strategy performance

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