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Idea Generation, Technical and Business Feasibility,
Prototype Development, Product Design and Development, Process Design and
Development, Market Testing, Product Manufacture and Market Launch.
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Check Out Our
Performance Deliverables
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Recommend and implement proprietary model for Continuous,
Breakthrough Innovation and Profitability
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Recommend and implement proprietary template for generating
new ideas and inventing value added products
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Recommend
and integrate proprietary templates for evaluating the technical and
business merit of new product ideas
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Recommend
methods for building and testing good working prototypes and show why
this is one of the most critical steps in product development
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Recommend
and implement proprietary template for establishing the product's design
criteria, claims, features and benefits, component and overall
performance specifications
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Recommend
proprietary template for concurrent product and process
design/development
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Recommend
and integrate template for getting the most out of market testing
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Recommend
and implement proprietary template for a low in capital and flexible,
sound manufacturing strategy
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Recommend
and integrate a flexible product launch strategy
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Recommend
and institute a powerful new product launch tracking and follow up
strategy
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A Breakthrough
Model for Continuous Innovation & Profits
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Company XYZ
manufactures and markets two product lines: (a) computers and (b) printers,
copiers, faxes. The company has worldwide presence.
The company generates
and tracks daily detailed balance sheet and income statement data per each
of the two product lines for every geographical region (whether it is a
part of or the whole country) which has annual sales of ABC dollars ($US.)
Each business group is assigned a unique name and or code, example, Breakthrough
Business Team 1026 (BBTTM.) Now the specifics:
1. Each BBT forms a
team. Each BBT MUST DELIVER to the company a NET PROFIT of 10% or higher,
depending on industry or market segment standards.
2. The size, scope,
strategy and action plan of each formed team is to achieve this objective.
After all companies exist to make money, among other things.
3. The team manages
this BBT and reports to a senior management sponsor through its
team-appointed leader continuously and as it might be required.
4. The team gets
compensated based on the results of its BBT as well as that of the whole
company (At the beginning, there has to be a transition period where the
compensation is partly fixed salary and partly bonus based.) For
example, the BBT contributes about 70% towards a member's compensation and company
XYZ puts in the remaining 30% or so.
5. This team does
about 70 to 80% of whatever needs to be done for inventing, developing,
manufacturing, marketing, selling and servicing the products within its
BBT. The remaining 20 to 30 % which constitutes certain support groups, are
also rewarded based on performance. However, these groups might be given a
higher percentage of fixed salary (based on overall company yield) and
lower % of bonus.
6. Members should be
willing and able to "put on many different hats" as well as train
each other either on the job or by attending special courses, seminars,
etc. A member can, at times, participate in more than one team.
7. Team members
review their peers based on objective, business performance criteria that
they and senior management establish. High performers get rewarded with
more bonus and an opportunity to move-up in the company. Poor performers
are given the opportunity to basically "shape-up or ship-out." If
they show no improvement over a reasonable period, they are let go. There
is no point to having "dead wood" around.
8. The supplier,
customer and other external groups which might play a key role in a given
BBT's success need to be also engaged. There are many ways to accomplish
that.
9. There is a group
of company members which handles dispute resolution and arbitrates
when issues come-up that are beyond the team leader's ability and/or
responsibility to do so.
10. Each team has
complete and FREE access to information which pertains to its BBT. There is
no need for marketing to tell engineering: "Trust me, I know what the
customer wants this new product to do." Or for engineering,
manufacturing to tell management: "We can not do this, we can not do
that, that's impossible, etc."
Now, the team must go
get the required data, be willing as well as able to solve problems and
make its BBT profitable. If a given team's BBT broadcasts early warning
signals that is not doing well, then there is no bonus and possibly more
severe penalties. Also the team and senior management sponsor know every
moment how the BBT is doing, so they have the opportunity to be proactive
rather than reactive.
The bottom line is the decision making process
is being collapsed to a handful of ultimately responsible (even though
senior management technical is the top authority by company structure) and
intimately knowledgeable, in-house experts who are in continuous contact
with every aspect of the business. This eliminates the many fat layers of
management where decisions are made in sterile corner offices, exec. suits,
conference rooms and everything else but the "trenches" and the
"front line", where it counts.
Obviously there are a
lot of issues which either I purposely left out due to space limitations or
need to be addressed more thoroughly or from a different prospective.
However, this is only a model, not a cure for all ills. Unfortunately, it
is not something that we can buy a book on, read about it, implement its
recommendations and expect breakthrough results.
Company culture plays
a "make or break" role in the successful implementation of this
model. Therefore, we have to keep in mind that the above model needs to be
applied in a slightly different form and must take into consideration many
other things which might be unique to a specific company.
Now, some of you may
wonder: Does this model work? Yes, it does. Just check out a number of
smaller, fast growing companies around you. They might not do all of these
things but do enough of the above to make a difference to their bottom
line.
I have personal
experience in this area both as an ex-employee of a rather large company
for about ten years as well as a consultant to many large, medium size and
smaller start-up ventures for almost eight years. I know what works and
what does not because I am constantly where it counts: in the "front
line" with the customer, suppliers, employees and top management.
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