Supporting recovery through practical tools and support...Maximise use of digital business...

Supporting recovery through practical tools and support the SME Dynamic Recovery Framework Professor Simon Bolton

1

share insights on how to deal with

current challenges

provide free templates and tools that other

companies have used

opportunity to engage with our successful funded programmes

practical tools and support

understand your priorities

p

1theory into practice

2

recovery challenges

Professor Simon Bolton

2

act

stabilise

planre

focu

s

business impact

reduced business

cash flow problems

liquidity issues

structural challenges

time

people

unproductive organisational

structure

unstructured processes

struggling to keeping all plates

spinning

ineffective use of data and

numbers

unclear offer

??

ineffective communication ?

undefined demand

Six Dysfunctions of Business Success Prof Simon Bolton © 2014

2

e

p

e p

undefined demand

unclear offer

ineffective communication


unproductive organisational structure

ineffective use of data and numbers

Please indicate which of these issues you experience in your business

Can select more than one Select one

undefined demand

unclear offer

ineffective communication


unproductive organisational structure

ineffective use of data and numbers

recovery challenges quiz poll

Please select your priority area that you feel you need to addressed

dysfunctions experienced priority area needed to be addressed

2

undefined demand unclear offer ineffective

communicationunstructured

processesunproductive organisational

structure


numbers

frequency of occurrence** 19% 28% 17% 25% 4% 6%

* Prof Simon Bolton 2014 © Six Dysfunctions of Business SuccessInitial sample of 18 regional SMEs**

Key SME Six Dysfunctions*

2

unproductive organisational

structure



spinning


numbers

unclear offer

??

ineffective communication ?

undefined demand

Six Dysfunctions of Business Success Prof Simon Bolton © 2014

2

3

recovery building blocks


recovery actions

recovery focus

recovery tools

recovery process

recovery building blocks

3internal activities

external activities

inte

rnal

act

iviti

es

exte

rnal

act

iviti

es

4

recovery actions


recovery actions

4

Workforce Participation Review employment contracts - terms, requirements, restrictions, responsibilitiesEngage with staff to establish interim fit-for-purpose operating model Implement and monitor safe, connected and flexible working to support staffAdopt regulatory and governance protocolsManage setup for rapid employee return and ramp-upRe-plan strategic growth

Customer Engagement Engage with key customers to support business recoverySecure commercial and financial support from customersDevelop communication strategy with front line employeesReview orders vs commitments and inventoryMaximise use of digital business technologies in customer communication

Supply Chain Measures Identify and categorise supply chain risks

and potential disruptions

Develop contingency plans for operational disruptions

Collaborate with customers and suppliers to prioritise and mutually share infrastructure

Mange inventory and cash flow through mutual consent

Critical Adjustments Conserve cash

Revaluate working capital and liquidity requirements

Control discretionary opex and capexSecure access to short-term financing

facilities and government financial supportEngage with key lenders, suppliers and

customersExit non-core and under-performing assets

internal communication

exte

rnal

com

mun

icat

ion

external engagement

inte

rnal

eng

agem

ent

recovery actions

4

Workforce Participation Review employment contracts - terms, requirements, restrictions, responsibilitiesEngage with staff to establish interim fit-for-purpose operating model Implement and monitor safe, connected and flexible working to support staffAdopt regulatory and governance protocolsManage setup for rapid employee return and ramp-upRe-plan strategic growth

Customer Engagement Engage with key customers to support business recoverySecure commercial and financial support from customersDevelop communication strategy with front line employeesReview orders vs commitments and inventoryMaximise use of digital business technologies in customer communication

Supply Chain Measures Identify and categorise supply chain risks

and potential disruptions

Develop contingency plans for operational disruptions

Collaborate with customers and suppliers to prioritise and mutually share infrastructure

Mange inventory and cash flow through mutual consent

Critical Adjustments Conserve cash

Revaluate working capital and liquidity requirements

Control discretionary opex and capexSecure access to short-term financing

facilities and government financial supportEngage with key lenders, suppliers and

customersExit non-core and under-performing assets

internal communication

exte

rnal

com

mun

icat

ion

external engagement

inte

rnal

eng

agem

ent

examples

5

recovery focus


5

low liquidityhigh liquidity vulnerability

Re-position • Monitor and reduce costs• Reassess product/service portfolio

for short-term gains• Re-forecast cash flows and model

downside scenarios• Develop new growth strategies

Strengthen position • Assess and manage third party

credit and supplier risk• Assess ability to meet meet demand

and or maintain sales

Cash focus • Assess and manage third party

credit and supplier risk• Re-forecast liquidity• Assess ability to meet demand and

or maintain sales

Recovery responses • Understand your customers priorities • Optimise working capital• Establish right-size cost structure• Implement stabilisation strategy• Monitor and review responses

£

low

impa

cthi

gh im

pact

impa

ct

low

impa

cthi

gh im

pact

impa

ct

5

low liquidityhigh liquidity vulnerability

Re-position • Monitor and reduce costs• Reassess product/service portfolio

for short-term gains• Re-forecast cash flows and model

downside scenarios• Develop new growth strategies

Strengthen position • Assess and manage third party

credit and supplier risk• Assess ability to meet meet demand

and or maintain sales

Cash focus • Assess and manage third party

credit and supplier risk• Re-forecast liquidity• Assess ability to meet demand and

or maintain sales• Secure government aid

Recovery responses • Understand your customers priorities • Optimise working capital• Establish right-size cost structure• Implement stabilisation strategy• Monitor and review responses

