“Benchmarking an Organisation” Presentation by Jon Wigley IPPA Conference Harrogate, September 14 th 2013.

“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

AgendaSetting expectations (yours)?

What would you like to get out of this day?

Why?

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?