Transcript
Business to Arts
Strategy for Performance Improvement
Alan Christie, University of Ulster
Strategy for Performance Improvement
Managing strategy - course objectives
introduction to strategy-purpose/value
tools and techniques-practical formulation
strategic thinking- vision and mission
developing a strategy- setting objectives
Get a Competitive Position!
On what basis will we compete?
Which direction should we go?
How do we get there?
How will we stay there?
Where next?
Successful Companies
Understand their core competences and use them to develop in unexpected ways
Re-write the rules so that only they can win
Understand that CULTURE eats STRATEGY for breakfast
….the aim of today is for these lessons to be manifest in your strategy for development
I Will Use…..
Everyday examples e.g.Nokia
Tesco
Ryanair!!!!!
GOH to discover• On what basis it competes?• In which direction it is headed?• How will it get there?
Defining the Path
Where in the landscape are we?environmental analysis
How is the landscape going to change?
scenario possibilities
Defining the Path
Where is it possible to go?Core competency analysis
How do we get there?Strategic development
Strategy Process
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-10 © 1998 by Prentice Hall, Inc.
A Simon & Schuster CompanyUpper Saddle River, N.J. 07458
Environmental Analysis
Company Mission
Business Strategy
Function Area Strategies
SWOT Analysis
Operations Decisions
Marketing Decisions
Financial / Acct. Decisions
DEVELOPMENT STRATEGIES
What basis?
Which Direction?
How?
ALTERNATIVEDIRECTIONS
Withdrawal
Consolidation
Market penetration
Product development
Market Development
Diversification
Related
Unrelated
ALTERNATIVEMETHODS
Internal
Development
Acquisition
Joint Development / Alliances
GENERIC STRATEGIES
Price based
Differentiation
Focus
Elements of Strategic Management
STRATEGICCHOICE
STRATEGICIMPLEMENTATION
STRATEGIC ANALYSIS
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-11 © 1998 by Prentice Hall, Inc.
A Simon & Schuster CompanyUpper Saddle River, N.J. 07458
Competitive Advantage Through:
Differentiation
Low cost
Response
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-12 © 1998 by Prentice Hall, Inc.
A Simon & Schuster CompanyUpper Saddle River, N.J. 07458
Competing on Differentiation
Uniqueness - can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer’s perception of value
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-13 © 1998 by Prentice Hall, Inc.
A Simon & Schuster CompanyUpper Saddle River, N.J. 07458
Competing on Cost
Maximum value as defined by customer
Does not imply low value or low quality
Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-14 © 1998 by Prentice Hall, Inc.
A Simon & Schuster CompanyUpper Saddle River, N.J. 07458
Competing on Response
Flexible
Reliable
Quick
Requires institutionalization within firm of ability to respond
Competitors in the industry
Competition among existing companies
Bargaining power
Customers
Substitutes
Suppliers
Threat from substitutes
Potential New Entrants
Bargaining power
Threat from substitutes
Michael Porter’s Five Competitive Forces
GROWTH STRATEGY
NEW EXISTINGPRODUCTS
EXISTING
NEW
MARKETS
Product Development
Market Development
Market Penetration
Diversificationexcluded strategy
COW DOG
STAR
MARKET
GROWTH
RATE
10%
0
10X 1.0X 0.1X
20%
RELATIVE MARKET SHARE
The paradigm Development ofStrategy
Implementation CompanyPerformance
Step 1TighterControls
Step 2Reconstruct orDevelop NewStrategy
Step 3Abandon Paradigmand Adopt New One
Re Write The Rules!
Performance Management
Performance and
AppraisalSteve Pollard, Associate Lecturer
Measuring Performance
Where are we now?
Where do we want to
go to?
How do we get there?
HOW WILL WE KNOW?
Basic Questions
How will performance be measured? i.e. by what indicators
What are the performance targets set?
How will progress be measured?
Who will be responsible?
How and when will the results be fed back into the planning cycle?
Performance Measures
Income
Response Times
Satisfaction
Value Added
Turnover
Ratios
QualityAttendances
Profit
?
Cost
Good Targets ...
relate to objectives
are achievable … but also stretch
are clear and stable over time
are easily understood
have commitment/are agreed
have responsibility made clear
are honest and unambiguous
The Dashboard Approach
More than one measure
A few critical areas: fuel; speed; time etc
Much more than the rear view mirror
Guides … not automatic pilot!
