successful business practice is to provide good practical tools to ALL of your staff.” Owl with feathers fluffed up, looking intent went on to say. “Once you have vision and translated that vision into definitive goals, time frames etc., you need to plan your journey. To plan your journey you must involve your entire staff and the planning needs to be tools driven. The tools need to be simple and easy to use. They need to mesh seamlessly into each other. The planning process needs to be from the top down and then from the bottom up. All too many businesses plan from the top down and leave it at that. The planning process must look back before looking forward for each step of the journey.” “Be careful,” said Fox scornfully, “you may just get feather wobble with all the owl methane you generate.” Owl rocked back and hooted gleefully at fox’s miserable attempt at being nasty. Then the same announcement shrilled out, ‘Pig Wash station coming up’. Things were now getting tense between Fox and Pig. They had been friends for years, but since Owl came on the scene, their relationship started to change. The more enlightened Pig became, the more foolish Fox appeared. “Pig, I do not understand how you can be sucked into all this bullshit owl is dishing out. You are spending hard earned cash in paying for a useless consultant all of which will achieve nothing except more debt,” barked fox scornfully. “That is where you are wrong, fox. You are such a know all and yet not only is your company in financial trouble, but you cannot keep key staff either. I believe that I am making an investment in our future by listening to owl and employing experts to help us improve our company. Besides why are you so concerned about what I am doing rather than fixing your own back den? They should change the expression ‘being pig headed’ to ‘being fox headed’!” Fox glared silently at pig, rage rising, as Pig turned and strode off. After arriving at the office and the morning slop was brewed, pig called psycho chook. “Good morning psycho chook, we need you to solve another riddle for us. This time, however, we will meet in my office, just the two of us. Also I want to appoint you as our consultant, so bring a contract with you please.” “That sounds just cockle doodle doo, chirped psycho chook. I can be there around 12 noon, how does that suit you?” “Perfect” grunted pig politely and hung up. At precisely 12 noon, psycho chook arrived and was escorted pigs’ sty. “Well” said psycho chook, “tell me what you need to decipher”. Pig relayed what owl had said on the train. Psycho chook thought about what pig had just said for a few minutes before saying. “These words are from a very wise Owl”, said psycho chook, slowly. “Please give me 10 minutes or so to think this through very carefully. It is really important that I communicate this clearly, pig.” “Take all the time you need,” grunted pig impressed. Ten minutes later, psycho chook, perked up and asked pig “are you ready?” Pig ready with pen and paper said, “Fire away”. Page 20 of 63
“I will start with the planning process and then explain the ‘top down - bottom up’ methodology, explained psycho chook, whilst drawing on the whiteboard. First, we need to understand where every dollar of sales goes, in a well-managed company.
Where the Sales Go
WHERE DO SALES GO?
Profit 15% Value Added Labor 26%
IT costs 12%
External costs 20%
Administration 10%
Overheads 15% Marketing 2%
It is clear that if any of the cost segments increase, then it negatively influences profit. Any discounts given impact negatively on profit. Conversely, any savings on costs has a positive impact on profit.
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The Four Principles of Running Successful Companies
For the ultimate performance, Business Managers need to learn from history, and set strategies for the future. “Let me explain what this means”, screeched psycho chook excitedly. “It is very important to look back before you look ahead, in other words, you must perform detailed analysis on historical data, before attempting to plot your path for the future. Remember, you are plotting the future against a vision, a goal that is definitive and time based. From that future desired performance you then need to set strategies that flow all the way through the organization.” “Financial goals MUST link directly and seamlessly with operational goals. This is of great importance because if any operational goal is not being met then you can easily determine the financial implications.” “Now have a look at what the individual blocks mean,” screeched psycho chook more excitedly now, drawing furiously on the whiteboard.
Financials
Profit & Loss; Balance Sheet; Cash Flow Forecasting
Operations
Labor Efficiency; Labor Categories; Costing Methodology; Asset Efficiency; Processes; Innovation
Marketing
Product / Customer / Demographic Analysis; Market Research / Analysis; Market Strategy; Return on Marketing Investment; Innovation
Reporting
Financial; Operational; Marketing; Benchmarks: Key Performance Ratios, Dashboards
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“These are the main business drivers that we must address,” said psycho chook eagerly. “As you can see each ‘block’ has paramount importance in mapping your path, with definitive milestones, to reach your vision or future goals. These piggies are the building blocks to a successful business.” “Owl spoke about ‘top down bottom up’ in terms of the planning process” screeched psycho chook so excitedly now it was difficult to understand what was being said. “Psycho Chook! Slow down I cannot understand what you are saying”, complained Pig. Psycho chook continued drawing mumbling away, almost drooling with excitement, taking no notice of Pig.
Top Down Bottom Up Mapping Top Down – Bottom Up Map
Vision
Direction Seamless Integration
Profit
Containing
And
F
Costs
Loss
I
P
N
Balance
A
Sheet
Seamless Integration
N
Leveraging
E
Assets
R A
C
T
Seamless Integration
I
Cash
A
Flow
Effects on
Cash Flow
L S
O
I O N
Ratio
Bench
Analysis
Marking
S
“Now let me explain”, declared psycho chook full of enthusiasm. “The left hand side of the diagram is the executive and senior management information. The right hand side is for all the employees. Therefore, I will now ‘walk’ you through what this means. Your vision must be translated to clear, concise and achievable direction Profit and Loss statement must seamlessly be translated to micro cost control, improvement, and efficiency. The Balance Sheet must be seamlessly translated to asset efficiency. Determine how best to leverage your assets into profit. Cash Flow must seamlessly translate into Marketing, Sales, Inventory control and of course debtor days. Ratio Analysis must seamlessly translate into benchmarking. Never use industry benchmarks, as they are usually below sound commercial practice. Develop your own, based on solid commercial practices! “It is imperative that as an organization you all work together. This, like any successful sporting discipline is a team effort. Remember, there is no such thing as a bad company or bad employees. There is only one key factor and that is BAD MANAGEMENT!” Page 23 of 63
Pig’s snout was now glistening with moisture. Finally, Pig was getting the picture. “Thank you so much,” grunted pig smiling a wide toothy grin. “You are very clever psycho chook”. “I know,” screeched psycho chook excitedly strutting out the door. Meanwhile, back at the Foxhole, Fox was on the phone to the local bank. “I need to speak with O.V. Draft. I need a loan and I need it in a hurry!”
Lesson Three – Business Engines Week 6 Same time, same station, and train cancelled! “I am really getting fed up with Owl,” hissed Fox. Owl is affecting our friendship, and I don't like it!” “Fox stop being so belligerent. Owl happens to be friendly, wise, and extremely helpful, to those who will listen,” snapped Pig. “Oh Pig you have really been sucked in by this fool” mused Fox. Do not get angry with me, I am just concerned about you. I will bet that once your company falls apart, Owl will disappear. I can’t understand how in Pigs name you can spend so much unproductive time playing around with vision and goals and all that other crap that you are doing!” “Fox you are really in denial, my company will not fall apart, but will go from strength to strength. Your company will fall apart, you will end up without any money, homeless, jobless, and your family will leave you, which is why I get angry with you. I never want to see you in that position but you have always known better than anyone else, Fox, and that will bring about your demise.” They heard a horn honking out on the street, and on turning around to see what was going on, lo and behold, sitting in a Taxi is none other that Owl. “You are both welcome to join me, seeing as the train has been cancelled,” offered Owl. “No thanks” spat Fox. “I will join you thank you Owl,” responded Pig. Pig joined Owl in the taxi and they left Fox standing on the platform. Pig gave Owl an update on the work they were doing as they drove towards Pig’s factory. “Strategy is the glue that holds successful companies together. That glue needs to be refreshed regularly and the ingredients checked at predetermined intervals to ensure it is strong enough for the company to grow with sustainability. Every business needs an engine to drive it forward” said Owl smiling and looking intently. Back at the pigsty, Phsyco Chook was waiting for Pig. Whilst consuming their favorite slop, Pig told Phsyco chook what Owl had said in the taxi. “Give me half an hour and I will be ready to explain the message Owl is conveying,” screeched phsyco chook.
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The Business Engine
THE BUSINESS ENGINE DEVELOP THE STRATEGY Mission, Vision and values
Strategic analysis & diagnostics Formulate strategy
TRANSLATE THE STRATEGY Define strategic objectives Select measures & targets Develop strategic initiatives
Operating Plan PLAN OPERATIONS Identify process bottlenecks Project Management System Calculate resource needs Prepare realistic budgets
TEST & ADAPT THE STRATEGY
Strategic Plan
Identify profit drivers Cash flow analysis Examine emerging strategies
R
Marketing Plan
MONITOR & LEARN
Reporting Strategy reviews Operations reviews Training
Executive processes, initiatives & direction
Innovative Service Delivery
Market Research & Development
“This is what a typical Business Engine looks like” screeched phsyco chook. “Notice how strategy is the glue that holds the business engine together. Within the bowls of strategy lie the very fuels that cause this mighty business engine to purr along. (Strategic plan Operating Plan and the Marketing Plan). The carburetion is controlled by innovation, initiatives, and research. The braking system is governed by the Risk analysis and the whole engine is lubricated with Mission, Vision, and Values. This Business Engine is scientifically perfect.” “We expand some of the engine components further,” screeched phsyco chook excitedly.
