deploying your resources to best advantage
DESCRIPTION
TRANSCRIPT
It’s not only about numbers
John B Voorpostelchartered accountant www.iaccountant.ca
Manage Your Resources For A Sustainable Competitive Advantage
It’s also aboutDeploying your resources to best advantageDoing the right things in the right waysOrganizing and preparing well
This presentation is free for personal use but all other copyright of content and presentation is reserved
Operating my own practice since 1988, CA since 1985Primary experience with owner operated businessesAcademic background in economics
www.iaccountant.ca
Managing director of Teamstart® www.teamstart.com Software website combination that together organize business know how
Managing director of Info l inc www.infolinc.ca Commercializes intellectual property as InfoTools®
Continue(d) to learn about business from clients, colleagues, expertsAuthored articles, quoted in others Canadian Franchise Guide, Profit Magazine, Venture Source, Money Sense, TeamStart
John B Voorpostelchartered accountantadding value, not just numbers
Who am I ?
Developed organized, ready to deploy business know how
© 2006 John Voorpostel
What’s in this presentation for you?
www.iaccountant.ca
Where should you (your client) focus time and effort?
I want to give you:
Insight into the history and development and concept of business resourcesA unique and valuable framework you can use to organize and manage important resourcesSome interesting things along the way
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© 2006 John Voorpostel
1) Provide an understanding of what resources are
The four things I’d like to accomplish in the next 59 minutes
2) Explain development of resources through time
3) Categorize important business resources in a meaningful way
4) What you might do with them
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This presentation is available electronically at iaccountant.caSlide note copies are available to attendees today
© 2006 John Voorpostel
www.iaccountant.ca
Inputs
The basics
$$$$$OutputsYour Business Inc
With resources everywhere, there’s loss of detail, meaning and perspective
© 2006 John Voorpostel
www.iaccountant.ca
So what do we currently do about it?
And focus on measuring activities and resultsAccounting and costing methodsRatios and Key Performance IndicatorsBalanced Scorecard
Learn and apply management techniquesPlanning and forecasting techniques ie basic vision in head to more formal strategic planning & scenario planning
Organization of people, methods, technologies
© 2006 John Voorpostel
www.iaccountant.ca
What’s missing?
Many business do not look at all their inputs in an organized fashion
In our modern, “resource rich” economy, resources are defined as
“available means or capabilities of any kind”
© 2006 John Voorpostel
www.iaccountant.ca
So it’s not so much
“you can’t manage what you don’t measure”
It is…
You can’t manage inputs if you don’t know enough about them
and,
You can’t manage what you haven’t organized well
© 2006 John Voorpostel
www.iaccountant.ca
Business resourcesThe basics and their development through time
© 2006 John Voorpostel
Businesses deploy resources in order to make what they envision happen
Business happens through people and activities and relationshipsNothing happens unless someone does something
The Basic Premises of Business ResourcesOur definition and description of activity
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Business resources are inputs used to create and sell a good or service
© 2006 John Voorpostel
Early milestones5,000,000 BC
Physical body with brainstem and cerebellumNatural gifts and endowments of ancient biped hominids Looked out over and moved through their dominions of grasslands and savannahBinocular vision, opposable thumb, running, walking, climbing, reaching, grasping, handling
Brain development and three part brainBrain stem – governs basic requirements of life Cerebellum – governs movement, muscles, balance, co ordinationCerebrum – co ordinates thought, emotion, memory
Complexity evolves from interactions with community and environment
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500,000 BCFire probably discovered as natural occurrence and they learned to carry it and re create it
Community and basic language developmentHunting and weapons….stone and metals, jabbing and throwing, dynamics of mass, location Food preparation, containers, implements
Early milestones2,000,000 BC
Need and insight drives innovation
Homo habilis first tools\artifacts for scraping, cutting and pounding
© 2006 John Voorpostel
