Achieve Business Excellence “Managing Operational Performance” by Systemising management process...
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Transcript of Achieve Business Excellence “Managing Operational Performance” by Systemising management process...
AchieveBusiness
Excellence
“ManagingOperational
Performance”
by
Systemising management process in a way that makes business improvement much easier
“A CEO’s nirvana”
To constantly increase the $ VALUE of the business ……… for future sale, capital raising, or franchising
To continually improve business efficiency and profits …….… without relying on CEO-initiated changes
To have control over staff execution of all plans ……… with openness and transparency and less personal CEO involvement
To instill a culture of continuous improvement in all staff…….… for the CEO to have confidence that operations will run properly when CEO is absent from the business
(‘Nirvana’ - any place of complete bliss and delight and peace)
The “typical” CEO challenges:1. Setting up the business to operate without the day-to-day hands-
on involvement of the CEO2. To find time to work “on” the business (too busy working “in” the
business) and to make sure people are doing the right things.3. Improving staff productivity. It is “typical” that 60% of what staff
actually do each day, does not add real value to the business 4. Giving people fast access to the tools and knowledge required for
them to do their jobs effectively and at the highest quality level.5. Controlling the efficient execution and implementation of plans and
actions on time.6. Reducing management time in follow-up and close supervision of
internal staff on basic operational issues7. Getting staff (and managers) to understand the CEO’s thoughts
behind the business and how he wants things done8. Improve “front-line” visibility to managers (and the CEO) to avoid
any surprises. 9. Communicating to all staff so that they all know and appreciate
their value within the business
What do all businesses “do” ?
Handle Exception
s
Implement required operational processes
Provide access to required knowledge
Develop their strategic approach to their market
Set Targets & Measure Results
Guess what …… this is exactly how AMS improves a business !!!!
Give people
things to do
Develop ways to do things
better
Make Changes
Handle Exception
s
Implement required operational processes
Provide access to required knowledge
Develop their own strategic approach to their market
Set Targets & Measure Results
Give people
things to do
Develop ways to do things
better
Make Changes
The AMS Process simply overlays a business to “Improve Operational Performance”
Resolve Incidents
Create Business DNA Operational Actions
Create direct links to required knowledge
Develop the Strategic Business 5x5 view
Set Targets & Measure Results
Assign Job 5x5
actions
Conduct audits of
Improvement
Manage Projects
So AMS systemises the running of the business.
AMS creates a structured solution that systemises these functions and creates a “valuable asset” of the business
….. that becomes an “Improvement & Control System”
Firstly, improvement is about focusing on the right things
….. i.e. the operational actions of the business that create the most improvement value for the business
Secondly, control is about “visibility and transparency”
….. i.e. so that everything that the people “do” can be clearly seen by everyone to be creating value for the business It really is that simple …… if you have a system help guide you !!!It really is that simple …… if you have a system help guide you !!!
AMS therefore contains the THREE key components of “systemisation”:
(1) A management PROCESS (the method).
(2) An Internet-based Computer SYSTEM(the AMS-C software).
(3) The operational KNOWLEDGE that defines the business (the content).
AMS CAN BE
RUNNING WITHIN
48 HOURS-
AFTER YOUR BUSINESS
DNACREATION
RESULTS A “one page” graphical operational view of the
business (the Business DNA), clarifying the key Actions (value processes) and a operational summary of the business for shareholders, customers, suppliers, and staff
An overall risk assessment of the major DNA Actions of the business resulting in a clear focus on specific areas requiring improvement.
A common understanding of the complete business operation and summary strategy for all managers and staff.
An understanding of where personnel accountability for operational action resides and therefore who caries the responsibility to improve these business operations.
The “Business DNA” Platform
(Sample: Internet AMS Navigator)
We create a unique and simple view of all business operations and their risk to the business so that all employees UNDERSTAND the business “actions” that are of real value; where the business needs to improve; and who is “accountable”. (Internet-AMS Business
DNA)
(Internet-AMS Accountability Matrix)
Link to schematic
“People Improvement” Process
RESULTS An individual’s Job 5x5 is created for each staff member
as a direct result of “cascading down” from the business DNA actions and allocating all responsibilities and accountabilities to people
The setting of realistic Measures and Targets for all job actions (a simple one-page summary of every person’s job)
An assessment of importance for each person’s Job Actions.
Links to job-related knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job efficiency and productivity
The collection of staff “ideas” for improvement Better utilization of people and an assessment of their
capability to match their job An effective and simple performance review system
Business Actions
Individual Actions
(Sample: Excel-AMS)
(Internet-AMS Job 5x5)
Get all of your people “doing the right things” for your Business
“People do what you INSPECT not what you EXPECT”.
Link to schematic
“Improvement Audit & Projects” Process We give you the way to fix
the “risk” areas of your Business
RESULTS A detailed risk assessment of all “risk” areas of
the business identified within the Business DNA. Action Improvement Audits (typically
conducted by the person accountable) to rapidly identify what needs to be done
Creation of business Measures and Targets for all high risk operational actions
Execution of improvement projects for the priority areas of the Business DNA
Creation of an “improvement focus for all staff Improvement in teamwork and feedback to
all managers and staff Increased staff involvement and a pro-active
contribution from everyone.
