Excellence in execution workshop upload
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The document discusses a workshop on excellence in execution, outlining an approach called FTEA (Focusing, Targeting, Evaluating, and Acting) to help organizations improve performance by engaging employees in measuring and improving their work based on key success factors and metrics. It provides examples of how to identify the important steps in a business process, choose key performance indicators, and establish targets and evaluation processes to drive continuous incremental improvement.
Excellence in execution workshop upload
- 1. Excellence in Execution Workshop Performance Management Associates
- 2. The Basics Any business is based on three cornerstones: assets, strategy and execution. This discussion will concentrate on the process to improve execution of your business strategy. PMA’s premise is that by getting everyone focused on the right metrics, organizations can accelerate improvement. At the end, ask yourself: Could your teams do better at implementing your strategy faster if they were more focused with measurements and action management systems?
- 3. The FTEA Method Our Method is based on Focusing, Targeting, Evaluating and Acting. By working systematically within each department, you can go far beyond “training” and “projects” to involve staff in measuring and improving their own performance. All employees can be engaged so that they become committed to continuous incremental improvement (aka Kaizen). Comments like “that’s the way they want it”, “they never listen to us” and “what can I do about it” can be replaced with “they do listen” and “I am empowered and accountable”.
- 4. Any business is a sequence of steps and functions Sales Sales Support Management of Steps • How do you know if you are effective? Business Planning Process • How do you generate improvement? Operations Delivery Inventory Mgmt A/P and A/R
- 5. For each step, there are definable Key Success Factors Like : • Productivity • Cost • Quality • Customer Service • Value Recovery • Safety For each KSF we can measure success (KPIs)
- 6. Management Process Fundamentals Focus Evaluate • KSF’s Target • Measure Act • KPI’s • Report •Controllable •Analytical, not •Real time •Specific •Measurable historical •Visible •Urgent •Relevant •Attainable •Quantitative •Accountable •Front line and qualitative ownership
- 7. What are your significant steps and functions? Management of Steps Processes Business
- 8. Choose One Business Process Step Area / Function ________________________ Focus Target Evaluate Act KSF KPI Measure Report Defined frequency Self / system / Daily / Weekly / review and manager Monthly Summary Opportunity Log Controllable Analytical, not historical Real time Specific Measurable Attainable Visible Urgent Relevant Front line ownership Quantitative and qualitative Accountable
- 9. New Business Devel. KPI Example
- 10. Did you have a good day? Informally ask employees at a specific function if they had a “good day”. Do they all: – reference their answers to common “Key Success factors” and their personal “Key Performance Indicators” – relate their personal performance to their targets – identify why there were variances and – either tell you what is being done or what could be done? Or do they leave you wondering what they really did all day? If it’s the latter, consider what the impact would be if you could get everyone focused on your objectives instead of theirs?
- 11. Management Process Fundamentals Focus Evaluate • KSF’s Target • Measure Act • KPI’s • Report •Controllable •Analytical, not •Real time •Specific •Measurable historical •Visible •Urgent •Relevant •Attainable •Quantitative •Accountable •Front line and qualitative ownership
- 12. Value of Overall Improvement? Business KSF Improvement Value per Unit ($) Overall Impact ($) potential Total ________
- 13. Project Approach Implementation Process •Intensive involvement Project Improvement •Hands-on training •Accountability Initiation •Team training •staff / hourly •Results focus •Change from •Evaluate current •cross-functional “program” to routine management systems •Redesign specific •Post - project reviews •interviews management systems •quantitative studies •FTEA framework •qualitative studies •analyze current system •Train internal manager •identify weaknesses •Staff training / involvement •redesign •Establish project direction •Staff / hourly ownership •identify goals •identify KSF’s •prioritize areas •Select redesign teams