examples

£

recovery process

6


3

1

2

4

6react

plan

stabilise refocus

management creditorslevel of influence

high

low

com

pany

per

form

ance

insolvency

potential solutions wind-downliquidation

distressed M&A

recovery curve ©

6

1: react 2: plan 3: stabilise 4: refocus

maintaining value

• Understand customers priorities

• Control cash and identify short-term performance action plan

• Maintain services• Deliver on existing

projects• Close deals were

possible• Forecast impact on

costs, people and resources

• Manage staff expectations

• Define and support flexible working practices

• Engage with key customers to agree priorities

• Redefine core business• Establish fit -for-purpose

operating model• Redefine revenue and

costs priorities• Engage staff in targeted

process improvements• Establish measurable

staff activities• Introduce staff

engagement policy• Define flexible working

practices• Provide advice

mechanisms

• Understand customers new priorities

• Support customers to rescale core activities

• Implement new revenue and costs priorities

• Reassess product/service portfolio

• Establish restart options and rescheduling of activities/supply

• Monitor effectiveness of new fit-for-purpose operating structure

• Maintain flexible working practices

• Introduce back to work policy

• Understand the customers new requirements/needs

• Support customers to restart postponed activities

• Monitor KPIs and reduce costs

• Re-forecast cash flows• Revise business models

and growth strategies• Establish new milestones• Monitor and review

product/service portfolio performance

• Launch process and productivity improvements

• Support back to work and maintain flexible working practices

1: Pre-lock down partial closed/home working

Customers Commitments/Requirements

Context 2: Lock down closed/home working

3: Pre restart partial open

4: Restart open

internal and external communication and service options restart services and scalability optionsFocus statements

understanding your customers priorities

agree customer priorities and core services

understanding your customers restart priorities

supporting them to rescaling core activities

understanding the customers new requirements/needs

supporting them to restart postponed activities

Dynamic Recovery Framework ©

People Priorities1 establish measurable staff activities; 2

introduce staff engagement policy; 3 define flexible working practices; 4

provide advice page

introduce activities 1 - 4; develop back to work policy

maintain activities 1 - 3 introduce back to work policy

support back to work, maintain and develop activities 1 - 3

Product Prioritiesforecast impact on

delivering on existing projects; close deals were possible

establish service options be proactive in providing advice

and support

establish restart options and monitor rescheduling of activities/

supplyprovide recovery support plan

Prof Simon Bolton and Michael Banford 23/03/22 © Dynamic Recovery Framework

Practices Prioritiesmaintain and

deliver existing processes, undertake scenario planning

engage staff in targeted process improvements to maximise productivity, customer communication and revised

delivery methods (for example FINANCE/CRM/ERP)

launch process and productivity improvements to support service offers, customer communication and revised

delivery methods (FINANCE/CRM/ERP)

maximise selling/ maintaining contractual activities / retain

contracts

redefine core contractual activities / contracts

implement proactive focussed selling and client relationship

managementrefocussed business plan/modelPerformance Priorities

6

cp

p

sn

recovery process quiz poll

e

Please indicate which phase you are currently

Can select more than one

current phase

react phase

plan phase

stabilise phase

refocus phase

6

Please indicate of the following are your priorities


priorities

e

Please indicate which of these you would benefit from support for

support needed

e

controlling cashflow

forecasting impact on business

understanding changing customer priorities and requirements

redefining the core business

establishing a fit-for-purpose operating model

supporting staffing needs








6

effectivemonitoring

formalised target setting

effective people engagement

systematicoperationalpractices

recovery drivers

maintaining value

mai

ntai

ning

val

ue

building business resilience

build

ing

busi

ness

resi

lienc

e

6

Engaged staff in targeted process improvements to

maximise use of CRM

Revised business plan to maintain current position

Reassessed product/service portfolio

Prioritised key market sectors

Targeted key customer profiles

Engaged staff in targeted process improvements to sales

process



Targeted key customer to undertake productivity improvements to their

CRM systems

recovery tools

7


dynamic recovery framework ©

7Productivity Tool Kit ©

7Worked Case Study Examples

7

productivity tool kit

edgehill.ac.uk/pic/

recovery support

8


identify and fix the leakages that are impacting on

performance

rise above day to day issues to develop a helicopter vision of their

business

see their business through their customers’ eyes

know what to say no to

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practical support and advice

8

Productivity and Innovation Centre

Leading Lancashire Project

Upskilling Lancashire Project

Productivity and innovation support

Leadership Development

Workforce Development

Manufacturing Connect Project

Improving productivity through the adoption and use of business technologies

practical support and advice

effective communication

differentiated products/ services

defined organisational

structure

clear business processes


spinning

productive use of data and

numbers

demand driven offer

Six Attributes of Business Success Prof Simon Bolton © 2019

8

recovery takeaways

9


9

act

planre

focu

s

react1

23

4

plan

stabilise

refocus

9

act

planre

focu

s

react1

23

4

plan

stabilise

refocus

repeat

rapidly

p

recovery takeaway quiz poll 9

please indicate your number one priority that you will focus on tomorrow

e







Select one

next steps

10


Sessions14th May 11.30 am - 12.30 pm1.00 pm - 2.00 pm

28th May 11.30 am - 12.30 pm1.00 pm - 2.00 pm

11th June 11.30 am - 12.30 pm1.00 pm - 2.00 pm

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Diagnostic Template Feedback Follow-up

Complete and send before

session

Join on-line session on

advice on how to use template

Complete and send back and we will provide

same day feedback

We will follow-up two weeks later to discuss

progress

1 2 3

Crisis Recovery Sessions

small group sessions

one-to-one feedback

session structure

sign-up onedgehill.ac.uk/pic/

1hour 1hour

10

contact

edgehill.ac.uk/pic/

Steve McArdleBusiness Development Coordinator

thank you


Paul Bolton

Supporting recovery through practical tools and support...Maximise use of digital business...

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