Key Management Models by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
This presentation is a collection of PowerPoint diagrams and
templates used to convey 30 different key management frameworks
and models.
Key Management Models
Diagrams and Templates of Key Management
Frameworks and Models

© Operational Excellence Consulting. All rights reserved. 2
Contents
Strategy
1. Ansoff’s Growth Matrix
2. Business Model Canvas
3. SWOT Analysis
4. Porter’s Five Forces
5. PEST Analysis
Organization & Governance
6. Balanced Scorecard
7. The McKinsey 7S Framework
8. The Xerox Benchmarking Model
9. Porter’s Value Chain
Finance
10. Activity-Based Costing
11. DuPont Analysis
Marketing & Sales
12. Kotler’s 4P’s of Marketing
13. MABA Analysis
14. Customer Journey Mapping
15. Power/Interest Grid for Stakeholder Prioritization
Operations
16. Root Cause Analysis
17. House of Gemba
18. Lean Management Model (Toyota Production
System)
19. Value Stream Mapping
20. Six Sigma
Innovation
21. Disruptive Innovation Model
22. Innovation Circle Model
23. Stage-Gate Model
Change Management
24. Kotter’s Eight Phases of Change
25. Belbin’s Team Roles
26. The Deming Cycle: Plan-Do-Check-Act
Leadership & Management
27. Hamel & Prahalad’s Core Competences Model
28. Ofman’s Core Quadrants
29. Hofstede’s Cultural Dimensions
30. Covey’s Seven Habits of Highly Effective People
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The Ansoff Growth Matrix offers a logical way of determining the scope
and direction of a firm’s strategic development in the marketplace
Ansoff’s Growth Matrix
Source: Ansoff
Product
Development
Market
Penetration
Market
Development
Diversification
Product
Market
NewCurrent
CurrentNew

The Business Model Canvas is a visual tool for generating new
business models and ideas for and new ways of doing business
Business Model Canvas
Source: www.businessmodelgeneration.com
Customers
Customer
Relationships
Key
Activities
Key
Partners
Costs
Key
Resources Channels Revenue
Value
Proposition

The Business Model Canvas consists of nine generic building blocks
Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
What are our Key Partners?
Who are our Key Suppliers?
Which Key Resources are we
acquiring from partners?
Which Key Activities do partners
perform?
What Key Activities do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
What do we deliver to the
customer?
Which one of our customer’s
problems are we helping to
solve?
What bundles of products and
services are we offering to each
Customer Segment?
Which customer needs are we
satisfying?
What type of relationships does
each of our Customer Segment
expect us to establish and
maintain with them?
Which ones have we
established?
How are they integrated with the
rest of our business model?
How costly are they?
For whom are we creating
value?
Who are our most important
customers?
What Key Resources do our
Value Propositions require?
Our Distribution Channels?
Customer Relationships?
Revenue Streams?
Through which Channels do our
Customer Segments want to be
reached?
How are we reaching them now?
How are our Channels
integrated?
Which ones worked best?
Which ones are most cost-
efficient?
How are we integrating them
with customer routines?
What are the most important costs inherent in our business model?
Which Key Resources are most expensive?
Which Key Activities are most expensive?
For what value are our customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
Source: www.businessmodelgeneration.com

SWOT analysis is a structured planning method used in business to
evaluate the strengths, weaknesses, opportunities and threats
Harmful
to achieving the objective
Helpful
to achieving the objective
External
(attributesoftheenvironment)
Internal
(attributesoftheorganization)
Strengths
Analysis of the
organic business
Weaknesses
Analysis of
competitors
Opportunities Threats
Analysis of markets
and trends
Analysis of the business
environment
SWOT Analysis

PEST Analysis looks at “big picture” factors that might influence a
decision, a market, or a potential new business or project
PEST Analysis
 Government type
 Government
stability
 Freedom of press,
rule of law,
bureaucracy and
corruption
 Regulation and de-
regulation trends
 Employment
legislation
 Likely political
change
 Impact of emerging
technologies
 Impact of internet
and reduced
communication
costs
 Research and
development
activity
 Impact of
technology transfer
 Likely
technological
change
Political Technological
 Population growth /
age profile
 Health, education
and social mobility
 Employment
patterns and
attitudes to work
 Press, public
opinion, attitudes
and taboos
 Lifestyle choices
 Likely socio-
cultural change
Social
 Business cycle
stage
 Growth, inflation
and interest rates
 Unemployment,
labor supply and
labor costs
 Disposable income
and distribution
 Globalization
 Likely economic
change
Economic