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The Marketing Engine
THE MARKETING ENGINE
Analysis Product Geographic Margins Cash flow
Break Even Point Innovation Process Cost Structure
B USINESS M ETRICS
Strategy Market Research 6 P’s & Target Market Competitors Mission Statement
Marketing Strategy Forecast $ Budget Distribution Affiliates
O NLINE M ARKETING
W EB D ESIGN
Planning Logo Banner Links References
Product Info Points of difference Features Credibility
Structure Website Score Website Traffic Link Checker Meta Tags
Keyword Analysis Domain Name Threats Website Spider Website Optimization
“In the same beautiful way we have a marketing engine that sits within the business engine. The Marketing Engine, much like the Business Engine is a self contained engine that has all the components ensuring a formula one performance” explained phsyco chook. All the Pigs little pink beady eyes were wide-open, snouts all wet with excitement. They were taking this all in. “All the ingredients are there for all of you to produce a strategy that will catapult this company ahead of your opposition. By following these engines to the letter, this company will become a sustainable world class company, with its value increasing every year.” “Now get to work Piggy’s”, barked phsyco chook, packed his briefcase, and left leaving the pigs snout smacked.
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Part 2 - Focus Lesson Four – Understanding Focus Week 7 Same time, same station and wow, train on time! Fox was looking decidedly pleased with himself this morning, grinning broadly. Owl, for the first time in a few days, got polite treatment from fox this morning. “Good to see you in a good frame of mind for a change” said Pig. “Oh I have good reason to be,” declared Fox. Not only have I hired a new CFO Fox but my banker approved a loan to carry us over through our ‘temporary’, cash crisis. “Terrific” hooted Owl, “I trust you will be increasing your gross profit, to account for the interest on the loan?” “Oh our gross profit is fine”, chided Fox a little tersely. “And what, if I may ask is your gross profit as a percentage of sales” hooted Owl politely, but with that intent look that unsettled Fox. “Do you think I carry that kind of trivia around in my head?” snapped Fox “Fox!” grunted Pig, “your manners please.” “Tell me friend Pig, did you give some thought to what I told you yesterday”, enquired Owl “Most definitely” snorted Pig excitedly and went on to tell Owl what had transpired with psycho chook. “Wonderful, just wonderful” hooted owl excitedly. “Sounds like a load of hog wash to me” growled Fox. Ignoring Fox, Owl went on to say. “You are now ready to impart this message to your employees. Be clear, be assertive, and speak with energy, vigor, and sincerity.” “Vision and consequently planning is only the first phase of your long and difficult journey. The next phase is that of focus. Focus is the ability to think outside the box and know your business intimately. I mentioned business rather than company. Your company is in the business of pig products know the difference and where does your company fit into the business of pig products. Focus is to be innovative, courageous, and well informed. Focus is the ability to have initiative, to have the energy to start things and the energy to see them through to their conclusion. Focus includes ingenuity, the will to find better ways of doing things. Focus my dear friend is paramount in successful management.” ‘Pig Wash station coming up’, shrilled the public address system. As the train was pulling out of the station, Fox turned to Pig and said, “Owl can spin some porkpies, hey Pig?” “Fox, you are a furry fool, if you stopped sticking your head in the lair, and listened to what Owl has to say, then maybe, just maybe you will learn something. All your ears are good for is generating useless wax; they are certainly not being used for listening. We are making huge strides in the company and further more I am hiring a general manager to take over the operations of the company, whilst I concentrate on providing leadership” snorted Pig with a degree of contempt. Page 27 of 63
Fox was snout less, looked at Pig and slunk off to work, muttering. Psycho chook was waiting in the pigsty when Pig arrived. Pig told of Owls latest oratory magic. Psycho chook then said. “Pig I think it is time to get the management pigs back in. You need to tell them of your vision and from that set the direction for them to start the planning process. They need to work on the diagnostics and the analysis. They must start planning the milestones on the path to achieving your vision. They can do this while we consider the next phase of the management processes.” “Great idea”, said Pig. “I know that they are all struggling with what we first asked them to do, as it had little direction, tools or even made any sense.” An hour later, all the senior pigs were present, waiting to be briefed. Pig stood before them and delivered his bacon. “Fellow pigs, today marks a significant turning point for our company, a change in our attitudes, our company culture and our business etiquette. I have a vision. My vision is that in 5 years from now, we will be the leading supplier of pigsty equipment in the whole of the Pig world. We will be recognized and respected as the one Pig Supply Company that can be relied on, to deliver the most innovative, high quality and price competitive equipment consistently. We will be renowned for our service to customers and our role in society. We will also be a profitable company with a positive cash flow and a healthy balance sheet.” “Translating this into currency format, in the 5 years we will go from a 10 million pig bristles (this is pig currency) per annum to 100 million pig bristles per annum, with an Earnings Before Interest and Tax (EBIT) of twenty percent of sales. When my vision has been achieved, it is my intention to float the company on the Trotters Stock Market, appoint one of you as CEO pig, thereafter I will retire. You will all stand to gain considerable wealth when my vision is achieved, as I want this to become our vision. With immediate effect, I would like to congratulate Porky Pig as General Manager. My role will now become one of providing leadership, innovation, and vision for the sustainable successful future of our company, rather than the operational role I have enjoyed over the years.” All the Pigs grunted their congratulations to Porky Pig (They could hardly clap their hands now could they?) “Psycho chook and I will now go through the planning process, and will introduce simple practical analysis and diagnostic tools for you all to use. Your task is to plan this journey carefully in terms of financials, operations, and marketing. The strategies of how we will achieve our goals will come later. At this stage you need to set out a platform, based on past information for us to proceed into the future.” What was interesting was that after the bacon delivery, by Pig, all the senior Pigs looked enthusiastic, excited, and ready to go. It was in stark contrast to the last time they had met. They themselves had reached a critical turning point in their careers. The next few hours were spent going through the process of planning, diagnostics, and analysis tools that were required. The senior pigs would have specific targets to aim for, a clear understanding of the past, and key milestones to reach, key performance indicators and a clear direction for the future. They would also understand the importance of involving all the employees in the whole process, ensuring everyone had ownership of the company’s future. This was to be a significant lesson learned by Pig and the company executives.
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“If you want to inspire your employees, provide motivation and a desire to engage in being part of the solution, then you need to provide them with a tangible part of belonging. They need to have clear goals, direction, and the trust to get on with the tasks in hand. They need to be able to measure their own performances in the context of how it affects the company as a whole and be rewarded accordingly.” This is called LEADERSHIP! After the senior Pigs left the board sty, psycho chook turned to Pig and said, “that was outstanding bacon, Pig. You are now becoming a true leader and your senior Pigs can sense that. There is a far better air of assertiveness, confidence, and sincerity in your attitude. Tomorrow we will proceed with deciphering Owls message.” Early next morning everyone was present with an air of excitement. “Focus in management terms is a broad subject so I will start off by drawing a diagram,” screeched phsyco chook. “While I am drawing I will explain that focus requires high levels of; Information Ingenuity Innovation and a great deal of Courage.” “ALL these elements need to be applied to the three pillars of business, namely Marketing Operations Financials Consequently, the three pillars are interconnected. In other words, if you are to develop a new product, it needs to be developed in such a way that firstly, there is a definite demand and secondly it can be Made Sold Contribute generously to the EBIT Does not need high levels of inventory. No matter what you do in any business there needs to be interconnectivity between Marketing, Operations, and Financials. Let us look at the diagrams.
Marketing
Operations
Financials
Research
Efficiency
Ratios
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“This diagram clearly demonstrates how it all the critical business elements fit together, however, detail is still missing.” Research is a vital ingredient in marketing, but so too is it important for the operations part of the business, as well as the financials. One may ask how you perform research on financials. Good question, however, there is plenty of information from governments and industry groups on key performance indicators of other companies in your industry. It is not to say that you need to look at the average and set that as your benchmark. What you need to do is look at who has the highest key performance indicator for each category and set about bettering it. You will find that the top performance indicators are spread over at least 20% of the companies surveyed. This means that you have to outperform all of those companies for all categories to achieve the ultimate in business excellence! In terms of operations, once again research can lead to better cost control software, or more efficient work flow, better processes or even more efficient after sales service. In marketing one of the first questions posed should be are your products exactly what your market wants? If you believe that is a true statement, what grounds is it based on? This gives you an insight into what exactly you are up for in running a business, scary I know but essential.” Whatever your business you need to strive to be the leader, never a follower!