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Evolvement into Sapien and our Prisca SapienteCollective knowledge of our past
200,000 BC onwards
Learning to speak and articulate ideasAware and thinking life remembering and acting, using our minds to thinkObservers, incorporating memories and participating in our culturesPeople, learning, endeavors, aspirations, lasting achievements
Lasting contributionsImportant discoveries and ideasImportant religions and founders and beliefs
© 2006 John Voorpostel
Land for food productionfor geographical advantagefor water, minerals, gifts from the earth
Labourslaves, beasts, tenant farmerssoldiersguilds of producer providersmerchants and traders
Capital goods and inputs for basic goodsBasic tools, techniquesMetal, leather, wood, bone, stone, clay
Early economiesPost Ice Age 8,000 BC through Megalithic through Feudal age
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Advances in Methods and techniques Materials Tools and technology
Early advancementswhat you do and what with
Passage of time and learningChanging conditions and circumstanceCapable individuals and milestones
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Do not think our ancestors were dumb Great accomplishments in buildings maths, sciences, business, philosophy etc
© 2006 John Voorpostel
Progression to modern times
From Feudal to Mercantile Exploration, navigation, metals and trade goods Need to move and transport goods and people Pulleys, levers, gears, screws, basic man powered machines Political organization still around kings and aristocracy and military Development of more socioeconomic classes and wealth
Seminal event Ghengis Khan, Kublai Khan and Cathay, led to Marco Polo Search for new trade routes as silk road control fragmented
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Industrial revolution
Scientific principlesGeography and flora and fauna, metalsMachinery and locomotive powerUtilities, fuel, coalMore complex capital goodsMore complex production machineryNew materials, methodsWidening varieties of economic endeavor, markets
Political economic developmentDecline in ancient privileges in lands and government Economic thinking and theories and forms\how are resources sharedGovernment and economies
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Technology revolution
More scientific discovery and uses and applicationsElectricity, oil, more forms of power to move objectsNatural resources, metalsMaterials, atomic structureRoad rail sea and sky vehiclesBiology, medicine, genetic codesEnvironment and geography and flora and fauna
Widening opportunities to provide thingsWell formed capital marketsWell educated human resources
Wide variety of economic endeavorMore complex ideas and concepts
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Individual sector growth and advancement and complexity
Technology revolution
PlasticsAutomotive
PartsFilm &CD’s
Drugs
PaintsFoods &Flavours
ClothingBuildingMaterials
Soaps &Detergents
Forensics
MedicalResearch
Furniture Fertilizers Etc.Resins &
Adhesives
Modern Chemical Industry – variety of applications
© 2006 John Voorpostel
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Business resourcesWhat’s coming in the foreseeable future
© 2006 John Voorpostel
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STRATEGIC BREAKTHROUGHS
www.techcast.org What is coming in the next 25 years?
© 2005 Techcast LLCused with permission
Techcast.org is a virtual think tank that forecasts the Technology Revolution
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Energy and environment
This crucial field should see major breakthroughs as the energy/environment challenge reaches critical levels over the coming decades.
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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Space
Space Tourism may be the next major advance in this field, followed by Moon/Mars projects about 2020 and exotic technologies much later.
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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Major IT advances are likely to roll on for the next 2 decades, ending about 2020 with IT matures.
Information Technology
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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Ecommerce
These forecasts suggest that various commercial uses of E-Commerce should reach 30% adoption levels by 2015
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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Manufacturing & Robotics
TechCast follows only a few selected technologies as yet, and they all cluster at mid-range when manufacturing matures.