- 14. Typical Area Schedule Area 4 Area Start Date: 30-Apr-13 Weight 1 Weight 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct MPI A T A T A T A T A T A T A T A T A T A T A T A T Map Current Process 2 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Identify Areas of Opportunity 2 20 50 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Review with Management 1 25 25 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Process Redesign 0 Establish KPIs 2 50 50 75 75 90 100 100 100 100 100 100 100 100 100 100 100 100 Establish Target Setting Method 2 50 50 75 75 20 100 75 100 75 100 75 100 100 100 100 100 100 Establish Evaluation Process 3 50 50 75 75 30 100 50 100 100 100 100 100 100 100 100 100 100 Design Action Planning Process 2 75 75 50 100 60 100 75 100 90 100 100 100 100 100 100 Team Presentation to Management 2 100 100 100 100 100 100 100 100 100 100 100 100 100 Complete Detailed Tools / Programming 15 10 10 20 40 60 60 75 80 80 90 100 100 100 100 100 Set Targets 5 50 50 20 75 30 100 30 100 50 100 100 100 100 100 100 Establish Baselines 5 10 20 50 60 100 100 100 100 100 100 100 Summary Documentation Complete 4 10 10 10 20 10 30 30 40 50 60 70 80 100 Implementation System Rollout / Initial Training 4 50 50 100 100 100 100 100 100 100 100 100 System Mechanics 0 Tracking Tools Completed & Accurate 10 35 20 70 100 100 100 100 100 100 100 Reports Generated / Distributed On Time 8 15 40 70 70 85 100 100 100 100 Meetings Held as Scheduled 8 10 10 55 85 100 100 100 Utilization - A.P.s Consistently Developed 20 10 10 55 85 100 100 100 Utilization - Actions Leading to Improvement 20 10 10 35 65 90 100 100 Detailed Documentation Complete 10 25 50 75 100 100 Total 125 1.3 1.8 5.6 5.6 12.6 12.6 12.4 20.9 21.3 30.8 29.3 41.1 48.3 52.4 71.0 85.8 95.4 100.0 MPI 45 3.7 5.0 15.6 15.6 35.0 35.0 34.4 58.1 54.7 70.7 68.1 82.7 80.0 91.3 95.6 96.4 97.3 100.0 Implementation 80 2.5 8.4 7.5 17.8 30.5 30.5 57.1 79.8 94.4 100.0 Design Team Members 100 90 80 Actual 70 Target 60 50 a c r e e rm C A -P p o n 40 t l 30 20 10 0 30-Apr 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct
- 15. Typical Project Schedule PMA Project Update Completion Percentages Company Example % Complete Report Date: 9/15/2009 0 10 20 30 40 50 60 70 80 90 100 Target Percent Complete Total Project Area Start Date Target Actual Variance Total Project 1-Jun 7.7 7.4 (0.2) Project Initiation Project Initiation 1-Jun 97.9 93.3 (4.6) Area 1 1-Aug 12.6 12.6 - Area 1 Area 2 25-Aug 5.2 5.2 - Area 2 Area 3 15-Sep 0.0 0.0 - Area 4 30-Sep 0.0 0.0 - Area 3 Area5 1-Dec 0.0 0.0 - 66 Area 4 Area 6 1-Jan - 100 Area 6 1-Dec - Area5 75 Area 6 1-Dec - 85 Area 6 1-Dec - Actuals Target Area 6 1-Dec - 60 Project Schedule 85 100 27-May-10 28-Nov-09 29-Sep-09 28-Dec-09 30-Aug-09 26-Feb-10 28-Mar-10 27-Jan-10 29-Oct-09 26-Jun-10 27-Apr-10 31-Jul-09 1-Jun-09 1-Jul-09 Project Initiation Area 1 Area 2 Area 3 Area 4 Area5
Editor's Notes
- #5: Your business has a sequence of events from making a sale through delivering the product or service and getting paid for it. At each step in that process, there is a formal or informal system to show how well it is being done. This can range from informal feedback and continuous crisis management through a formal, quantitative system that drives definition of problems and action to continuously improve. An organization with the former is continuously chasing problems. One with the latter can be an industry leader with superior customer loyalty and profitability. We are going to work through one area of your business to demonstrate
- #6: So now we will redo this system, keeping in mind typical KSfs.
- #8: Your business has a sequence of events from making a sale / through delivering the product or service and getting paid for it. We are talking about what kind of management system exists at each step in that sequence.
- #9: Work left to right. The objective is to demonstrate that there could be a more intensive system that could prompt improvement actions to eliminate obstacles.
- #13: So if every functional group followed such a process, what high level improvements could be made. Customer satisfaction = more share / volume, reduced cost of replacing lost customers, perhaps higher margins, higher margin product mix, improved communication / partnership and collaboration on new product development, less sales time wasted solving problems… Volume may be a big one. Needs new business development. May be an existing issue or could come from process improvements making volume growth available – key is incremental margin! Cost reduction is important, but less so if they are not at capacity. Value will be big in resource based businesses. Also could be a planning / sales issue if capacity is consumed on low margin per unit of capacity items (do they know?) Quality = less downfall, cust sat’n, less problems… Other???