Marketing
Operations
Financials
Research
Efficiency
Ratios
Sales Products Price Quality Publicity Distribution Sales Product Analysis Customer Analysis
Process Mapping Identify Bottlenecks Activity Based Costing Returns on Assets Labor Efficiency Purchasing Policy Inventory Balance Automation Out Sourcing
Reduce C.O.S. Increase GP Reduce O.E. Increase EBIT Lower D.R. Review Asset Purchases Increase Equity Reduce Borrowings Manage with Ratios
“Expanding the three pillars I now refer you to the diagram.” “Research, Efficiency, and Ratio analysis applies to all of the three pillars; the diagram only emphasizes the main thrust of each pillar.” “Pork pies and sausages” exclaimed Pig, excitedly pushing his snout into the air. “This is absolutely wonderful stuff. Psycho chook you are a fowl genius!”
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Fluffing the feathers, shaking the comb back and forth, and psycho chook shrieked, “thank you Pig, I will see you tomorrow.” Meanwhile back at the Fox Hole, CFO Fox wandered into Fox’s lair and asked, “Fox could you please give me some sort of sales forecast?” Fox looked at CFO Fox incredulously. “CFO Fox I am too busy selling phones to be worried about wasting time doing things like sales forecasts! That’s your job, just look at past sales and that will give you some idea of what to expect.” “Well said CFO Fox we have a number of foxes in the production area with nothing to do, and as our cash flow is poor we need to keep them busy or we will be forced to retrench them.” “We can’t do that!” Exclaimed Fox, we will need them when I land the next big order.” “When will that be?” asked CFO Fox. “Soon” snapped Fox. “Okay” Exclaimed CFO Fox and left, head shaking. As CFO Fox passed the food trough, there were mutterings from the employee foxes about how bored they were and how concerned they were about the state of the company. They complained that no one really knew what their role was and that Fox never had time to discuss any issues with them. Morale was very low at Sly Fox Inc. and sinking lower every day. Fox has a series of problems. Sales are down, cash flow is negative, the company is in a loss situation, has a lot of debt and employee morale is low. Fox is heading towards financial disaster. The biggest problem Fox has is the ongoing attitude that no help is required. Fox believes that things will change and the company will turn around. Fox blames the bank, tax department, employees, and some customers for the situation they currently find themselves in, total denial! This book is portrayed as a humorous fictional analogy of two business cases. The reality is that these characters actually exist in the business community!
Lesson Five – The Realities of Marketing Week 8 “Today we will look at some marketing stuff” screeched phsyco chook. “Marketing is often confused with sales. How often does one see the term ‘Sales and Marketing’? Marketing is the Engine, and sales are one component of that engine, it is not exclusive. (Refer to the Marketing Engine). Sales will not happen without the marketing engine!” “Sales always start of from prospecting, which is the art of creating awareness to potential customers that you and your products exist. What then would a typical prospecting map look like?”
The Tragic Web spider Story “The web spider left the web only to be caught up by the web traffic and lost its Meta tags by colliding with white space. The bounce rate was a record in the website score and optimized by analytics run by the SEO. The domain name threats were maliciously released by campaign management and content management on poor web spider, who had no idea of the KPI it was in, never mind the wrath of link checker on finding web spider in his domain. When web spider recovered, all he could see was his ftp and his RSS portal. Web Spider was up in a flash but ended up in the intranet. Web Spider managed to reach the firewall by scaling up the hyperlink and finally through the gateway. Web Spider now tired of the cyberbullying reverted to becoming a cross- browser, disappeared into cyberspace, somewhere in the cloud and ended up a cybersquatter, with no cookies, payload, or personal URL but could go phishing in MySpace trying to catch some Moodle. On that landing page, ends the tragic story of web spider. Page 31 of 63
If that paragraph makes little or no sense at all then make sure you get professionals to build your website! “ The Prospecting Highway Good Quality Work
Web
Special Offers
Optimisation
Mr Data Base
The Prize SALES!
Referrals
Global Relationships
Seminars & Webinars
“The prospecting highway involves many different activities to attract as wide an audience as possible. In the twenty first century, any business who does not have an optimized website (simple is fine) is lacking in foresight, innovation, leadership and quite frankly is a fool.”
“Prospecting is no good to anyone unless you have a funnel to capture all the leads.” “Some form of process needs to be installed so that all the leads from the different prospecting activities are captured. This may typically be a database or even a spreadsheet. Inside the funnel are not only products but also service and a help desk. Modern CRM products are ideal for sales funnels.
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We will now look at the sales process. This may sound like teaching you how to suck pork trotters; however, you will be surprised at how few people can articulate their sales process effectively.”
The Sales process Prospecting
LG Lead Generation
T O T A L T I M E
L Lead
D
Thank You
Document/ Decision
Data Base
Q Scoping & Quote
DB Thank You
O
Go Elsewhere, see if we care!
Order
“It is not only the process that's important but also the average times each stage is likely to take. Why are these times important? When one is doing sales forecasting, knowing these periods is very important to achieving more accuracy. It is also very important for forecasting cash flow. LG = Lead generation time. Period taken to generate a lead from prospecting activity L = Qualified lead. Not all leads can be qualified. A qualified lead is a lead that is genuinely in the market for your product and the purchase is likely to occur within a predetermined time (i.e. 3 months) D = Documentation. This relates to catalogues, further information etc. Q = Quotation. A quotation is offered once all the relevant information gathered. DB = Data Base. The information is stored in a relational database so that follow up calls, visits or emails may be made. O = Order. This is what we all work for, THE ORDER! “This is all well and good, however, there is one critical component missing. The How, Why and What questions? Unless you provide a Unique Sales Proposition (USP) to the market, your lead generation is going to look a little bleak. It is imperative that every company develop a Unique Sales Proposition as part of its marketing strategy. The USP must include Customer profile and target market. Be clear about what customer profile you are targeting and which target market is appropriate for your products. This must be clearly communicated to the market so that customers may clearly identify whether your products suit their needs. This impresses the market and minimizes your redundant leads. Compelling reason to act. You must give the market a compelling reason to come to your company. This includes features, benefits and a good corporate citizen. The Experience. This is such a neglected aspect of so many companies. A potential customer does not want to struggle to get information, pricing, and service from a company prospecting to get their business. Have a very close look at your website, as so many Page 33 of 63
websites are difficult to understand and navigate. This is a huge turn off for any potential customer. The Investment. Be clear about what they assume they are getting is what they get. Clearly articulate the value for money aspect of their purchase. The Choices. Invariably most companies have a choice of products. It is your responsibility to be clear about subtle differences of similar products. Help the customer make the right decision for their unique needs. Continuing improvement. Clearly articulate the research and development that has led to this wonderful range of products and state clearly that this is part of the company strategy and culture. The Offer. The offer must be concise, well articulated, priced with the relevant detail, easy to read and make placing an order simple, efficient, and followed up with an acceptance.
Customer Profile & Target Market
Compelling Reason to Act
The Experience
The Investment
The Choices
Continuing Improvement
The Offer
A well crafted, sincere, and succinct USP is essential.” Fox meanwhile has had five resignations from his production team!
