Upload
straticx
View
298
Download
1
Embed Size (px)
DESCRIPTION
Lack of efficiency and effectiveness in an organization can have a significant impact on the overall cost of operation. Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business provides a framework for diagnosing, assessing and implementing to improve the speed at which the organization operates. There are two main areas for focus: 1. Process Audits - a framework for assessing key processes within the different functions of the organization and detailing where improvements are to be had 2. Workload Analysis - based on a workforce survey to identity where and what time in the organization is spent doing, including the efficiency and effectiveness of Meetings The outcome from using the PPT framework will be a prioritised list of initiatives for implementation to increase organizational speed and reduce the cost of operation.
Citation preview
Organizational Velocity -
Improving Speed, Efficiency &
Effectiveness of Business
(Sample)
A faster organisation is normally a better organisation
ORGANIZATIONAL VELOICTY
Reactive speed
Proactive speed
Advantages
+ Money sooner
+ Anticipate competitors
+ Exceed customers expectations
+ Do more
+ Create new opportunities
+ Be vibrant and dynamic
+ Increase efficiency
Cautions
― Rushing with no information
― Executing poorly
― Not waiting for situation to evolve
― Pushing too hard
1
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Contents
2
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
• Worked Example 20
• Workload Analysis 33
• Benchmarking 41
Becoming Faster – The Management Challenge 43
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
1
2
3
4
5
6
Process BBFTB1 Implement Quick win Implement
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Process Recommendations Dashboard contains a ‘menu’ of prioritised
process improvement opportunities
IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS
Process Recommendations ‘Dashboard’
3
Notes: (1) ‘Big Bang For The Buck’ Opportunities
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
131
32
30
Focus
Opportunities
66
4
Total Potential
Opportunities Observed
164
17
5
• BBFTB Opportunities
― Efficiency gains: ~ $x.xm (~x FTEs)
― Specific effectiveness gain of ~$x.xM for
‘Order to Cash’ process
― Additional significant effectiveness
opportunities (sized as Low/Medium/High
only)
• Quick Wins:
― Efficiency gains: ~$x.xM
― Additional effectiveness opportunities (sized
as Low/Medium/High only)
• General Observations
― Efficiency gains from better meetings: ~$x.xM
(~x FTEs)
― Significant effectiveness opportunities (sized
as Low/Medium/High only)
Process
Audits (inc.
review of best
practise for
each process)
Benchmarking
General
Observations
Process
BBFTBs
Process
Quick Wins
General
BBFTB
Total Impact of opportunities
― Efficiency gains: $x.xM
― Specific effectiveness gains:
~$x.xM (Order to Cash)
― Additional significant
effectiveness opportunities
Financial benefits are often be derived from the Process Audits and General Observations
IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS
Benefits ‘Dashboard’ EXAMPLE OUTPUT
4
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Process Value Chain Overview Description of Main Activities Process Audit Results
Improvement Opportunities Prioritisation of Opportunities ‘BBFTB’ Opportunity 1 Pagers
1 2 3
4 5 6
A Process Audit consists of six steps
PROCESS AUDITS
Process Audit Steps Summary
5
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Description
Who?
• … • … • … • … • …
• … • … • … • … • …
Step 2 involves interviewing the Process Owner (and team) to detail each step of the process, describe it and who is involved etc
PROCESS AUDITS
How long?
When?