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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Transportation
A wave of breakthroughs is likely to revolutionize transportation over the next 20 years
Latest Strategic Analyseswww.techcast.org
© 2005 Techcast LLCused with permission
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Medicine & Biogenetics
These forecasts show that medicine & biogenetics will take2-3 decades to realize the vast potential of the DNA revolution.
www.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
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All fieldswww.techcast.org Latest Strategic Analyses
© 2005 Techcast LLCused with permission
Modern economic resourcesKnow what to manage and how
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Modern economic resourcesDefinition of a business
Ideas and concepts
Embedded in solutions provided to purchasers
By provider producers operating in and subject to markets and
Economic, political, social, cultural and religious privileges and controls
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Work = Time + Effort + Focus
Modern economic resourcesEquations of economic achievement
Planning = Knowledge + Vision + Wisdom and the right questions
Execution = Will power + Motivation + Skills + Tactics
Success = Capabilities + Strategies + Experience + Reputation
© 2006 John Voorpostel
Business happens through people and activities and relationshipsdeploying resources in order to make what they envision happen
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Modern economic resourcesDefinition of business activity
© 2006 John Voorpostel
Entrepreneurial Resources
Modern economic resources
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A business is an entity capitalizing on an opportunity, operated by people with particular skill sets and capabilities, organizing resources to achieve their plans
deploying:
Proprietary Resources
Operating Resources
Now, putting a framework to resources used by a business, we canclassify the terms according to inherent characteristics of business
© 2006 John Voorpostel
www.iaccountant.ca
Opportunity
Vision
Time Effort
Skills
CapabilitiesIngenuity
Know how
Methods
ReputationExperience
Networks
Information
Legal Rights
Plans & Strategies
PeopleFacilities
Technology
NetworksCapital
Entrepreneurial Resources
Operating Resources
ProprietaryResources
Modern economic resources
© 2006 John Voorpostel
Entrepreneurial ResourcesOpportunity, Vision, Ingenuity and know how, Time, Effort, Skills & capabilities
Modern economic resources
Unique to the individualControllableEducation and self improvementRecognition and understanding of opportunityAbility to envision complex steps and solutionsUncontrollableBirthright, health
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Useful strategiesAttend course, seminars, trade shows, industry events, Network with sources of information, inspirationRead informative, relevant publicationsAssemble libraries of useful informationBuy expertise
© 2006 John Voorpostel
Where do you concentrate your efforts?
Modern economic resources
How can you make yourself better?What don’t you have do you need? How do you decide?
How can you better exploit your capabilities?How you do things, management tools and techniques
Time you spend on productive activitiesReturn on time
Longer term planningSurvival of enterprise and recurring cash flow
Learn how to do the right things in the right waysIt's all about who you learn from
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Entrepreneurial ResourcesOpportunity, Vision, Ingenuity and know how, Time, Effort, Skills & capabilities
© 2006 John Voorpostel
Proprietary ResourcesNetworks, Methods, Reputation, Experience, Information, Legal Rights
Modern economic resources
Developed over time Strong networks, relationshipsExperience, capabilities, reputation
Available in marketstrategic information, people, legal rightsTrade marks, Copyrights, Patents, Industrial Design Marks
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Useful strategiesPublic relations, community work, branding Building alliances, relationshipsDeepen customer relationships, solve issues quicklyNetwork for information, influenceContract for strategic exclusivity
© 2006 John Voorpostel
Modern economic resources
Embedding strength into:organization and operationsreputation and brandingcustomer relationshipslegal agreements and rights
Where do you concentrate your efforts?
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Proprietary ResourcesNetworks, Methods, Reputation, Experience, Information, Legal Rights
© 2006 John Voorpostel
Operating ResourcesPlans and Strategies, People, Facilities, Technology, Capital, Networks
Modern economic resources
For these, there is a highly developed market of inputsMany available alternativesCompetitive pricing, terms, conditions in use
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Useful strategiesComparison shopping for price, terms, delivery logistics Deepen supplier relationships Staff trainingMake methods more effectiveUpgrade technologyUse facilities better
© 2006 John Voorpostel
Modern economic resources
How do you do more of what you do right?How effective are you?
How do you get more right the first time?How efficient are you?
