Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent. Achieving Organisational Goals - Introduction Claude Maley The Webinar Will Start Shortly Achieving Organisational Goals
Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent.
Achieving Organisational Goals - Introduction
Claude Maley
The Webinar Will Start Shortly
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
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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
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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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