Achieving organisational goals - Webinar Slides
- 1. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Claude Maley The Webinar Will Start Shortly Achieving Organisational Goals
- 2. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Housekeeping • Slides will be available on our SlideShare page; the link will be emailed to you • Recording of the webinar will be available to download; the link will be emailed to you • Take the time to complete a post-webinar survey that will pop up at the end • You can type your questions throughout the session • Time will be allocated in the end for the speaker to address your questions
- 3. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Your Presenter Claude Maley is Managing Director of Mit Consultants, a consultancy and education practice servicing international clients in change management, and Chairman of a business solutions company. His functional management and consulting experience with major corporations such as Alcatel, BP, Cadbury Schweppes, Cartier, Caterpillar, Cisco, Ericsson, GE, Hewlett-Packard, IMS International, Motorola, Organon, Overseas Containers Limited, Pechiney, Renault Automobile, Siemens to name a few, has spanned more than 40 years in engineering, production and manufacturing, distribution, transportation and marketing services sectors.
- 4. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Designed & Created by 4 Achieving Organisational Goals
- 5. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Great clients & customers Picture the IDEAL Great organisational structure Great people & processes Great facilities Great suppliers Great dominant market position Weak competitors No Regulatory norms Great socio/economic environment Great geo/political stability If THIS is your Current Situation WHAT ARE YOU DOING HERE ? 5
- 6. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction The REALITY The world is moving so fast these days that the person who says it can’t be done is generally interrupted by someone doing it Anonymous Survival of a Species is determined by their ability to adapt to a Changing Environment Charles Darwin 6
- 7. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Key Objectives for this Webinar 7
- 8. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Competition Financial Constraints The Market Place Temporal Constraints Economical Globalisation Political & Regulatory External Influences Organisation's ability to meet Market Requirements Key Areas for an Organisation's Competitiveness From: Reactivity to Proactivity CHANGE is the only Certainty in a World of Uncertainty Sustaining Business OPERATIONS and the constant need for INNOVATION And CONTINUOUS IMPROVEMENT Making Strategic Investments Redefining Organisational Structures Empowering People Enabling Technology Transforming Key Processes into Strategic Capabilities Analysing & Reviewing Market, Competition, Services & Products End-to-End Solutions Within Time to Market Constraints 8
- 9. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction The Organisation's Strategic Intent MEETING CORPORATE BUSINESS GOALS Managing in a Constant state of Change Iterative & Incremental in concert with Continuous Improvement, Business Process Re-engineering and Enabling Technology "BOTTOM LINE" IMPACT – VALUE CREATION Making Change Last Monitoring Progress Changing Structures & Systems Creating a Shared Need Shaping a Vision Mobilising Commitment Change Management Strategic Transformational Tactical Operational Seeking Growth & Opportunities Maintaining Competitive Advantage Sustaining Continuing Operations 9
- 10. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction "Are we Doing it Right?" Are we doing it RIGHT ? Right Market Right Products Right Organisation Right Skills Right Investments Right Size Perform Continuous Analysis & Evaluation of BUSINESS PROCESS MODELS What are the Opportunities: New Market New Product/Service Alliances o Key Business Concerns : o ARE WE DOING THE RIGHT THING o ARE WE DOING THE THING RIGHT What are the Operational Issues: Waste Heavy Process Points Costly Steps Low Quality Inadequate Response 10
- 11. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Achievement of Goals A Holistic Enterprise View Strategy Structure Systems Processes People M - Mission O - Objectives S - Strategy T - Tactics SHORT TERM MEDIUM TERM LONG TERM Mission a broad, enduring statement of an organisation’s purpose Objectives desired future organisation positions, quantitative in nature Strategy framework through which an organisation adapts to a changing environment Tactics short-term operating decisions to implement strategy 11
- 12. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Strategic Goals Organisations initiate Strategy Formulation by specifying their Mission, Goals, and Objectives - setting the Long-Term direction and scope for the whole Organisation Performance of SWOT analysis to select Appropriate Strategies, based upon: Organisational Change Impact Formal & Informal Organisational Structures Organisation "Culture" Appropriate approach to Implement the Strategy Strategic Business Objectives are Goals deemed most Important to the Current and Future Health of an Organisation 12
- 13. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction High-Level "As-Is" and "To-Be" Analysis The terms “AS IS” and “TO BE” work for all Business Modelling disciplines B Desired Situation “TO BE” A Current Situation “AS IS” Selection Blueprint Implementation Go Live 13
