The Delos Integrated Business Model
The Delos Model provides a complete Business Operating Model for any company wanting to deliver a World Class experience to its customers. Companies often engage in buying IT systems, wrongly believing these will provide the solution. The answer lies in implementing all of the elements of the Delos Model, and not just a system.
Every business should have a clear vision of why they will be where they will be in 10-20 years’ time. It is shared with all employees who should easily be able to say what it is. It should state why you are in business, your passion, and what unique proposition you are offering to customers. An example is “To give ordinary folk the chance to buy the same thing as rich people.” – Wal-Mart.
Each year a company should create a three-year plan which is based on realistic assumptions about the scope and direction of the business. It is based on a thorough SWOT analysis, and clearly states the resource requirements to achieve the strategy. It should have a clear focus on the company’s market discipline – either Customer Focus, Operational Excellence, or Product Leadership. Lack of focus leads to failure. It should provide a clear direction for all functions, supported by the Key Performance Indicators and Critical Success Factors required to achieve the strategy.
Companies should have an integrated set of processes. These are built around Delos’ Integrated Business Planning process (Advanced SOP). The key processes are Innovation (management of new things), Demand (all things to do with getting customers to buy from you), Supply (all things to do with the acquisition of goods and services) and Support (a catch-all title for Finance. Human Resources and Information Resources).
All data in use in the business should be > 98% accurate, which is achieved through clear accountability for the accuracy of the data. Examples include Inventory and Work-in-Process, Bills of Materials/Recipes, Routings, Planning Data. Dynamic data such as Customer Orders, Purchase Orders and Works Orders should also be > 98 % accurate.
The business should be managed through a consistent set of KPIs which drive the right behaviour. These include On Time In Full (OTIF), Forecast Accuracy, Schedule Achievement and Right First Time. Delos recommends seven KPIs. The reward and bonus structure should be built around these, and not actual vs budget or efficiency, for instance. Targets, and Milestones should be built into peoples’ personal objectives.
People should genuinely feel empowered and are a real asset to the business. They work in teams, with common goals, and not within functional silos. They are motivated continuously to improve the quality of the business. They are proud to be part of the business. Core to their loyalty is the commitment to personal development.
Pulling this all together as one vision, built with one version of the truth, working as one team requires Integrated Business Leadership from the very top of the company to support achievement of ambition across the organisation. The company will achieve the challenging goal of satisfying customers, suppliers, shareholders, and their people.