| Issue 07 |

Shimon Shekel, CEO, Mul-T-Lock

• Number of employees in firm : 360, and 505 world-wide
  
• Number of employees under my direct responsibility: 16
  
• We provide: Locks, cylinders and locking products.
  
• I'm on the job for: 18 months. Before that, I was the Mul-T-Lock's Operations Manager for 2 and a half years, and in the more distant past of Mul-T-Lock and Rav Bariach I served in various senior management roles, including heading subsidiary firms. I have a degree in Industrial Engineering and a degree in Business Administration.
  
• I like on the job: Making people grow and seeing them succeed and contribute to the organization, achieving personal and organizational results.
  
• Most difficult on the job: Mul-T-Lock is owned by a foreign corporation that controls some 80 firms, with an annual turnover of 3.5 billion dollars. In such a setting it is hard to convince that we succeed precisely because we are Israeli and different.
  
• Goals I set for myself: Mul-T-Lock is a growing firm. My goal is to lead to 100 million dollars turnover within 3 years (double that of 2003), and by 2007 to be amongst the 100 largest firms in Israel. Personally, my aim is to manage large industrial firms.
  
• Our vision: We have a vision that has been developed over the past years - to be amongst the world leading firms in physical protection of persons and property. This vision was developed on-the-go, and was adapted to the changing reality. We assimilate and communicate it throughout the organization in various ways of internal MarCom.
  
• Original product in our market: Our original firm strated out on the basis of a unique international patent, and we specialize in doing just that - developing patents that thrust us forward.
  
• Sources of innovation: The information is gathered from our markets, and we must read the map and translate it to products. The search sends us all the way to the clients of the clients of our own clients.
  
• Book recommendation: In my view, "Who Moved My Cheese?", by Dr. Spencer Johnson, is the essence of change in a manager's life.
  
• Website: Who Moved my Cheese?
• To purchase the book: Amazon | Barnes & Noble
• Send comments to : shimon_s@mul-t-lock.com
• Would you like to be interviewed?: contact us
  

Strategic Fit

Let's suppose that you decided to formulate a long-term strategy for your organization. A new and updated strategy that would direct you over the following five years (or less, in fast-changing markets). You choose a steering team, put one of the managers in charge of the process and decide whether you should use hired consultants. Now, what should be your next step? Where should you begin?

The first thing you should do is to characterize and map a wide range of subjects: aspirations and wishes of key persons, investors and clients; resources and abilities of the organization; threats and opportunities in the environment. You may use various information sources and tools: personal inerviews, market surveys, financial reports, SWOT analysis, etc. The information you collect will indicate several possible strategic directions, while at the same time ruling out others.

Next, the team should choose an appropriate strategy, addressing the following issues: the domain of competition (what markets to operate in); the role in this domain (which products and services to provide); our distinction (differentiation and vision); code of conduct (core values). Each of these issues influences the other issues, and it's important to ensure that there is a close fit among them. This is called Strategic Fit, and is vital for the implementation of the strategy. Following are several examples of common situations demanding such a fit:

• A firm that chooses to focus on developing OEM products (e.g. - private labels for international retail chains), should offer a wide range of solutions, tailored for the needs and requirements of each of its clients. Therefore, flexibility and quality of service should be a part of its core values and organizational culture. If employees lack a positive service attitude, it is bound to fail.
• A company choosing a vision of technological leadrship, is supposed to invest many resources in R&D. In order to allow this, it wiil probably have to economize and be efficient in other aspects. Therefore, perhaps it should market directly only to one continent (allowing for direct client feedback), and market to the rest of the world only through distributers and agents.
• A firm choosing to offer highly competitive prices, can afford to do so only if it is substantially larger than its competitors. This may be achieved by a long-term process of continual growth, through M&A. Such growth will often be funded by public capital raising and issue of stock. Therefore, the firm should hold a close dialouge with investors. In such a firm, consistency and reliability are critical core values.

It is important to note that it is extremely difficult to change core values and organizational culture. Therefore, when you wish to formulate a practical strategy, it is important to make sure that it fits the organization, its work force and its habits.

• For articles on strategy and other subjects : click here
• For information on strategic consulting : contact us

Reengineering the Corporation: A Manifesto for Business Revolution / Michael Hammer, James Champy / HarperBusiness

Few business theories have suffered so much criticism, and were so misunderstood and misused as the Reengineering approach developed by Hammer and Champy. The book they wrote in 1993 is considered by many as promoting cutbacks and downsizing, and was used by many management teams to justify largescale layoffs of the ealry 1990's in the USA. The book was also attacked by socialist economists and politicians. Reengineering does in fact assist big organizations in letting off superfluous fat, but as a result, the roles of line workers (production, service, sales) is enriched and the size of management level (supervisers and mid-managers) is decreased. More importantly, Reengineering focuses on improving business processes rather than on cutbacks, and leads to the changing of the business from its very core. This enables large corporations to offer better service and high quality products, for lower costs.

