Presentation on theme: "Key Business Factors Steven Thorne Steven Thorne."— Presentation transcript:
Key Business Factors Steven Thorne Steven Thorne
Overview What are Key Business FactorsWhat are Key Business Factors Understanding Key Business FactorsUnderstanding Key Business Factors George SteinerGeorge Steiner Japanese ApproachJapanese Approach Examples in real worldExamples in real world
Introduction Key Business Factors ?Key Business Factors ? Measures or indicators that are significantly related to the business success of a particular firm.Measures or indicators that are significantly related to the business success of a particular firm.
Understanding Key Business Factors “If you don’t know where you’re going, you probably will not get there.” (Yogi Bera)“If you don’t know where you’re going, you probably will not get there.” (Yogi Bera) Contribute to the overall improvement of a firms business results.Contribute to the overall improvement of a firms business results. Each firm is uniqueEach firm is unique
Understanding KBF’s Factors that all firms must address from the beginning.Factors that all firms must address from the beginning. Good Products and Good ServiceGood Products and Good Service MarketingMarketing SatisfactionSatisfaction Minimization of costsMinimization of costs Managing of AssetsManaging of Assets Cash FlowCash Flow Etc.Etc.
Understanding KBF’s ExampleExample A key business Factor for an organization may be getting the deliveries out fast and reliablyA key business Factor for an organization may be getting the deliveries out fast and reliably
Cross-Functional Teams Teams that enlist people from a variety of Functional groups within the firmTeams that enlist people from a variety of Functional groups within the firm (Dr. Thomas Foster) (Dr. Thomas Foster)
Exercise Form Groups of four to six peopleForm Groups of four to six people Should include a secretary (note-taker)Should include a secretary (note-taker) Brainstorm some key business factors that would be relative for a financial firm or instituteBrainstorm some key business factors that would be relative for a financial firm or institute
George Steiner Study on the Strategic Factors of BusinessStudy on the Strategic Factors of Business Survey to 700 executives, treasures, planners, and others of many Financial InstitutesSurvey to 700 executives, treasures, planners, and others of many Financial Institutes Provided a list of FactorsProvided a list of Factors Asked to rank the importance of each 1-5, 5 being of most importanceAsked to rank the importance of each 1-5, 5 being of most importance
George Steiner Factors for Today’s PerformanceFactors for Today’s Performance Most important factor was to Raise Short-term CapitalMost important factor was to Raise Short-term Capital 2 nd was to Raise debt at low cost2 nd was to Raise debt at low cost Raise equity at low costRaise equity at low cost Get High quality Top ManagementGet High quality Top Management
George Steiner Factors For Future ImportanceFactors For Future Importance The most important factor for the future was to Get High Quality ManagementThe most important factor for the future was to Get High Quality Management Others includedOthers included -Managerial Drive for Profits -Train future Domestic Managers -Better Long-range Planning
George Steiner Top 10 factors listed by Chief Executive OfficersTop 10 factors listed by Chief Executive Officers Get High Quality top managementGet High Quality top management Managerial drive for profitsManagerial drive for profits Train future domestic managersTrain future domestic managers Vigor in sales organizationVigor in sales organization Service to customersService to customers
Japanese Approach Use three variables to determine Key business FactorsUse three variables to determine Key business Factors Business ResultsBusiness Results Employee’s moraleEmployee’s morale Corporate FlexibilityCorporate Flexibility
Business Results Ranking of the top 5 Business factors contributing to Business ResultsRanking of the top 5 Business factors contributing to Business Results Ratio of R&D expenditure to salesRatio of R&D expenditure to sales Ratio of new equipmentRatio of new equipment New-product ratioNew-product ratio Channel of distributionChannel of distribution Employee MoraleEmployee Morale
Employee Morale Top 5 Business factors contributing to Employee MoraleTop 5 Business factors contributing to Employee Morale Wage LevelsWage Levels Level of basic researchLevel of basic research ComputerizationComputerization Human Resource Development for rank and file employeesHuman Resource Development for rank and file employees Level of applied researchLevel of applied research
Corporate Flexibility Top 5 business factors positively contributing to Company flexibilityTop 5 business factors positively contributing to Company flexibility Employee MoraleEmployee Morale Ratio of R&D expenditure to salesRatio of R&D expenditure to sales Overseas strategiesOverseas strategies Presidents TypePresidents Type Business Goals (3 years ago)Business Goals (3 years ago)
Solaris Wireless Key Business FactorsKey Business Factors Retaining Existing CustomersRetaining Existing Customers Cost Efficient and Rapid Delivery of servicesCost Efficient and Rapid Delivery of services 24X724X7 Grow With Your BusinessGrow With Your Business
United States Army Key business factorsKey business factors Rate of deterioration of our infrastructureRate of deterioration of our infrastructure Political Support for studies and projectsPolitical Support for studies and projects Demand for products and services in our areas of expertiseDemand for products and services in our areas of expertise Reputation of the District for delivering quality products and services, on time, within budgetReputation of the District for delivering quality products and services, on time, within budget
U.S. Army KBF’s Cont’d Safety Record on corps projectsSafety Record on corps projects Funding availability and authoritiesFunding availability and authorities Environmental consciousness of the public and the CorpsEnvironmental consciousness of the public and the Corps
Summary Key Business Factors are not easily defined, they often involve team decisions and non bias goals for an organization. The overall objective for identifying Key Business Factors is to improve business results. These results will improve the companies profitability and market share.
Bibliography Shimizu, Ryuei. Success Factors. Tokyo: Chikuro Shobo, 1989. Steiner, George. Strategic Factors in Business. New york: Financial Executives Research Foundation, 1969. Resnik, Paul. The Small Business Bible. New York: John Wiley & Sons, 1988.
Bibliography cont’d www.mvs.usace.army.mil/stra_pla n.pdfwww.mvs.usace.army.mil/stra_pla n.pdf. 15 February 2001. www.mvs.usace.army.mil/stra_pla n.pdf www.sun.com/solaris/ds/ds- solariswirelesswww.sun.com/solaris/ds/ds- solariswireless. 13 February 2001. www.sun.com/solaris/ds/ds- solariswireless