The Balanced Scorecard focuses the entire organization on financial
and non-financial outcomes
FINANCIAL
BUSINESS PROCESSES
Vision
and
Strategy
To succeed financially, how
should we appear to our
shareholders?
LEARNING & GROWTH
CUSTOMERS
To achieve our vision, how will
we sustain our ability to change
and improve?
To achieve our vision, how
should we appear to our
customers?
To satisfy our shareholders and
customers, what business
processes must we excel at?
Source: Kaplan & Norton
The Balanced Scorecard

The McKinsey 7-S framework involves seven interdependent factors
which are categorized as either “hard” or “soft” elements
Source: McKinsey
The McKinsey 7-S Framework
Structure
SystemsStyle
Staff
Skills Strategy
Shared
Values
Soft Elements
Hard Elements

1. IDENTIFY WHAT IS TO BE BENCHMARKED
2. IDENTIFY COMPARATIVE COMPANIES
3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA
4. DETERMINE CURRENT PERFORMANCE “GAP”
5. PROJECT FUTURE PEROFMANCE LEVELS
6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE
7. ESTABLISH FUNCTIONAL GOALS
8. DEVELOP ACTION PLANS
9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS
10. RECALIBRATE BENCHMARKS
 LEADERSHIP POSITION ATTAINED
 PRACTICES FULLY INTEGRATED INTO PROCESSES
Phase 1:
PLANNING
Phase 2:
ANALYSIS
Phase 3:
INTEGRATION
Phase 4:
ACTION
MATURITY
The Xerox Benchmarking Model helps to identify best practices which
can be adapted to improve business competitiveness
Source: Robert C. Camp
Xerox Benchmarking Model

1. IDENTIFY WHAT IS TO BE BENCHMARKED
2. IDENTIFY COMPARATIVE COMPANIES
3. DETERMINE DATA COLLECTION METHOD AND COLLECT DATA
4. DETERMINE CURRENT PERFORMANCE “GAP”
5. PROJECT FUTURE PEROFMANCE LEVELS
6. COMMUNICATE BENCHMARK FINDINGS AND GAIN ACCEPTANCE
7. ESTABLISH FUNCTIONAL GOALS
8. DEVELOP ACTION PLANS
9. IMPLEMENT SPECIFIC ACTIONS AND MONITOR PROGRESS
10. RECALIBRATE BENCHMARKS
 LEADERSHIP POSITION ATTAINED
 PRACTICES FULLY INTEGRATED INTO PROCESSES
Phase 1:
PLANNING
Phase 2:
ANALYSIS
Phase 3:
INTEGRATION
Phase 4:
ACTION
MATURITY
Insert Header
Source: Robert C. Camp
Insert bumper – takeaway statement
Xerox Benchmarking Model (TEMPLATE)

Porter’s Value Chain enables a firm to gain insight into how to
maximize value creation while minimizing costs
Porter’s Value Chain
SUPPORTACTIVITIESPRIMARYACTIVITIES
Firm Infrastructure
Procurement
Human Resource Management
Technology Development
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
& Sales
Service
Source: Michael Porter

Activity-Based Costing (ABC) identifies opportunities for improving
the effectiveness and efficiency of business processes by
determining the ‘true’ cost of a product or service
ABC Model
RESOURCES
By Department
ACTIVITY COSTS
By Department
COSTS OBJECT COST
Product, Customer, Channel, etc.
Resource drivers
Activity drivers
Everything in the
organization
What is actually
being done
Products, services,
customers, markets,
channels, etc.
(how much resources
an activity requires)
(how much an object
utilizes an activity)
Source: Kaplan & Cooper

