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STARTING UP AND HUMAN CAPITAL MANAGEMENT (Part 2)

People Plus makes companies “agile” to be ahead of the changes in the market


Disruptive Incubator Growth. (D.I.G.)

Overview:


Disruptive Incubator Growth (D.I.G.) is designed to help entrepreneurs create a viable means to succeed in creating and managing a company through the various phases of development.

Key to the success is the attention given to the wants and needs within the market-driven by Human Capital Systems.


This is best achieved through introducing the appropriate systems to gather information on a monthly basis so as to take full advantage of the opportunities within the market – on an ongoing basis. (“Short Cycle Review” catches deviations – positive/negative early in the process)

Company development must continue to stay ahead of the changes in the market.


There are Five Phases of development:

Phase One: (Keys: 1 to 5 people; Own money; Identified needs; Access to market)

Crisis: Trying to sell unwanted/unneeded products or services.


Market: (Marketing) Customers.

  • Research what are the wants and needs within the niche area of the market.

  • Relying on what is available on the internet, and researching potential customers.

  • Research must be verified from several different angles.

Information: (I.T.) Society & Environment.

  • Why are we wanting to enter this section of the market? (Customer Engagement?)

  • How do we plan to satisfy the needs of the potential customers? (Product or Service?)

  • What means do we have to enable us to do this? (Strategic Advantage)

Strategy: (Process) Suppliers.

  • Test to check product/service sustainability (customers) and financial viability.

  • Using available information to formulate the Business Plan. Engagement / Profit

  • Sketch out Vision, Mission, Values, Behaviours, Objectives, Expected Results.

Money: (Finance & Accounting) Shareholders.

  • Use savings, or collective savings from others (Family / Friends) Working Capital.

  • Create a budget and review it on a daily basis. (Simple “money in” / “money out”)

  • “Do not spend more today, than you made in profit yesterday.”

People: (Human Capital) Employees.

  • Identify the ‘critical success factors’ i.e. the roles that need to be fulfilled.

  • Research. Product development. Marketing. Sales. Finance / Accounting.

  • Action Plan: Tasks; Expected output; Deadline; Budget.

Phase Two: (Keys: 5 to 10 People; Revenue; Product / Service; Valid Market Information)

Crisis: Insufficient information on the “critical success factors” to sustain successful results.


Market: (Marketing) Customers.

  • Daily / weekly follow-up on the market research to understand the trends.

  • Create customer targets so as to compare actual to target in the market

  • Beginnings of K.P.I.’s.

Information: (I.T.) Society & Environment.

  • The Monthly Report will be finance, marketing, sales, production/service figures.

  • Information is entered into the computer on a daily basis, consolidated monthly.

  • Information is best presented graphically for quick reference and understanding.

Strategy: (Process) Suppliers.

  • The focus of attention at this stage remains mainly on the customers and market.

  • The additional four people are selected for their expertise, as well as their behaviors.

  • The Business Plan is reviewed on a Monthly Basis and adjusted where necessary (Budget).

Money: (Finance & Accounting) Shareholders.

  • Revenue / Costs are key to the development of the budget. (Sweat Equity is an option).

  • Management of the cash flow is critical to the survival of the company – positive.

  • At this stage, there must be an App or Excel Spreadsheet supporting this information.

People: (Human Capital) Employees.

  • Strength-based identification and development must begin during this phase.

  • Everyone should have an Action Plan that is reviewed on a weekly basis.

  • Action Plan: Tasks; Expected output; Milestones, Deadline; Budget.

Phase Three: (Keys: 10 to 20 people; Profit; QC; Information; Human Asset Development)

Crisis: Lack of proper performance management and two-way flow of information.


Market: (Marketing) Customers.

  • Market research now includes competition or potential competition to ID gaps.

  • Customer Engagement is seen in “repeat business” and “referrals”.

  • Sale is a source of customer information to be directed to marketing.

Information: (I.T.) Society & Environment.

  • The development of the Assertive Communication Suite should begin in this phase.

