Understanding Your Clients Bus

Understanding Your Client’s
Business to Achieve Results
PERFORMANCE DESIGN LAB

Objectives
At the end of the workshop, you will have:

A mental model for conducting analysis and
profiling your client’s business
A “Three-Levels of Performance” diagnostic
framework based on the Anatomy of Performance
A Process for systematically analyzing
performance improvement opportunities
Tools for analyzing performance problems at the
Organization, Process and Job/Performer Levels
of Performance

2
The Performance Design Lab
Assumptions
You are in a function or role with responsibility for

assisting a client organization be more effective in
producing their product or service.
You are interested in learning strategies and
techniques for improving organization effectiveness.
You are interested in getting out of the cold and this
seemed as good a place as any.

2
Workshop Description
I Overview PC Assumptions

The Anatomy of Performance
II Building a Profile Super-System Map

Business Basics
Relationship Map
Value Chain
Process Map
Human Performance System
Management System
III Using the Profile Responding to Requests

Tools and Templates

3

4
Responding To A Request For Help
The Typical Path
A – Manager has a sense that something’s happening here. What it
is ain’t exactly clear. Hey, look! What’s that sound, everybody look
what’s goin’ down!
B – Calls for help (in most cases is placing and order for a solution)
C – Seldom mentioning a gap in results
• What will you do? What WILL you do?
D – Just say yes?
E – Or go look?

4
Answer? We go with path “E” (maybe)
Examine the situation (A)

Can problem be linked to a gap in Results ( C )
Employ a sound analysis methodology and arrive at
independent conclusion
Work with the requester to define a project to solve the
problem and deliver results ( C )

4
Human Resources

4
Sample Requests
Directions: Place an “x” in the column where an understanding of the

variables illustrated in each component in the Anatomy of Performance
would be helpful in:
Troubleshooting a request for help
Designing an intervention
Add 3 or 4 of your own at the bottom of the matrix

5
Business As A System
Environmental Influences
Government Economy Culture Health Climate
RESOURCES Any Business

Financial
Earnings
Capital capital Stakeholders
Market
Market
Labor human
Market resources
material,
Suppliers equipment
Product/
Service
Research technology
Laboratories
Customers
Customer orders,
Requirements, Feedback
Competition Products
Competition
6
People?
$$
Financial
Stakeholder(s)
Resources
“It”
Customers
Competition
Competition

6
Managing People?
$$
Financial
Stakeholder(s)
Resources
“It”
Customers
Competition
Competition

6
Managing Processes?
•Valuable Products/Services to Customers?
•Performing Value-add Work?
$$
Financial
Stakeholder(s)
Resources
Customers
“It”
Competition
Competition

6
Managing the Value Creation System?
Management
$$
Financial
Stakeholder(s)
Available
Resources
Sold Customers
“It”
Delivered
Competition
Competition

6
Anatomy of Performance Key Points
Every Organization is a Processing System
Every Organization is an Adaptive System
Jobs/roles and functions exist to support processes
All performers exist in a Human Performance System
The role of Management - keep these components aligned

7
Human Resources Context Model
ENTERPRISE
Management
BU 3
Admin
BU 2
Finance
BU 1
IT
Enabler
Human
Resources
Customer

8
Benefits of Know Your Client’s Business
By understanding the Anatomy of Performance, and
profiling your client’s entities, you have a means by
which you can know your client’s business, which
allows you to:
• build credibility and strong relationships with your clients
• increase the speed and accuracy of your response to requests
for assistance
• increase your chances of proactively identifying opportunities
to improve performance
In other words, you can set yourself up for getting better results, faster.

9
Five Key Areas to “Know”
1. The Organization’s Super-System
2. Business Basics
3. The Basic Processing System
4. The Factors that Impact Individual
Performance
5. The Management System

10
The Super-System
and a Tool

12
AJAX Background
CEO
Vice President
Vice President Vice President Vice President Vice President Vice President
Research and
Marketing Sales Production Administration Human Resources
Development
Finance
Regions (4)
Regions (4)
IT
Regions (4)
Districts
(6 per Region )
Sales
Regions
Reps (4)
(8 per District )

13
AJAX Exercise # 1
A. Review the AJAX Super-System map. Note that some data
on the AJAX already appears on the map.
B. Read the background information on AJAX with the
objective of further annotating the AJAX Super-System
map.
C. Annotate the AJAX Super-System map.
D. What are three apparent external threats (i.e., in the Super-
System) to the continuing success of AJAX.
E. What appears to be the greatest potential external
opportunity (i.e., in the Super-System) for AJAX?
F. What is the CBI? Let go of the rest of F and all of G. that
links to the CPI we have already identified?
G. Complete the “Conclusion” column for questions one and
two on the Organization Analysis Worksheet.

