TKO Business Modellers

Getting bored with just focusing on policies and procedures?

Instead why not spend some time actually designing your business
It can be one of the most satisfying things you can do, it can bring a renewed sense of clarity to you and your business

Let me give you an example.

We are going to use TKO Business Modeller to help Fred and owner of a small cafe design his business

Step 1 . Decide what is critical to the success of his business
First of all we need to know what’s critical to the success of Freds Café and with Fred experience he is the best person to answer that. He says that apart from the usual critical factors in running a business eg. Managing staff, Managing cash flow, Compliance issues etc

• Good menu selection and quality food
• Producing Great coffee
• Friendly staff and timely service

Are the most important areas of his business.
Step 2. Structure it
The next step in this design process is building some structure around these critical areas. Structure is provided in TKO by way of departments (in TKO they are called key business areas). You will note that TKO already provides the structure for the other critical areas of Fred’s business so in this case we only need to create departments relative to those 3 critical areas mentioned above.

First of all we will create a major department and then for ease of classification we’ll create some sub departments as well.

• Café operations (main department)
• Food preparation (sub depts.)
• Coffee making
• Customer service

OK, our new department is done, this department (and sub dept’s)  are responsible managing these critical areas of Fred’s business and they become part of the framework that Fred’s business is built upon.

Step 3. Measure it
The next step in this design process is deciding on what key indicators and standards should be applied to our new department.  Remember the old saying “you can’t manage what you don’t measure”
In other words how will Fred know that this critical department and sub departments called “Café operations” is fulfilling his expectations. To do that we will list his expectations (we will call them key performance indicators and standards).
For example under : Food preparation we might have

• Simple menu selection, no more than 10 choices
• Orders prepared in a timely manner, customers wait no longer than 15 mins for meals

Coffee making

• To ensure highest quality a standard coffee making procedure is in place, and  used every time

Customer service

• Customers are always acknowledged and welcome immediately upon arrival

Simple but effective, Fred knows what he wants and can also let his staff know how they and the business as a whole will be measured.

Step 4. Make people accountable
Now all we need to do is provide accountability for managing this and then build the various policies and procedures of how to do go about this.

First we will create roles that will be responsible for managing this “Café operations” department.

We create these 4 roles

• Chef
• Maitre ‘d ()
• Waiters
• Coffee barista

Notice we are not using individual names, the reason being is that individuals will come and go throughout the lifetime of a business (including the owner) therefore all we need to do is create roles and then assign people to those roles.

Step 5. Building and sharing the knowhow
Next we will add some procedures relevant to those departments and sub departments

Food preparation

• Our menu
• Our 3 step process to fulfil orders
• Using and cleaning appliances
• Health and safety policy

Coffee making

• Our 3 step method for making coffee

Customer service

• How to greet customers
• When customers complain

Step 6. Assign people to the roles
Final step, assign people , kpis and standards to the roles created.

Step 7. Ensure staff are aware of their responsibilities
Provide induction manuals so all staff are aware of their responsibilities

We have just done a new video about using TKO to design your business.

Freds Cafe Business being designed by TKO

We have done this because TKO is used primarily as a tool to create policies, procedures and job descriptions, however, its other function “a business design tool” is often overlooked. Taking time to structure how your business operates can be one of the most satisfying things you can do, it can bring a renewed sense of clarity to you and your business

This new video shows an example of how you might use TKO in this way. See notes after video link below for further background to the thoughts behind this video.

Have you just started up a new business? Worrying if it will thrive to go on to a successful stage or falter away anytime soon? It’s time you stop worrying and start acting on a few essential rules of managing a business. There are several techniques that can be implemented in the working of an enterprise to make it grow further. As it is a fact that individuals come and go yet systems remain constant. Therefore, it is essential to strengthen the system and then the individuals will automatically fall into the set working pattern. The following are the 10 rules that will help in managing a small business:

• Finding a niche

It is most appropriate for a small business to find a niche. A petite company that is working with limited resources can perfectly serve the niche market. By focusing on a considerably small market stage you can avoid your business from having a head on collision with the giants in the industry. This helps you to grow step by step in your progress graph. For instance, if you own a small spare parts business that sells from tiers to car paints, then dealing with a big brand like Michelin can lead to a total disaster of your business. Hence, it is better to find a niche.

