organizational velocity - improving speed, efficiency & effectiveness of business sample

8/13/2019 Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business Sample

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Organizational Velocity -

Improving Speed, Efficiency &Effectiveness of Business

(Sample)


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A faster organisation is normally a better organisation

ORGANIZATIONAL VELOICTY

Reactive speed

Proactive speed

Advantages

+ Money sooner

+Anticipate competitors

+ Exceed customers expectations

+ Do more

+ Create new opportunities+ Be vibrant and dynamic

+ Increase efficiency

Caut ions

Rushing with no information

Executing poorly

Not waiting for situation to evolve

Pushing too hard

This is only a partial view of the full presentation. For further details and downloadplease goto: www.straticx.com/store.html


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Contents

CONTENTS

Page

Organizational Velocity 1

Improving your Speed, Efficiency & Effectiveness 4

Process Audits 9

Worked Example 20

Workload Analysis 33

Benchmarking 41

Becoming FasterThe Management Challenge 43



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1

2

3

4

5

6

Process BBFTB1 Implement Quick win Implement

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Process Recommendations Dashboard contains a menu of prioritisedprocess improvement opportunities

IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS

Process Recommendations Dashboard

Notes: (1) Big Bang For The Buck Opportunities



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131

32

30

FocusOpportunities

664

Total PotentialOpportunities Observed

164

17

5

BBFTB Opportunities

Efficiency gains: ~ $x.xm (~x FTEs) Specific effectiveness gain of ~$x.xM for

Order to Cash processAdditional significant effectiveness

opportunities (sized as Low/Medium/Highonly)

Quick Wins: Efficiency gains: ~$x.xMAdditional effectiveness opportunities (sized

as Low/Medium/High only)

General Observations Efficiency gains from better meetings: ~$x.xM

(~x FTEs) Significant effectiveness opportunities (sized

as Low/Medium/High only)

ProcessAudits (inc.

review of bestpractise for

each process)

Benchmarking

GeneralObservations

ProcessBBFTBs

ProcessQuick Wins

GeneralBBFTB

Total Impact of opportunities Efficiency gains: $x.xM Specific effectiveness gains:

~$x.xM (Order to Cash) Additional significant

effectiveness opportunities

Financial benefits are often be derived from the Process Audits and GeneralObservations

IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS

Benefits Dashboard EXAMPLE OUTPUT



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Process Value Chain Overview Description of Main Activities Process Audit Results

Improvement Opportunities Prioritisation of Opportunities BBFTB Opportunity 1 Pagers

1 2 3

4 5 6

A Process Audit consists of six steps

PROCESS AUDITS

Process Audit Steps Summary



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Description

Who?

Step 2 involves interviewing the Process Owner (and team) to detaileach step of the process, describe it and who is involved etc

PROCESS AUDITS

How long?

When?

1. Detail each sequential step ofthe process (through interviewwith Process Owner & Team)

2. Complete moredetail for eachstep

2Step



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No action required

Moderate level of improvement possible

High level of improvement possible

Each process israted for each of the10 audit questionsacross efficiency

and effectiveness Worst rating across

the respective auditquestions drives theoverall rating forthat process foreach of efficiency &effectiveness

The efficiency and effectiveness of each process is rated according tothe extent of improvement potential

PROCESS AUDITS

Rating Criteria 3Step



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Easy

Moderate

Difficult

Easy implementation without major investment, limited effort, no risk and no globalguideline restrictions

Implementation with some financial investment, medium implementation effort, some risksand/or some global guideline restrictions

Difficult implementation with major f inancial investment, significant implementation effort,implementation risk and/or global guideline restrictions

Ease of implementation

High

Medium

Low

Frees up a large amount of time or resources to do more and/or increases the quality ofthe outcome (effectiveness) to a very high degree

Frees up a significant amount of time of resources to do more and/or increases the

quality of the outcome (effectiveness) significantly

Frees some but limited time of resources to do more and/or increases the quality of the

outcome (effectiveness)

Value of opportunity

Rating Criteria for Improvement Opportunities

Step 5 - Each opportunity is then ranked by both value and ease ofimplementation against set criteria

PROCESS AUDITS

5Step



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Description of Opportunity

Description of Benefit Estimated Value

Recommended Next Steps

Risks / Considerations Investment Required

Step 6 is to produce a one page description for each opportunity,redesigning the process