14
AJAX Super-System Map
BUSINESS ENVIRONMENT
Government Economy Culture
RESOURCES AJAX
Capital Shareholders
Market (JAX)
Labor Market MARKET
Suppliers Industry
Training Materials
for 5 Courses growth = 6-8%
& Instructor per year for
Training
last 5 years
Research
Laboratories
COMPETITION
products

15
Why Model the Super-System?
It may:
• Explain current pressures you feel inside the
organization
• Provide insight into potential challenges your
client will be facing
• Allow you to link inside issues to outside
realities that will lead to management
support for change

17
The Super-System Model is Scaleable
Business Environment
ANY BUSINESS
Resources
•Goals •Economics
•Strategy •“Culture”
•Policies Shareholders
$ TRAINING DEPARTMENT
BUDGET
Trainer
HR
Got
Analysis Develop Deliver Training
Paper
RM
Power
Point
TECH
Get It
Customers
Want Training
Competition Want It
Competition

18
Super-Duper System Map

19
Your Organization – Super-System Map
RESOURCES YOUR ORGANIZATION SHAREHOLDERS
MARKET
COMPETITION

20
Business Basics
and
A Tool
21
AJAX Business Basics Summary
Please read through pages
22 23 24

Business Basics Template
25 26

The Value Chain and
a Tool
27
Processing System Hierarchy
Economy Legislation Culture
Resources Organization System

Capital Market
Capital Financial
Management Earnings Stakeholders
Processing Human
Resources Consumer Market
System Primary Primary Primary

Customers
Process Process Process Product/

Materials One Two Three Service
Technology
Support Processes
Order for Product/Service
Products/
Resources Competition Services
Value Chain
Product/ Product/ Product/

Service Service Service Product/
Available Sold Delivered Service

28
Processing System Hierarchy – (Cont)
Process Level
“It” “It”
Demand Order for Customer
Developed “It” “It” Ready For
for “It” “It” Relationship
and Enhanced Sunsetted Delivery
Developed Obtained Maintained
Launched
“It”
“It” Order “It” Order Shipped/ “It” Order
Processed Filled Delivered/ Closed
Installed
“It”
“It” Customer Serviced Supported
Sub-Process / Process Step Level
•Need
Understood
Proposal •Proposal
Opportunities Opportunities •Capabilities Order Taken
Prepared and Communicated
Generated Qualified Communicated and Entered
Presented •Sale Closed
•Proposal
Requested
Task / Sub-Task Level

• Information Gathered
• Needs Identified
• Deciders and Users Identified
• Constraints Determined
• Credibility Established
Information Gathered
• Relevant Data Sources Identified
• Interviews Scheduled
28
• Interviews Conducted
• Conclusions Reached and Recorded
Economy Legislation Culture
Resources Organization System

Capital Market
Capital Financial
Management Earnings Stakeholders
Processing Human
Resources Consumer Market
System Primary Primary Primary

Customers
Process Process Process Product/

Materials One Two Three Service
Technology
Support Processes
Order for Product/Service
Products/
Need Results!
Resources Competition Services
Value Chain
Product/ Product/ Product/

Service Service Service Product/
Available Sold Delivered Service
Process Level
l
“It” “It”
Demand Order for Customer
Developed “It” “It” Ready For
for “It” “It” Relationship
and Enhanced Sunsetted Delivery
Developed Obtained Maintained
Launched
“It”
“It” Order “It” Order Shipped/ “It” Order
Processed Filled Delivered/ Closed
Installed
“It”
“It” Customer Serviced Supported
Sub-Process / Process Step Level
•Need
Understood
Proposal •Proposal
Opportunities Opportunities •Capabilities Order Taken
Prepared and Communicated
Generated Qualified Communicated and Entered
Presented •Sale Closed
•Proposal
Requested
Task / Sub-Task Level

• Information Gathered
• Needs Identified
• Deciders and Users Identified
• Constraints Determined
• Credibility Established
Information Gathered
• Relevant Data Sources Identified
• Interviews Scheduled
• Interviews Conducted
• Conclusions Reached and Recorded
Processing System Value Chain
$$
Financial
Stakeholder(s)
Available
Resources
Sold Customers
“It”
Delivered
Competition
Competition