Hammer's and Champy's major argument is that management today is absurdly decentralized and divided, and therefore inefficient. Thus, for instance, different departments in the same organization (sales, accounting, production, distribution, etc.), have an inherent conflict of interests, causing delays and inferior costumer service (e.g. when handling orders). In order to achieve significant breakthroughs, the authors suggest that one should not attempt to improve local factors (tasks, roles, people or departments), but rather focus on entire processes. They call for a complete rethinknig and radical redesign of business processes (processes that turn input, such as costumer order, into output, such as delivery of ordered goods). Only by thinking of the process as a whole, on the basic reasons for which the organization does things, and on the meaning of these actions in the eyes of the clients, can one achieve impressive improvements in vital aspects of performence, quality, service and speed.

Considering the fact that numerous managers have heard of the book but have not read it, it is surprising to discover that it is written in a pleasant and easy-to-read style, and includes practical explanations on how to lead reengineering in reality, as well as numerous case studies of firms that used reengineering to accomplish major improvements. It is in fact a practical guide, leading the reader through all stages of reengineering: forming a leading team (leader, manager and task team), choosing the appropriate processes to handle (jammed, important and changeable), collecting information (you should understand the process involved, and therefore should experience it as an employee and a costumer), a reengineering session (challenging basic assumptions and making creative use of information technology), and implementation of the required change in the organization (declaring a crisis, joining forces around a common vision, allocation of the right resources, etc.).

So, if your organization seems to be jammed, and you are in need of a fundamental change, or if you simply want to be better prepared for the future, take this book and start reading. I almost guarantee that you will not be able to put the book down until you finish it, and as you read you will probably find yourself nodding time and time again: "Yes. Right on. How true this is!"

• Buy the book at : Amazon | Barnes & Noble
• A list of other must-read books for managers 
• For information on ZOOZ Business Process Management workshop : see page 22 of our Strategy and Marketing workshops description (Hebrew Pdf file), or contact us

Substitute

In the previous six issues of LaZOOZ, we described six tools of Systematic Inventive Thinking for new product development. In this issue we start looking at the tools of the SCAMPER method. SCAMPER are the initials of seven more "flexible" tools, that may also be used to develop ideas for improving processes and solving problems (and not just products or services). The first tool - Substitute - examines what can be used as a substitute for existing components. This tool is similar to the Unification tool mentioned in one of the previous issues.

The steps for using Substitute are as follows:

1. Choose an existing product, service, process or problem

2. List the components: parts, materials, methods, steps

3. Find a substitute for one of the components of step 2

4. Visualize the new product, service or process, and identify its benefits and uses

Example 1 :

• Existing product: A toolbox
• Product components: lid, handle, base, side, partitions, compartments, wheels, wood, metal...
• Improvements which have already taken place:
  • Plastic toolbox (substituted metal and wooden ones, giving ZAG and Keter substantial income)
  • 2 toolboxes in 1 (top toolbox instead of lid)
• Improvements which have not yet taken place (as far as we know):
  • Straps/belts instead of handles (for fixing the toolbox to a ladder or a person's body, etc.)
  • A magnet instead of one of the sides of the toolbox (for attaching tools and metals on the outside - screwdriver, hammer, screws, nails, etc.)

Example 2 :

• Problem: Organization is not profitable enough
• Problem components: managers, employees, products, clients, markets, prices, expenses, incomes...
• Common solutions:
  • Substitute CEO, employees, salespersons...
  • Substitute older products for newer ones
  • Focus on new kinds of clients, or new geographical markets
  • Barter goods instead of paying with money
  • Lower expenses and higher efficiency by outsourcing (an outside firm instead of the organization's processes and employees)
  • Changing the way you measure income...

• For a description of the SCAMPER workshop, see see page 11 of our Innovation workshops description (Hebrew Pdf file), or contact us

Water-powered hose reel

A self-winding water hose reel? What is this? We've heard of water hoses that are reeled using an electric engine, but this is something completely different.

