SEAM (Socio Economic Analysis of Management) Small Business - David Boje and Lisa Cashion, New Mexico State University -  Small Business Consulting Institute-  revised September 8, 2000 -- Contact dboje@nmsu.edu with any questions.

Please CONSULT Small Business Tool Box at http://business.nmsu.edu/~dboje/sbc/sbc.html 

Print out this page and take to your interviews with clients. 

CLIENT NAME ____________________________________________ DATE ____________

DIVISION/UNIT/BRANCH _______________________ POSITION ___________

STUDENT CONSULTANT:____________________________________

PURPOSE: This is a SEAM diagnostic survey of the important areas of the Four Leaf Clover Model (See  http://business.nmsu.edu/~dboje/sbc/pages/seampage.html ). Please explain the model to your client before beginning the series of interviews.

Directions. You may not know the answers to all questions. Give the best answer you can at this time. These answers will help us understand what we need to focus on in our strategy. There are no wrong answers.

1. Do you understand the basics of the SEAM 4-leaf clover model (as I explained it)?
2. Who is _______ and what is it trying to become?
3. What is the current strategy and basic mission of _______ ?
4. What are the key organizational objectives of _______ ?
5. Are trends discernible in the environment that may become threats and/or missed opportunities if the current strategy is continued?
5. Is the attempt to carry out the current strategy disclosing significant weaknesses and/or non-utilized strengths in the company?

6. Will the current strategy exploit opportunities and/or meet threats in the environment, now or in the future?

7. What possible alternatives exist for solving any strategy problems you see?
8. What should any new or revised strategy be?

Instructions: Evaluate each category item on the basis of the following scale. If you do not know the answer leave it blank.  This is a quick and easy check list to begin to identify hidden costs in your operation. 

A = Superior or better than anyone else. Beyond our needs (top 10%).

B = Better than average. Good performance. No problems.

C = Average. Acceptable. Equal to competition. Not good, not bad.

D = Problems here. Not as good as should be. Deteriorating.

F = Real cause for concern. Situation critical. Must take action.

CATEGORY ITEM SCALE  == This is TOP LEAF OF SEAM - SOCIAL PERFORMANCE http://business.nmsu.edu/~dboje/sbc/pages/socialperformance.html 

Working Conditions 

Wages A B C D E

Resources A B C D E

Hours A B C D E

Physical Conditions A B C D E

Evaluation Systems A B C D E

Reward Systems A B C D E

Benefits Payable A B C D E

Work Organization 

Bureaucratic A B C D E

Chaos A B C D E

Post Modern A B C D E

Quest A B C D E

Job Design A B C D E

Work Flow Design A B C D E

Technical Systems A B C D E

THREE C's

Communication/ Bottom up A B C D E

Coordination/ Top Down A B C D E

Cooperation Mgt Communication A B C D E

Interdepartment Cooperation A B C D E

Problem Solving A B C D E

Decision Making A B C D E

Stories A B C D E

Policies/Procedures A B C D E

Time Management 

Time Use A B C D E

Efficiency A B C D E

Prioritize A B C D E

Traps A B C D E

In House Training 

Training Availability A B C D E

DO YOUR TRAIN IN:

Flexibility A B C D E

Team Skills A B C D E

Technical Expertise A B C D E

Ethics A B C D E

Customer Service A B C D E

Quality A B C D E

Strategic Implementation

Marketing Plan A B C D E

Business Plan A B C D E

Niche A B C D E

Goals A B C D E

Values A B C D E

History A B C D E

III. DIAGNOSIS OF STRUCTURE AND PROCESSES (LEFT LEAF) http://business.nmsu.edu/~dboje/sbc/pages/structure.html 

1. What social patterns can be observed?
2. What influence does status play within the firm?
3. Does there seem to be communication involved in decision making and problem solving?
4. Can you identify employee networks within the organization?

