“benchmarking an organisation” presentation by jon wigley ippa conference harrogate, september...
TRANSCRIPT
“Benchmarking an Organisation”
Presentation by Jon WigleyIPPA Conference
Harrogate, September 14th 2013
AgendaSetting Expectations
“How MO`s measure up against their journey towards advance development and compare to
other MO`s working towards the same objective”
Benchmarking process - Frameworks
Not-for-Profit v For-Profit
Similarities and differences
AgendaWhat are we benchmarking?
Organisational excellence
In whose eyes?
Who matters?
Members, Peers, Service Partners, Industry, Clients, Employees, Volunteers…..Others?
AgendaAgainst whom are we benchmarking?
MO`s - Each Other?
Other not-for-profit in the Health Industry?
Other not-for-profit?
For profit?
Small Medium Enterprises (SMEs)?
AgendaBenchmarking based on what criteria?
Deliverables (kpi`s)
+ Set
+ Monitored
+ Reviewed
+ Revised
Objective v Subjective
+ Deliverables v Feelings
AgendaWhy are we benchmarking?
Why is it important (to you)?
+ Excellence
+ Better
+ Challenge
+ Change
+ Positive Energy
Introduction – Jon WigleyJon Wigley – Background
A Business Coach
Coaching v Consulting
SMEs focus
Industries – Finance, Legal, Media, Technology, Entertainment, etc
Private Practice – Physiotherapy
First hand experience!
General IntroductionRapidly changing world and more demanding
pressures – drivers and impact…and opportunities!
Social trends: expectations and demands
Technology & Social Networks: Communication
Mobility: Loyalty
Aspiration: Consumerism
Recession: Cost/Value
Dynamics of a NFPThe prevailing dynamics of a Not-for-Profit
Honorary functions filled by dedicated insider practitioners, often for many years, even decades!
Passionately care about what they do xxx
Day-to-day patterns of behaviour permeate their voluntary contribution
+ TRUST(ee)
+ COMMITMENT
+ LOYAL(ty)
Similarity of NFPs to SMEsNot-for-Profit entities and the similarity to SMEs
The emotional pull of the small business
The passion that create and drives an SME
The challenge of managing a small business
Working “IN” v Working “ON”
Time – A most precious resource
Core skills and experience
Is business evolution predictable?
The evolution of a small business
Is there a typical mode of progression?
Anchor for our benchmarking – to know where we are up to, we need to reflect where we have come
from!
How do we typically measure our progress?
Measuring objective progress
How do we typically measure our progress?
Objective measures? Increase in:
Turnover
Profit
Number of clients
Increase in pricing
Number of staff
Amount/size of equipment, premises, etc
Measuring subjective progress
How do we typically measure our progress?
Subjective measures? Feelings?! +/-
Feelings drive behaviour and have significant impact but often unconscious
Feelings can, and do, shift over time
Behaviour is managed with, and through, a defined business culture
Stages - FeelingsThe “Stages” Framework
The major significance of feelings
How they significantly and silently impact over time on a business, a team, and every individual
How they shift over time
The Stages Framework - Presented
Functionality – The Key Skill
Functionality – The Key Skill Set to benchmark
Being Functional – What does it mean?
“To serve a PURPOSE for which it was designed”
“Fit for purpose”
Efficiency – minimum expenditure of time & effort
“The purposeful use of resources to achieve a desired outcome”
Functionality – benefits?Functionality – What will it achieve?
Clear management reporting
Motivated staff
Lack of duplication
Management focus that maximises skills
Time released
Functionality - AvoidsFunctionality – What will it avoid?
Duplication of effort
Management time lost
Bottlenecks
“Work-arounds” (The Rock in the Stream)
Staff frustration
Miss-match of skills
No direct, clear communication
Functionality – 7 x key objectives
1. PROFITABILITY
(RESOURCES ALLOCATION)
Subjective: Objective
Qualitative: Quantitative
People: Infrastructure
Functionality – 7 x key objectives
2. PRODUCTIVITY
(EFFICIENCY)
Processes
Methodology
Formality
Discipline
Precision
Management Tools
Functionality – 7 x key objectives
3. Building a STRONG FOUNDATION
Upon which to (GROW)
Planning
Scheduling
Managing
Monitoring
Reviewing
Revising
Functionality – 7 x key objectives
4. POSITIVE ENERGY
(People and Roles)
Define the “right” roles
Define the “right” people
Put the right people in the right roles
(Remove the wrong people!)
