Savi chapter1
Download as PPT, PDF1 like277 views
This document discusses the SAVI model for strategic management and goal setting. It introduces SAVI as an acronym that stands for speed, accuracy, volume, and investment. The SAVI model focuses on setting goals to provide added value to stakeholders. It describes the management cycle of goal setting, decision making and control, and performance measurement. The document provides details on defining goals at both the corporate and operating levels to address challenges, opportunities, and critical success factors. It also outlines the benefits and risks of using the SAVI strategic goal setting process.
Savi chapter1
- 1. Managing with SAVI A new approach to the basics 1
- 2. The management cycle 2
- 3. What does SAVI mean? • GOAL SETTING: – Stakeholders need Added Value from their Investment. • DECISION MAKING AND CONTROL – Screening Added Value Initiatives. • PERFORMANCE MEASUREMENT/MANAGEMENT – Speed, Accuracy, Volume and Investment. 3
- 4. CHAPTER 1- GOALS: The Reason For Planning Stakeholders need Added Value from their Investments 4
- 5. THE CYCLE OF ACHIEVING GOALS • Figure 1.1 5
- 6. THE CYCLE OF ACHIEVING GOALS • Figure 1.1 Long term results 6
- 7. THE CYCLE OF ACHIEVING GOALS Budgets and people • Figure 1.1 Long term results 7
- 8. THE CYCLE OF ACHIEVING GOALS Budgets and people • Figure 1.1 Implementation Long term results 8
- 9. THE CYCLE OF ACHIEVING GOALS Budgets and people • Figure 1.1 Implementation Long term results Performance Measurement 9
- 10. Figure 1.6 The beginning of the model 10
- 11. Figure 1.7 THE SAVI MODEL 11
- 12. Benefits Of Using The Model • Forces management to think • Enhances problem solving capabilities • Improves the quality of decisions with the group approach • Resource shortfalls are identified • Resistance to change is reduced • Builds a framework for performance improvement 12
- 13. Risks Of Using the Model • The process is time consuming • If planning and implementation are separate, responsibility is shirked • Managers must be trained to respond when results are different than expected 13
- 14. What is goal setting? • Strategic goal setting is an interactive and dynamic process involving constant review and assessment of: – External environmental factors, now and in the future – Internal business profile factors, now and in the future – Performance tracking to measure results. 14
- 15. Preparing for effective Strategic Goal Setting • The two most important issues of effective strategic goal setting are: – Don’t wait for the culture to be in place before you begin. – Make the necessary investment to keep the process alive. 15
- 16. Other important issues • Remove the fear. • Keep an open mind and be honest with yourself. • Be willing to challenge current practices. • Look outside for Best Available Practices. • Complete the full cycle of the model. • Use success as an opportunity to share rewards. • Use failure as an opportunity to correct and improve. 16
- 17. Five dimensions of goals Sustainability Of The Organization In The • Fig.1.10 Economic System Safety Of The Public And Employees, (including the Motivation and Retention of Profit-S employees) Stewardship Of The Natural Environment Satisfaction Of Customers At All Levels 17
- 18. Corporate financial goal Strategic Objective Goal issues Maximize To maintain an average return Financial financial returns on investment of a minimum of to stockholders 15% for the next five years 18
- 19. Corporate sustainability goal Strategic Objective Goal issues Sustainability Maximize the of the impact of the To create and maintain 50 Organization In organization on new jobs per year for the next The Economic the regional five years System economy 19
- 20. Corporate safety goal Minimize the To maintain an injury rate probability and less than the national severity of Safety Of the average for the next five employee and Public And years public injury Employees, (including the Motivation and To maintain a 90% Retention of Maximize the satisfaction level of employees) motivation and employees and to have a retention of retention rate higher than the employees industry average within two years. 20
- 21. Corporate stewardship goal Minimize the To reduce the level of solid Stewardship Of impact of particulate emissions to the The Natural operations on landfill to 3 parts per million Environment the natural by June 2005. environment 21
- 22. Corporate customer goal To achieve and maintain a Maximize the 90% customer satisfaction Satisfaction Of satisfaction of level regarding service, Customers At customers at all product quality and All Levels levels perceived value for the next five years 22
- 23. Figure 1.12corporate goals to operating goals Corporate Long-range Measurement Concept Goal To maintain an average return on Maximize financial investment of a minimum of 15% for the returns to stockholders next five years Operating Short-range goals by Measurement concept department Maximize Increase total sales by 5% this Revenues year Sales Minimize selling Reduce selling cost per customer Department costs by 5% this year 23
- 24. Strategic Goal Setting four sections, figure 1.13 VISION Defining the long term picture of success MISSION Sec. 1 Defining the organization in terms of what is done, who it is done for, where it is done and how it is done VALUES Defining how the people in the organization will treat customers, stakeholders and employees 24
- 25. Strategic Goal Setting four sections CHALLENGES AND OPPORTUNITIES Sec. Defining the opportunities that exist for the 2 organization through an assessment of the external environment and the challenges faced by the organization through an assessment of the competencies an weaknesses of the organization 25
- 26. Strategic Goal Setting four sections CRITICAL SUCCESS FACTORS Sec 3 Defining the areas of the organization that must be proactive in responding to opportunities and challenges by matching what needs to be done with what can be done 26
- 27. Strategic Goal Setting four sections “CORPORATE” AND “OPERATING” STRATEGIC GOALS Sec 4 Defining how the organization will take advantage of opportunities and overcome challenges to achieve the mission from a corporate and operating view 27
- 28. Closing remarks GOALS: The Reason For Planning 28