• … • … • … • … • …
• … • … • … • … • …
1. Detail each sequential step of
the process (through interview
with Process Owner & Team)
2. Complete more
detail for each
step
2 Step
6
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
No action required
Moderate level of improvement possible
High level of improvement possible
• Each process is
rated for each of the
10 audit questions
across efficiency
and effectiveness
• ‘Worst’ rating across
the respective audit
questions drives the
overall rating for
that process for
each of efficiency &
effectiveness
The efficiency and effectiveness of each process is rated according to the extent of improvement potential…
PROCESS AUDITS
Rating Criteria 3 Step
7
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Easy
Moderate
Difficult
• Easy implementation without major investment, limited effort, no risk and no global
guideline restrictions
• Implementation with some financial investment, medium implementation effort, some risks
and/or some global guideline restrictions
• Difficult implementation with major financial investment, significant implementation effort,
implementation risk and/or global guideline restrictions
Ease of implementation
High
Medium
Low
• Frees up a large amount of time or resources to “do more” and/or increases the quality of
the outcome (effectiveness) to a very high degree
• Frees up a significant amount of time of resources to “do more” and/or increases the
quality of the outcome (effectiveness) significantly
• Frees some but limited time of resources to “do more” and/or increases the quality of the
outcome (effectiveness)
Value of opportunity
Rating Criteria for Improvement Opportunities
Step 5 - Each opportunity is then ranked by both value and ease of implementation against set criteria
PROCESS AUDITS
5 Step
8
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Description of Opportunity
• …
Description of Benefit Estimated Value
• … • …
Recommended Next Steps
• …
Risks / Considerations Investment Required
• … • …
Step 6 is to produce a one page description for each opportunity, redesigning the process
PROCESS AUDITS
BBFTB Opportunities 6 Step
9
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Contents
10
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
• Worked Example 20
• Workload Analysis 33
• Benchmarking 40
Becoming Faster – The Management Challenge 42
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Create roadmap/
revise last year's
roadmap
Define issues and
opportunities
Define detailed
strategies (brands,
departments, etc)
Review detailed
strategy and
combine to
corporate strategy
Strategic Planning
Process Owner J. Smith
Input
• Strategic roadmap from
previous year
• Market, competitor, product
analysis
• Global strategy framework
Process frequency Annual
Involved parties
(internal, external) MD, CFO, Leadership Team
Main IT-systems,
-tools
Process customer
(internal, external) Leadership Team
Output • Strategic roadmap
Preparation of
presentation deck
Presentation and
discussion of
strategy Leadership
Team
The value chain for Strategic Planning identifies six key process stages
PROCESS AUDITS
EXAMPLE
11
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
The efficiency audit highlights lack of alignment of activities and the lead time it too long
PROCESS AUDITS
Efficiency Questions Efficiency
Is there a need to completely
redesign the process?
Are any steps in the
process unnecessary?
Are the steps in the right sequence?
Are there large efficiency opportunities
within any of the steps?
Are too many people involved in the
process? (Decision matrix)
Does the process take too long?
• No
• No
• Yes
• Lack of alignment in guidance provided, driving different activities
• Needs wider involvement to achieve objectives
• Limited visibility of actual workload leading into strategy planning
• Total lead time is too long for the strategic planning process
A
B
C
D
E
F
• Condensed and precise process (clear perimeter, input/output, etc); best practice time frame: 4 weeks
• Ability to drive out of the box thinking (challenge status quo). Strategy should be built outside in (not just based on where the business is
at today)
• Shared understanding and buy-in from BU
Priority Process Audit: Efficiency EXAMPLE
12
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Improvement Opportunities
1. Reorder the activities of strategy planning process 2. Driving strategy understanding down in the organisation
3. Stimulate “out of the box” thinking
Efficiency Effectiveness
1 2
3
There are three key improvement opportunities
PROCESS AUDITS
EXAMPLE
13
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Description of Opportunity
• Redesign the strategic planning
process with shorter timeline and 2-
step approach
Description of Benefit Estimated Value
• The shorter timeline provides the
opportunity to focus the planning effort
during a specific period of time and
base the strategic plan on the most
current information
• Do the strategic planning of supporting
functions in the second step improves
the alignment with the commercial
strategy
• $100k
10% less rework due to most current
information and 2-step approach
(strategy alignment)
Recommended Next Steps
• Review proposed process and timeline
• Implement new process for the next
strategic planning process
Risks / Considerations Investment Required
• Clear communication of deliverables
as needed in order to perform on the
compressed timeline
• Be aware of other activity during this
time:
― Year-end closing
― Submission of annual budget
• None, just communicate new process
and design templates/ guidelines
BBFTB #1 is to redesign the strategic planning process
PROCESS AUDITS
BBFTB OPPORTUNITY # S.P.1 EXAMPLE
14
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Description of Opportunity
• Improve the communication of the
strategic roadmap and the department
roadmaps
• Everyone in the organisation needs an
understanding of how their work and
outcome relates to the strategic goals
and priorities
Description of Benefit Estimated Value
• Improved understanding of company
goals and improved decision making
on lower levels of the organisation
• Medium, especially better decision
making and higher engagement of total
organisation
Recommended Next Steps
• Implement communication concept
Risks / Considerations Investment Required
• Management must be able to
“translate” strategic goals to individual
workplace
• Low, time of management
Driving strategy understanding down in the organisation
PROCESS AUDITS
EXAMPLE BBFTB Opportunity # S.P.2
15
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
1. Strategic Planning
Process BBFTB Implement Quick win Implement
S.P.1 Redesign strategic planning
S.P.2 Communicate strategy S.P.3 Stimulate out of the box thinking
Yes No
Yes No Yes No
…and to the overall recommendations
PROCESS AUDITS
Process Recommendations ‘Dashboard’
2
3
4
5
6
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
EXAMPLE
16
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Meeting &
Project
Snapshot
Workload
Survey
Workload Analysis
• Survey the team to evaluate:
─ which processes employees
are working on
─ what activities they are
undertaking to get things
done
─ the autonomy of their role
─ general recommendations
and comments on whether
there is additional capacity in
the business to ‘do more’
• Completed by key people in
each department
• Identifies key recurring meetings
and standalone projects/
workstreams
Meeting Quality
Observations
• Attended and evaluated key
meetings
Measure and observe whether the organisation is running very ‘tight’
or whether there is room to capture efficiencies
Objective
In parallel to the ‘process audit’ work, a workload analysis will drive a clear understanding of how the organization spends its time
WORKLOAD ANALYSIS
17
Key Workload Analysis Activities
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
“Do you believe there is additional
capacity within the office to ‘do
more’?”