  • Creating an assertive culture and the participative culture for shared understanding.

  • These two are the forerunners of the Performance-Based Culture.

Strategy: (Process) Suppliers.

  • Due to the rapid rate of change the Business Plan is reviewed on a monthly basis.

  • Key behaviors are identified so as to improve performance. (Forerunner Core Values)

  • The budget is re-aligned to address the changes – positive/negative in the Business Plan.

Money: (Finance & Accounting) Shareholders.

  • Share options made available to employees interested in buying at a lower share price.

  • Job Grading: Performance Evaluation, Top Level Human Capital K.P.A.’s and K.P.I.’s.

  • The top two levels manage their budget inclusive of costs – contribution accountability.

People: (Human Capital) Employees.

  • Job Profile: “Value Added”, Decision Making, K.P.A.’s / K.P.I.’s, Behaviours, Tasks.

  • Selection: (Recruitment / Promotion) Ideal Candidate Profile. “Can Do” / “Will Do”.

  • Bridging Profile: New employees “hit the ground running” translates into Action Plan.

Phase Four: (Keys: 20 to 40 people; Revenue; Costs; Profit; Gain Share; Human Capital)

Crisis: Delegation of accountability and decision making.


Market: (Marketing) Customers.

  • Researching new opportunities upstream, downstream, and laterally.

  • Constantly align the information from the market to the Business Plan.

  • Ensure the Objectives Key Results break down into tasks in the Action Plans.

Information: (I.T.) Society & Environment.

  • Monthly Surveys: Customers (If possible) Employee Engagement. Suppliers.

  • Monthly meetings now review financials, engagements, opportunities.

  • Information is available for all to see on a shared drive.

Strategy: (Process) Suppliers.

  • The focus of attention is on the customers, suppliers, society, and employees.

  • Strength-based identification and development remain a priority – Action Plan.

  • Second Level K.P.I.’s are introduced and reviewed on a monthly basis.

Money: (Finance & Accounting) Shareholders.

  • Sales Pipeline introduced and driven by the opportunities in each Business Plan.

  • Sales K.P.I.’s in terms of “time to make the sale”, “cost of sale”, “money in the bank”.

  • EBITDA.

People: (Human Capital) Employees.

  • Annotated Organisation Chart showing “potential”, “development” & “motivation”.

  • Performance Appraisal aligned with Business Plan using the Action Plan for tasks.

  • The “Smile” program started to confirm key behaviors and Core Values.

Phase Five: (Keys: 40 to 80 people; Profit; QC; Information; )

Crisis: Common focus on the Business Plan. Vertical & Horizontal alignment of K.P.I.’s.


Market: (Marketing) Customers.

  • Strong online engagement as well as product/service engagement.

  • K.P.I.’s: Clicks, Likes, Follow through, Buy-in, Engagement

  • Up to date, accurate and accessible information.

Information: (I.T.) Society & Environment.

  • The continuous flow of information from all five Stakeholders.

  • Stakeholders: Customers, Employees, Shareholders, Suppliers, Society / Environment.

  • Information in short cycle reviews.

Strategy: (Process) Suppliers.

  • A Business Plan is developed with a high level of participation from everyone.

  • Self-Directed Work teams, budget, and K.P.I. are aligned with.

  • Participative Management leading to the Performance-Based Culture

Money: (Finance & Accounting) Shareholders.

  • Better Cost Management leading to continuous improvement of the business.

  • Key Decision Makers.

  • Up to date, accurate and accessible information.

People: (Human Capital) Employees.

  • No Vacant Position” contributing to Individual and team development. (Finding potential employees to fill the "vacant" position, as part of the learning and development process.)

  • Full Assertive Communication suite active at all levels. (Communication is key to getting everyone aligned towards the same goal and objectives.)

  • Performance-Based Culture fully integrated into the organization. (The emphasis on short cycle review with regular feedback session to monitor and measure performance, and promoting trust within the workgroup.)


You can learn more about the PeoplePlus Incubator Hub program, by clicking here. You can also check out our participative management program here. Or contact us here.

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