Download - “Benchmarking an Organisation”
“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-ProfitSimilarities and differences
AgendaWhat are we benchmarking?
Organisational excellenceIn 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
AgendaSetting expectations (yours)?
What would you like to get out of this day?Why?
Introduction – Jon WigleyJon Wigley – Background
A Business CoachCoaching v Consulting
SMEs focusIndustries – Finance, Legal, Media, Technology,
Entertainment, etcPrivate Practice – Physiotherapy
First hand experience!
General IntroductionRapidly changing world and more demanding
pressures – drivers and impact…and opportunities!
Social trends: expectations and demandsTechnology & Social Networks: Communication
Mobility: LoyaltyAspiration: 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 xxxDay-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 businessThe passion that create and drives an SME
The challenge of managing a small businessWorking “IN” v Working “ON”
Time – A most precious resourceCore skills and experience
Is business evolution predictable?
The evolution of a small businessIs 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:
TurnoverProfit
Number of clientsIncrease in pricing
Number of staffAmount/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 timeBehaviour is managed with, and through, a
defined business culture
Stages - FeelingsThe “Stages” Framework
The major significance of feelingsHow they significantly and silently impact over
time on a business, a team, and every individualHow they shift over time
The Stages Framework - Presented
Functionality – The Key Skill
Functionality – The Key Skill Set to benchmarkBeing 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 reportingMotivated staff
Lack of duplicationManagement focus that maximises skills
Time released
Functionality - AvoidsFunctionality – What will it avoid?
Duplication of effortManagement time lost
Bottlenecks“Work-arounds” (The Rock in the Stream)
Staff frustrationMiss-match of skills
No direct, clear communication
Functionality – 7 x key objectives
1. PROFITABILITY
(RESOURCES ALLOCATION)
Subjective: ObjectiveQualitative: Quantitative
People: Infrastructure
Functionality – 7 x key objectives
2. PRODUCTIVITY
(EFFICIENCY)
ProcessesMethodology
FormalityDisciplinePrecision
Management Tools
Functionality – 7 x key objectives
3. Building a STRONG FOUNDATION
Upon which to (GROW)
PlanningSchedulingManagingMonitoringReviewingRevising
Functionality – 7 x key objectives
4. POSITIVE ENERGY
(People and Roles)
Define the “right” rolesDefine 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) CultureResponsibilities:
UnderstoodTaken
……Fully!
Functionality – 7 x key objectives
6. OWNERSHIP
(Value)
To ownTo possessTo value
The endowment effect – care, commit, contribute
Functionality – 7 x key objectives
7. EMPOWERED WORKFORCE
(Power)
Giving powerGiving authority
……to THINK……to ACT
Leads to effective SUCCESSION!
The Functionality CycleAgainst which we can benchmark ourselves as
we go through the cyclePositive – Happy with current status
Average – OK but could do with some workPoor – 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 doObjectives set, unified and communicated
YouOthers
The BusinessAre You?
The Functionality Cycle RESOURCES
Lead: ManagePeople: InfrastructureCharacter: FacilitiesTalents: Equipment
Skills: SystemsWisdom: Knowledge
Potential: ActualDo You use well?
The Functionality CycleSTRUCTURE
Clearly define the required outcomesCreate a structure that reflects the full range of necessary
tasks (see Workflow - next)Delegate responsibility, but be accountable
Distribute power and authorityEmpower a sense of ownership
Roles and responsibilities understood and takenDo 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 toolsDo you have?
The Functionality CycleEFFICIENCY/TIME
Efficiency – “The minimum expenditure of time and effort”Processes, Methodology, Formality, Discipline, Precision, Management ToolsTime – Time released v Management Time LostAwareness of value, allocation of usage, and effective delegationAre 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, etcDo You?
The Functionality Cycle• PERFORMANCE
The importance of high performanceLeveraging potential
Setting objectivesReviewing performance – feedback
AcknowledgementValue(d)
Do You?
The Functionality CycleQUALITY
Quality is a state of mindProduct (what) AND Service (How)
Always add value to what we do and how we do itReflects a chosen and sustained Position
Enhances brand and reputationAttracts – clients, referrals, employees, etc
How aware are you?
The Functionality CycleCREATIVITY
Why is it important to encourage creativity?Fresh
ChallengePositive Energy
ChangeOpen
Are You?
The Functionality CycleFLEXIBILITY
Why is it important to maintain flexibility?Speed
Choice and changeIndividual needs
BespokeDynamic
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, IssuesEncouragement, Motivation and Incentives
How aware are you?
SummaryBenchmarking – What, Against Whom, How and WhyA rapidly changing world – drivers and impactThe prevailing dynamics of a not-for-profitSimilarities with SMEsCore Observations on SMEsThe typical evolution of an SME – StagesFunctionality & its 7 x Key ObjectivesThe 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 WorkforceFunctionality Cycle – Intent, Resources, Structure, Workflow, Efficiency, Capacity, Support Ops, Performance, Quality, Creativity, Flexibility, Culture & Soft SkillsDid you get what you wanted from the day?