(Internet-AMS Project Creation)
Action Audits
Link to schematic
“Incident Resolution” Process
RESULTS A system for capturing ad-hoc actions
that need to be tracked to resolution. An audit trail of all “incidents” of the
business for better “control, resolution, compliance and reporting”
Open visibility of outstanding actions with an automatic follow-up system for all staff to utilise.
An automatic Action Reminder system that ensures that actions are not forgotten or overlooked.
A management reporting system to alert managers to overdue actions within their sphere of accountability.
We give you a simple way for your people to track the “things that need to get done” by the right people.
Link to schematic
The “Knowledge Access” Process
RESULTS Expansion of the “knowledgebase” of
the business for better “how to” information and links to all information required to run the business and implement improvements
Links to “how to” knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job responsibilities
The collection of staff “ideas” for business improvement initiatives
Fast access for all employees to any business information via a simple “knowledge directory” search
We give your people a simple way to get rapid access to all the knowledge of your business that they need to do their job.
Link to schematic
RESULTS The AMS therefore becomes the way to track business
improvement projects, incident resolution, and actions. Identification of best growth strategies for the
business based on the real measurement of non-financial improvements obtained
Improved staff learning and understanding of the business and the knowledge available
Creation of an environment of initiative for new ideas and recommendations to be implemented
Improved consistency of staff performance reviews encouraging higher productivity and promotion decisions
A “continued improvement” culture expanding to all areas of the business
REMEMBER: “People do what you INSPECT not what you EXPECT”.
Link to schemat
ic
Target & Measurement Process
“We have now implemented AMS in our Retail, Wholesaling and Warehousing business areas.
As a result of the AMS approach, we have been able to gain significant improvements in all of these business areas. The increased efficiency that has been created as a byproduct of the AMS implementation has of course, resulted in increased profits (240%) in my company.
My people now know what their job is and how they can add to the value of the company.
Our commitment to AMS is long term and as we implement more of its elements we realise the benefits of the important operational management disciplines that it introduces into our business.”
Michael Edwards (Managing Director)
Far Pavilion Referrence
Summary of AMS Client benefits
Clarifies and Aligns both Staff and Management Expectation
Applies to all employees Clarifies any job ambiguities Removes uncertainty of responsibilities Provides criteria for staff to be accountable
Focuses all employees on the Business
Records capability & performance Develops staff performance indicators Tracks progress for each individual
Encourages staff business interaction Between management and staff Improves inter-staff communication
and teamwork Creates pro-active contribution
Provides a common platform and framework for all employees to participate and contribute to Company success
Improves Productivity & accountability of both individuals and teams
Encourages reward assessment for actions and staff that add value to the business
Simple and Quick 5-step process Fixed price implementation stages
Low cost and time-effective Ideal for all types and sizes of business
Rapid Implementation Immediate Value for the Business
Reduces Management Complexity Results are measured and visible Develops value-based performance
indicators Provides non-financial audit of the business Optimises resources and adds to Profits
Pragmatic Application of Technology Internet Browser based for wide adoption Internet storage of Knowledge for easy and
simple access On-going Managed Service
Knowledge Directory and Tools Online Coaching and email support
Continuous Improvement Through “do-it-yourself” implementation. Management of both Risk and Quality
Business People
• STEP BACK and take a realistic operational view of your business.
The AMS implementation building blocks to Business Excellence
Articulate StrategyCreate Business Actions Assess Risks
BUILD BUSINESS DNA1.
Conduct Audits Make RecommendationsManage Projects
IMPLEMENT BUSINESS IMPROVEMENT PROCESS2.
Clarify Roles Give Accountability Define Jobs
ENGAGE ALL PERSONNEL3.
Link Knowledge Resolve Incidents Manage Time
INCREASE EFFICIENCY & PRODUCTIVITY4.
Set Targets Measure Performance Report Progress
OPTIMISE TRANSPARENCY TO STAFF5.
• STIMULATE INITIATIVES and instill a culture of improvement.
• CLARIFY STAFF EXPECTATIONS in their running of the business.
• INCREASE STAFF PRODUCTIVITY and motivation of current people.
• PUBLISH OPERATIONAL RESULTS for easy understanding & focus.
Description Risks
Knowledge
Audits Ideas Projects Incidents125 x Actions
1.111.121.13...........
5.545.55
Business-wide view
1.13 Operational Action view
Vie
w f
rom
an
Op
erat
ion
al A
ctio
n P
ersp
ecti
ve
View from a “Whole of Organisation” Perspective (Search)
AMS “Dual View” Perspectives
www.actionmanagement.com.au
Internet-AMSClick Here to run Demo
The AMS Process simply overlays a business to “Improve Operational Excellence”
Resolve Incidents
Create direct links to required knowledge
Create Business DNA Operational Actions
Develop the Strategic Business 5x5 view
Set Targets & Measure Results
Assign Job 5x5
actions
Conduct audits of
Improvement
Manage Projects
AMS systemises the management of any business.