The DuPont analysis helps to determine the factors that most
influence profitability
DuPont Analysis
$
Sales
_
$
Cost of
goods sold
$
Variable
expenses
+
$
Fixed
expenses
$
Inventory
+
$
Accounts
receivable
+
$
Other current
assets
$
Gross margin
_
$
Current assets
+
$
Fixed assets
$
Total
expenses
_
$
Income taxes
$
Sales
+
$
Total assets
$
Net profit
+
$
Sales%
Net profit
margin
Asset
turnover
Net profit
Net sales
Net sales
Total assets
x
%
Return on
assets
Net profit
Total assets
Financial
leverage
Total assets
Net worth
Return on
net worth
Net profit
Net worth
x=
x=
Source: Bodie

The 4 Ps (or marketing mix) is a description of the strategic position
of a product in the marketplace
4 Ps of Marketing
Source: Kotler, P. and Keller, K.L.
Do you actually
produce what your
customers want?
How much are your
customers willing to
pay?
Product
Price
Are your products
available in the right
quantities, in the right
place, at the right
time?
Place
How can you best
inform/educate groups
of customers about
your organization and
its products
Promotion
Marketing
Mix

The MABA analysis compares the relative market attractiveness (MA) of a
business activity or product-market combination with business
attractiveness (BA), as determined by the ability to operate in a specific
product-market combination
Source: Kotler, 2000
MABA Analysis
Business attractiveness
Marketattractiveness
High MA, but low BA
Least attractive
Highly attractive
High BA, but low MA
Relative small, but
attractive opportunity
Medium sized, quite
attractive market in
which the company
holds a 35% market
share
Large market, yet not
a very attractive
opportunity
Average
Note: By using a bubble instead of a dot, one may indicate the (relative) size of the market.
Additionally or alternatively, a slice of the pie could indicate the market share of the company.

Customer
Actions
Activity Phase
Touchpoints
Thinking
Feeling
Backend
Processes
Look at café
surroundings
Entrance / Posters
Am I entering the
right place?
Walk around the
cafe
Café space
Can I find seats?
Queue at the
counter to be served
Counter / Price
display
How much does it
costs?
Payment process
Seated at the table
Seat
Ah… 
Clearing the tables
Wait at the counter
Counter
How long do I have
to wait?
Brew the coffee
+
-
Enter Starbucks Find Seat Buy Coffee Wait for Coffee Drink Coffee
Customer Journey Mapping is a method of documenting and
visualizing the experiences the customers have with your
organization with the intention of improving these interactions
Customer Journey Mapping – An Example

The Power/Interest Grid for Stakeholder Prioritization is a useful tool for
stakeholder analysis in the change management process
The Power/Interest Grid
Manage
Closely
Keep
Satisfied
Monitor
(Minimum Effort)
Keep
Informed
Interest
Power
HighLow
Low
High

The four sources of variability in a system are used to understand
root causes (Service)
Source: Adapted from Kaoru Ishikawa
Process
Technology
People
Policy
Output
Causes Effect
Root Cause Analysis (Service)

The House of Gemba defines a management framework for achieving
excellence in Quality, Cost and Delivery (QCD)
Profit
Management
Cost
Management
Quality
& Safety
Management
Logistics
Management
Worker’s
Operations
Equipment Products
& Materials
Standardization
5S
Muda Elimination
Morale Enhancement
QC Circles
Self-discipline
Suggestions
Teamwork
Visual Management
Information
Source: Masaaki Imai

Lean management framework provides a holistic approach to
improving speed and quality
Source: Adapted from Toyota Production System
Lean Management Model (a.k.a. Toyota Production System)
Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
Stability
Standardization
Just-In-Time
Jidoka
Involvement
1
2
3
4
5
1
2
3 4
5

• Creates an end-to-end view of the system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier
Management
Control
Customer
Work & Information Flow
Information flow
Value stream mapping provides a holistic view of the end-to-end
business process and highlights opportunities for improvement
Value Stream Map

Create
Implementation
Plan
Design
Future
State Document
Current State
Define
Product
Family
 Define and scope
problem
 Pick product family
 Determine VSM objective
and benefits
 Create VSM charter
 Map current state value
stream
 Quantify current state
value stream performance
 Analyze and identify
improvement
opportunities
 Develop future state
value stream map
 Prioritize improvement
projects
 Develop implementation
plan
 Seek management
approval
 Implement the plan
and monitor
progress
Value Stream Mapping Roadmap
1
2
3
4