Yes 55%
No 45%
• Average of an additional 14% capacity by
those employees that said “Yes”
• The suggested additional capacity ranged
between 5% (7 respondents) and 40% (3
respondents)
Comments from Respondents
• “Using our tools correctly would save time to create time”
[10%]
• “We need to change our effectiveness and speed in decision
making and be more risk taking versus need to validate and
research everything versus making business decisions based
on experience and judgement” [40%]
• “Our plant is at about 70%, another at about 65%, one at
about 80% and the last one at about 50-60%”
• “Everyone is busy and at capacity but not necessarily on the
right things” [0%]
• “We are already doing too much. We need to do less and
focus on doing things properly instead of always rushing from
one thing to another” [0%]
• “In our dept we are fully busy so logical answer is "no" but we
all find time for special projects/emergencies so the
organisation does have some flex but suspect it is not
sustainable the way we do it - we should plan it better and as a
business agree things that won't be done in the future - that re-
prioritising could mean a better use of capacity rather than a
more capacity”
Importantly, a workload survey provides an assessment of the willingness of the organisation to speed things up and get more done
WORKLOAD ANALYSIS
EXAMPLE
18
Workload Survey Findings
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
24% 21%
11% 11%
8%6%
8% 11%
Meeting Related
Communicating internally
Communicating externally
Desk Work
Managing people
Other (Training etc)
Employee Cost
48%
2%
Time Spent
46%
3%
Represents ~$20m in
people cost.
A 10% improvement in
meeting efficiency
across the board
would release ~$2.0m
in resource
..as well as a perspective on the ‘activities’ people are undertaking on a day to day basis
WORKLOAD ANALYSIS
Time versus Employee Costs Spent for Key Work Activities EXAMPLE
19
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Meeting 1 2 3 4 5 6 7 8 9
Hygiene
On time 1 3 2 5 3 2 2 1 1
Pre-reading available 5 5 5 5 1 3 4 5 5
Pre-reading read 2 3 3 2 N/A 2 2 2 2
Behavior 5 5 5 5 5 5 5 5 5
Time Length 3 4 2 3 1 2 4 3 3
Frequency 5 5 5 5 1 5 5 5 5
Clear objective Decisions taken Yes No No No Yes Yes Yes Yes Yes
Other - information Yes Yes Yes Yes No Yes Yes Yes Yes
Participants Right people? 3 3 3 3 1 5 4 4 5
Actually there? Yes Yes Yes Yes Yes No Yes No No
Clear Agenda 5 3 5 5 5 5 5 5 5
Document
information
quality
Right info 1 2 3 3 1 4 3 3 5
Format 2 2 3 3 N/A 4 5 3 5
Follow ups Minutes/ Actions 5 5 N/A 2 5 2 5 2 2
Follow up N/A N/A N/A N/A Yes Yes Yes Yes Yes
5 = Very Good; 1 = Very Poor
An audit of meeting quality will give an insight to the companies ‘meeting culture’
WORKLOAD ANALYSIS
EXAMPLE
20
For a better understanding of how to increase meeting efficient and effectiveness see STRATICX
document “Complete Toolkit for Improving Meetings”
Meeting Audit Heat Map
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Whilst benchmarking needs to be contextualized, it can help identify improvement opportunities or areas of focus
BENCHMARKING
Benchmarking
Our Co.
Benchmark
4
Benchmark
3
Benchmark
2
Benchmark
1
Our Co.
Benchmark
4
Benchmark
3
Benchmark
2
Benchmark
1
Total FTES per HR FTE Marketing Spend/Net Revenue
#
#
#
#
?
$
$
$
$
?
EXAMPLE
21
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
Ultimately, the speed of an organisation is strongly influenced by its leadership, and their ability to inform culture and key processes
BECOMING FASTER – THE MANAGEMENT CHALLENGE
Inform, incent, monitor, fine tune, excel
Calibrate, give
Set, review Lack of Speed Priorities
Lack of Speed Resources
Lack of Speed Will
Becoming Faster – The Organizational Challenge
22
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html
23
This is only a partial view of the full presentation. For further details and download
please goto: www.straticx.com/store.html