How It Works
What if you knew you could boost enterprise performance by focusing on just 3-5 of the hundreds or even thousands of problems, breakdowns, inefficiencies, missed hand-offs, disconnects, and just plain limiting factors — call them “constraints” — that inhibit or limit throughput, value creation, and generating cash? You'd want to know what they are and focus like a laser beam on solving them, right?
The Mosu™ Management System guides the leadership and workforce to identify and measure which are 3-5 most influential constraints in its enterprise that the Theory of Constraints says are responsible for 70-90% of all the other factors that inhibit throughput, value creation, and the generation of new cash. The Mosu™ Management System informs the enterprise where to concentrate its optimization efforts and resources (and therefore where not to) in order to convert its own 3-5 most influential limiting constraints into some of the most influential generators of value and net new cash.
Set-Up and Integration Occurs in Three Phases
CEO’s Phase — We begin with a series of brief conversations, usually with the CEO (or CEO’s designee from the Senior Team or of similar stature). These are 30-45 minute calls, with brief assignments in-between, to establish the CEO’s model of the enterprise’s Value Creation Framework (consisting of its operational framework and financial framework, which are two sides of the same coin). This becomes the initial baseline model to be validated or enhanced by successive members of the Senior Team.
Senior Team Alignment Phase — Continuing with the next member of the Senior Team, commonly with the CFO, and then the next, and so on, the Mosu™ Management System establishes the Senior Team’s model of the enterprise’s Value Creation Framework, a model unanimously and wholeheartedly affirmed by the CEO & Senior Team as the best portrayal (at a high level) of what the enterprise currently does operationally to create value, from start to finish to start again, to deliver a thrilled and satisfied customer and how (and where) the value created shows up in the financials. The Mosu™ Management System replaces each leader’s subjective mental model with a single, composite, more perfect model of how the enterprise already goes about creating value.
The conversation systematically elicits and narrows down the Senior Team’s candidates for the 3-5 primary system constraints — the most influential constraints on value creation and net new cash creation in the enterprise — and therefore biggest opportunities for breakthrough — and proceeds to design technically robust metrics to measure them.
The enterprise’s financial framework is established and unanimously affirmed by the Senior Team through our Financial Scoreboard®, a simple, powerful tool that complements the summary financials (the standard three P&L, Balance Sheet, and Cash Statement), revealing important missing or hidden data, and elegantly showing the relationship of the financial statements to each other and the operating activities that drive them.
In just 60-90 days, the Senior Team is aligned around their value creation and financial frameworks, and their pilot Mosu™Management System has been created, having identified high-likelihood candidates for the 3-5 most influential constraints to value and cash constraints to value and cash creation and designed how to measure them.
Armed with this critical self-knowledge from about the enterprise using the Mosu™ Management System, and supported by Mosu’s structure for fulfillment, the enterprise’s leaders and workforce select and implement for themselves process and policy improvements, and therefore limit their use of consultants (if any). The enterprise continuously uses the Mosu™ Management System to measure the impact of changes, and to create and use measures rigorously designed so as to maintain focus on resolving the 3-5 most influential constraints on value creation* and cash creation, to pivot when new most-influential constraints displace older ones, and to continuously engage the workforce to pay attention to and act on what matters most to create value and net new cash in the enterprise.
In sum, the Mosu™ Management System creates and sustains total-system engagement. With all leaders and employees in alignment with each other, equipped with rigorously designed metrics that measure value creation constraints at the whole-system level, and practicing Mosu’s™ discipline of routine monitoring/reporting/improving, they can deliver the best-possible economic outcomes for the enterprise as a whole.
Workforce Engagement & Alignment Phase — Includes Enterprise Roll-Out, Training, and Use of Mosu™ Management System
The engagement and alignment of the workforce around value creation commences using an abridged version of the process used to align the Senior Team (and without introducing the Financial Scoreboard®, at this stage). Among the workforce, it generates the same wholeheartedly unanimous agreement as the Senior Team about how the enterprise creates value.