29
“Is” Functional Value Chain Map
"IT "AVAILABLE "IT" SOLD "IT" DELIVERED
MARKETPLACE/ 15
4 13
5 7 Invoice
CUSTOMER Promotional Promotion Buy?
No Order Received &
Received &
Materials Inquiry Instructors Trained
Received Paid
1 3
New Product Promotional Yes
Ideas & Product Materials
MARKETING Specifications Specs Developed &
Developed Distributed Lead
Proposal
Ideas 2
Product
RESEARCH & New Product Support
DEVELOPMENT Developed
Payment
Training
y Product Specs 8 Materials

OPERATIONS
SALES y Training 6
Order Order
Proposal Made Invoice
Completed
FIELD
10
TECH Instructors
SUPPORT Trained
New Product Content & Layout 11

PRODUCTION Order Printed
& Shipped
Order
Order
ADMINISTRATION
FINANCE 9 14 16
Notification of
Order Shipment
Customer Payment
Processed Invoiced Received
Paper
Supplies
PERSONNEL
12
SUPPLIERS Paper Shipped
by Paper
Vendor

30
Looking For Performance Improvement Opportunities
"IT "AVAILABLE "IT" SOLD "IT" DELIVERED
MARKETPLACE/ 15
4 13
CUSTOMER 5 7 Invoice
Promotional Promotion No Order Received &
Inquiry Buy? Received &
Materials Received Instructors Trained
Paid
1 3
New Product Promotional Yes
MARKETING Ideas & Product Materials

Specifications Specs Developed &
Developed Distributed Lead
Proposal
Ideas 2
RESEARCH & New Product
DEVELOPMENT Developed
Payment
Training
y Product Specs 8 Materials

OPERATIONS
SALES y Training 6
Order Order
Proposal Made Invoice
Completed
FIELD
10
TECH
Instructors
SUPPORT Trained
New Product Content & Layout 11

PRODUCTION Order Printed
& Shipped
Order
Order
ADMINISTRATION
9 14 16
Notification of
FINANCE Order Shipment Customer Payment
Processed Paper
Invoiced Received
Supplies
PERSONNEL
12
Paper Shipped
SUPPLIERS by Paper
Vendor
STEP 1 STEP 2 STEP 3 STEP 4

STRATEGIC CHECK – Competitive
Advantage?
Disadvantage?
OPERATIONAL CHECK – Impact on
Revenue?
Cost?
Quality?
Customer
31
Satisfaction?
Understanding Your Client’s Human Capital?

Exercise 2 – Getting Organization Results – Value Chain
TASK 1
Assess the level of alignment
“It” “It” Sold
between the primary processes
Available B (Mktg & Sales)
making up the AJAX Value Chain (NPD)
(shown) by reading the two
A
memos that follow and answering
C
the questions below. “It”
Delivered
(Production)
AJAX Value Chain

32
The Process and A Tool
35
Exercise Three
Review the cross-functional “is” map of the Customer
Order Process. Note where the Sales Rep participates
in this process.
Read the memos on pages 38 and 39.
Identify four to five disconnects.
Summarize your conclusions and actions regarding the
Customer Order Process on the Process Analysis
Worksheet on page 40.

36
AJAX Customer Order Process – “Is” Map
re
m
o Order Clarified Materials Invoice
Credit Problem Received Received
ts Proposal Accepted w/ Customer
u Solved 29 30
1 9
C 13
s s
e s p
al e e Order Order Credit Problem
S a lR Completed Submitted Solved
S
2 3 13
s
p
O n
mi Order Logged
d d
e lA 4
i
F
r y
e
drt Order Order Clarified Order
r O n E
Order Logged
Checked
OK?
No w/ Customer Corrected
5 7
6 8 10
e
c
n
a
n & n g
iF Credit Order Referred Order Order
t ici OK?
d i Yes Checked No to Sales Rep Entered Invoiced
e o 12
11 14 15 27
rC v n
I Yes
n Yes
o l
t ir o
c
ut n Order Inventory Print Order Order
n d o Available?
o oC Logged Checked No Placed Scheduled
r P 18
tc i 16 17 19 21
u n
d o
o
rP t i
c Production Materials
u Special?
d Scheduled Printed No
o 24
rP 20 22
Yes
y g
l n
b Order Assembled
m p ip
Materials 25 Order
e i
h PreAssembled Shipped
s
s S 23 Specials Picked& 28
A & Assembled 26