Lesson Six – The Value Chain Week 9 Same time, same station and raining, train late! Fox gave Owl an evil scowl as they sat down. Smiling, Owl just looked at Fox intently. “What are you grinning about?” snapped Fox. “You dear Fox”, hooted Owl, “You look so angry this morning”. “Well I am angry, Hissed Fox. “ I am sick of you sitting in that seat every day!” “Well my dear friend you are always welcome to sit somewhere else” offered Owl, ever so kindly. “Shut up Fox, I am sick to death of your wolfish attitude,” grunted Pig. Fox was shocked by this outburst from a usually mild mannered Pig, sank back into the seat and covered both eyes with both paws, and muttered some obscenities. “You should not be so tough on Fox” declared Owl “Fox has major issues with the business but refuses to listen to anyone, some compassion would go a long way to convincing Fox that help is at hand, when he is ready to accept reality.” Page 34 of 63
“In the last few days I have learnt that those who are prepared to help themselves, will receive help from others” chided Pig cheerfully. Owl hooted all the louder and staring at Pig asked, “what did you achieve last week?” Pig could not wait to tell Owl all that had happened the previous week, and promptly grunted out all that had happened. “That is awesome,” hooted Owl, obviously impressed. “I must now tell you this,” hooted Owl. “The one thing that sets a good leader apart from a great leader is the ability to impart sufficient information, without confusing the recipients by giving them enough to understand and apply their new found knowledge into fruitful outcomes.” ‘Pig Wash station coming up’, shrilled the same announcement. After the train pulled out of the station, fox turned to Pig and asked, “Is all of Owls hooting really helpful? Is it improving your company?” “Well”, said Pig rather surprised, “Indirectly Owls words are making a significant difference to the way I think, the way I look at the business. It has given me the ability, and the confidence to see clearly, where I am going. I can see what mistakes I have been making. Furthermore, the morale in the company has lifted a few pork knuckles and is growing every day. I say indirectly, because Owl speaks in academic speak, so I have hired psycho chook to translate what Owl says into ‘business speak’. “That’s a waste of money getting psycho chook to translate Owls riddles, why not just ask owl to drop the semantics and deliver the messages in business terms?” “Because” said Pig frustrated“, psycho chook also helps me and my senior pigs to develop the tools required for us to implement solid analysis and diagnostics. The analysis and diagnostics are our tools for growing a better sustainable business.” “Hmm” Said Fox before setting off for the office, I still do not see the point. I can solve my own problems in the company without spending a fortune on what you refer to as professional help. One day you will see that I was right, pig. When Pig arrived at the office, psych chook was there waiting. “Well hello psycho chook, you are early today.” “We have much to do” Exclaimed Psycho Chook. What did Owl have to say today?” Pig told psycho chook what Owl had said and psycho chook smiled broadly. “Owl is a feathered genius. Get your slop and let’s talk about the latest words of wisdom.” Ten minutes later, all the pigs were in the pigsty ready and eager. Pig said, “We are all ears crow away phsyco chook.” “What Owl means in the business world is simply this”. “Great leaders understand the importance of imparting relevant financial information to those who have no or limited financial background or understanding. This information needs to be tailored to suit the level of the position every employee has in the company. In other words the information must be Directly relevant to their job function. Must ONLY deal with their job function. Information that they can clearly relate to. Measurement techniques that they can relate to and take ownership of. Given benchmarks that are realistic and in line with their capability. Page 35 of 63
Part of a clear matrix, which demonstrates how their particular tasks fit in with prior tasks and tasks following, by others, so that they will fully understand the implications and the importance of what they do affects everyone else along the chain and the company overall. “This may also be explained better as diagrammatic examples. The examples we will use is that of a restaurant as we can all relate to that”, said Psycho Chook.
The Value Chain
Waiter – Kitchen
Meat & Poultry
Veggies & Dessert
Final Plate
Communications
Chefs
Chefs
Presentation Waiter 1
Waiter 1
Anyone in this chain that makes an error effects the whole company! Waiter 2
Waiter 3
For Example, if the waiter takes an order incorrectly, the chef prepares the meal, the customer rejects it. The waiter then has to please explain, not only to the customer, but also to the chef and the manager.
Waiter 2
Waiter 3
This would waste food, time and of course affects the profit, not to mention that a customer may be lost. Waiter 4
Waiter 4 Welcome
Menus
Beverages &
Cleanup &
Party
Specials
Meal orders
Payment
“The value chain is a unique way of linking processes together to clearly understand and to demonstrate how one activity may impact on every other activity of the company. The scale of the impact may vary, however, the reality is that major blunders are noticed and dealt with. It's the smaller ones that go unchecked, and like a cancer start to cripple the company.”
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Analyzing Products and Customers Segmenting Customers & Products High 70%
30% of Sales
G r o s s
60%
P r o f i t
40%
20% of Sales
50% 30% of GP
50% of GP 10% of Sales
40% of Sales
30%
20% 5% of GP
15% of GP
Low
High Sales
“All too often company executives drive sales blindly. They seem to think that increasing sales will solve everything. The reality is that without the full information about products and customers, those executives are in danger of driving the company bankrupt. Imagine that your best selling product represents 40% of total sales. To the ignorant, this is the premier product in the product range, as they are basing their information on a single dimension, sales. What if that product is selling at a loss? What if the returns on that product are 60%? Would it still be considered the premier product? The company is struggling with cash flow so the executives arrange a massive campaign to boost sales volumes even further of that particular product. What will happen is that they will compound the problems and escalate the insolvency path. Products need to be analyzed, as do customers, as there are a minimum of three dimensions to sales, not one. These dimensions are: Sales Volume per product Gross Profit per product The average time taken for the payment of that product. This Piggy’s is analysis and diagnostics. We analyze, and from analysis, we diagnose, and them we fix it. Business management is like being a doctor. The company should be treated like your very own patient, a patient that needs to be kept healthy, fit, and contented.” “We will now take analysis to a more detailed level.”
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Financial
Operational
Category
Annual Value/Cost
Annual Meals Served
SALES
1,000,000
50,000
20
Total
Beef
50,000
32,000
1.56
16,000
Pounds
8
Lamb
40,000
15,000
2.67
9,375
Pounds
10
Potatoes
20,000
50,000
0.40
37,500
Pounds
12
Peas
30,000
50,000
0.60
15,625
Pounds
5
Corn
15,000
50,000
0.30
18,750
Pounds
6
Ice Cream
20,000
25,000
0.80
9,375
Pounds
6
Cheese cake
25,000
10,000
2.50
3,125
Pounds
5
Value/Cost Per Meal
Measure of Foods unit
Ounces per Serving Unit
COST OF SALES Food Costs
Total Food Costs
200,000
Value Add Labor Costs Waiters
100,000
50,000
2.00
Chefs
170,000
50,000
3.40
Escort
30,000
50,000
0.60
Manager
50,000
50,000
1.00
350,000
50,000
7.00
Utilities
12,000
50,000
0.24
Leases
48,000
50,000
0.96
Rent
40,000
50,000
0.80
Depreciation
35,000 0.30
Total Labour Costs Overheads
Consumables
15,000
50,000
Total Overheads
150,000
50,000
3.00
TOTAL COST OF SALES
700,000
50,000
14.00
GROSS PROFIT
300,000
6.00
“The value in this example is the Sales and Gross Profit. The cost is represented by the Cost of Sales figures. Notice how we keep the Financial Information and the Operational Information side by side. This techniques enables managers to see the implications, financially should any operational errors occur. Just from this table we get a clear understanding of the business position. We are also in a position to diagnose any issues we are concerned about resulting from the analysis. For example, the quantity of beef may seem very high. Further diagnostics may reveal that the supplier of the beef is selling the company beef with 15% fat. The chefs are removing 10% of that fat before cooking it. It makes sense that the company can seek to purchase beef with a maximum of 5% fat only. If that is purchased at the same price as the beef with 15% fat, then the beef will make more meals, as there is less waste and hence the average cost per meal will decrease.�
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“We can go a step further squealed phsyco chook.” “In this example we have only determined the overall or average selling price per meal. We can also calculate the average cost of each meal category, as we have done with the cost. If we compare the average selling price of $20.00 against each cost of the three meal types, it appears that this restaurant is in reasonably good shape.” The reason why all the value added labor and overheads have not been allocated to the desserts, is because not everyone has dessert. There is nothing wrong with allocating them to deserts as well, however, depending on the desserts to main course ratio; it may be more difficult to recoup the overheads within a reasonable period. “What you and your management pigs need to do is use this example to develop your own value chain.” Meanwhile back at the foxhole, the new CFO Fox was gravely concerned. There had been no decent sales for a few months, the recent loan from the bank had already been depleted, and they were struggling to make payroll, never mind paying their creditors. A few of the creditors had frozen their accounts until Fox Inc. brought their accounts up to date. By looking through the profit and loss statement and balance sheet, the picture was grim. The problem was that the bank wanted monthly profit and loss statements as well as weekly sales reports. The basis of the loan was on the back of what are now evidently unrealistic sales, the applicable Gross Profit and of course EBIT. ‘Fox, we need to talk about the state of the company. We have no money left, no sales to count on and we are struggling to make payroll.” “What!” snapped Fox, “what about the bank loan?” “It went on paying bills, Fox. Bills that were way over due particularly back taxes and the relevant fines. If you would take some time to look at the financial reports I gave you yesterday, you would have a better understanding of what our situation really is” snapped CFO Fox angry. “That’s what I employ you for” hissed Fox“, to look after our financial affairs. If you think we need more money call Mr. O.V. Draft to extend our overdraft?” “How in hell do you suggest we pay for the expenses we have currently, never mind more borrowings! You need to restructure this company and call in experts to help us sort this mess out”, spat CFO Fox. Page 39 of 63
“My dear CFO Fox, we don’t need anyone to tell us how to run this company, what we do need is some creative accounting to convince the bank to lend us more money”, exclaimed Fox calmly. “Okay” spat CFO Fox, “you are on your own, as I am leaving. I want no further part in this mess, or your arrogant naivety Fox.” The door slammed so hard behind him, that Fox almost became ‘furless’. “Good Afternoon Mr. O.V. Draft”, said Fox with warm charm, “We seemed to have miscalculated our needs in extending the overdraft, so I would really appreciate it if we could extend it further please. I am on the brink of closing the biggest sales deal ever!”
