Excellence in execution workshop upload
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Excellence in ExecutionExcellence in ExecutionWorkshopWorkshop
Performance Management AssociatesPerformance Management Associates
The BasicsThe Basics
Any business is based on three cornerstones: Any business is based on three cornerstones: assets, strategy assets, strategy and executionand execution. .
This discussion will concentrate on the process to improve This discussion will concentrate on the process to improve execution of your business strategy.execution of your business strategy.
PMA’s premise is that by getting everyone focused on the right PMA’s premise is that by getting everyone focused on the right metrics, organizations can metrics, organizations can accelerateaccelerate improvement. improvement.
At the end, ask yourself:At the end, ask yourself:
Could your teams do better at implementing your strategy faster Could your teams do better at implementing your strategy faster if they were more focused with measurements and action if they were more focused with measurements and action management systems? management systems?
The The FTEAFTEA Method Method
Our Our Method Method is based on is based on Focusing, Targeting, EvaluatingFocusing, Targeting, Evaluating and and ActingActing. .
By working systematically within each department, you can go By working systematically within each department, you can go far beyond “training” and “projects” to involve staff in measuring far beyond “training” and “projects” to involve staff in measuring and improving their own performance. and improving their own performance.
All employees can be engaged so that they become committed All employees can be engaged so that they become committed to continuous incremental improvement (aka Kaizen). to continuous incremental improvement (aka Kaizen).
Comments like “that’s the way they want it”, “they never listen to Comments like “that’s the way they want it”, “they never listen to us” and “what can I do about it” can be replaced with “they do us” and “what can I do about it” can be replaced with “they do listen” and “I am empowered and accountable”.listen” and “I am empowered and accountable”.
Any business is a sequence of steps Any business is a sequence of steps and functionsand functions
Management of Steps
Bus
ines
sP
roce
ss
• How do you know if you are effective?• How do you generate improvement?
Delivery
Inventory Mgmt
Operations
A/P and A/R
Planning
Sales
Sales Support
For each step, there are definable For each step, there are definable Key Success FactorsKey Success Factors
Like :
• Productivity• Cost• Quality • Customer Service• Value Recovery • Safety
For each KSF we can measure success (KPIs)
Management Process FundamentalsManagement Process Fundamentals
Focus• KSF’s• KPI’s
TargetEvaluate• Measure• Report
Act
•Controllable•Measurable•Relevant
•Analytical, not historical•Attainable•Front line ownership
•Real time•Visible•Quantitative and qualitative
•Specific•Urgent•Accountable
What are your significant steps What are your significant steps and functions?and functions?
Management of Steps
Bus
ines
sP
roce
sses
Choose One Business Process StepChoose One Business Process StepArea / Function ________________________Area / Function ________________________
FocusFocus TargetTarget EvaluateEvaluate ActAct
KSFKSF KPIKPI MeasureMeasure ReportReport
Self / system / Self / system / managermanager
Daily / Weekly / Daily / Weekly / Monthly SummaryMonthly Summary
Defined frequency Defined frequency review and review and Opportunity LogOpportunity Log
ControllableMeasurableRelevant
Analytical, not historicalAttainableFront line ownership
Real timeVisibleQuantitative and qualitative
SpecificUrgentAccountable
New Business Devel. KPI ExampleNew Business Devel. KPI Example
Did you have a good day?Did you have a good day?
Informally ask employees at a specific function if they Informally ask employees at a specific function if they had a “good day”. had a “good day”.
Do they all:Do they all:– reference their answers to common “Key Success factors” reference their answers to common “Key Success factors”
and their personal “Key Performance Indicators” and their personal “Key Performance Indicators” – relate their personal performance to their targets relate their personal performance to their targets – identify why there were variances and identify why there were variances and – either tell you what is being done or what could be done?either tell you what is being done or what could be done?
Or do they leave you wondering what they really did Or do they leave you wondering what they really did all day?all day?
If it’s the latter, consider what the impact would be if If it’s the latter, consider what the impact would be if you could get everyone focused on your objectives you could get everyone focused on your objectives instead of theirs?instead of theirs?
Management Process FundamentalsManagement Process Fundamentals
Focus• KSF’s• KPI’s
TargetEvaluate• Measure• Report
Act
•Controllable•Measurable•Relevant
•Analytical, not historical•Attainable•Front line ownership
•Real time•Visible•Quantitative and qualitative
•Specific•Urgent•Accountable
Value of Overall Improvement?Value of Overall Improvement?
