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Achieving Organisational Goals - Introduction

Claude Maley

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Achieving Organisational Goals

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

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.

Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent.

Achieving Organisational Goals - Introduction

Designed & Created by

4

AchievingOrganisational

Goals

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 organisationalstructure

Great people& processes

Great facilities

Great suppliers

Great dominantmarket position

Weak competitors

No Regulatory norms

Greatsocio/economic

environment

Great geo/political stability

If THIS is your Current SituationWHAT ARE YOU DOING HERE ?

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Achieving Organisational Goals - Introduction

The REALITY

The world is moving so fast these daysthat the person who says it can’t be doneis generally interrupted by someone doing it

Anonymous

Survival of a Species is determinedby their ability to adapt to a

Changing EnvironmentCharles Darwin

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Achieving Organisational Goals - Introduction

Key Objectives for this Webinar

To Address theEffective ManagementofStrategic andOperationalChange

The Realities &

Challenges of

Achieving

Organisational

Goals

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Achieving Organisational Goals - Introduction

CompetitionFinancial Constraints

The Market PlaceTemporal Constraints

EconomicalGlobalisation

Political & Regulatory

External Influences

Organisation's ability to meet Market Requirements

Key Areas for an Organisation's CompetitivenessFrom: Reactivity to Proactivity

CHANGE is the only Certainty in a World of Uncertainty

SustainingBusiness OPERATIONSand the constant need

for INNOVATIONAnd

CONTINUOUSIMPROVEMENT

Making StrategicInvestments

RedefiningOrganisational Structures

Empowering People

EnablingTechnology

Transforming KeyProcesses into

Strategic Capabilities

Analysing & ReviewingMarket, Competition,Services & Products

End-to-End SolutionsWithin Time to Market

Constraints

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Achieving Organisational Goals - Introduction

The Organisation's Strategic Intent

MEETING CORPORATE BUSINESS GOALSManaging in a Constant state of Change

Iterative & Incrementalin concert with Continuous Improvement,

Business Process Re-engineering and Enabling Technology

"BOTTOM LINE" IMPACT – VALUE CREATION

Making Change Last

Monitoring Progress

Changing Structures & Systems

Making Change Last

Monitoring Progress

Changing Structures & Systems

Creating a Shared Need

Shaping a Vision

Mobilising Commitment

Creating a Shared Need

Shaping a Vision

Mobilising Commitment

Change Management

Change Management

StrategicTransformational

TacticalOperational

Seeking Growth& Opportunities

MaintainingCompetitiveAdvantage

Sustaining ContinuingOperations

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Achieving Organisational Goals - Introduction

"Are we Doing it Right?"

Are we doing it RIGHT ?

Right MarketRight ProductsRight OrganisationRight SkillsRight InvestmentsRight Size

Perform ContinuousAnalysis & 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

THINGo ARE WE DOING THE THING

RIGHTWhat are the Operational Issues:

Waste Heavy Process Points Costly Steps Low Quality Inadequate Response

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Achieving Organisational Goals - Introduction

Achievement of GoalsA Holistic Enterprise View

Strategy

Structure

Systems

Processes

People

M - Mission

O - Objectives

S - Strategy

T - TacticsSHORT TERMSHORT TERM

MEDIUM TERMMEDIUM TERM

LONG TERMLONG TERM

Mission a broad, enduring statement of anorganisation’s purpose

Objectives desired future organisation positions,quantitative in nature

Strategy framework through which an organisationadapts to a changing environment

Tactics short-term operating decisionsto implement strategy

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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 BusinessObjectives

are Goals deemedmost Important to the

Current and Future Healthof an Organisation

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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

BDesired

Situation“TO BE”

ACurrent

Situation“AS IS”

Selection

Blueprint

Implementation

Go Live

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Achieving Organisational Goals - Introduction

Hierarchical Levels of Strategy

Strategy can be formulated on three different levels:

Corporate Level

Strategy

Concerned with the

Selection and

Coordination of

Businesses in which

the Organisation

should Compete

Functional Level

Strategy related to

Business Processes

and the Value Chain

in marketing, finance,

operations, human

resources, and R&D

Business Unit Level

Strategy

concerned with

Developing and

Sustaining a

Competitive Advantage

for the Organisation's

Products and Services

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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

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Achieving Organisational Goals - Introduction

Bus

ines

s U

nits Financials

Transformational Objectives

Transformational Strategic Objectives set drastic and significant Changes within a Business for its Short- and Long-Term Viability

Organisatio

n

People Processes

Technology

Change Objectives apply across the whole Organisation, including Business

Units, Geographies and Functions

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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)

TotalCAPEX BUDGET =

MaintenanceCAPEX expenditures

+ NewCAPEX expenditures

Determine theCapital needs

of the Organisation

Identify the MaintenanceCAPEX Expenditures(used to maintain the

Capital investedin earlier years)

Identify NewCapital Expendituresfor the Organisation

Request input fromDepartment Headson Departmental

Investment Needs

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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

OperationalExpense

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

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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

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Achieving Organisational Goals - Introduction

Fit Between Corporate and Functional Strategies *

* Adapted from Chopra & Meindl

CorporateCompetitive

Strategy

Product DevelopmentStrategy

Supply Chain or OperationsStrategy

Marketing and SalesStrategy

Finance Strategy

Human Resources Strategy

Information Technology Strategy

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Achieving Organisational Goals - Introduction

Strategy & Operations

CostTo produce at low

cost

SpeedTo Respond Rapidly to Customer Demands

FlexibilityTo Adapt

Operations to Different Rhythms

DependabilityTo deliver

Products and Services in

accordance with Demands

QualityTo produce in

accordance with specification and

without error

OperationsAbility &

PerformanceObjectives

StrategyHow the Organisation seeks

to Endure and Prosper within its Environment

over the Long-Term

OperationsThe Decisions and Actions

taken in the Short-Termwhich have a direct impact on the Organisation's ability to

Fulfil its Strategy

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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:

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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-LedBased on resources & capabilities within its operations

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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 anAnnual 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

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Achieving Organisational Goals - Introduction

Developing a Tactical Plan for Action

Defines:• Tactical Objectives• Activities• Resources• Schedule

TacticalAction Plan

TacticalObjectives

Defined by Stating:• SMART Objectives• Improvement Goals• Milestone Results• Measurement System

OperationsStrategy

Typically Defined in Terms:• Cycle Time• Working Capital• Customer Service• Cost• Quality

BusinessStrategy

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

OperationsPerformanceObjectives

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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 SkillsBrought 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 SkillsInvolve the efficient use of information to correct any problems that arise in the

process of Implementation

Monitoring Skills

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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

Meetingof Goals

EffectivePerformance

Measuresare Relevant;

Reliable & Provide

Available Dataindicate:

CustomerSatisfaction

Processes instatistical control

Areas ofImprovements

What gets measured gets done!If performance measures are not appropriately adjusted,

change can be made virtually impossible

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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

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Achieving Organisational Goals - Introduction

Alignment with the Organisational StrategyFrom Strategic Vision to Projects

Str

ate

gy P

ort

folio

Pro

ject

Sp

ecifi

c

Project DefinitionAnd Planning

Project Concept

Portfolio Management

Strategy& Tactics

Strategic Vision

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Achieving Organisational Goals - Introduction

Project Selection Funnel

Stage 1: Pre-Survey Business Analysis

Stage 2: Business Processes Identifiedwith Key Metrics

Stage 3: Assess Projects for Benefits

Stage 4: Prioritise Projects and ensure Organisational Buy-In

Selection & Priority isBusiness Driven

RequiresQuantitative & Qualitative

Criteria

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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, thesehave Major Repercussions on Strategic Intents

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Achieving Organisational Goals - Introduction

Successful Implementation toAchieve 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

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Achieving Organisational Goals - Introduction

Classical Problems that ImpedeSuccessful 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

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Achieving Organisational Goals - Introduction

Thank You

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