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Implementing Business Improvement “Managing Operational Performance” by Systemising management process in a way that makes business improvement much easier

Implementing Business Improvement “Managing Operational Performance” by Systemising management process in a way that makes business improvement much easier

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Implementing

BusinessImprovement

“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’s problems:1. The business is not set up to operate without the CEO’s day-to-day

hands-on involvement2. The CEO is too busy working “in” the business to find time to work

“on” the business, and has often lost track of what people do.3. Poor staff productivity. It is “typical” that 60% of what staff

actually do each day, does not add real value to the business 4. Personnel do not have fast access to the tools and knowledge

required to do their jobs effectively and productively.5. There is no “operational system” in place to control the efficient

implementation of plans and actions.6. Huge amounts of management time are wasted in follow-up and

close supervision of internal staff just to get things done on time7. Staff (and managers) do not understand the CEO’s thoughts

behind the business and how he wants things done8. Things happening at the “front-line” are rarely visible to managers

(or the CEO) until it is too late to avoid adverse consequences.9. The “front-line” does not understand how the rest of the business

works, but most importantly, they do not understand 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 simple solution that integrates these functions and creates an “IP asset” of the business

….. that becomes an “Improvement & Control System”

Firstly, improvement is about focusing on the right ”actions”

….. i.e. the operational actions of the business that create the most value for the business

Secondly, control is about “visibility and transparency”

….. i.e. so that everything that the people “do” is clearly seen by everyone to be of value to the business It really is that simple …… if you have a system to guide you !!!It really is that simple …… if you have a system to 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

“Target, Measure & Report” Process

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”.

“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)

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

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 Performance”

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

So AMS systemises the improvement of a business.