Hydro Industries, an Israeli manufacturer, introduced to the world two years ago a self-winding water hose, that uses a water engine. It all started when Ehud Nagler and Hanoch Levin, Israeli inventors, developed a water engine - a unique engine that draws its power from low-pressure water hoses. The engine was registered as a patent, and was initially intended for the educational games and toys market, later being converted into a winding reel. Hydro Industries was established in 2000 together with Zvi Yemini, CEO of ZAG .

The First line of automatic water-based reels, with a variety of hoses, was introduced to North America in 2002, at the same price range of similar hand reels, and significantly cheaper than electric reels. Expect for the ease of use and attractive price, Hydro reels do not require an electric socket and do not use energy. Success was soon to follow, and tens of thousands of reels have been sold since world wide. The second line of products was recently introduced, and has a simpler design, at even lower prices. Indeed, a refreshing Israeli innovation, making life easier for thousands of gardners around the globe.

• For Hydro Industries website : click here
• For details on Systematic Innovation workshops : see our Innovation and Creativity workshops description (Hebrew Pdf file) or contact us

Innovation ideas for cameras

The following ideas were developed using various thinking tools, and do not exist at present (to the best of our knowledge):

1. A built-in tripod (to stabilize anywhere)

2. A camera that shoots to the side when supposedly looking ahead (for candid photo 
   taking - spys, tourists, etc.)

3. Cameras with a designed replaceable panel (similar to mobile phones)

4. Dual-camera - both digital and regular films (for user preference)

5. A camera that can use two types of film at once (according to light requirements)

6. A camera with remote control (long exposure without touching it)

7. A camera with light-sensitive lens, turning darker in the sun (instead of shutter)

8. A solar-powered camera (recharging in sunlight)

9. A kids' camera (with cartoon figures, big buttons, automatic, digital, durable)

• Articles on Systematic Innovation 
• We will be glad to read your comments and suggestions

Strategy Implementation through BPM

A new strategy, even the most promising one, will hardly succeed if the organization does not adopt and implement it. The successful implementation of a new strategy requires process innovation that identifies the core processes derived from that strategy, and adjusts the organizational architecture and process interfaces to fit the new strategy.

ZOOZ now offers a new workshop for strategy implementation through BPM (Business Process Management). During the workshop, participants identify and characterize core processes that support the strategy, define necessary organizational changes, and develop measures for evaluating these business processes. It is possible to hold a full day basic workshop, followed by organizational and technological consulting in cooperation with Addwise Infomanage, for developing information systems that support core processes management.

• For further details please see page 22 of our Strategy and Marketing workshops description (Hebrew Pdf file), or contact us

iMATE Jam

The ultimate mobile phone is here. It has some immigration problems (not imported to Israel), as well as some language difficulties (limited and not entirely stable Hebrew software), but we have been using it for a month, and it is just what we have been dreaming of.

It is the iMATE Jam, probably the most advanced mobile phone available today. A combination of a PDA (with Window Mobile Pocket OS), digital camera (1.3 Mega-pixels), audio recording, MP3, Internet browser, e-mailing, touch screen with 6 data input options, and...a mobile phone, of course!

Its memory is extendable and is virutally unlimited (our 1 Giga extension card works well). Its compatibility with Outlook is perfect - and it will have no problems with thousands of contacts. The camera is not bad in decent light conditions, and the video clips are of surprisingly high quality (Mpeg 4). Listen to music with the provided stereo headphones. We recommend using a blue-tooth headphone for regular calls, although using the phone itself works just as well. Most importantly, all of the above is neatly packed in a compact device, smaller than your typical PDA, and thinner than a Sony Ericsson! The price tag? Up to $650 in US websites, and $80 for Hebrew software.

So if you're a manager on the road, looking for a convinient solution for recording thing on the go (photos, video, audio), for direct access to all your clients and contacts (phone, e-mail, sending photos), and even for keeping Word or Excel files in your smallest pocket - iMATE Jam is all you need. Finally! Great fun.

• Product info: iMATE Jam
• For US shopping on the web: see here or here
• Hebrew support: P.D.A.C software at Handy store

Out of place

The creative ad template we cover this time, Out of Place, makes it possible to present the benefit of using the product in an extreme and surprising way. It is, in fact, a sub category of creative ads that use Extreme Results.

In the ad before us, Erdal shoe shine is so shiny, that the shoe may be used instead of a car rearview mirror. As is usually the case in extreme ads, the reader pauses to read the ad because it presents something different, unfamiliar and unlikely. Once the "puzzle" is solved, the benefit is etched in our memeory, making the ad very effective.

• For information on creative advertising workshop see page 18 of our Strategy and Marketing workshop description (Hebrew, PDF file)