Organizational Discovery Report -Sample Report...Organizational+Discovery+Report Prepared+by+ManagingAmericans.com,+LLC+>+Confidential 1 AboutThe+Business pg2 Executive+Assessment

Organizational Discovery Report

Prepared by ManagingAmericans.com, LLC -‐ Confidential 1

About The Business pg 2

Executive Assessment pg 13

Benchmark Date: 12/5/13

Name Tom SmithTitle President Address 1: 100 Main Street

Address 2: Suite 10Direct Reports 8 City: Commerce ParkEmail [email protected] State: NYPhone 555-‐555-‐5555 Zip code: 18999Website www.samplecompany.com Country USA

Organizational Discovery ReportPrepared for:

Sample Company



Business Overview 3

Key Priorities & Obstacles 4

Communication & Culture 5

Organizational Structure 7

Operating Systems 9

Business Planning 11

Financial Objectives 12

About The Business



Business Overview Sample Company

Annual Revenue $10M -‐ $50M Market Share 60% -‐ 80% # of Employees 100 -‐ 500

We are a manufacturer of plastic parts, for use across all industries. We sell direct to customers for replacements and individual use, as well as design plastic components for OEMs.

Industry Description

We make injection molded and dip molded caps, plugs, sleeves and other custom products.

Products & Services

Financial Status

We have the largest variety of products and capabilities in the industry. Our competitors either do one type of molding or another. We are able to offer the best solution.

Market Differentiator

Competitive Advantage Quick Stats

Maintaining current revenue, but with declining profits

1) Selection, we have the widest range of products in the industry. 2) Fast Service for standard parts. We ship standard parts same day.



Key Priorities & Obstacles Sample CompanyPriority #1

Obstacle 1

Obstacle 2

Obstacle 3

Priority #2

Obstacle 1

Obstacle 2

Obstacle 3

Priority #3

Obstacle 1

Obstacle 2

Obstacle 3

Priority #4

Obstacle 1

Obstacle 2

Obstacle 3

Priority #5

Obstacle 1

Obstacle 2

Obstacle 3

Reduce our sampling costs

Our equipment takes a long time to change over

Our scheduling system is always interrupted with emergencies

Leader? Deadline?

Leader? Deadline?

being able to follow-‐up on sample requests if we are overwhelmed

designing a system that functions with e-‐commerce

We have no way to restrict or qualify who gets samples

Our product line continues to grow especially with new technologies added

Grow our custom OEM business

OEM's continue to drive down prices

Our turnaround time on development is not competitive

Our molds are very costly vs. price expectations

Customers sample instead of buy

Reduce Our Lead-‐times

Expand our Dip Molding Capabilities

It is a relatively new technology for us

There are some more experienced dip molders out there...we need to catch up

We don't want it to take away from our exiting business

Our product line is so extensive stock has not been an option

Leader? Deadline?

Leader? Deadline?

Leader? Deadline?Establish an On-‐Line presence

Not sure what it should be



Communication & Culture: Company Wide Sample Company

Ranking AttributeAbsolutely Top Down (management is more important)Most of the Time Customer FocusedSometimes Secretive

Marketing

Top 3 Attributes of Company Culture

Worst of the Worst

Companywide Communication

POOR: There is confusion or lack of visibility to real objectives, both overall and individual/department. (It is difficult to implement anything.)

Engineering

They hide in their corner of the building and do not integrate with the others. They don't want to adapt with technology and keep adding overhead. There is a real disconnect with the organization and the customer.

Best of the Best

They make it a point to integrate their work with the rest of the team, at least by informing them of what is going on so that everyone has time to adapt.



Communication & Culture: My Team Sample Company

Ranking AttributeAbsolutely Customer FocusedMost of the Time Fast PacedSometimes Innovative

Most Used

Team MeetingsMonthly Reports

Individual Discussions

Weekly Action Plans

Team Communication

Somewhat Responsive (I usually need to prompt them a few times, but they act eventually.)

Top 3 Attributes of My Team's Culture

Project Management Systems

My Communication ToolsLeast Used

Formal Performance & Objectives ReviewsConference Calls



Organizational Structure Sample Company

Current Structure

We have a traditional structure. Company President and each function reporting to the president. Functional directors include HR, Sales, Marketing, Operations, Engineering, Finance, Maintenance, IT Additional functions report to the functional directors: Marketing: Customer Service, Product Samples Finance: Accounting, Purchasing Sales: Outside Independent Rep Network, Inside OEM Sales Engineers We have about 250 employees.