IV. DIAGNOSIS OF BEHAVIORS (RIGHT LEAF) http://business.nmsu.edu/~dboje/sbc/pages/behavior.html 

1. What are the attitudes and beliefs of the firm?
2. What organizational norms can be identified?
3. Are there any rituals being performed?
4. What group skills can be observed?
5. What intergroup skills can be observed?
6. What interpersonal skills can be observed?

V. DIAGNOSIS OF HIDDEN COSTS http://business.nmsu.edu/~dboje/sbc/pages/hiddencosts.html 

Dysfunctions from Socio Economic (imbalances)

ASK ABOUT EACH OF THESE:
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1. Does the firm show a high turnover rate?

2. Is there a high level of absenteeism within the firm?

3. Have there been any injuries or workers' comp claims?

4. Is quality being jeopardized to increase profit levels?

5. Are there areas which need productivity improvements (pleas list)? 

6. What additional hidden costs can be observed?

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ASK ABOUT EACH OF THE LONG TERM ITEMS

IN LONG TERM LEAD TO:

7.  Extra wages (from the top list)
8. Non production
9. Over time
10. Over consumption (use of raw materials/cash/time)
11. Non creation of potential gain (loss of creativity/impact/focus).

1. Keep a journal. Put one variance (problem you see in any process) on a note card. 

2. Sort the note cards into the six areas of Social Performance (see Table).

3. Get some string and connect what seems to you to cause something else or to have an impact on some thing else (Note the direction of the impact.  A leads to B and B leads to C, etc.). 

4. List small problems or variances from your note cards under each column.

5.  What connects to and from each note card new item? Make the connecting lines noting with an arrow head, the direction of the impact.

6. KEY - the card with the most incoming and outgoing arrows is your root cause.

STORY CHART  http://business.nmsu.edu/~dboje/sbc/pages/page2.html 

1. Take your Root Cause (the one with all those arrows coming in and out).
2. Lay out the sequence of your story by specifying the direct links into and out from this Root Cause (card).
3. Label your work.
4. You are done.

VI. SWOT ANALYSIS  http://business.nmsu.edu/~dboje/sbc/pages/page3.html 

S = STRENGTHS

W = WEAKNESSES

O = OPPORTUNITIES

T = THREATS

The purpose of SWOT Analysis is to generate systematic input for our business strategy. We would like you to do a SWOT analysis of three areas:

Structure & Processes

Behaviors

Hidden Cost Audits

1. STRUCTURE & PROCESSES  http://business.nmsu.edu/~dboje/sbc/pages/structure.html 

DESCRIPTION: Briefly describe how _______ has structured the organization;

the employees, the physical layout, and technologies.

STRENGTHS: What is good about the internal system as it is now?

WEAKNESSES: What are the internal weaknesses as it is now?

OPPORTUNITIES: Where do you see external opportunities for change?

THREATS: What external threats to the firm do you see?

2. BEHAVIORS  http://business.nmsu.edu/~dboje/sbc/pages/behavior.html 

DESCRIPTION: Describe how the behaviors of _______ are impacted by the structure and processes of the firm.

STRENGTHS: What is positive about the current impact by the structure and processes?

WEAKNESSES: What are the internal weaknesses as it is now?

OPPORTUNITIES: Where do you see external opportunities for change?

THREATS: What external threats to the firm do you see?