CASH FLOW – THE DEMISE OF COMPANIES Introduction We have all heard of the expression ‘cash is king’ but so few companies actually manage cash effectively or even take cash flow seriously. The number one reason for any company or organization going bankrupt is lack of cash. Why it is that so little emphasis is placed on managing cash flow? In defense of accountants, most will tell executives that a positive cash position is essential in the organization’s ability to survive, sadly however, this valuable advice is all too often ignored. Is this advice ignored deliberately or out of ignorance? Is it ignored because the executives involved do not fully understand what elements of the organization effect cash flow? In our experience, the advice is rarely ignored deliberately, but is definitely a combination of ignorance, lack of daily cash projections and a lack of understanding of the processes that affect cash flow. The million-dollar question then is what exactly is the problem? The problem is very simply two fold:
A lack of the social aspects of cash flow. A lack of understanding the operating elements affecting cash flow.
Social Aspects of cash flow CASH FLOW is an A.R.T. The three most crucial social ingredients to keep a positive and healthy cash flow while building the business and maintaining the business is: A - Attitude R - Relationships T – Trust
Attitude The individual handling of cash flow is a huge role in the company. Just like the anesthesiologist putting the person to sleep before and during surgery. Applying a positive, open, and passionate attitude towards money and the overall power and circulation of money is the first essential key. Attitude will shift the "so called' cash flow position from stressful to manageable relationships.
Relationships Relationships are the heart of the business - without relationships there is no business and there is no money. Running a small company or a big organization one must learn and build strong, lasting, and honorable relationships with bankers, customers, vendors, etc.
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You must go the extra mile and follow up on these relationships and keep them alive; an example; ask the vendor or customer about some of their personal things like when did you move to...where did you go to school...do you like to travel?
Slowly you make them important and interested, try not to be interesting but interested. Find out in genuine fashion their birthday, their favorite hobby, etc. Call them and wish them a happy birthday and the relationship will flow and grow with time.
Trust We are living through challenging times and technology is very advanced and yet a promise must be honored, a hand shake needs to be considered as a commitment and must be honored. Therefore, when we respect these areas and are trusted we have CREDIBILITY AND CREDIT.
The Weberburdette Cash Wheel
The Weberburdette Cash Wheel uniquely combines the social as well as the operational elements of cash flow. The ART symbolizes the social aspects of cash flow and the others symbolize the operational aspects. We have looked into the social aspects of cash flow so now we will look into the operating elements affecting cash flow in detail.
Operating elements affecting cash flow Before we start anything, the big question is;
Do you have daily cash projections?
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Part 3 - Determination Lesson Seven Week 10 Same time, same station unusual sunny day, train late! “Owl would you please sit somewhere else this morning, I need to talk to Pig privately.” “You need not worry, dear Fox, not only do I know what you will be talking about, but you can also count on the fact that whatever we discuss is strictly confidential”, hooted Owl charmingly. “What we discuss! Hissed Fox incredulously, “We, will be discussing nothing, I am discussing something privately with Pig, that means without you, you feathered moron!” “Fox, what on earth could be so important and so confidential, that you don’t want Owl to overhear the conversation?” asked Pig “and why are you being so rude to Owl?” “Fox wishes to discuss borrowing money from you, as the bank will no longer lend Fox’s company any more money. In fact, it is not long now and Mr. O.V. Draft will be calling in the loans Fox has with the bank. My advice is not to lend Fox any money as the company is in dire straits, caused of course by appalling management”, winked Owl. Fox was very perplexed, fur rising on the back of the neck, Fox spluttered “how on earth did you know that, and besides what business is it of yours you meddling feathered recalcitrant carbon structure. You are not only the most ugly, stupid creature I have ever met but you are also the epitome of an oxygen thief!” “Oh my” hooted Owl seriously, “ you have grave problems and yet you spend so much energy on abusing me, who by the way ,could have helped you, and certainly had nothing to do with your demise. You deserve everything you get unless you grow a backbone, learn something about running a business, get professional help, and discover what Vision, Focus and Determination really means. You are so typical of so many who are in business; your arrogance surpasses your level of competence by the proverbial foxhole. You will not heed advice nor seek it. You Fox are a fool, and do you realize, that when you fail, it will mean nothing to me and nor will it affect my life. You Fox are the one who will suffer along with your employees and creditors. I wish you well in your own cesspool of self centered misery.” There was an eerie silence, while fox’s eyes welled up with tears. Ignoring this rare show of raw emotion from Fox, the silence was finally broken by Owl declaring, “Business is not for the faint hearted. It is one of Determination, Vision, Passion, Courage, Knowledge, Focus, and Ethics, of which qualities Fox you have none. There will be times when you are knocked to the canvass. Some get back up and go again, most, however, prefer to stay down. It is those that get up, learn from the experience, and have alternate strategies that will go on to succeed.” Pig looked puzzled, whilst Fox was being preoccupied and sulking did not even here what Owl said. ‘Pig Wash station coming up’, shrilled the usual announcement. “Pig, you have to help me please. We have been close friends for a long time, you can’t let me down in my hour of need?” begged Fox. Pig thought about this for a while before saying, “here is what I am prepared to do. I will send Psycho Chook around to review your business and depending on what Psycho Chook’s assessment is, make some decisions after that.” Page 42 of 63
“That won’t be necessary Pig. My company is fine, all it needs is a little cash injection to tide us over until this really big order comes in” pleaded Fox. “I am sorry Fox, but that is the deal. There are no friends in business Fox, every business decision needs to be reviewed thoroughly no matter how friendly we are”. “Forget it then” spat Fox and slunk off in a huff. When Pig got to the office, the executive pigs and Psycho Chook were already hard at work thrashing out their own company value chain. Psycho Chook asked Pig to let them finish the value chain and to return in two hours. Pig agreed and left the pigsty to work on some new product innovations. Two hours later Pig was summoned to the pigsty. Up on the pig board was the following diagram.
Marketing –Production
Purchasing
Production Planning
Production
Communications Debtor Management
Stock
Management
Cash management
QA
This Chain clearly demonstrates how everyone is linked together, irrespective of what position one may hold in the organization.
Process
Engineering
This chain may be expanded for each of the links, to have its own value chain, within the overall company chain. This value chain also assists in the detailed seamless reporting structure.
R& D
Distribution
Reporting
Marketing Research
Publicity
Digital
Lead management
Strategy
& Sales
Pig was pleasantly surprised and said, “Well done team this is fantastic and provides a good base to work from. I do believe we have something new to learn, as I had another discussion with Owl this morning. I would like you all to go back now and develop your own individual value chains, whilst Psycho Chook and I unravel Owls words of wisdom.” The executive pigs left the pigsty enthusiastically leaving Pig and Psycho Chook alone. After listening to Pig’s account of Owl’s riddle of the morning, psycho chook said, “We have so far dealt with having vision, developing focus and now we will learn to deal with determination. Determination is the third crucial key to developing a successful business. There will always be times when things don’t go to plan. It may be that a product doesn’t sell, a large contract is cancelled, or that the costs blow out or even that a strategy doesn’t work. There will always be issues in business that potentially could set a company back. There will be commercially irresponsible decisions made by an opposition company; political changes that change the ‘playing field’ in which your company needs to survive in. More recently, we have experienced a global financial melt down. This is the tough unrelenting world of business, made even tougher with the advent of globalization, followed by a global financial collapse.”
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“Determination is the quality that enables every member of staff to have the determination that they will perform, prepare and set in place metrics that will help them as individuals, as a team and as a company to minimize any negative impacts that circumstances within and beyond their control may arise.” “Determination involves four main disciplines, namely”; Knowledge. Risk. Culture. Emotional intelligence.
Knowledge Knowledge is a three dimensional concept. Knowledge is gained from; Developing, understanding and implementing relevant strategies. To have a clear business strategy in place. The strategy must include; Financial, operations and marketing analysis Marketing strategy including’ Customer research Opposition research Sales forecasting GP forecasting Publicity strategy Digital strategy Sales strategy Production Strategy Process engineering Industrial engineering Cost minimization program Labor structure & efficiencies Innovation Strategy R&D Programs Government grants Distribution Strategy Operations Strategy Process engineering Purchasing strategy Ratio analysis Financial Strategy Training and Education needs to be application based, relevant and on the job type training wherever possible. Key performance indicators together with the value chain. These techniques are invaluable as every individual understands the implications of their actions.
Risk Risk is one of the most under utilized management processes seen in any business. How often have natural disasters struck communities resulting in many businesses ruined? Why is risk so neglected? Risk management strategy includes; Political risk analysis Skills risk Page 44 of 63
Economic risks Financial risks Product liability risk Innovation risk Pricing risk analysis Legal risks Distribution and freight risks Crises plan Product withdrawal Serious injury or death to any employee Legal action Suspension of exported products from release. Natural Disaster Flood or Fire
RISK MANAGEMENT PROCESS Originator
Risk Identified
Raise Risk Risk form submitted
Project Manager
Risk form Reviewed No
Register Risk
Is Risk valid?