Structure Type

Functional Structure With Direct Departmental Reporting Lines & Clear Accountability

Cross-‐Functional Effectiveness

SOMETIMES: Depending on who is trying to get work done, people respond, not always to the demand, but to the person asking.

Priority Alignment Between Functions: 1=Poor Alignment; 5=Fully Aligned

2



Organizational Structure Sample Company

Organizational Chart

President

HR

Payroll Employee Systems

Produchon

Scheduling Shipping

Sales

Outside Sales/OEM

Markehng

Customer Service Adverhsing

Finance

Accounhng Purchasing

Engineering Maintenance

Quality/Safety

IT



Operating Systems Sample Company

Sales

System Purpose

Customer Service

Human Resources

Operations

Sales systems include all customer and prospecting activities prior to an order being placed, at which time the order becomes part of the Customer Service order management system.

Individual SystemNo formal system is used, most transactions are manual.

Customer Service systems include customer information, order details & history, pricing & terms, etc.. Included In ERP System

All work is conducted within the designated system with limited error.

Operations systems include order management from scheduling, through production, through fulfillment, as well as procurement, inventory & supply chain management.

Individual SystemThe designated system is repeatedly bypassed.

Included In ERP SystemAll work is conducted within the designated system with limited error.

Accounting

Access to an Integrated Enterprise Resource Planning (ERP) System Yes

System Type Effective Use

Accounting systems include all cash flows & financial reporting, accounts payable and receivable, product/service costing, asset management, etc..

Human Resource systems include employee performance reporting and objectives tracking, as well as salaries, benefits, employment reporting, training schedules, on-‐boarding, etc…

Not SureThe designated system is repeatedly bypassed.



Operating Systems Sample Company

Yes No

An Innovation system is a formal pipeline for new product ideas or services. Within the system and/or process ideas are prioritized, developed, tracked and launched in a systematic way.

Individual SystemNo formal system is used, most transactions are manual.

Quality Control

System Purpose System Type Effective Use

Innovation

Quality Control systems include capturing and processing customer complaints through resolution, documenting errors and root causes, as well as monitoring improvements in key quality metrics. Quality systems also include standard operating procedures.

Individual SystemAll work is conducted within the designated system with limited error.

Quality ControlFormal Corrective Action Process

We have a no questions asked policy, we replace any damaged product right away. For our standard products quality is rarely an issue because of the nature of the product. We have visual checks and if something does not look right it gets recycled and reused. The quality problems that are difficult are the OEM Custom Designed products. If molds start to wear down and a quality problem occurs we have long lead-‐times to replicate the mold and it is costly. This is something we need to address.

InnovationFormal Process to Capture Growth Ideas

0



Business Planning Sample Company

Change Management Capabilities on a Scale of 1-‐5 (5 being High Likelihood of Success)

Internal Threats to Achieving Plan

The overall strategy is written down. Maybe 100

External Threats To Achieving Plan

Raw material costs continue to rise. We have very few raw materials so when we see an increase it makes a huge impact. Domestic Competition and Canadian Imports. Price expectations from OEM customers. They anticipate radical concessions to keep business.

We don't have a good process or cost control over custom molds. We are not sure how to build our dip molding business to compete with those who specialize in it. We give a lot of product away based on our history and culture, however it we are bigger and need to adapt our approach due to cost.

2: I have one or two team members that can take the lead, but I have to manage the rest.

Plan Structure Plan is Able to Drive Your Team to Results Employee Buy-‐In & Engagement %



Financial Objectives Sample Company

Are Your Top 5 Motivators Actually Driving The Entire Organization to Achieve Your Financial Goals? Yes

Top 5 Motivators In Order of ImportanceFinancial Goals Addressed in Plan

Increase profits. Focus on increasing our overall profit margin with the addition of more custom work. Find a better solution for our molds which are very high-‐cost assets.

Sales RevenueProfit/Revenue (%)Production Units

Operating Costs/Units (%)Customer Complaints



Leadership Concerns 14

Observations & Exercises 16

Using This Report 18

Executive Assessment



Leadership Concerns Sample Company

Your system has a lot of power because it is accepted by the entire organization. Use this as a vehicle for change. If you don't integrate the system it will be used as an excuse not to change. Without a clear HR system & performance/objectives process engagement will remain random and a major hurdle for you. If your operations process is bypassed it may not be as up-‐to-‐date as you think. Addressing this though your workforce can be a good door opener for change while addressing barcoding needs at that time.

Use the hurdles you outlined in this review to drive actions throughout the organization. Key metrics will show the progress on goals, but actions to overcome hurdles will have the most impact. Assign leaders, have them report weekly to create urgency and engage the organization in the plan. Your 100% employee buy-‐in and engagement may be on the past, but until you activate your plan through this process, engagement is not what you think it is.