3. HIDDEN COSTS -  Your objective is to identify some area of the small business in which you can demonstrate the hidden costs of not addressing our six social performance areas, as well as underlying relations between behaviors and structure that result in hidden costs.  What you want to do is quantify (through best estimates and asking the client) -- what does it cost when quality is low, productivity slips, absenteeism, turnover, etc.   Be specific. Focus on a case, a situation that happened, and identify what every aspect (short term and especially long term) cost them.  Then see if this is a recurring nightmare for them.  Set up a table listing all the cost items and your estimates for the situation.  Finally, you want to be able to go to them with a proposal that says. Look it is costing you (in hidden costs not reflected in your income statement or just hidden there( $xxxx.xx) every quarter.  Now, if we implement a change, we can reduce that cost by 52% (as an example).  Would this benefit you?  Assuming they can see it, then propose the CHANGE EXPERIMENT to reduce HIDDEN COSTS. For example, it could be a training design that will allow people to cross-train so that when one is absent someone can do the job without breaking something or offending a loyal customer.  

http://business.nmsu.edu/~dboje/sbc/pages/hiddencosts.html 

SHORT TERM (Show them this list)

1. Does the firm show a high turnover rate?

2. Is there a high level of absenteeism within the firm?

3. Have there been any injuries or workers' comp claims?

4. Is quality being jeopardized to increase profit levels?

5. Are there areas which need productivity improvements (pleas list)? 

6. What additional hidden costs can be observed?

LONG TERM (Show client this list)

7.  Extra wages (from the top list)
8. Non production
9. Over time
10. Over consumption (use of raw materials/cash/time)
11. Non creation of potential gain (loss of creativity/impact/focus).

DESCRIPTION: Describe the hidden costs that are identified.

STRENGTHS: What is good about the internal system as it is now?

WEAKNESSES: What are the internal weaknesses as it is now?

OPPORTUNITIES: Where do you see external opportunities for change?

THREATS: What external threats to the firm do you see?

ADD UP the TOTAL Cost of HIDDEN COSTS in this one area  $____________________

EXPERIMENT: What experiment do you propose to reduce the hidden costs?

VII. IF ASKED BY THE CLIENT TO WRITE OBJECTIVES

ABC’s of writing objectives. Objectives should be:

A = Achievable by resources available to you.

B = Believable to yourself.

C = Conceivable. Something you can visualize in specific detail.

D = Desirable. Within laws of God and rights of man.

E = Effectable. I can plan it, problem solve it, and do it.

M = Measurable. Can lay out the steps, $ required, time, etc.

A quantified objective includes (1) a subject, (2) an action verb (a key result end), (3) a time frame, (4) cost estimation and conditions for its achievement, and (5) in majority of cases a quality standard (comprehensive and final).

Example. Purchase and install microcomputer software system for inventory control, reducing overtime by 200 hours. First year overtime savings of 125 hours at $4,500. Purchase price estimated at $2600.

Example. Reduce service costs by average of $3.50 per transaction on volume of 20,000 transactions in 1989. Total savings targeted at $70,000.

Example. Increase sales to $65,000 in two years by refocusing advertising efforts, penetrating new markets, developing new customer services, opening one additional branch office, and developing a new incentive scheme.

Example. Upgrade and maintain a skilled work force to reduce cost of labor per sales dollar by 5% in 3 years by a new training program and skill replacements.

1. Structure & Processes
2. Behaviors
3. Hidden Costs

WHAT IS AN ACTION PLAN?

5 STEPS TO SUCCESS

STEP ONE. Define an objective. Define the objective in detail.

The clearer it is, the higher the probability you will achieve it.

 

STEP TWO. Lay out the action plan.

Lay out all the steps required to obtain your objective, in their correct sequence.

Make them as accurate as possible, and assign the amount of resources required to accomplish each step.

 

STEP THREE. Set up a schedule. Set up a reasonable schedule to accomplish each step.

 This schedule will become your guide to follow and will allow you to accomplish each step on time.

STEP FOUR. Problem solve. Do whatever is necessary to make each step happen on time.

"You get out what you put in…" Become an expert problem solver on anything that prevents you from schedule. staying on

 

STEP FIVE. Work smarter, not harder.

Work with the highest probability of success. Eliminate anything that might be against you and get everything possible going for you!  Allow nothing or no one to stand in your way!

Please CONSULT Small Business Tool Box at http://business.nmsu.edu/~dboje/sbc/sbc.html