• Magnifying your ideas

A small business has ample of advantages when compared to a small business. When it comes to flexibility, systematization, providing service with a personal touch, and the ability to revert back on time, small businesses are on the winning side. It will be a smart decision to make the maximum use of these benefits. In this way a business will progress gradually. The seniors need to sit and discuss points about including such ideas in the policies and procedures of the business.

•  Distinguishing your products

It is extremely essential for your business to prove that the products that you sell have an edge over the others. You need to apply strong marketing and advertising strategies in order to highlight the benefits and uniqueness of your products. It is also important to study the market trends and products launched by your competitors, but it is also equally vital not to ape them. Rather, try to add that extra zing of creativity to your own merchandises. There must be a few standard operating procedures that will help you enhance the quality of your production.

• Creating the right impression

The first impression matter a great deal as it is responsible to earn goodwill for your small business. Work towards delivering quality products and services to your client’s with accuracy at the first time itself. This will create an everlasting good impression on your client which will in turn bring in more business for your entity. This can be possible only by employing an efficient staff. You need to keep a track of the key performance indicators in order to keep the good work going in the organization.

• Maintaining a reputation

Individuals come and go yet systems remain constant. Similarly, employees come and go but, what stays stable is the reputation earned by the business from the time it started till the present day. Always target at quality and you will surely earn excellent reputation for you company. Two things play a profoundly essential role in earning the right reputation for the business – superior quality products and top class service. If you succeed in achieving these two aspects, then your business will truly thrive!

• Constant efforts for enhancement 

Constant efforts must be made to improve the working conditions of the organization as its progress depends on this factor. Entrepreneurs make sure that they are not stubborn in their ways of taking the company to the next level. One of the techniques can be installing policies and procedures software in the systems so that each employee is aware of the rules that the company follows, this way the entire working staff will be well informed and will function appropriately.

•  Be all ears to your customers

It is wise to keep a track of the recent ins and outs in the market. If you are well updated regarding your customer’s needs then you will greatly flourish in your business. When you take care of your client’s demands, it helps in gaining their trust and earning their loyalty towards your product. Cost free techniques like word-of-mouth and personal recommendation turn out to be an extremely effective marketing strategy for your business.

• Planning is the key

A good team that does all the required planning for the organization is of utmost value. It is better to realize the importance of planning as it helps in managing essential operations like estimating costs, controlling risks, predicting sales, defining various business concepts, promotion of products and services, customer care, etc. Planning is a highly major step in surviving well if you own a small business. It is only through proper planning that you move forward.

• Get innovative

Keep your company upgraded with the latest of technology so that you do not feel like a fish out of water in comparison to your competitors. It is a smart choice to keep pace with the current technological changes and molding your working style accordingly. You can store your old methods as sample policies and procedure templates, while you continue working with latest trends in the industry.

• Smart work is in

If you want to succeed as an entrepreneur then you need to be far-sighted, innovative, and must be able to deal with any kind of crucial situation. You must realize the meaning of mingling work with fun. You need to work on your weakness and appreciate and encourage your juniors. Working smartly will take you on the path that leads to the success of your business.   

Businesses must change, they have to tool up

 Must have software for your business

You decide rightly that you need to document your business policies and procedures, but did you know also, that once you have done and documented and then published your systems to all concerned you have transformed your business!

In this simple act you have given your business a strategic view point as opposed to an event driven, individualistic view point. ..viewpoint provided by Chas Horvath CMS Mentoring

What do you mean “event driven and individualistic viewpoint”?