Overall Communication

We have been very profitable as the market leader, but now more and more competitors are in mix. We are not as agile as we should be and it is going to be difficult to transition our old ways in order to keep our leadership role. We need to make changes without losing profits.

Again, getting people to accept change and work together.

This is a common problem for long-‐time successful companies. The first reaction is to invest in technology & acquisitions. The reality is that your best and biggest asset is your workforce. Once you realize that, access it, and mobilize it, you will improve efficiency, regain profits and revitalize innovation without wasting capital. Benchmark today so you can focus on your goals...use the benchmark to get the organization focused too.

Start improving communication by providing a vehicle for it. Give your organization a voice and show them that you are listening; use that same vehicle to teach and bring everyone together. By addressing each of your concerns and showing progress, not only objectives, but real changes that support a better infrastructure, you will get people to act and work together because they will see and understand the benefits of doing so.

Operating Systems Current Business Plan

We have a pretty robust, customized system. I am happy with it and believe the rest of the organization is too. The only thing that would be nice to advance is to include a barcode system to manage all of our products and inventory. The system is not currently set up for this.

History drives the goals and objectives of our employees. We struggle with change and our business plan right now is all about change.



Leadership Concerns Sample Company

We don't have an action plan to address our objectives. no

Action plans start with education, creating new metrics and explaining the big picture so each part of the organization and your team can prepare actions they can complete to effectively engage in the objectives, then re-‐educate to show how all actions are aligned. This alignment will keep people motivated and working as a team toward the same goal.

Without a formal sales operating system your engineering efforts will not be able to integrate effectively as you try to build your OEM business. Engineering's communication is already poor. An innovation process can also help integrate the two. Try using your marketing team to spear head this integration. And create an infrastructure that is value added for OEM prospects. You may want to revisit your org structure as well, brining in new blood at the top of engineering or a change management function to spearhead the transition.

Company Culture Organizational Structure

We have been around for 30 years, been successful and have had employees with us from the start. It is only recently we feel the need to change, and not everyone is on the same page or interested in doing so.

We tend to work in silos. Everyone gets along but they don't want to change or give up their freedom for the other. I think we lack a cohesiveness in our activities.

Your team culture is different than company culture-‐that indicates your momentum is not flowing beyond your own influence. By overcoming this roadblock you will get your entire organization moving in the same direction. Reevaluate your communication tools, focus on aligning objectives to grow accountability and reduce silos while implementing weekly action plan reviews to keep the focus and momentum going.

Poor priority alignment is linked to cross-‐functional ineffectiveness. By charting the process flows across departments you can build an appreciation for what everyone brings and how it is all connected, as well as how the entire group is connected to the customer. This will generate an openness for change.

Achieving Financial Goals Other Things to Consider



Observations & Exercises Sample Company

For example, consider the following structure: (new positions are highlighted)

You have a large direct staff reporting to you, and from what you say the current structure creates too many silos. This could very well be the cause. You might consider replacing your direct staff with VP level Change Managers, consolidating some of the functional groups from a reporting standpoint. That way you can focus on driving the business forward with a team that is established and committed to doing so with you.

With this structure you reduce your direct reports from 8 to 5. You Create three Change Management VP positions whereby their sole purpose is the move their part of the organization forward, align objectives, integrate systems and work together to break down silos. The VP IT position would add on a PMO (Project Management Office) to ensure the systems are updated to support your goals and new infrastructure. This is important not only as part of change management activities, but also to support your new ecommerce infrastructure. The other major change is to move Engineering under the Sls & Marketing Change Manager. The reason for this is to take advantage of the communication structure that exists within marketing plus bring innovation closer to the customer. That would allow you to build your OEM business as well.

Change Management Function

President

HR

Payroll Employee Systems

VP Operahons (CM)

Produchon

Scheduling Shipping

Maintenance

Quality/Safety

VP Sales & Mktg (CM)

Sales

Outside Sales/OEM

Markehng

Customer Service Adverhsing

Engineering

VP IT (CM)

IT PMO

Finance

Accounhng Purchasing



Observations & Exercises Sample Company

Establishing Performance Metrics That Drive Your Organization & Produce The Results You WANT to Achieve

Improving Employee Engagement

Establishing Current & Future Process Flows

When silos exist is usually means that there is a lack of understanding cross-‐functionally. By getting everyone in a room and mapping out the entire customer experience (what they see and what happens outside of what they see), you will be able to learn where roadblocks and inefficiency exist. The owners of the process will also become aware of these gaps. Once identified, together you can build a more effective and profitable way of working together. That is where you invest in your systems and infrastructure. Until you optimize your current and future process flow, outside investments really don't make sense.