Functionality – 7 x key objectives
5. SELF RESPONSIBILITY
A (No Blame) Culture
Responsibilities:
Understood
Taken
……Fully!
Functionality – 7 x key objectives
6. OWNERSHIP
(Value)
To own
To possess
To value
The endowment effect – care, commit, contribute
Functionality – 7 x key objectives
7. EMPOWERED WORKFORCE
(Power)
Giving power
Giving authority
……to THINK
……to ACT
Leads to effective SUCCESSION!
The Functionality CycleAgainst which we can benchmark ourselves as
we go through the cycle
Positive – Happy with current status
Average – OK but could do with some work
Poor – Definitely needs work
The Functionality Cycle INTENT
Our fundamental purpose – Why do we exist?
Focused, conscious, and clear – gives context to everything we do or think to do
Objectives set, unified and communicated
You
Others
The Business
Are You?
The Functionality Cycle RESOURCES
Lead: Manage
People: Infrastructure
Character: Facilities
Talents: Equipment
Skills: Systems
Wisdom: Knowledge
Potential: Actual
Do You use well?
The Functionality CycleSTRUCTURE
Clearly define the required outcomes
Create a structure that reflects the full range of necessary tasks (see Workflow - next)
Delegate responsibility, but be accountable
Distribute power and authority
Empower a sense of ownership
Roles and responsibilities understood and taken
Do you have?
The Functionality CycleWORKFLOW
Create an effective interface and balance between:
+ Strategic Operations (Long-term planning)
+ Business Operations (The day-to-day work)
+ Support Operations (The essential back office)
The Functionality CycleWORKFLOW (cont`d)
The efficient workflow is based upon the clear definition and understanding of:
Structure, Roles & Responsibilities, Reporting Lines, Policies & procedures, Communication, KPIs, Monitoring, Evaluation, Feedback, and Training……..
All supported by quality management tools
Do you have?
The Functionality CycleEFFICIENCY/TIME
Efficiency – “The minimum expenditure of time and effort”
Processes, Methodology, Formality, Discipline, Precision, Management Tools
Time – Time released v Management Time Lost
Awareness of value, allocation of usage, and effective delegation
Are you?
The Functionality CycleCAPACITY
The full and conscious leverage of existing resources – today?
Planning for future growth and the necessary increase in resources – tomorrow?
Investment Planning?
Right People: Right Roles
Do You?
The Functionality CycleSupport Operations
Most SMEs completely under-value/estimate the importance of the following functions and as a consequence do not invest sufficiently in their proper management:
IT, Finance, Legal, Administration, Secretarial, HR, Premises, Compliance, etc
Do You?
The Functionality Cycle• PERFORMANCE
The importance of high performance
Leveraging potential
Setting objectives
Reviewing performance – feedback
Acknowledgement
Value(d)
Do You?
The Functionality CycleQUALITY
Quality is a state of mind
Product (what) AND Service (How)
Always add value to what we do and how we do it
Reflects a chosen and sustained Position
Enhances brand and reputation
Attracts – clients, referrals, employees, etc
How aware are you?
The Functionality CycleCREATIVITY
Why is it important to encourage creativity?
Fresh
Challenge
Positive Energy
Change
Open
Are You?
The Functionality CycleFLEXIBILITY
Why is it important to maintain flexibility?
Speed
Choice and change
Individual needs
Bespoke
Dynamic
Are You?
The Functionality CycleThe Business Culture & Soft Skills
Culture = Behaviour (expected)
Articulated and aligned values
Processes – Recruitment, Induction, Delegation, Performance, Mentoring, etc
Communication, Relationships, Issues
Encouragement, Motivation and Incentives
How aware are you?
SummaryBenchmarking – What, Against Whom, How and Why
A rapidly changing world – drivers and impact
The prevailing dynamics of a not-for-profit
Similarities with SMEs
Core Observations on SMEs
The typical evolution of an SME – Stages
Functionality & its 7 x Key Objectives
The Functionality Cycle
BenchmarkingStages – Where are you as an MO; Where are You?
7 x key Objectives – Profitability, Productivity, Strong Foundation, Positive Energy, Self Responsibility, Ownership, Empowered Workforce
Functionality Cycle – Intent, Resources, Structure, Workflow, Efficiency, Capacity, Support Ops, Performance, Quality, Creativity, Flexibility, Culture & Soft Skills
Did you get what you wanted from the day?