- 14. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Hierarchical Levels of Strategy Strategy can be formulated on three different levels: 14
- 15. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Setting SMART Objectives Customer Perspective The customer needs to meet to achieve the financial objectives Internal Process Perspective The critical business processes to satisfy both customers and shareholders Financial Perspective The financial objectives to accomplish to satisfy shareholders Infrastructure Perspective The critical processes to improve and optimise Describes what needs to be AchievedSpecific Measurable Attainable Realistic Time Bound Tangible Mechanisms to determine Progress & End-result Accepted & Achievable by assigned Group or Person Within the limits & bounds of Constraints Time Frame for achieving the Objective 15
- 16. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Transformational Objectives Transformational Strategic Objectives set drastic and significant Changes within a Business for its Short- and Long-Term Viability Change Objectives apply across the whole Organisation, including Business Units, Geographies and Functions 16
- 17. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction CAPEX Budgeting Capital Expenditures (used to acquire assets or improve the useful life of existing assets) are made over a period of more than one year. The CAPEX BUDGET accounts for the potential profitability of the plans involved (adjusted to the net present value or the internal rate of return) Total CAPEX BUDGET = Maintenance CAPEX expenditures + New CAPEX expenditures Determine the Capital needs of the Organisation Identify the Maintenance CAPEX Expenditures (used to maintain the Capital invested in earlier years) Identify New Capital Expenditures for the Organisation Request input from Department Heads on Departmental Investment Needs 17
- 18. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction OPEX Budgeting An OPEX BUDGET is an Operational Expense for ongoing costs for a business, a product or a system, made within a period of one year Operational Expense Related to the production of goods and services. Include wages for employees, research and development, and costs of raw materials. Operating expenses do not include taxes, debt service, or other expenses inherent to the operation of a business but unrelated to production 18
- 19. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Difference Between Strategic & Operational Objectives Operational Objectives are daily, weekly or monthly project benchmarks that implement larger strategic objectives. Operational objectives, also called tactical objectives, are set out with strategic objectives in mind and provide a means for management and staff to break down a larger strategic goal into workable tasks Strategic Objectives are long-term organizational goals that help to convert a mission statement from a broad vision into more specific plans and projects. They set the major benchmarks for success and are designed to be measurable, specific and realistic translations of the mission statement that can be used by management to guide decision-making 19
- 20. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Fit Between Corporate and Functional Strategies * * Adapted from Chopra & Meindl Corporate Competitive Strategy Product Development Strategy Supply Chain or Operations Strategy Marketing and Sales Strategy Finance Strategy Human Resources Strategy Information Technology Strategy
- 21. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Strategy & Operations Cost To produce at low cost Speed To Respond Rapidly to Customer Demands Flexibility To Adapt Operations to Different Rhythms Dependability To deliver Products and Services in accordance with Demands Quality To produce in accordance with specification and without error Operations Ability & Performance Objectives Strategy How the Organisation seeks to Endure and Prosper within its Environment over the Long-Term Operations The Decisions and Actions taken in the Short-Term which have a direct impact on the Organisation's ability to Fulfil its Strategy 21
- 22. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Operational Goals & Departmental Goals An Operational Plan is a detailed plan used to provide a clear picture of how a team, section or department will contribute to the achievement of the organisation's strategic goals Normally contain the following information: • Specific goals • Actions required to achieve goals • Human resources required • Physical resources required • Budget required • An indication of how long goals will take to achieve How the goals will be achieved What resources are required to meet the goals The goals of the team, section or department Operational plans are used to identify: 22
- 23. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Operations Strategy Operations Strategy concerns the way in which an organization develops its Key Decisions Top-Down Pursuit of its business and corporate strategy Bottom-Up From actions and decisions taken with operations Market-Led Response to market requirements Operations-Led Based on resources & capabilities within its operations 23
