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HHL Functionality Project - Strategy Phase
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Hhl functionality

Nov 11, 2014

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  • 1. HHL Functionality Project - StrategyPhase
  • 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 valuation
  • 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 blue.
  • 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 definitions key
  • 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 strategy
  • 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
  • 24. Creating strategy document
  • 25. Resource Management E.g. As-Is % % % Manger 1 10% 17.5% 72.5% Manager 2 37% 24% 39% Manager 3 5% 20% 75% Management 17% 21% 62% Overall Staff 1 31% 15% 54% Staff 2 85%* 0% 15%* Staff 3 14% 3% 83% Staff 4 100% 0% 0% Staff 5 1% 20% 79% Staff 6 100% 0% 0% Overall 43% 11% 46%
  • 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 etc.
  • 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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