Risk Register updated
Project Review Group
Risk Register Reviewed
Yes Is risk mitigated
Yes
Close risk & update register
No Is a change needed
No
Assign Risk Actions
Project Team
Actions Assigned to mitigate risk
Actions taken to mitigate risk
Implement Risk Actions
Risk Process “To manage risk properly a proper process needs to be developed. This example shows a typical risk process. Everyone in the company needs to be involved in the risk process in some way, albeit small. After the process is worked out, then a risk map should be established and this forms part of the overall business strategy.� Strength lies in differences, not in similarities. Stephen Covey
Teams do not go physically flat, they go mentally stale. Vincent Lombardi
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Risk Mapping
Internal Politics Discrimination Staff Welfare
People & Cultural Risk
Business Continuity Risk
Technology Risks
RISK MANAGEMENT
Fire Flood Natural Disasters
Business strategy Risks
External Risks
Strategy Process KPI’s
Virus Web Security Tech Hardware
Political Economics Conflict
Culture Every company has its own "personality" or culture. For an organization to be successful over the long term, its culture needs to be managed effectively. Good solid culture culminates in a cooperative proud team that develops a strong sense of determination. Although the concept of corporate culture may seem abstract, we know that it can have a profound impact on corporate success and profitability. Culture management focuses upon: Identifying what the culture really is (versus what the company says or thinks it is). Determining what the culture should be to promote behaviour consistent with the company's goals. Developing a plan to take the company from where it is to where it needs to be with respect to its culture. How is the Culture Management Process Conducted? Culture is also enhanced when companies are good corporate citizens Community support and are involved in; Community projects – being involved in community projects such as; a. Sponsorship for cultural events. b. Employees volunteering for essential services. c. Assisting in times of crises. d. Locally based advertising. e. Environmental support. Charities such as; a. Homeless children. b. Intellectually disabled. c. Drugs and alcohol addiction. d. Obesity. Good corporate citizens in terms of; a. Noise minimization. b. Adequate parking facilities. c. Environmental leaders. Page 46 of 63
Emotional Intelligence “Emotional intelligence (EI) is defined as the ability to identify, assess, and control the emotions of oneself, of others, or of groups. The different forms of emotional intelligence are”; Openness. Bottom of scale - Creative, embraces change, sharp and quick thinker but can be a loose cannon. Top of scale – Conservative, follows company procedures, practical thinker and cautious. Conscientiousness. Bottom of scale – Multitasked, unstructured, lacks attention to detail yet a strategic thinker. Top of scale – Disciplined, organized, quality conscious and goal-oriented. Extraversion. Bottom of scale – Shy, not a good communicator, prefers an environment of solitude. Top of scale – Sociable, assertive, attention seeker and gregarious. Agreeableness. Bottom of scale – Self reliant, pushy, dominant, determined and performance orientated. Top of scale – Helpful, cooperative, diplomatic and empathetic towards others. Neuroticism. Bottom of scale – Insecure, pessimistic, needs constant supervision. Top of scale – Calm, self-confidant, decisive and works well unsupervised. “Looking at the list above, we can all identify with the different character traits,” said phsyco chook with a twinkle in the eye. The pigs all grunted with delight. “The facts are that these character traits are crucial for the different disciplines we need in any company. Let me explain what I mean.” The openness trait would be ideal for innovation, what if scenarios and strategy. The conscientiousness trait is ideal for managers, production, analysts, and accountants. The Extraversion trait fits marketing and sales employees. The Agreeableness trait would be ideal for customer service, IT and to some extent for HR. “What you need to accomplish is an EI matrix for the company, along with matching employees’ personality types with their positions in the company. Here is an example”:
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“Looking at the table there are some positions and some employees who have more than one box colored. The reason for this is every company is unique and depending on their circumstances may well accommodate positions with two personality types. EI mapping is not an exact science, but rather a flexible tool to strive for the best personality type that will address good culture, innovation, determination, and passion. To develop a well coordinated, well oiled business machine, that keeps its business engines at peak performance.” “Another way of mapping is as follows”, screeched psycho chook:
Openness
EMPLOYEES Production
COMPANY POSITIONS Top
Bottom
Percy - Manager
Manager
Porky - Process Worker Ham - Designer Roast - Machine operator
Conscientiousness Top
Bottom
Ribs - Strategist Trotters - Internal Sales
Extraversion
Designer Machine operator Strategist Researcher
Top
Bottom
Internal Sales External Sales
Knuckles - External Sales Agreeableness
Sows Ear - Service Administration
Process Worker
Marketing
Marketing Leg - Researcher
Production
Service Administration
Top
Bottom
Intestine - Accountant
Accountant Debtors Clerk
Liver - Debtors Clerk Neuroticism
Fillet - HR Manager Top
HR Manager
Bottom
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Emotional Intelligence is an important process to balancing the overall company personality matrix, without creating a negative political climate. It is always wise to get experts in this field to offer their advice.” “Finally there is the issue of regular performance appraisals. Performance appraisals are conducted on a formal basis at least once a year and on an informal basis quarterly. There are a minimum of five criteria to follow: Have a standard form created, that has a minimum of writing required. Check boxes are an easy form of evaluation and for assessment. All employees must be involved in their own appraisal process; Employee does Self Appraisal and sends to immediate supervisor. Supervisor fills in employee’s appraisal and sends to their immediate supervisor. Reviewer reviews self-appraisal and returns to employee. Supervisor has a meeting with employee and discusses both the employee and supervisor entries on the appraisal. This is not a right or wrong meeting but a meeting to get one another’s opinions on specific areas of performance. Employee Accepts/ Reject the Appraisal. If rejected, then both the supervisor and employee have a meeting with the next level of management, who is the final arbitrator. Web based appraisals are mandatory. Train employees on writing appraisals. Provide effective feedback. After the appraisal process is completed give the employee a copy. Let them know how it influenced decisions on their salary, bonus and future in the company. Appraisals are another important factor in creating passion, strong culture and commitment from employees.” Meanwhile at the Fox Hole things were deteriorating. When Fox arrived there was an official letter, hand delivered, waiting for him. Fox opened the letter, read its contents, and froze. “Yes hello, its Fox here I want to speak to O.V. Draft urgently. After a few seconds, O.V. Draft came on the line. “O.V. Draft what the hell is going on? I have just received your letter calling in all the facilities I have with your bank! Are you people mental or something? If I didn’t need the facilities I certainly wouldn’t have asked for them.” “Well Fox, you have not met the terms of the contract by providing us with your financials as required. In addition to that, you have not paid the minimum payments. You are now a risk beyond which we can accept. You now have 7 days to pay out your facilities, or we will be appointing a liquidator.” “I can’t believe that you would do this to a loyal customer,” stammered Fox. “You have no idea about the business we are in. It is one of those industries where sales are up and down, and now you want to sink us just at a time when sales will pick up again.” “Fox it is not just about your sales. Your Gross Profit is too low to sustain the expenses you have. Your liquidity is way below acceptable, your equity is declining because you are no longer making a profit, and consequently your cash flow is not adequate to support your company. We are not investors Fox, we are a bank, and like any sensible business we need to show a return on shareholders funds.” “Well you know what you can do with your facilities and we will never bank with you again,” screamed Fox into the telephone. Page 49 of 63
There was a click and Fox realized that O.V. Draft had hung up on him. “Oxygen thief” hissed Fox. Fox spent the rest of the day desperately trying to solicit orders from past customers. He had no plan, no idea of what customers expected or wanted and certainly had no plan as to saving the business. Fox was lurching from one crisis to the next. Fox is the victim of someone who has the arrogance to think they know it all, the same victim who doesn’t believe in business planning and the same victim who gets no help as they are the ones with all the answers!
Debtor Days Debtor Days measures how well a company collects money from its debtors (Receivables). The higher the debtor days the longer it takes the company to collect money owed. Debtor days have a significant impact on cash flow which can lead to liquidity problems and to bankruptcy. High debtor days also lead to overdrafts, company loans or cash injections by share holders. What impact do these have on a company? Overdrafts Overdrafts have interest components attached to them. Interest components reduce profit, and therefore compound the cash flow issues, by making them worse. Loans Loans like overdraft have an interest component to them. The same problems occur as with overdrafts, with one difference, loans have a regular scheduled payment plan. This form of finance is restrictive in that the company must pay the payments as per the contract. Investors Investors are the more preferred way of funding a company with cash problems. Bear in mind, that with other shareholders, the directors of the company are more accountable as there are external shareholders to take care of. The shareholders expect a return on their investment which is generally higher than what cash deposit funds wild offer them, as their risk is higher.