- 24. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Operational Planning Operational Planning links Strategic Goals and Objectives to Tactical Goals and Objectives Explain how a Strategic Plan (or what portion of) will be put into Operation during a fiscal year or another given budgetary term An Operational Plan is the basis for, and justification of an Annual Operating Budget Request Operational Plans should contain: • Clear objectives • Activities to be delivered • Quality standards • Desired outcomes • Staffing and resource requirements • Implementation timetables • A process for monitoring progress Operational Plans identify: • Milestones • Conditions for Success 24
- 25. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Developing a Tactical Plan for Action Defines: • Tactical Objectives • Activities • Resources • Schedule Tactical Action Plan Tactical Objectives Defined by Stating: • SMART Objectives • Improvement Goals • Milestone Results • Measurement System Operations Strategy Typically Defined in Terms: • Cycle Time • Working Capital • Customer Service • Cost • Quality Business Strategy Typically Defined in Terms: • Financial • Organisational • Marketing • Products & Services Cost: To produce at low cost Quality: To produce in accordance with specification and without error Speed: To respond rapidly to customer demands Dependability: To deliver products/services in accordance to contracts Flexibility: To change operations Operations Performance Objectives 25
- 26. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Implementing The Strategy And Evaluating The Results Successful Implementation of Strategies requires four basic types of Execution skills Expressed in managing one's own and others' behaviour to achieve objectives Interacting Skills Brought to bear in managers' abilities to schedule tasks & budget time, money, and other resources efficiently Allocating Skills Exhibited in the ability to create a new informal organisation/network to match problems that occur Organising Skills Involve the efficient use of information to correct any problems that arise in the process of Implementation Monitoring Skills 26
- 27. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Performance Measures Performance Measures are a primary strategy deployment tool and quantitatively report on the products, services, and the processes that produce them Progress Meeting of Goals Effective Performance Measures are Relevant; Reliable & Provide Available Data indicate: Customer Satisfaction Processes in statistical control Areas of Improvements What gets measured gets done! If performance measures are not appropriately adjusted, change can be made virtually impossible 27
- 28. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Planning the Change Goals Vision/TO-BE Based on review of secondary research Involvement Stakeholder analysis Primary research Communication to Achieve the Vision Communication plan and strategy Tracking of Progress or Achievement Metrics (quantitative and qualitative) Milestone Scheduling Change implementation plan 28
- 29. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Alignment with the Organisational Strategy From Strategic Vision to Projects StrategyPortfolio Project Definition And Planning Project Concept Portfolio Management Strategy & Tactics Strategic Vision 29
- 30. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Project Selection Funnel Stage 1: Pre-Survey Business Analysis Stage 2: Business Processes Identified with Key Metrics Stage 3: Assess Projects for Benefits Stage 4: Prioritise Projects and ensure Organisational Buy-In Selection & Priority is Business Driven Requires Quantitative & Qualitative Criteria 30
- 31. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Maintaining Expectations Alignment to Strategy Report Deviations to Sponsors & Stakeholders Determine Evolution of Importance & Interest Adjust Plans Accordingly Map to Current Project Expectations Capture Changes to Stakeholder Community As EXPECTATIONS Evolve and Change, these have Major Repercussions on Strategic Intents 31
- 32. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Successful Implementation to Achieve Organisational Goals Develop a Realistic Plan with clear Objectives and Tasks Underline the Compelling Reasons for the Change Implement a programme of ongoing Communication and Training Provide Expert Resources and Support for change at the Employee level Measure Progress towards the Goals and continually Adjust Demonstrate Strong Leadership and Commitment at all Management levels Insist on Middle Management Ownership of the Change 32
- 33. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Classical Problems that Impede Successful Implementation of Organisational Goals Centre around how Well or Badly the existing Organisation Responds to the Change and the Failure to predict the Time and Problems inherent in an Implementation Initiative Lack of executive support Strategies poorly forecast or inflexible Not enough focus on people Stifling of innovation Difficulty in defining the best process projects Incomplete, inappropriate resources Other Operational activities and commitments that distract attention Silo behaviour "Turf" protection politics Instinct to reinforce ‘command and control’ Shifting priorities deflect efforts, disable consistency, impact schedules Delays in deploying needed technology 33
- 34. Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction 34