Your Dashboard?
Cost
Time???
Volume
???
Quality
Further Module Aims
To:Consider how we can achieve high performanceDiscuss operational planning and apply certain planning toolsEvaluate the problem solving/decision making process Assess how we give feedback on performance
The Organisatio
n
People
Hardware
Software
Manager’s Task: to deliver the best possible
performance from the available resources
Performance Management
Performance management is about monitoring performance against targets, identifying opportunities for improvement and delivering change
Lets come back to this..
The EFQM Excellence ModelLead
ers
hip
People
Policy and StrategyPartnerships and Resources
Pro
cesses
People Results
Customer ResultsSociety Results
Key
Perf
orm
an
ce
Resu
lts
Enablers Results
Think about an occasion when you/your team performed really well
What went well?
What or who motivated you?
What conditions were in place that enabled your high performance?
What lessons does this give you as a line manager in helping others to achieve high performance?
The DMP
Achieving
Results
Personal Effectivenes
s
Managing People
Managing Communicatio
ns
Continuous Improvement
Activity: In groups, pick out key factors from each of the 3 modules which ‘enabled’ the achievement of results
Managing Change
Organisation/Personal
Operational Planning
Aims/ Objective
sPlanning and Organisation
Implementation Monitoring and Control
Evaluation
Aims and Objectives
What is an Aim?
What is an Objective?
Specific
Measurable
Achievable
Results Related
Time Bound
Planning
Aims and Objectives
Activity: In groups, you are going to plan redecorating a room in your house. This includes some electrical rewiring and a new carpet. For now, we need your aim, objectives (specifications), and milestones.
Planning
Identifying activities/estimating durationsAllocating responsibilitiesSkills matrixCommunications planQuality planRisk assessment and contingency planning
Planning, Implementation, Monitoring and Control
The Gantt Chart
Improving Performance through Problem Solving
1. Problem recognition
2. Analysing the factors contributing to the problem
3. Generating solutions
4. Deciding on the solutions
5. Implementation
6. Review and evaluation
1. Recognising and Identifying the Problem
Key indicators of problems:ProductivityPerformanceQualityCostsBudgets
You need:InformationViewsAgreement that the problem needs resolutionAgreed aims and objectives
Perceiving the Problem
Problem
2. Analysing the Causes for the Problem
Problem-Solving Tools:
Fishbone Diagram
Ask Why 5 Times Method
The Fishbone Diagram20%
of
serv
ice c
alls
are
more
th
an
on
e
hou
r late
Peopleabsenteeismoverloaded staffuntrained staff
Plant
business location
Environment traffic
roadwork weather
Equipment
unreliable equipment
poor phones
Methodspoor
schedulingover-ambitious rotasregion too
big
poor admin and filing
unavailable sparesMaterials
The Ask Why 5 Times MethodLevel of Problem Consequent
Improvement
High abenteeism – why? Record reasons
Low moral – why?
Poor working conditions – why?
Fix obvious. Locate less obvious
Poor communications – why? Include as agenda item
Too busy – why?
Staff judged on activity not results
Change policy
3. Generating Potential Solutions: the Creative Process
GreenLight
Thinking
RedLight
Thinking
Einstein: ‘Imagination is more important than knowledge’
3. Generating Potential Solutions: the Creative Process
Developing Creative Thinking AttitudesThink – can do!Be open-minded to new ideas and the ideas of othersHave an enquiring mindNever be satisfied – assume everything can be improvedDon’t be put off by ridiculePut aside critical, analytical, judicial thinking while working creativelyLook at a range of ideas/solutions – the first may not be the best
Brainstorming
Leader writes up problem
Group tosses out ideas
Accept
No editing
Build/synergy
Cut-off
Screen/shortlist
Individual scoring?
Deciding Which Solution to Implement
The Decision Matrix
Decision Tree Exercise
ImplementationAction plan
Review and Evaluation
Have we achieved:
our aims and objectives?
targets?
standards?
An effective solution to the problem
The journey to excellence through continuous improvement
Giving Feedback on Performance
Can We Change Things?
Circle of Influenc
e
Being Reactiv
e
Being Proactiv
e
Circle of Influenc
e
Performance Management
Performance management is about monitoring performance against targets, identifying opportunities for improvement and delivering change
Can We Change Things?
Forums:
Line of command
Talk back days
Communications officers
Intranet message board
Sharing best practice
Internal
External
Reflection
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