37
Process Analysis Worksheet
VARIABLES REQUIREMENTS CONCLUSION ACTION
Yes No ?
Outputs 1. Process Outputs and Requirements are:
a. Linked to Organization and Customer Requirements
b. Clear
c. Communicated
Process 2. Process is designed to meet Output requirements

Design
Inputs 3. Inputs/Triggers meet input Standards
Resources 4. Necessary Resources are available
Job Results 5. Job Results as described in “A” for Job ………
Management 6A. Process Performance Planned Component:

System a. In Place
b. Linked and Aligned
c. Being Executed
6B. Process Performance Managed Component

a. In Place
b. Linked and Aligned
c. Being Executed

40
Why Model Processes
Data Storage
Diagnostic
Context for Understanding Jobs

41
Jobs and Processes
1. Jobs (by themselves) do not add value – just cost.

2. When focusing on Jobs:
a. Understand their process context
b. Determine how they contribute to the value delivered to the
customer
c. Understand that improvements of a single Job or Job family,
in isolation:
Could sub-optimize the performance of the Primary Process of
which they are a part
Won’t make much difference unless all key Jobs in the Primary
Process are properly aligned with the process
3. When focusing on supervisory or management jobs,

you must establish how they impact and provide value
to the Primary Process to which they contribute.
42
Linking Processes, Functions and Jobs
Cutomer Order Flow Cross-Functional Roles/Responsibilities Matrix

Function Sales Credit and Production Production Assembly
Process Invoicing Control and Shipping
Customer Step
Order •
Sales •
Taken •
Order
Credit and • •
Entered • •
Invoicing • • •
•
•
Production Order
Control Processed
Functional Roles/Responsibilities Matrix

Job Model
Function: Assembly and Shipping
Job: Assembler
Assembly and Shipping Roles
Assembly and and Responsibilities
Customer Order Shipping
Process Step Outputs Critical Measures Standards Performance Support
Subprocess Steps Assembly Role Shipping Role Mgmt. Role
Dimension Requirements
Incoming Order
•
A. Order Recieved • Received & Reviewed
Order Assembled •
and Shipped •
B. Order Assembled •
•

43
Customer Step
Order •
Sales •
Taken •
Order
Credit and • •
Entered • •
•
•
Production Order
Control Processed

Job Model
Job: Assembler
Incoming Order
•
Order Assembled •
and Shipped •
•

43
Customer Step
Order •
Sales •
Taken •
Order
Credit and • •
Entered • •
•
•
Production Order
Control Processed

Job Model
Job: Assembler
Incoming Order
•
Order Assembled •
and Shipped •
•

43
Customer Step
Order •
Sales •
Taken •
Order
Credit and • •
Entered • •
•
•
Production Order
Control Processed

Job Model
Job: Assembler
Incoming Order
•
Order Assembled •
and Shipped •
•

43
Customer Step
Order •
Sales •
Taken •
Order
Credit and • •
Entered • •
•
•
Production Order
Control Processed

Job Model
Job: Assembler
Incoming Order
•
Order Assembled •
and Shipped •
•

43
Human Performance System and A Tool
44
Troubleshooting the Human Performance System
45
Human Performance System Exercise
Problem: Sales Reps fail to submit

complete order forms.
• Why is this?
Directions:
• Read the memo on page 46
• Use the HPS Template on page 45
• What would you suggest to get the desired
results from the Sales Reps?
The Management System
47
Why Understand the Management System?
In order to be effective, you need to

understand:
• How goals filter down through the
organization
• How plans are developed
• How data moves up through the
organization
• How management meetings are used
• How decisions are made
48
Management Model
Action
PERFORMANCE PLANNED PERFORMANCE MANAGED

Data Expectation
- Expectations Set - Performance Monitored
- Plan Set - Deviations from
- Resources Available Expectations Analyzed
- Action Taken
Action
Direction &
Resources
PERFORMANCE EXECUTED
- Organization RESULTS
- Process

49
The Performance Planned & Managed System –
The Organizational Hierarchy
ANY BUSINESS market/customer needs/competitor situation
Performance Planned Performance Managed
Process goals Process and

Organization
and resource function plans
and goals Performance Performance Corrective
allocation set and budgets
articulated and monitored analyzed action taken
and approved
CEO communicated
communicated
. . .
Organization Process plans