The basicsProduct – customer must perceive quality and competitive price
Marketing – convince customer to deal with you and make the cash register ring
People – staff must be capable and well instructed, well motivated and well equipped
Operations – be good at what you do and continue to learn to get better
Where do you concentrate your efforts?
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Operating ResourcesPlans and Strategies, People, Facilities, Technology, Capital, Networks
Modern economic resources
Where to you keep your overhead?
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As much as possible
© 2006 John Voorpostel
Operating ResourcesPlans and Strategies, People, Facilities, Technology, Capital, Networks
Modern economic resources
79 - VS Strategic Planning75 - SS CRM73 - VS Benchmarking73 - SS Outsourcing72 - VS Customer Segmentation72 - SS Mission and Vision Statements65 - VS Core Competencies63 - SS Strategic Alliances62 - SS Growth Strategies61 - SS Business Process Reengineering61 - SS TQM59 - NS Change Management Programs57 - SS Balanced Scorecard
What kinds of management tools do others use?Bain & Company Survey 2005 – Percentage of surveyed (larger companies) using tooland satisfaction levels Very Satisfied - VS, Satisfied - SS, Not Satisfied - NS
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56 - VS Supply Chain Management54 - NS Knowledge Management54 - SS Scenario and Contingency Planning52 - NS Activity Based Management44 - SS Economic Value Added Analysis40 - NS Loyalty Management36 - SS Price Optimization Models34 - SS Six Sigma33 - SS Off shoring26 - NS Open Market Innovation24 - NS Mass Customization14 - SS RFID
2005 Annual surveyBain & Company news release – see www.bain.com
Operating ResourcesPlans and Strategies, People, Facilities, Technology, Capital, Networks
Political economic cultural environmentTaken as a given as part of the fabric of our society, the grander scheme of things
i.eMarkets and market conditionsGovernment policies and plans and spendingTaxationBusiness and industry organizations and networks
Modern economic resources
Are there opportunities, ideas, concepts etc we can useHow can we capitalize on situation
Are there issues of concernImpact and what can be done
Are there natural allies and like minded peopleOrganization, message and communication
What are the long term trendsImpact from market, customer, industry
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The basic resource? If I was to pick
Modern economic resources
Ingenuity and know how, ability to actEnvision solutions and means to organize people and activities to make desired events happen
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Resourcefulness
Fuels advances in
Methods and techniques
Metals and materials
Tools and technology
© 2006 John Voorpostel
Modern economic resources
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Summary of today
It begins by understanding what resources you haveEntrepreneurial resources, Proprietary resources, Operating resources
Using those resources to best advantageEmbed strength into your organization to convince more people to do business with youNOTE this includes more\better customers, suppliers, employees
Organizing your business know how wellYou cannot manage what you don’t know about or haven’t clearly perceived
© 2006 John Voorpostel
www.iaccountant.ca
Modern economic resources
Summary of today
Entrepreneurial resources build a businessYou recognize the opportunity, generate the vision, and take the time and effort to build the business
Proprietary resources strengthen a businessThese resources are key to building a sustainable competitive advantage and lead to success
Operating resources deliver the product or serviceThese resources are traditionally measured and managed for effectiveness and efficiency and profit
© 2006 John Voorpostel
Modern economic resources
www.iaccountant.ca
Rotary International Four Way TestIs it the truthIs it fair to all concernedWill it build goodwill and better friendshipsWill it be beneficial to all concerned
Summary of today To improve improve your personal capabilities
Network for information, influence, inspirationKnow who to ask and what questions matter
Improve yourself and better use your capabilitiesActively search for good information. Keep asking why? If? Is?
Learn how to do the right things in the right waysKnowing what questions to ask, what judgments to make, how to best apply your time and effort
© 2006 John Voorpostel
www.iaccountant.ca
John B Voorpostelchartered accountantadding value, not just numbers
Thank you for your attention and attendance
© 2006 John Voorpostel
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