Assessment of performance for small business
2 likes1,468 views
The document outlines the performance assessment of small and medium enterprises (SMEs) in Latin America and the USA, highlighting key statistics and job contributions. It emphasizes the importance of measuring performance across various business areas such as finance, client relations, processes, and human resources. A self-diagnosis guide is included to help SMEs evaluate their performance and seek professional help based on their scores.
Assessment of performance for small business
- 2. Assessment of performance for Small Business 2
- 3. Facts for Latin America Small Business • Latin America has 11% of SMEs in the world • Brazil has 44.44% , Mexico 12.7% , and Argentina 11.11% • 90% of the jobs in Latin America is generated by SMEs
- 4. Facts for Latin America Small Business • Latin America has: • 716,000 small businesses • 145,000 medium businesses
- 5. Facts for USA Small Business • 50% of the working population works in small business • Small Business generates over 65% of net new jobs since 1995 • There are 22 million self-employed workers, and the remaining almost 7 million businesses have almost 100 million employees • 52% al all small businesses are now home based, with lower overhead and clearly new business models than they were prevalent 30 years ago. Source: Business Insider
- 6. Why measure performance ?? • Improve • Planning and forecasting • compete • Reward • Comply with regulations and standards
- 7. The performance measurement system • It is a set of strategic objectives and performance indicators that apply across the organization • Allow executives see the results generated by units combine to influence the overall results of the company
- 8. Finance • The financial area determines what objectives have shareholders or owners of the business, balancing risk-growth-profit, with focus on the vision and strategy. Finance
- 9. Clients • For customers area is key to reach them through segmentation, translating it in target markets and customers. The value proposition we present customers will determine satisfaction and loyalty. Clients
- 10. Process and operations • Once we know what the customer wants, the company must translate the internal processes in order to meet client expectations Process and operations
- 11. Human resources and it capabilities • For technology and human resources the business must identify the infrastructure that the organization must build to grow and improve on a long-term plan, motivating human resources, building the capacities of information systems and providing power to employees to solve by themselves the difficulties of everyday operations Human Resources and IT
- 12. How to use the guide • The self diagnosis will enable think about issues for which you had not thought of before, or you had spent very little time with. • Is aimed at owners, partners or senior managers of SMEs answer the questionnaire and assess what degree of professional help is required in your company. • The score should be given for each response goes from 1-5. Recital 1 as the least satisfactory and 5 as very satisfactory 12
- 13. Degree seeking professional help as the score • If you get less than 100 points you should seek professional help quickly in all areas of the company. • If you get between 100 and 150 points you should seek help only in those areas where the score is less. • If you get a higher score of 150 points you should think about what areas you want to grow in the future and plan everything for that to happen. 13
- 14. Areas to be assess Finance Clients Process - Operations Human Resources it capabilities
- 15. Finance : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME (Small and Medium size Enterprises ) : Periodically evaluates the liquidity to meet operational issues and investment medium / long term Reserves part of the profits for contingencies or low business cycles. Periodically assesses business risks that may lead to bankruptcy It has tools to properly measure the performance of financials Considers plans to diversify revenue and cost control Finance
- 16. Finance : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : Adequately meets the vision and mission values established for the company Prepares an annual business plan becoming the tool of control the financial and non financial goals It has a set of key performance indicators to monitor business performance on a monthly basis Periodically reviews the long-term strategy of the company Is making appropriate use of all the management tools to measure the performance of the company Maximum Score 50 points Total Score Finance
- 17. Clients Clients : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : It has segmented the customer base It has a CRM or the like to understand, maintain and retain customers Has detailed monthly information on sales and profitability per customer - product – business Provides easy access to customers to the products / services, and to place purchase orders and forward them easily. Conducts regular customer satisfaction surveys on Products / Services
- 18. Clients Clients : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME: Calculates the ROI on ad spending Provides customers with information as to know which is the value proposition of the product / service Coaches and train staff to meet customer demands Has a value proposition for each customer segment Measures specific weight of finished contracts in the total number of contracts with customers Maximum Score 50 points Total Score
- 19. Process Process : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : Recognizes that all employees know perfectly the processes in which they are involved. Measures the productivity of the output of the production of goods / services Can identify opportunities to develop new products and services Can get ahead competitors through innovation and deliver those benefits to the market. It has a department / team involved in developing new products / services
- 20. Process Process : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : Has detailed records of reworks, scrap and returns of products / services Has the post sales service to meet customer requirements Know what the customer wants and company results in internal processes to meet your expectations Plans to renovate and upgrade the production plant It takes into account in determining the overall process : time inspection, transportation and storage Maximum Score 50 points Total Score
- 21. Human Resources and it capabilities HR and IT : The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : It has a team with the skills and capabilities that the business requires Makes plans to develop human resources Has adequate compensation and retention plans that keep the personnel involved with the growth and objectives of the company. Has systems for employees to use in supporting all internal processes Regularly measures the ratio of sales / revenue per employee
- 22. Human Resources and it capabilities HR and IT: The given score for each response goes from 1-5 recital 1 as less satisfactory don´t agree at all with the argument and 5 as very satisfactory, in full compliance with the argument . SME : Plans to upgrade Back Office processes Has programs for HR to feel satisfaction in their jobs, thus increasing retention and productivity Employees are motivated and empowered to meet the business objectives Regularly performs a survey to employees to analyze how involved they are with their jobs, their department and company Customers, suppliers, employees have access through information systems to data that may interest everyone Maximum Score 50 points Total Score
- 23. • If you have questions or suggestions for improving diagnosis for SME you can write to ramiro@adfilmconsulting.com • The guide was prepared by : • https://ar.linkedin.com/pub/ramiro-mazzeo/0/5ba/312 23