2. Functionality: the process Agenda Functionality concept.
Importance of definitions Understand the process Summary and Next
Steps What else?
3. Functionality: the processHHL NOTES Choosing Functionality
will assist HHL to get through the second brick wall i.e. creating
clarity and cohesion. The overlaying context in the framework is
responsibility, meaning getting clear on who is responsible for
what in the business. There is value on defining what each term
means to HHL (i.e. spending time on the what level before driving
into the detail). We recommend appointing at least two Project
Champions Going through the five layers of coaching will help
clarify what the strategy will look like and help define the level
of engagement between HHL and Shirlaws.
4. Layers of coaching L1 = Concept L2= Strategy L3 =
Implementation L4 = Next Phase L5 Leverage
5. Recap Project Approach
6. Risk around strategy Strategic: The key to successfully Your
choice adopting this approach is RLD strategy alignment.
7. What is Functionality? / Infrastructure
8. What is Functionality? With responsibility comes ownership.
Functionality is a discipline and structure i.e. non hierarchical.
There is no room for ego, meaning specifically that no roles are
better or more important than others. It is a top down approach to
job roles and responsibilities which allows for everyone to know
what each is responsible for. The context of responsibility creates
empowerment, control, alignment and motivation.
9. What is Functionality?Resources defined into 3 Areas Costs
Strategy Cash flow Growth = Increased margins Profit = Increased
10. What is Functionality?Resources defined into 3 Areas Many
companies spend most of their in red and blue and very little in
black. Long term value is created by spending time in the black
(strategy) area of a company. The spaghetti diagram is an example
of how businesses end up spending too much time in red and
11. Spaghetti Diagram
12. How does the Spaghetti Diagram relateto Functionality? A
common result of the spaghetti diagram is the company ends up
running a Mom and Pop business. Little time is spent on moving the
business forward because all your time is spent on driving short
term value. As a result, job descriptions tend to be unclear.
Responsibility can feel confusing. The good news is that we can
untangle spaghetti and break it into forms. It is important to
define the different functional areas of your business in red, blue
and black terms. By looking at what sits under each area, we can
further identify where the time is spent and begin to pick apart
the spaghetti and set new parameters. You can then choose how you
want to adjust the percentages with the intention of driving
long-term equity into the business. Taking a look at the revenue
chain enables us to understand how you get to spend the time.
13. Key Learnings mid session
14. How does the revenue chain link tofunctionality?
15. How does the revenue chain link tofunctionality?
16. What is Functionality? RBB
17. What is Functionality? RBB How much of the company
resources are spent in blue and red? The consensus was..a lack of
clarity about how much time is spent in each area. It differs
across the board members. 6/9 members spend time in Strategy
roughly 13% of time in BLACK If you dont know where you are, you
dont know where to go Basically the only tool you have to determine
the percentages is your gut.
18. What is Functionality?Resources defined into 3 Areas 30%
13% 57% Costs Equity Cash flowBlue Red = MarginBlack = growth in
capacity tomorrows profit
19. Functionality what are the outcomes Responsibility Cultural
CommercialAlignment Clarity around strategic allocationLess
agreement of resourcesKnowledge KnowledgeReduced staff frustration
EfficiencyEmpowerment More porduction, less effortEveryones
contribution isvaluable (non hierarchical
20. Key points around functionality? Project will stall if
alignment poor or if the Why isnt defined and agreed What rather
than who Upskilling job holders Non hierarchical Consistent
21. What is Functionality? Overview of the process
22. Process to create a functional structure 1. Understand
concept 3. Create Strategy document 2.1 Define present position
Draft definitions functional roles Define present % RBB collect
information Collate information 2.2 Define desired position Define
ideal % Revisit definitions functional roles 2.4 Define key stages
to reach desired position 2.3 Get agreement 3. Implement
23. Creating strategy document 1. Understand concept 3. Create
Strategy document 2.1 Define present position Draft definitions
functional roles Define present % RBB collect information Collate
information 2.2 Define desired position Define ideal % Revisit
definitions functional roles 2.4 Define key stages to reach desired
position 2.3 Get agreement 3. Implement strategy
26. High Level Functionality Chart As-is Board (Dir 1, Dir 2,
Dir 3 etc) CEO CEO name BUSINESS BUSINESS SUPPORT BUSINESS
MANAGEMENT OPERATIONS Staff name M1, M2, M3 Sales & Marketing
M4 Operations M1, M2Information Technology S1 Joint Ventures - ??
Training AllAdministration- S4 Capacity Planning and Mmt M1, M2
Sales S2Secretarial S3 Distribution M3, M4 Marketing - ??Accounting
and Finance S4 Client Management M3, S1 Factory S3Premises
Management S3 Positioning M2, S2 Product Delivery S4, S5Human
Resources S3, S4 New Products S1, S2 Client Services S5Legal S1, S2
Culture M1, M2Compliance S1NB - S1 Staff member 1 etc. M1 Manager 1
27. Review Functionality is non hierarchical; there is no job
more important than another. Functionality is a disciple and
provides structure to the business; there is no room for ego. At
the end of this process there is clarity from top down on who does
what. Trust increases because each person knows what they are
responsible for and more empowered to get the job done. There is
shift in humility and pride at work.
28. Next Steps Appoint two Project Champions Schedule meetings
for at least next month
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