The Impact of Interest on Profit
SALES
SALES
COS
COS
OE
OE Interest
EBIT
EBIT
As soon as a company introduces unwanted interest, due to poor debtor management, it has an immediate impact on profit. As profit declines, cash flow is under further strain.
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Part 4 - Passion Lesson Eight - Zeal Week 11 Same time, same station cold bleak wet day, train very late! “Pig I am up to my snout in fox dirt” wailed Fox. “The wanker banker has called in all the loans and facilities. If I do not settle the bank debt in seven days, they will foreclose on me. Please help me”, pleaded Fox. “Fox I do empathize with you but really this is your own doing. I am not in a position to help you financially as this whole restructuring is draining our financial resources. In fact we had to get a loan from the bank to tide us over this period of restructuring” replied Pig gently. “What I can help you with is to get Phsyco Chook to help you and I will cover the fees until you are solvent again. That is the best I can do for you Fox.” “I don't need help,” cried Fox, “I need money”. “Sorry Fox I cannot lend you any money,” said Pig firmly. At this point, the train pulled into the station windows all fogged up. Fox was really shaken up and visibly upset. As they took their usual seats, Owl was there of course, but did not acknowledge that Fox was distressed. Instead, Owl said, “Zeal is an important driver for successful companies; it is part of the equation for sustainable growth and achieving business excellence. Zest is a multiplier of effort, not manufactured. It is only possible when people work on what they truly believe in and care about.” “Oh shut your beak you moron”, spat Fox “I don't need you babbling on with your irritating drivel so shut up!” Owl said nothing but just and stared intently at Fox with a hint of contempt. ‘Pig Wash station coming up’, shrilled the usual animated announcement. Without a word, Fox and Pig left the train and went their separate ways. When Pig arrived at the pigsty, Phsyco Chook already had the slop ready and was eager to hear what Owl had said. After Pig related the words of wisdom, said, “I have no idea what Owl meant, Phsyco Chook. “Finish your slop and then we will get all the other Pigs to attend the next session” phsyco chook enthused. Phsyco Chook swung into action once the piggy’s were ready. “Zeal is a synonym for passion and means strong, enthusiastic devotion to a cause, ideal, or goal and tireless diligence in its execution or progress. It is the object of an intense desire to achieve or to improve past performances. Passion is a significant multiplier of accomplishment, particularly when like-minded individuals strive for a worthy cause. In most cases, the reality is that employees are emotionally disengaged at work. They are unfulfilled, discontented and consequently their organizations underperform. Companies must encourage communities of passion by structuring work and revising management processes to help people tap into a higher calling at work, by connecting employees who share similar passions, and by better aligning the organization’s objectives with the natural interests of its people. This is where superb leadership steps in. There are some factors to consider, however Page 51 of 63
A leader cannot force someone else to achieve passion. They can make it significantly easier or harder for their people to create and sustain passion in their roles within their working environment, no matter at what level they are. Even the most passionate people are not passionate all the time. A good leader understands this aspect of human nature, and learns the right balance of motivation and noninterference. Passion is intrinsically linked to belief. Employees must believe in what they are doing. Humans are all different and should always be respected as unique individuals, as emotional assets with a conscience and a value structure.” “The conditions that create passion for one person or group don’t necessarily work the same for another. You need to employ experts to teach you how to identify your team’s motivational drivers and blockers so that you can provide the conditions needed to create or sustain a team with zeal!”
Stock Turns Stock Turns measures how often stock is turned over in a twelve month period. If it is measured for example as 3 times, it means that stock is turned over on average every four months. A stock turn of 4 means stock is turned over on average every three months. In this case the higher the number the better. Conversely the lower the number the worse it is. Poor stock turns can cause major problems for cash flow as well as impact on profit.
Impact on Profit One of the sad facts about carrying inventory is that every year some stock needs to be written off completely and some sold off at a greatly reduced price. The fact is that, although we have used a consistent write off rate and sell off rate, in reality it does not work this way. Usually the lower the stock turns the higher the write off rate as well as the sell off rate.
IMPACT ON PROFIT AS STOCK TURNS DECREASE 10000
Stock Turns 0
12
6
4
3
2
1
-10000 -20000 -30000
-40000 -50000
-60000 -70000
Stock Turns
Write offs (5%)
Sell offs (15% @ half price)
Total
Ignoring those facts for the case of our example, it can still be seen that the total value lost in stock is significant. These figures come straight off the profit. So whatever the profit was, if this company had stock turns of 1 then $60,000 would come out of profit. Other factors we have not considered are that of theft, administration errors and warranties. Once again the lower the stock turn ratio the more prevalent becomes the incidence of loss through these factors. Page 52 of 63
Impact on Cash
IMPACT ON CASH AS STOCK TURNS DECREASE Cost of goods sold Stock Turns
480,000 480,000 480,000 480,000 480,000 480,000 12
6
Ave. Stock Value
40,000
80,000
Difference in cash
0
4
3
2
1
120,000 160,000 240,000 480,000
-40,000 -80,000 -120,000 -200,000 -440,000
Just look at the alarming consequences of decreasing stock turns in this example. Using the base as 12 (or turnover every month) the picture for decreasing stock turns is not a pretty one as far as cash is concerned. What usually occurs in serious situations of low stock turns is that companies need to make use of borrowed money. The spiral starts again, as borrowed money means interest. Interest means lower profit. Lower profit means compounded pressure on cash flow.
What can be done About It? The purchasing of stock is a serious task and should always be taken seriously by management and by someone competent at stock control. There are many factors that dictate how stock should be purchased, such as lead times, shipping times, the impact of not having enough stock to fulfil demand, payment terms etc. There are plenty of stock control packages around, but spreadsheets can also be used effectively. The main criteria managing stock control are: Sales and stock forecasting. (this is covered in the advanced course) Payment terms. Stock management (constant rotational counting). Delivery times. Freight times. Customs delays. Regular sales forecasts. Seasonal factors (e.g. fashion) Not for one minute is anyone suggesting stock control is easy. It is not! That is probably why it is one of the most neglected management disciplines. Any money spent on proper stock control should be weighed up with the potentially enormous return on investment.
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Part 5 - Putting It All Together Week 12 Final Lesson All the Pigs were in the pigsty, waiting for Psycho Chook, who was uncharacteristically late. The next minute to everyone’s surprise and delight in walked Owl. Behind Owl was Psycho Chook, O.V. Draft and unbelievably, Fox! “Well bless my trotters,” exclaimed Pig. “Fox what are you doing here?” “Let me explain” said Owl. “Psycho Chook and I decided that I would come and deliver the final summary, personally, of what you have all been working towards over the past eleven weeks. By the end of this, the twelfth week, this company will be well on its way to achieving business excellence. We also decided to invite Fox and O.V. Draft along for different reasons. O.V. Draft needs to see first hand, what you have achieved and he will be convinced to continue supporting this company into the future. Fox on the other hand has finally conceded that unless help is found, fox’s company will go into liquidation. O.V Draft on the other hand is prepared to support Fox on condition that Fox not only enlists the help of Psycho Chook and Owl, however, like Pig, makes a concerted effort to rebuild the company. A good outcome for everyone concerned and to Pig and your colleagues, I congratulate you and all your employees. I am that impressed with you all that I have decided to invest money in your company, the details of which we will discuss later. First, we need to finish our part of the program and deliver the final lesson.
Break Even Point This is a seriously neglected area of management in most companies. The fixed and variable costs determine your ‘Break-even’ point in the company. The more sales you need to break-even, the lower your profit, and consequently the lower your cash position. Fixed costs are a danger trap. The higher the fixed costs the more difficult it will be to have good profits, no matter how efficiently you run the company. Fixed costs should be limited to a maximum of 25% of sales.
The Break Even Graph
Definitions Break Even Point (BEP) is where the total annual costs of the company EQUAL the total annual sales. Page 54 of 63
Loss Zone is any sales LESS than the Break Even Point will result in a loss for the company. Profit Zone is any sales GREATER than the BEP will result in profit for the company. Cost before trading starts is essentially the cost of the company’s main entrance key. These costs are incurred without a single sale been made. Profit is all sales GREATER than the BEP. Angle Theta is the angle between fixed costs and fixed + variable costs.