Another downfall of silos and misalignment of objectives is that actions are not established to achieve common financial goals. If you identify what each department in your organization really looks at to drive their actions, you may find where misalignment exists. You may also find that your goals are unrealistic. Ultimately you want a dashboard of metrics that make sense for your organization. They should be key drivers that are understood, attainable and visible to everyone.

Effective Organizational Change requires the understanding and buy in of employees at all levels. People need to understand where the company wants to go and what their role is in that process. Not only understand it, but believe that their contribution is necessary to achieve collective success. Achieving this throughout your organization will improve employee engagement AND your results.

An effective way to build effective employee engagement is to focus on management skills, goal setting and team participation. As leader of your organization you must be able to visualize engagement levels throughout your company. We created an online tool to measure engagement linked to team objectives and team leader effectiveness. By implementing this tool in your organization you will be able to build that visual and deploy your resources in areas that engagement needs to be improved; making your company more agile for the future. You can find these Team Discovery Tools on our website.

An effective way of conducting process flow charts is to bring 2-‐3 people from each company department into one room at the same time and literarily draw out the process starting from every different access point a customer has with your company and through to the customer receiving product/service, and any follow-‐up there after. Tape flip chart paper to your wall and make it as long as it needs to be. You might even consider an offsite meeting for this exercise. But you want to make sure that you have access to the right people if any need arises.

An effective way to establish useful performance metrics is to first understand what metrics exist. You do this by having each department identify and explain what they really use to drive their actions. Take all of that input and realign goals so they mesh with one another. Explain that integration and make them visible to the entire organization. Next it's important to post results on a regular basis and discuss any modifications in structure or systems in order to achieve goals effectively.



Using This Report Sample Company

Successful strategy development & implementation requires a cohesiveness in the business. You must discuss hurdles when you talk about objectives. You must discuss structure when you talk about communication and culture. You must discuss systems & processes when you talk about financial results. This Discovery Report puts that cohesiveness in one place for you to have that dialog with your team. Once you agree on the starting point, assign leaders and timelines for each of your hurdles. Empower your team and company to overcome them.

The next step is to design the future. What should your discovery report look like 3 months, 6 months, 3 years from now. That sets the stage for your strategic transformation.

As the Strategic Leader, your role is to facilitate change in your organization. Using this report is a great way to ensure your success.

Building A Productive Dialog With Your Team

One of the most important aspects of leading change in your organization is getting everyone on the same page, at the same time, so that they can act cohesively…doing something new. But for something or someone to change, there must first be a common place to start from. That is the purpose of this Organizational Discovery Report. Pages 3-‐12 of this report are designed as communication tools to create that starting point. Your perspective is important as the change leader. Use this document to sit down with your team, review your perspective and create the dialog to build consensus on what exists. Point out discrepancies in culture, discuss the best communication tools that should be used. Talk about objectives and hurdles as you see them and find out if there are others that should be added to the list.



Using This Report Sample Company

1) Let's Review the Business Overview. What is missing from each category?

Some Questions To Start The Dialog

5) Operating Systems: It's important that we streamline our systems and learn what that means for the people who use them. Our goal is not only to train people on current processes, but to learn if those processes can be improved. Let's review each one and talk about where we should focus our streamlining efforts.

6) Business Planning: Let's talk about how we plan for the future and the effectiveness of that planning process. What do we need to do to get all levels of the organization working toward our goals…and achieving them?

7) Financial Objectives: Here is what I look at to evaluate the business. What we need to do is decide on what we should be looking at to drive the business. Not just review our results, but the metrics we need to measure to ensure our results are achieved. Let's break down each area of the business and define what those look like then communicate them to our organization.

2) Key Priorities & Obstacles: Let's rank these obstacles and discuss any others that exist. We need to walk away with a clear plan of who will lead each effort and what realistic timeframes we can commit to.

4) Organizational Structure: We are evolving as an organization and it's important to determine if our structure supports what our business needs to be. That means that working together to achieve goals is our first priority. Here is how I see this alignment today. What structural roadblocks do you see that hinder our alignment? What can we do to improve it?

3) Communication & Culture: We need to set the tone for the entire organization by eliminating the discrepancy between what we expect from ourselves and what we expect from the organization. Here is what I see today and how I would like to improve upon it. What can I/we do to make that happen?

Documents

Organizational Discovery Report -Sample Report...Organizational+Discovery+Report Prepared+by+ManagingAmericans.com,+LLC+>+Confidential 1 AboutThe+Business pg2 Executive+Assessment