Six Sigma DMAIC is a data-driven improvement cycle used for
improving, optimizing and stabilizing business processes
Six Sigma
DMAIC
Roadmap
Improve
Measure
Analyze
Define
Control
Define the problem
or opportunity
Measure the current
performance and
capability
Analyse to identify
root causes
Improve by
implementing potential
solutions
Control by
standardizing solution
and monitoring
performance
Six Sigma DMAIC Model

Disruptive Innovation is an innovation that leads to a product or
service designed for a new set of customers
Source: Christensen, Raynor & Mcdonald
Disruptive Innovation Model
Time
PRODUCT
PERFORMANCE
Higher
Lower

The Innovation Circle is a model for analyzing and managing the life
cycle of a new innovation
Source: Krebbekx & de Wolf
Innovation Circle Model
Function
Creation
Process
Market
Introduction
Order
Realization
Process
Utilization Receive
incentives
Generate
ideas
Product
Creation
Process
Service
Realization
Process
Creation
Implementation
Capitalization

The Stage-Gate Model takes the process of developing an idea from
inception to launch and divides it into stages, separated by gates
Stage-Gate Model
Source: Cooper, Edgett & Kleinschmidt
Gate
1
Gate
2
Gate
3
Gate
4
Gate
5
Stage
1
Stage
2
Stage
3
Stage
4
Stage
5
Idea
Initial
screen
Decision on
business
case
Pre-
commercialization
business analysis
Post
development
review
Preliminary
investigation
Detailed
investigation
(build business
case)
Development Full production
and market
launch
Testing and
validation

Kotter’s Eight Phases of Change
Source: John Kotter
Need for
Change
Change
Behavior
Change
Direction
Change
Sustainability
1. Establish a
Sense of
Urgency
2. Form a
Powerful
Guiding
Coalition
3. Create a
Vision
4.
Communicate
the Vision
5. Empower
Others to Act
on the Vision
6. Plan for and
Create Short
Term Wins
7. Consolidate
Improvements
& Produce
More Change
8.
Institutionalize
New
Approaches
Committed
Leadership
Kotter’s Eight Phases of Change

Belbin’s Team Roles Model identifies nine team roles that underlie
team success and can be used to develop its strengths and manage
its weaknesses
Belbin’s Team Roles Model
Source: Dr Meredith Belbin
Action Oriented Roles Shaper Challenges the team to improve
Implementer Puts ideas into action
Completer Finisher Ensures through, timely completion
People Oriented Roles Coordinator Acts as a chairperson
Team Worker Encourages cooperation
Resource Investigator Explores outside opportunities
Thought Oriented Roles Plant Presents new ideas and approaches
Monitor-Evaluator Analyzes the options
Specialist Provides specialized skills

The Core Competences Model helps organizations to identify the key
competences that contribute the most towards achieving strategic
results
Source: Adapted from Gary Hamel & C.K. Prahalad
Current New
Core Competences
Businesses
CurrentNew
Fill in the blanks Premier
plus 10
Mega
opportunities
White space
Core Competences Model

Long-term
Orientation
Masculinity/
Femininity
Individualism/Co
llectivism
Uncertainty
Avoidance
Power
Distance
Cultural
Differences
Hofstede’s cultural dimensions can be used to develop an effective
strategy to cooperate with people from various countries
Source: G. Hofstede
Hofstede’s Cultural Dimensions Model

Covey’s Seven Habits is a powerful model for personal change and
leading change
Source: Stephen Covey
Covey’s 7 Habits Model
Interdependence
Independence
Dependence
PUBLIC
VICTORY
PRIVATE
VICTORY
1
Be
Proactive
2
Begin with
The End in Mind
3
Put First
Things First
Think
Win-Win
4
Seek First to Understand,
Then to Be
Understood
5
Synergize
6

About Operational Excellence
Consulting

About Operational Excellence
Consulting
• Operational Excellence Consulting is a management
training and consulting firm that assists organizations in
improving business performance and effectiveness.
• The firm’s mission is to create business value for
organizations through innovative operational excellence
management training and consulting solutions.
• OEC takes a unique “beyond the tools” approach to enable
clients develop internal capabilities and cultural
transformation to achieve sustainable world-class excellence
and competitive advantage. For more information, please visit
www.oeconsulting.com.sg

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