Determining Fixed and Variable Costs By definition: Fixed costs are all those costs that a company incurs, irrespective of sales volume. For example, rental costs are fixed as they have no relevance on sales volume. Variable costs on the other hand vary proportionately with sales volume. Examples of variable costs are cost of goods sold. These costs are directly linked to sales volume and vary with sales. Determining Fixed and Variable Costs should be made as simple as possible. A technique we suggest is to export all the company costs into a spreadsheet, as the following table shows:
Determining Fixed & Variable Costs Fixed or
Cost Description
Value
Variable v
Value adding labour
f
Non Value adding labour
$1,000
v
Cost of Goods sold
f
Administration wages
$100
f
Rent
$125
f
Insurance
f
Accounting
f
Marketing Wages
$400
v
Marketing Commissions
$100
v
Publicity
$200
v
Interest payments on overdraft
$20
f
Interest payments on Leases
$30
$300 $3,000
$20 $30
Determining Fixed & Variable Costs After Sorting Data Fixed or
Cost Description
Variable
Value
f
Non Value adding labour
$300
f
Administration wages
$100
f
Rent
$125
f
Insurance
f
Accounting
f
Marketing Wages
$20 $30 $400
f
Interest payments on Leases
v
Value adding labour
$1,000
$30
v
Cost of Goods sold
$3,000
v
Marketing Commissions
$100
v
Publicity
$200
v
Interest payments on overdraft
$20
After importing all the data into a spreadsheet, insert a column to the left of the cost description and simply enter a ‘v’ for variable or ‘f’ for fixed as shown above. Once this is completed, sort all the data based on Fixed & Variable column. The table will then look like: Now all the data is sorted into fixed and variable costs. From the table we can use the SUM command to determine; Fixed Costs are: $1,005.00 Page 55 of 63
Variable costs are: $4,320.00 Total Fixed + Variable: $5,325.00 If Sales are $6,000.00 then: Profit = $675 11.3% of sales. Profit is too low, the minimum should be 15% Fixed costs as % of Sales = 16.8%. This is a good result. This figure should be less than 25% of sales. Angle theta = 39.05 degrees. Also a good result. This figure should be less than 40 degrees. In managing any company the BEP should be part of a monthly reporting dashboard. Where companies have multiple offices, divisions or factories the BEP should be reported for each one as well as a consolidated BEP. You BEP is a valuable yet simple tool as one way to keep profit rising.
THE BURDETTE Cash Ratio There is a cool tool available for managers and executives to help identify cash flow issues? We first need to determine what is and how do we calculate the Burdette cash ratio? To calculate this ratio you need the following information, Opening Available Cash Balance Available Closing Cash Balance EBIT By opening cash balance, we mean, that if you have an overdraft or bank loan in place then use it. The same applies for the closing balance. The calculation is: Burdette Cash Ratio = (Opening Balance – Closing Balance) á EBIT This is demonstrated with an example.
Calculating The Burdette Cash Ratio Scenario Impact on Cash Flow - Low Profit, High Debtor Days Impact on Cash Flow - improved profit. High Debtor Days Impact on Cash Flow with Good profit and Low Debtor Days
Jun-05 8.22 0.83 0.07
Jun-06 9.13 0.58 -0.06
Burdette Cash Ratio Graph 10
8
6
4 No Growth Zone 2
0 Period 1
Period 2
Period 3
Period 4
Period 5
Period 6
Period 7
Period 8
Period 9
Period 10
Period 11
Period 12
Period 13
Period 14
Growth Zone -2
-4
-6
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What this graph demonstrates is that if your Burdette Cash Ratio is greater than 0 (zero) then you need to look at some issues urgently. The higher your Cash Ratio the greater the risk of bankruptcy. If your figure is a NEGATIVE number, you are safe to embark on PLANNED sales and profit growth strategy.
The BURDETTE Growth Matrix The Burdette Cash Ratio is only useful as a quick gauge to determine ‘are we in potential trouble’. The Burdette Growth Matrix has been developed as a simple but unique tool to help point you in the right direction as far as what needs to be addressed before developing a business growth strategy. REMEMBER: If you are to GROW anything make sure you GROW, Sales, Profit AND Cash Flow Simultaneously.
Sales
Peak Peak Dip Dip
Peak
Maximum & minimum bank balances
Looking at this chart seems to indicate that sales are not high enough to support the company cost structure. It could also indicate the margins are too low. Notice that the effect of sales on cash is offset by 30 days. This indicates that the debtor days in this example are around 30 to 45 days, which is good.
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The Killer Question “Do you spend more time working in your business than you do building your business?” Many managers spend too much time on the functional aspects of their business, usually at the detriment of strategy and planning. “In short what you will develop is an ‘effective business fighting machine’, which will overcome any future hurdles.” With that, Owl took a bow and handed back to Pig. The Pigs slapping their trotters together gave owl a standing ovation. “You can’t connect the dots looking forward; you can only connect them looking backwards.” Steve Jobs in his Stanford graduation speech.
Education and Training If we can train mice to surf (this is true, click on www.youtube.com/watch?v=FdbxLk8_C8c) why is it so difficult to teach graduates from universities or colleges with the fundamental application skills required in business? How often have you sent employees on training courses but got little immediate value in return? How many training courses have you been on, that have provided immediate application outcomes? There is no doubt that most education or training courses provide a lot of food for thought, for a limited period of time, but providing actual immediate application outcomes, very few. Why is this case? Are we educating a bunch of morons, or are we ineffective in our training methods? The latter is more likely to be the case; however, it is not in any way deliberate or intentional that we get poor outcomes, but more about not understanding the human psyche, human behaviour or human insecurities. Many hours of work and effort are applied in most curriculums and almost always with the best intentions. It is a well known fact that we as humans all have different finger prints and different DNA. As far as we know it is 99% certain that no other human has exactly the same finger print or DNA, we are, as individuals, unique. So what is the relevance to education and training? As much as our finger prints and DNA are unique as individuals, so is our electromagnetic signature. Our brain operates on electrical signals which in turn creates and electromagnetic field. Our brain through electric current controls everything about us, our emotions, intellect, agility and naturally our ability to learn. If we all have our own electromagnetic signature, then why do we create such rigid inflexible forms of learning? Lets face it, in modern society the role of face to face teachers, is to compensate for inadequate curriculums, presentation styles and learning environments, just to name a few. The formal practices of educating people need a serious overhaul. Most university and college institutions have become exactly that, institutions. They are like dinosaurs in the modern era of technology, providing the same generic types of courses they have provided for decades. The subtle difference is that they are now embracing modern technology; however, what they have in fact done is to take an old tired methodology and converted it into web-based delivery. There have been many attempts over time to include industry in assisting in curriculum development, with the intention of producing graduates more suited to industry needs. This has in most part failed, as from an industry perspective; most graduates still require further substantial training in the work place after graduation. In the modern global economy with fierce competition from countries such as China, India, other Asian, East European and South American countries, western companies no longer have the luxury of extended ‘on the job training’, nor the luxury of being forced into situations where management positions need to be filled by sub standard educated or trained people. This situation has Page 58 of 63
emerged because the educators have fallen short of delivering graduates who are capable of being far more productive at an earlier stage after graduation. At a social level, modern day communities have less disposable time available, less disposable income and suffer more pressures to perform in the workplace. The community at large needs more focussed relevant education and training that they can weave into an already busy schedule. They need to spend the minimum of time with the maximum outcome of being instant ‘value adding’ contributors in the workplace.
Further Information This book is available in E Book, form or printed form. The templates are also available in an interactive format. The format we have used is Microsoft Excel® as there are many people around the world familiar with that software. Michael Burdette is now involved in education and training with Ana Weber from California USA. The company we promote our education and training programs is WEBERBURDETTE. WEBERBURDETTE are digital educators, applying practical & application based training techniques together with modern digital technology. Our methodology enables individuals to enhance their skills at a specific and detailed level, over a short period to become value-adding contributors after graduation. Our courses introduced at a social, business or hobbyist level deliver a far more balanced, contented, and meaningful learning experience. There have been many attempts over time to include industry in assisting in curriculum development, with the intention of producing graduates more suited to industry needs. This has in most part failed, as from an industry perspective; most graduates still require further substantial training in the work place after graduation. In the modern global economy with fierce competition from countries such as China, India, other Asian, East European and South American countries, western companies no longer have the luxury of extended ‘on the job training’, nor the luxury of being forced into situations where management positions need to be filled by sub standard educated or trained people. This situation has emerged because the educators have fallen short of delivering graduates who are capable of being far more productive at an earlier stage after graduation. Our distribution model is clearly through a global reseller network. At WEBERBURDETTE, our core skills are education based digital training and educational workshops. We are developers of content, programming and utilise the most up to date technology, relevant to training and education. Although we are likely to have some ‘direct students’ we are not in any way competitors to any education or training organisation, but enhance their products and services to the wider community by way of innovative products, technology and an education passion never seen before. The ‘direct students’ are mostly in cases where there are no approved resellers. We will retain some students to trial new products, before launching them into the market. Apart from providing products to training organisations and educators, it is equally important to provide a premium class service and unparallel support to our resellers and customers. We expect that same level of service and support for the final beneficiaries, namely those who purchase our workshops and services through our reseller network. I may be contacted at michael@weberburdette.com
our
website
www.weberburdette.com
or
THANK YOU FOR READING MY BOOK Page 59 of 63
NOTES
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NOTES
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