BUG Workshop People and Processes 23 February 2010 Scott Harvey

Aim Address some people issues Look at some key business considerations Consider some key business processes But all mixed together!

1. People So who are the groups involved Customers Shareholders Members of staff Owners But also legal, tax and government and international standards and authorities eg CIPS EU UN etc. ( eg the university answers to you as students, to HEFCE on behalf government, to Council as the senior body in the Institution and many others.

2. Generate Income Marketing programmes (7 Ps) – Product – price, – Promotion – Place – Packaging (image) – Positioning (in customer mind) – people New name sales and market understanding (who?) Account development (maintaining and growing) Distribution Discounts and incentives (eg Ice cream in Winter)

3. Stop money going out Buying effectiveness Suppliers Utilisation of materials and time Operating decisions Negotiation including with suppliers

4. Best use of people Clear business goals (mission-vision-strategy- business plan) Organisation structure (see Mintzberg models) Roles and responsibilities Information flow Resource planning and scheduling Evaluation/ training Pay and incentives (eg performance bonus)

5. Optimum use of assets Money, Property, People and Information Depreciation Gearing (Loans to owned capital) Interest levels for loans Stock (and cost of holding) Capacity Utilisation rates

6. Good money management Credit control Reduction of borrowings Investment policy (return on investments)

7. Strong Intangibles Quality Reputation Goodwill Right first time every time Customer relations (by all) Public perception (eg of banks) Good enough is not good enough (eg Ofsted)

8. Profit Raise price – but what’s the trade-off in volume (elasticity) Reduce costs – but what’s the focus on improvement Improve product sales – sell what’s most profitable Increase sales volume – But assess fixed cost impact Reduce capital spending – but check impact on business value/ equity Boston matrix, Ansoff matrix

9. 1% principle Small changes over a number of areas can provide an aggregate benefit that exceeds dramatic change (Lindblom incremental change v step change) and solutions focus 2,000,000 turnover (cost of sales and profit) – 167,000 profit (11.9% profit) 1,833,000 CoS – Apply 1% efficiency to CoS = – 1,814,670 CoS and an extra 18,330 profit

10. Summary Generate income Stop money going out Best use of people Optimum use of assets Good money management Strong intangibles