The Amazing 80/20 Rule Tool Introduction

Would you be interested in knowing a way to increase your business by 16 times!  Got your attention?  The following material gives an insight into how this is possible.

SM5.0 Theory of Constraint (TOC) Find Remove Bottleneck

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The Theory of Constraints (TOC) is an important optimising technique that focuses on improving the throughput of work at the (usually) single bottleneck or constraint in the workflow.  

This Skills Module draws together a number of the 12Faces articles on the subject.  One research project demonstrated that 89% of improvement in a manufacturing business came from the application of TOC. Yellow Belt.  button LMS subscribe

How to Use Business Diagnostics Tools

12Faces’ Goal for Clients is Sustainable Business Success

Our business diagnostics tools identify weak spots in the 12 facets of your business and your professional development
Then we help choose the ones to work on next to move your business toward its sustainable goals

Sometimes you know what needs workOther times you are unaware of lurking weaknesses.
When you know, we provide tools to use your intuition since you likely know your business and your personal skills very well.  See the DIY Diagnostics tools that offer a quiz to let you track down areas that might need work
When you don’t know, we also provide the sort of impartial, numeric, analysis your CFO would; if you had one.  If you want a more structured diagnosis use our data driven analyses.

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Accounting Report Diagnostics Insufficient

Normal accountant’s reports are not designed to identify structural weaknesses in your business.  They are designed for tax reporting.   Consequently, they are distorted by legislative changes to e.g. depreciation of new assets that don’t help you understand your business.

Six of the 12 faces of the Dodecahedron (your “Dodeca”), that models your business and your Continuing Professional Development (CPD), relate to your business:

  • Revenue
  • Operations
  • Overheads
  • People
  • Systems and 
  • Finance

A good set of diagnostics will monitor each of these, that you think is relevant.

But, your accounts likely fail to measure some at all (eg. people and systems) and some only at a very high level (eg. what are your best products).

Our comprehensive diagnostics packages throw a lot more light on each key lever of your Successful Business Sustainability goal

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As the Business Leader, Your Business Reflects Your Personal Skills  

Every Manager starts at the equivalent of a Martial Arts White Belt  

You learn more as you progress through the stages in your business career; just like a Black Belt martial artist learns and improves.
But, your management training will likely be filling needs as they arise, leaving you unaware of management techniques that would improve your business when properly applied.

The CPD diagnostic tools help you to decide what areas of your personal Continuing Professional Development (CPD) to focus on next. Your aim is to grow you, and your business, as sustainably as possible.

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PDCA means Consistent Improvement Cycles

Or, Do it Once and Do it Well

Just like its best to do Diagnostics methodically, the whole improvement cycle should be approached consistently for reliable results.

We recommend the PDCA cycle popularised by the great success Toyota had with improving its product quality.

PDCA improvement cycle

 

Fixing Something is only a Short Term Solution!

You want confidence it stays fixed!

You need a monitoring framework that alerts you to any parts of your business that are starting to drift away from optimal.

Just like a doctor looks for high blood pressure, our diagnostic tool suite first alerts you to the problem so you can take steps to lower the risk.
Then periodic blood  pressure tests reassure that the problem remains under control and your health is tracking well.

Our tools are designed to continuously monitor the key health signs of your business and clearly highlight any that are deteriorating before they reach dangerous levels.

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 A Business Leader is never Short of Things To Do!

But the wise ones prioritise the big and important issues and focus on them first
This targeted approach improves the business’ health as quickly as possible

The 12Faces diagnostic tools are designed to illuminate those big, important, issues for you to maximise business rapid improvement.

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Inspect Business Diagnostics Tools

Learn More about Business Diagnostics

Using Ratchets to Build Sustainable Business

Home Tune Your Business PerformanceLow Risk Steps to Ratchet Up Improvement Big Leaps Forward are Part of your Business Success Just as Important is Sustaining those  Improvements Our Ratchet System Ensures Best Practice Improve Your Business at Your Own Pace and Direction All Part of our Mission for Your Sustainable Business Success Don’t Slip Back. […]

SM1.0 How 1% Price Change Gave 11% Profit Increase

Price is a major determinant of the profitability of your business!  A price change of as little as 1% can often lead to profit increases of up to 11%.  A consultant study across 1,200 major businesses found that a 1-2% increase in price, assuming demand remained constant, on average would have increased the company’s profit by 11%. Clearly, this could be a quick boost to your company’s profitability.

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For a quick example of the impact of a price change, consider a business turning over $500,000 per year.  Let us further assume that it makes a 5% profit on that, which gives it a profit of $25,000. If it increased its price by 1%, and assuming demand remained constant, that would lead to an extra $5,000 in income. This extra $5,000 over the original $25,000 is a 11% improvement.  This is a yellow belt article.   

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