If your business does not have a set of policies and procedures your business will be driven by events and individuals and the trouble with that is that staff are driven by the events that happen around them and their own personal preferences as opposed to the strategic viewpoint of the business.

3 Steps to writing policies and procedures

1. Decide you want to be strategic, not event or individualistically driven
2. When writing policies and procedures think like a chef and imagine you are writing out a recipe of your favourite dish, keep it simple and straight forward “Just like a recipe”
3. Make sure your system (manuals and documentation) is available to all concerned both print and web

If you ever feel like you’re just treading water and going through the motions in the same old, same old way then there is one commitment you can make this year that will have a dramatic effect on your business and take it to the next level. If you do nothing else this year, make a commitment to systemising and documenting your business operations.

In other words develop a variety of systems of how your business should operate and then develop roles/jobs to work those systems and finally assign individuals to fulfil those roles/jobs.

Below are a few guidelines to help you to develop your systems.

What makes a good system?

• Is comprised of many sub-systems
• Is tried and proven
• Revolves around roles, not individuals
• Is well documented
• Is known and understood by all concerned

What are some of
the systems that you would like to develop?

• A lead generation system
• An accounts receivable system
• A system to ensure OH & S compliance
• A marketing system
• A new manufacturing system
• A scaffold erection and OH&S compliance system

Where do you
begin?

• Pick an area e.g. department where a well documented system is urgently needed.
• Create a new word document and using bullet points or numbers outline the perfect process that you would achieve the desired outcome.
• Once you have the outline then add more specific detail
• Once completed then publish this to your “Operating manuals” using MS Word or other tools like TKO Business Modeller

See latest video below of an example of how you might create your own systems using TKO

If your like me you may feel that sometimes you have a revolving door in your business,  just as you get one person up to speed on your systems another decides it’s time to leave and you seem to get in that never ending cycle of inducting, training and coaching people into new roles.

I am realistic to know, that will never change that’s just part of the job of running a business.

So as business owners what do we do improve this cycle and make it as painless as possible?

 Here are my thoughts on this

1. Systematise the work you want done
2. Work the system yourself and document  it
3. Hire, then induct someone into the role

Systematise the work you want done

 Basically this means to actually document all the functions of a particular role,  this doesn’t necessarily need to be in great detail, just some bullet points will be enough to get started, something like below will do in a word document.

Work in the system yourself for a period of time

Once you have laid out what you want from this new role then work in it yourself for a period of time, this will help you iron out the wrinkles and provide some clarity when you induct someone into the role. While your doing this it’s also a good time to make some notes about it in your policies and procedures system.

Hire or re-assign someone to the role and induct them into the system

Having completed the previous steps it should be a lot easier to choose the right person and then induct them into the role.

Here is a video that might help you

How to induct staff

I thought that this may be a perfect question to pose as the first post in this blog. I for one feel a lack of enthusiasm when trying to create a business plan in fact they are generally boring and are usually made to impress financiers and nothing more.

On the other hand I have discovered a more exciting way of planning and structuring my business and that’s by using the business model approach.

A business model is usually based around this structure below which all points to the customer:

1. Customers – who are your customers?
2. Value propositon – what is your offer to them?
3. Channels – how do you find them?
4. Communicate – how do you communicate with them?
5. Income – what is the expected income from them?
6. Partnerships – who do we need to work with to deliver outcomes to our customers?
7. Activities – what are the activities we undertake to deliver outcomes to our customers?
8. Resources – what resources do we need?
9. Costs – what are the costs to deliver on all the above?

Why this works for me?

Simply, it just makes sense! It’s also structured, making it easy to follow,  it focuses in on your customer and basically provides the essential building blocks that you and your staff can easily follow. To me it helps me build a story of how my business functions.

I have found some interesting sites on this here are just a few below:

www.businessmodelgeneration.com

http://www.businessmodelgeneration.com/canvas