Business KSFBusiness KSF Improvement Improvement potentialpotential
Value per Unit ($)Value per Unit ($) Overall Impact ($)Overall Impact ($)
Total ________
Project ApproachProject Approach
ProjectInitiation
ProcessImprovement
Implementation
•Evaluate current management systems
•interviews•quantitative studies•qualitative studies
•Train internal manager•Staff training / involvement•Establish project direction
•identify goals•identify KSF’s•prioritize areas
•Select redesign teams
•Team training•staff / hourly•cross-functional
•Redesign specific management systems
•FTEA framework•analyze current system•identify weaknesses•redesign
•Staff / hourly ownership
•Intensive involvement•Hands-on training•Accountability•Results focus•Change from “program” to routine•Post - project reviews
ProjectInitiation
ProcessImprovement
Implementation
ProjectInitiation
ProcessImprovement
Typical Area ScheduleTypical Area ScheduleArea 4 Area Start Date: Weight 1
Weight
MPI A T A T A T A T A T A T A T A T A T A T A T A T
Map Current Process 2 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Identify Areas of Opportunity 2 20 50 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Review with Management 1 25 25 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Process Redesign 0 Establish KPIs 2 50 50 75 75 90 100 100 100 100 100 100 100 100 100 100 100 100 Establish Target Setting Method 2 50 50 75 75 20 100 75 100 75 100 75 100 100 100 100 100 100 Establish Evaluation Process 3 50 50 75 75 30 100 50 100 100 100 100 100 100 100 100 100 100 Design Action Planning Process 2 75 75 50 100 60 100 75 100 90 100 100 100 100 100 100Team Presentation to Management 2 100 100 100 100 100 100 100 100 100 100 100 100 100Complete Detailed Tools / Programming 15 10 10 20 40 60 60 75 80 80 90 100 100 100 100 100Set Targets 5 50 50 20 75 30 100 30 100 50 100 100 100 100 100 100Establish Baselines 5 10 20 50 60 100 100 100 100 100 100 100
Summary Documentation Complete 4 10 10 10 20 10 30 30 40 50 60 70 80 100
ImplementationSystem Rollout / Initial Training 4 50 50 100 100 100 100 100 100 100 100 100System Mechanics 0 Tracking Tools Completed & Accurate 10 35 20 70 100 100 100 100 100 100 100 Reports Generated / Distributed On Time 8 15 40 70 70 85 100 100 100 100 Meetings Held as Scheduled 8 10 10 55 85 100 100 100Utilization - A.P.s Consistently Developed 20 10 10 55 85 100 100 100Utilization - Actions Leading to Improvement 20 10 10 35 65 90 100 100
Detailed Documentation Complete 10 25 50 75 100 100
Total 125 1.3 1.8 5.6 5.6 12.6 12.6 12.4 20.9 21.3 30.8 29.3 41.1 48.3 52.4 71.0 85.8 95.4 100.0
MPI 45 3.7 5.0 15.6 15.6 35.0 35.0 34.4 58.1 54.7 70.7 68.1 82.7 80.0 91.3 95.6 96.4 97.3 100.0
Implementation 80 2.5 8.4 7.5 17.8 30.5 30.5 57.1 79.8 94.4 100.0
Design Team Members
30-Aug 15-Sep 30-Sep 15-Oct30-Apr 15-May 30-May
30-Apr-1315-Aug15-Jun 30-Jun 15-Jul 30-Jul
0
10
20
30
40
50
60
70
80
90
100
30-Apr 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct
Are
a -P
erce
nt C
om
ple
te Actual
Target
Typical Project ScheduleTypical Project SchedulePMA Project UpdateCompany ExampleReport Date:
TargetStart Date Target Actual Variance
Total Project 1-Jun 7.7 7.4 (0.2)
Project Initiation 1-Jun 97.9 93.3 (4.6)
Area 1 1-Aug 12.6 12.6 -
Area 2 25-Aug 5.2 5.2 -
Area 3 15-Sep 0.0 0.0 -
Area 4 30-Sep 0.0 0.0 -
Area5 1-Dec 0.0 0.0 - 66
Area 6 1-Jan - 100
Area 6 1-Dec - 75
Area 6 1-Dec - 85
Area 6 1-Dec -
Area 6 1-Dec - 60
85
100
9/15/2009
Percent CompleteArea
Project Schedule
1-Ju
n-09
1-Ju
l-09
31-J
ul-0
9
30-A
ug-0
9
29-S
ep-0
9
29-O
ct-0
9
28-N
ov-0
9
28-D
ec-0
9
27-J
an-1
0
26-F
eb-1
0
28-M
ar-1
0
27-A
pr-1
0
27-M
ay-1
0
26-J
un-1
0
Project Initiation
Area 1
Area 2
Area 3
Area 4
Area5
Completion Percentages
0 10 20 30 40 50 60 70 80 90 100
Total Project
Project Initiation
Area 1
Area 2
Area 3
Area 4
Area5
% Complete
Actuals Target