doing the right things in the right ways

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

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Operating my own practice since 1988, CA since 1985Primary experience with owner operated businessesAcademic background in economics

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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




http://www.teamstart.com/



http://www.infolinc.ca/



What’s in this presentation for you?

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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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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





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Inputs

The basics

$$$$$OutputsYour Business Inc

With resources everywhere, there’s loss of detail, meaning and perspective





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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


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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”


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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





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Business resourcesThe basics and their development through time


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





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





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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





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





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





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





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





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





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Business resourcesWhat’s coming in the foreseeable future


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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




http://www.techcast.org/



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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








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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.









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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









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Ecommerce

These forecasts suggest that various commercial uses of E-Commerce should reach 30% adoption levels by 2015









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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.









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Transportation

A wave of breakthroughs is likely to revolutionize transportation over the next 20 years

Latest Strategic Analyseswww.techcast.org








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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.









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All fieldswww.techcast.org Latest Strategic Analyses








Modern economic resourcesKnow what to manage and how





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


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





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





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Opportunity

Vision

Time Effort

Skills

CapabilitiesIngenuity

Know how

Methods

ReputationExperience

Networks

Information

Legal Rights

Plans & Strategies

PeopleFacilities

Technology

NetworksCapital

Entrepreneurial Resources

Operating Resources

ProprietaryResources



Entrepreneurial ResourcesOpportunity, Vision, Ingenuity and know how, Time, Effort, Skills & capabilities


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





Where do you concentrate your efforts?


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





Proprietary ResourcesNetworks, Methods, Reputation, Experience, Information, Legal Rights


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






Embedding strength into:organization and operationsreputation and brandingcustomer relationshipslegal agreements and rights


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Proprietary ResourcesNetworks, Methods, Reputation, Experience, Information, Legal Rights





Operating ResourcesPlans and Strategies, People, Facilities, Technology, Capital, Networks


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






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 to you keep your overhead?

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As much as possible




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


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


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





The basic resource? If I was to pick


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






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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





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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






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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





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John B Voorpostelchartered accountantadding value, not just numbers

Thank you for your attention and attendance


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doing the right things in the right ways

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john voorpostel

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