Process goals,
strategy and operational
plans, and
goals relevant to (systems and Performance Performance Corrective
budgets
VP/ process resources in monitored analyzed action taken
Process developed and
articulated and place)
Owner communicated
communicated
. . .
Organization
Function (or sub
and process Function plans
process) goals,
strategy and operational
plans, and Performance Performance Corrective
goals relevant to (systems and
Functional budgets monitored analyzed action taken
Manager function resources in
developed and
articulated and place)
communicated
communicated . . .
Organization,
process, and
function Job goals, plans
strategy and and budgets Job plans Performance Performance Corrective MARKET
First Line goals relevant to developed and operational monitored analyzed action taken
Supervisor job articulated communicated
and
. . .
communicated
Customers
ANY BUSINESS PROCESS
orders, requirements, and feedback

50
Understanding Your Client’s Business
& Processes for Handling Requests &
Tools
51
Human Capital Tracker and Processes
Business Unit Profile

Could include other variables
Tracker (I A) - Human Capital Tracker & Planner
Unit Name:
(A) (B) (C) (D) (E) (F) (G) (H) (I) (J)
Position/ Current Population Anticipated Requirements Anticipated Turnover Net New Required Planned Replacement Planned Replacement Projected Comp Cost Projected Benefits Cost Projected L&D Cost Total Pro
Classification Through L&D Through Hiring
Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q3 Q4 Q5 Q6 Q1 Q2 Q
Plan
Forecast
Actual
Plan
Forecast
Actual
Plan
Forecast
Actual
Plan
Forecast
Actual
Plan
Forecast
Actual
Plan
Forecast
Actual
Plan
Forecast
Actual

52
Human Capital Tracker and Planner Assumptions

53
Strategic Workforce Customization
1 2 3
ANNUALLY
Operational
REVIEW BU OPS PLAN DEVELOP HR SUPP
Goals, Plans, UPDATE PROFILE
&PROFILE W/ CLIENT PLAN
And Budgets
DATA
PROFILE New info
A B
New info
EVENT REQUEST:
GATHER MORE DATA
Event/ ALIGNED W/ PROFILE?
ALIGNED W/HR PLAN?
Request ALIGNED W/HR PLAN?
REQUEST
STRATEGIZE RESPONSE
EVENT/
ALIGNED W/AOP
C D E
UPDATE PLANS
DESIGN DELIVER AND
BUDGET

54
Human Capital Performance Planned & Managed
MANAGEMENT
PLAN & MONITOR
PLAN MONITOR
WEEKLY MONTHLY QUARTERLY

ANNUALLY
VARIANCE VARIANCE VARIANCE
Goals REVIEW
ACTIONS ACTIONS ACTIONS
Targets UPDATE PROFILE
PLAN PLAN PLAN
UPDATE HPS PLAN
EXECUTION EXECUTION EXECUTION
EXECUTE PLAN
DATA
PROFILE HR SUPPORT PLAN UPDATE

REQUEST
EVENT/
DESIGN
INTAKE ANALYZE DEPLOY
DEVELOP
Y/N

55
Quick Analysis Tools
The Problem Pentagon
HPS Analysis and Improvement Guide
Business Case Template

56
The Problem Pentagon
What? Is there a problem?

Where? How general a problem is it?
When? When is it a problem?
Who? Who is the problem?

Worth? Is it important?

57
Business Case Template
I. Background
II. Request
III. Benefits of Requested Initiative
IV. Initiative Detail
V. Cost of Requested Initiative
VI. Potential Return on this Initiative
VII. Decision and Next Steps
VIII. Concurrence on Decision
59
HPS Analysis & Improvement Guide
HPS CHARACTERISTICS HPS TROUBLESHOOTING QUESTIONS AND ANSWERS HPS
COMPONENTS OF THE IDEAL HPS QUESTIONS Yes No ? IMPROVEMENT
ACTIONS
A. PERFORMANCE SPECIFICATION
OUTPUT 1.
Undesired Performance:
2.
Desired Performance:
3.
B. TASK SUPPORT
INPUT 1.
2.
3.
4.
C. CONSEQUENCES
CONSEQUENCES 1.
2.
3.
D. FEEDBACK
FEEDBACK 1.
Situation/Input
2.
Performer:
E. KNOWLEDGE/SKILL
PERFORMER 1.
2.
F. INDIVIDUAL CAPACITY
1.

63
www.PerformanceDesignLab.com
Design Center: Tucson, Arizona
Admin Center: P.O. Box 215,
Belmont MI 49306-0215
(616)-784-1163 (F)
(616)-881-2488
63

Understanding Your Clients Bus

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Understanding Your Clients Bus

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Understanding Your Client’s

Business to Achieve Results

PERFORMANCE DESIGN LAB

 At the end of the workshop, you will have: