1. © Tesseract Management Systems / Managing by Design / 2002 - 1 MANAGING BY DESIGN Diagrams for Section A This set of slides contains the diagrams contained in Section A of the book ‘Managing by Design’. Please do not attempt to use these slides as part of a presentation until you have read and fully understood the relevant sections of ‘Managing by Design’, and you are clear on the points you wish to make with them.

2. © Tesseract Management Systems / Managing by Design / 2002 - 2 Abstraction & Detail Cars Increasing abstraction Increasing detail Motor vehicles Transport     

3. © Tesseract Management Systems / Managing by Design / 2002 - 3 Are all objectives of equal importance? Provide excellent customer service Generate profits Develop our people Sustain the environment Conform to legal requirements Maximise our future potential

4. © Tesseract Management Systems / Managing by Design / 2002 - 4 WHY HOW CHART: Cylek Extract 1 Provide excellent customer service Increase customer satisfaction Control market direction Improve product value Establish production and product standards Ensure continuity and timeliness of supply Improve product quality and reliability Improve internal communic- ation

5. © Tesseract Management Systems / Managing by Design / 2002 - 5 WHY HOW CHART: Cylek Extract 2 Generate profits Increase customer satisfaction Maximise our future potential Control market direction Maximise licence revenue

6. © Tesseract Management Systems / Managing by Design / 2002 - 6 WHY HOW CHART: Cylek Extract 3 Build on leadership in platform technology Build effective supplier partnerships Maximise our future potential Control market direction Improve product value Maximise licence revenue Establish production and product standards

7. © Tesseract Management Systems / Managing by Design / 2002 - 7 WHY HOW CHART: Cylek UK

8. © Tesseract Management Systems / Managing by Design / 2002 - 8 WHY HOW: Cylek Objectives

9. © Tesseract Management Systems / Managing by Design / 2002 - 9 Extract of Cylek Objectives

10. © Tesseract Management Systems / Managing by Design / 2002 - 10 Design: for products (or businesses) Potential and resources Need and opportunity Cost Standardisation Reliability Consistency Functionality Innovation Sexiness Fashion (Niche) (Freedom) (Image) ( Responsiveness ) (Commodity) (Synergy) (Integrity) (Sustainability) CONFIGURATIONCONFIGURATION CONFIGURATIONCONFIGURATION

11. © Tesseract Management Systems / Managing by Design / 2002 - 11 Alignment Diagrams

12. © Tesseract Management Systems / Managing by Design / 2002 - 12 And then a miracle occurs… “I think we may need a little more clarity around step 2” abªµ 4ß ψ Σ 1 -α-α … and then a miracle occurs… 2.317

13. © Tesseract Management Systems / Managing by Design / 2002 - 13 Example Plan Understand the need and energy for change in the organisation Develop a common top-level vision in the management team Understand the main areas of shortfall (both hard and soft) Develop a top-level plan and strategy for moving forward Sell the overall strategy to people in each key area of the plan Develop lower-level visions in each area to support top-level Reconcile different level visions to ensure they work together Understand the main areas of shortfall in the lower-levels Develop lower-level plans and strategies for moving forward Week number:123456789101112

14. © Tesseract Management Systems / Managing by Design / 2002 - 14 Imagine our group has been called upon by ‘Harvard Business Review’ to judge a competition to identify the best: The competition has applicants from 3 companies: (Our organisation has been asked to be an independent judge and so cannot take part). We are allowed to see whatever we want, and to talk to whoever we want in selecting the winner. On what criteria do we base our decision? The competition question

15. © Tesseract Management Systems / Managing by Design / 2002 - 15 Cylek’s competition answers? Customer satisfaction survey score Level of repeat business Business growth (in terms of turnover) Profitability (as value and percent of turnover) % Innovations introduced ahead of competition % Sales from products less than 2 years old % Competence growth (e.g. against skills matrix) Employee satisfaction survey score Business partner satisfaction survey score % Vacancies recruited internally % Levels of waste and rework % Annual process performance improvement Product comparison ranking (independent press)

16. © Tesseract Management Systems / Managing by Design / 2002 - 16 Scientific Approach Question Imagine you are a team of scientists and engineers appointed by the benevolent owner of “Deep Thought” Ltd. (an organisation in the same business as your own) to improve its performance. You have no management skills, but are expert in the creative thinking and objective analysis that your discipline requires. It is for this, and your naivety in traditional management, that you have been selected. You are empowered to change anything, as long as you apply your professional discipline in doing so, but must not get embroiled in the day to day operation yourself. How do you begin to delight your new boss?

17. © Tesseract Management Systems / Managing by Design / 2002 - 17 Checklist for the Scientists Typical scientific approaches: n Business case n Design specification n Literature survey n Analytical evaluation n Systems analysis n Instrumentation n Experimentation n Project plan And their management counterparts: n Strategic planning n Objectives and business goals n Benchmarking / conferences n Audit and review n Process mapping n Performance measurement n Piloting n Planning

18. © Tesseract Management Systems / Managing by Design / 2002 - 18 Professional Model Results Operational randd Process variables Fundamental randd Professional approach

19. © Tesseract Management Systems / Managing by Design / 2002 - 19 Professional Management? Results Operational randd Process variables ?

20. © Tesseract Management Systems / Managing by Design / 2002 - 20 Bottom Box  Doing  Resolving  Deciding  Adjusting ...

21. © Tesseract Management Systems / Managing by Design / 2002 - 21 Top Box  Doing  Resolving  Deciding  Adjusting ...  Designing  Analysing  Experiment ...

22. © Tesseract Management Systems / Managing by Design / 2002 - 22 Picture of QFD on wall

23. © Tesseract Management Systems / Managing by Design / 2002 - 23 Simple QFD Example Grid OBJECTIVESOBJECTIVES PROCESSES

24. © Tesseract Management Systems / Managing by Design / 2002 - 24 Richard’s Objectives for Cylek UK Address new market areas Provide excellent customer service Build leadership in platform technology Reduce production and delivery lead times Maximise asset utilisation (incl. IPR) Reduce unit production costs Build effective supplier partnerships Business from new markets Customer retention Innovations copied by competition Production cycle Asset utilisation Cost of goods sold Supplier led business

25. © Tesseract Management Systems / Managing by Design / 2002 - 25 Objectives and Measures Address new market areas Provide excellent customer service Build leadership in platform technology Reduce production and delivery lead times Maximise asset utilisation (incl. IPR) Reduce unit production costs Build effective supplier partnerships Business from new markets Customer retention Innovations copied by competition Production cycle Asset utilisation Cost of goods sold Supplier led business

26. © Tesseract Management Systems / Managing by Design / 2002 - 26 Top Level Process Map Provide & maintain facilities Plan & distribute products Provide & maintain quality mgt. system Manufacture product Ensure compliance Provide, enable & develop people Plan and control finances Develop information system Support (control) Support (enable) Primary process Provide & maintain supply line Introduce & maintain products/processes Develop new business

27. © Tesseract Management Systems / Managing by Design / 2002 - 27 Ranking the Mechanisms Develop new business Provide and maintain facilities Ensure compliance 3 5 4 2 3 4 1 813889 Ranking Wt. Address new market areas Provide excellent customer service Build leadership in platform technology Reduce production and delivery lead times Maximise asset utilisation (incl. IPR) Reduce unit production costs Build effective supplier partnerships x 1 x 1 + x 1 + x 9 + x 3 = 38 3 5 2 4 Key to QFD symbols Critical: the process is fundamental to progressing the objective Major: the process is key to achieving the target performance Significant: the process will significantly contribute to the result

28. © Tesseract Management Systems / Managing by Design / 2002 - 28 Simple QFD Example Complete OBJECTIVESOBJECTIVES PROCESSES MEASURESMEASURES TARGETSTARGETS ROOF IMPROVEMENTS