PROCESS AUDITS

BBFTB Opportunities 6Step



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Contents

1

CONTENTS

Page

Organizational Velocity 1

Improving your Speed, Efficiency & Effectiveness 4

Process Audits 9

Worked Example 20

Workload Analysis 33

Benchmarking 40

Becoming FasterThe Management Challenge 42



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Create roadmap/revise last year's

roadmap

Define issues andopportunities

Define detailedstrategies (brands,departments, etc)

Review detailedstrategy andcombine to

corporate strategy

Strategic Planning

Process Owner J. Smith

Input

Strategic roadmap fromprevious year

Market, competitor, productanalysis

Global strategy framework

Process frequency Annual

Involved parties(internal, external)

MD, CFO, Leadership Team

Main IT-systems,-tools

Process customer(internal, external)

Leadership Team

Output Strategic roadmap

Preparation ofpresentation deck

Presentation anddiscussion of

strategy LeadershipTeam

The value chain for Strategic Planning identifies six key process stages

PROCESS AUDITS

EXAMPLE

1



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The efficiency audit highlights lack of alignment of activities and thelead time it too long

PROCESS AUDITS

Efficiency Questions Efficiency

Is there a need to completely

redesign the process?

Are any steps in the

process unnecessary?

Are the steps in the right sequence?

Are there large efficiency opportunities

within any of the steps?

Are too many people involved in the

process? (Decision matrix)

Does the process take too long?

No

No

Yes

Lack of alignment in guidance provided, driving different activities

Needs wider involvement to achieve objectives

Limited visibility of actual workload leading into strategy planning

Total lead time is too long for the strategic planning process

A

B

C

D

E

F

Condensed and precise process (clear perimeter, input/output, etc); best practice time frame: 4 weeks

Ability to drive out of the box thinking (challenge status quo). Strategy should be built outside in (not just based on where the business isat today)

Shared understanding and buy-in from BU

Priority Process Audit: Efficiency EXAMPLE

1


PROCESS AUDITS


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Improvement Opportunities

1. Reorder the activities of strategy planning process 2. Driving strategy understanding down in the organisation

3. Stimulate out of the box thinking

Efficiency Effectiveness

1 2

3

There are three key improvement opportunities

PROCESS AUDITS

EXAMPLE

1


PROCESS AUDITS


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Redesign the strategic planningprocess with shorter timeline and 2-step approach


The shorter timeline provides theopportunity to focus the planning effortduring a specific period of time andbase the strategic plan on the mostcurrent information

Do the strategic planning of supportingfunctions in the second step improvesthe alignment with the commercial

strategy

$100k10% less rework due to most currentinformation and 2-step approach(strategy alignment)


Review proposed process and timeline

Implement new process for the nextstrategic planning process


Clear communication of deliverablesas needed in order to perform on thecompressed timeline

Be aware of other activity during thistime:

Year-end closing

Submission of annual budget

None, just communicate new processand design templates/ guidelines

BBFTB #1 is to redesign the strategic planning process

PROCESS AUDITS

BBFTB OPPORTUNITY # S.P.1 EXAMPLE

1


PROCESS AUDITS


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Improve the communication of thestrategic roadmap and the departmentroadmaps

Everyone in the organisation needs anunderstanding of how their work andoutcome relates to the strategic goalsand priorities


Improved understanding of companygoals and improved decision makingon lower levels of the organisation

Medium, especially better decisionmaking and higher engagement of totalorganisation


Implement communication concept


Management must be able totranslate strategic goals to individual

workplace

Low, time of management

Driving strategy understanding down in the organisation

PROCESS AUDITS

EXAMPLEBBFTB Opportunity # S.P.2

1


PROCESS AUDITS


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1. Strategic Planning

Process BBFTB Implement Quick win Implement

S.P.1 Redesign strategic planning

S.P.2 Communicate strategyS.P.3 Stimulate out of the box thinking

Yes No

Yes NoYes No

and to the overall recommendations

PROCESS AUDITS

Process Recommendations Dashboard

2

3

4

5

6

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

EXAMPLE

1


WORKLOAD ANALYSIS


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Meeting &Project

Snapshot

WorkloadSurvey

Workload Analysis

Survey the team to evaluate:

which processes employeesare working on

what activities they areundertaking to get thingsdone

the autonomy of their role general recommendations

and comments on whetherthere is additional capacity in

the business to do more

Completed by key people in

each department Identifies key recurring meetings

and standalone projects/workstreams

Meeting QualityObservations

Attended and evaluated key

meetings

Measure and observe whether the organisation is running very tight

or whether there is room to capture efficiencies

Objective

In parallel to the process audit work, a workload analysis will drive aclear understanding of how the organization spends its time

WORKLOAD ANALYSIS

1

Key Workload Analysis Activities


WORKLOAD ANALYSIS


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Do you believe there is additionalcapacity within the office to do

more?

Yes55%

No 45%

Average of an additional 14% capacity bythose employees that said Yes

The suggested additional capacity rangedbetween 5% (7 respondents) and 40% (3

respondents)

Comments from Respondents

Using our tools correctly would save time to create time

[10%]

We need to change our effectiveness and speed in decision

making and be more risk taking versus need to validate and

research everything versus making business decisions based

on experience and judgement [40%]

Our plant is at about 70%, another at about 65%, one at

about 80% and the last one at about 50-60%

Everyone is busy and at capacity but not necessarily on the

right things [0%]

We are already doing too much. We need to do less and

focus on doing things properly instead of always rushing from

one thing to another [0%]

In our dept we are fully busy so logical answer is "no" but we

all find time for special projects/emergencies so the

organisation does have some flex but suspect it is notsustainable the way we do it - we should plan it better and as a

business agree things that won't be done in the future - that re-

prioritising could mean a better use of capacity rather than a

more capacity

Importantly, a workload survey provides an assessment of thewillingness of the organisation to speed things up and get more done

WORKLOAD ANALYSIS

EXAMPLE

1

Workload Survey Findings


WORKLOAD ANALYSIS


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24% 21%

11% 11%

8%6%

8% 11%

Meeting Related

Communicating internally

Communicating externally

Desk Work

Managing people

Other (Training etc)

Employee Cost

48%

2%

Time Spent

46%

3%

Represents ~$20m inpeople cost.

A 10% improvement inmeeting efficiencyacross the board

would release ~$2.0min resource

..as well as a perspective on the activities people are undertaking on aday to day basis

WORKLOAD ANALYSIS

Time versus Employee Costs Spent for Key Work Activities EXAMPLE

1


WORKLOAD ANALYSIS


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Meeting 1 2 3 4 5 6 7 8 9

Hygiene

On time 1 3 2 5 3 2 2 1 1

Pre-reading available 5 5 5 5 1 3 4 5 5

Pre-reading read 2 3 3 2 N/A 2 2 2 2

Behavior 5 5 5 5 5 5 5 5 5

TimeLength 3 4 2 3 1 2 4 3 3

Frequency 5 5 5 5 1 5 5 5 5

Clear objectiveDecisions taken Yes No No No Yes Yes Yes Yes Yes

Other - information Yes Yes Yes Yes No Yes Yes Yes Yes

ParticipantsRight people? 3 3 3 3 1 5 4 4 5

Actually there? Yes Yes Yes Yes Yes No Yes No No

Clear Agenda 5 3 5 5 5 5 5 5 5

Documentinformation

quality

Right info 1 2 3 3 1 4 3 3 5

Format 2 2 3 3 N/A 4 5 3 5

Follow upsMinutes/ Actions 5 5 N/A 2 5 2 5 2 2

Follow up N/A N/A N/A N/A Yes Yes Yes Yes Yes

5 = Very Good; 1 = Very Poor

An audit of meeting quality will give an insight to the companiesmeeting culture

EXAMPLE

2

For a better understanding of how to increase meeting efficient and effectiveness see STRATICXdocument Complete Toolkit for Improving Meetings

Meeting Audit Heat Map


BENCHMARKING


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Whilst benchmarking needs to be contextualized, it can help identifyimprovement opportunities or areas of focus

Benchmarking

Our Co.Benchmark4

Benchmark3

Benchmark2

Benchmark1

Our Co.Benchmark4

Benchmark3

Benchmark2

Benchmark1

Total FTES per HR FTEMarketing Spend/Net Revenue

#

#

#

#

?

$

$

$

$

?

EXAMPLE

2


BECOMING FASTERTHE MANAGEMENT CHALLENGE


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Ultimately, the speed of an organisation is strongly influenced by itsleadership, and their ability to inform culture and key processes

Inform, incent, monitor, fine tune, excel

Calibrate, give

Set, reviewLack of SpeedPriorities

Lack of SpeedResources

Lack of SpeedWill

Becoming FasterThe Organizational Challenge

2



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