Excellence in ExecutionExcellence in ExecutionWorkshopWorkshop

Performance Management AssociatesPerformance Management Associates

The BasicsThe Basics

Any business is based on three cornerstones: Any business is based on three cornerstones: assets, strategy assets, strategy and executionand execution. .

This discussion will concentrate on the process to improve This discussion will concentrate on the process to improve execution of your business strategy.execution of your business strategy.

PMA’s premise is that by getting everyone focused on the right PMA’s premise is that by getting everyone focused on the right metrics, organizations can metrics, organizations can accelerateaccelerate improvement. improvement.

At the end, ask yourself:At the end, ask yourself:

Could your teams do better at implementing your strategy faster Could your teams do better at implementing your strategy faster if they were more focused with measurements and action if they were more focused with measurements and action management systems? management systems?

The The FTEAFTEA Method Method

Our Our Method Method is based on is based on Focusing, Targeting, EvaluatingFocusing, Targeting, Evaluating and and ActingActing. .

By working systematically within each department, you can go By working systematically within each department, you can go far beyond “training” and “projects” to involve staff in measuring far beyond “training” and “projects” to involve staff in measuring and improving their own performance. and improving their own performance.

All employees can be engaged so that they become committed All employees can be engaged so that they become committed to continuous incremental improvement (aka Kaizen). to continuous incremental improvement (aka Kaizen).

Comments like “that’s the way they want it”, “they never listen to Comments like “that’s the way they want it”, “they never listen to us” and “what can I do about it” can be replaced with “they do us” and “what can I do about it” can be replaced with “they do listen” and “I am empowered and accountable”.listen” and “I am empowered and accountable”.

Any business is a sequence of steps Any business is a sequence of steps and functionsand functions

Management of Steps

Bus

ines

sP

roce

ss

• How do you know if you are effective?• How do you generate improvement?

Delivery

Inventory Mgmt

Operations

A/P and A/R

Planning

Sales

Sales Support

For each step, there are definable For each step, there are definable Key Success FactorsKey Success Factors

Like :

• Productivity• Cost• Quality • Customer Service• Value Recovery • Safety

For each KSF we can measure success (KPIs)

Management Process FundamentalsManagement Process Fundamentals

Focus• KSF’s• KPI’s

TargetEvaluate• Measure• Report

Act

•Controllable•Measurable•Relevant

•Analytical, not historical•Attainable•Front line ownership

•Real time•Visible•Quantitative and qualitative

•Specific•Urgent•Accountable

What are your significant steps What are your significant steps and functions?and functions?

Management of Steps

Bus

ines

sP

roce

sses

Choose One Business Process StepChoose One Business Process StepArea / Function ________________________Area / Function ________________________

FocusFocus TargetTarget EvaluateEvaluate ActAct

KSFKSF KPIKPI    MeasureMeasure ReportReport   

        

           

             

  

             

             

  

          Self / system / Self / system / managermanager

  Daily / Weekly / Daily / Weekly / Monthly SummaryMonthly Summary

  Defined frequency Defined frequency review and review and Opportunity LogOpportunity Log

ControllableMeasurableRelevant

Analytical, not historicalAttainableFront line ownership

Real timeVisibleQuantitative and qualitative

SpecificUrgentAccountable

New Business Devel. KPI ExampleNew Business Devel. KPI Example

Did you have a good day?Did you have a good day?

Informally ask employees at a specific function if they Informally ask employees at a specific function if they had a “good day”. had a “good day”.

Do they all:Do they all:– reference their answers to common “Key Success factors” reference their answers to common “Key Success factors”

and their personal “Key Performance Indicators” and their personal “Key Performance Indicators” – relate their personal performance to their targets relate their personal performance to their targets – identify why there were variances and identify why there were variances and – either tell you what is being done or what could be done?either tell you what is being done or what could be done?

Or do they leave you wondering what they really did Or do they leave you wondering what they really did all day?all day?

If it’s the latter, consider what the impact would be if If it’s the latter, consider what the impact would be if you could get everyone focused on your objectives you could get everyone focused on your objectives instead of theirs?instead of theirs?

Management Process FundamentalsManagement Process Fundamentals

Focus• KSF’s• KPI’s

TargetEvaluate• Measure• Report

Act

•Controllable•Measurable•Relevant

•Analytical, not historical•Attainable•Front line ownership

•Real time•Visible•Quantitative and qualitative

•Specific•Urgent•Accountable

Value of Overall Improvement?Value of Overall Improvement?

Business KSFBusiness KSF Improvement Improvement potentialpotential

Value per Unit ($)Value per Unit ($) Overall Impact ($)Overall Impact ($)

Total ________

Project ApproachProject Approach

ProjectInitiation

ProcessImprovement

Implementation

•Evaluate current management systems

•interviews•quantitative studies•qualitative studies

•Train internal manager•Staff training / involvement•Establish project direction

•identify goals•identify KSF’s•prioritize areas

•Select redesign teams

•Team training•staff / hourly•cross-functional

•Redesign specific management systems

•FTEA framework•analyze current system•identify weaknesses•redesign

•Staff / hourly ownership

•Intensive involvement•Hands-on training•Accountability•Results focus•Change from “program” to routine•Post - project reviews

ProjectInitiation

ProcessImprovement

Implementation

ProjectInitiation

ProcessImprovement

Typical Area ScheduleTypical Area ScheduleArea 4 Area Start Date: Weight 1

Weight

MPI A T A T A T A T A T A T A T A T A T A T A T A T

Map Current Process 2 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Identify Areas of Opportunity 2 20 50 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Review with Management 1 25 25 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100Process Redesign 0 Establish KPIs 2 50 50 75 75 90 100 100 100 100 100 100 100 100 100 100 100 100 Establish Target Setting Method 2 50 50 75 75 20 100 75 100 75 100 75 100 100 100 100 100 100 Establish Evaluation Process 3 50 50 75 75 30 100 50 100 100 100 100 100 100 100 100 100 100 Design Action Planning Process 2 75 75 50 100 60 100 75 100 90 100 100 100 100 100 100Team Presentation to Management 2 100 100 100 100 100 100 100 100 100 100 100 100 100Complete Detailed Tools / Programming 15 10 10 20 40 60 60 75 80 80 90 100 100 100 100 100Set Targets 5 50 50 20 75 30 100 30 100 50 100 100 100 100 100 100Establish Baselines 5 10 20 50 60 100 100 100 100 100 100 100

Summary Documentation Complete 4 10 10 10 20 10 30 30 40 50 60 70 80 100

ImplementationSystem Rollout / Initial Training 4 50 50 100 100 100 100 100 100 100 100 100System Mechanics 0 Tracking Tools Completed & Accurate 10 35 20 70 100 100 100 100 100 100 100 Reports Generated / Distributed On Time 8 15 40 70 70 85 100 100 100 100 Meetings Held as Scheduled 8 10 10 55 85 100 100 100Utilization - A.P.s Consistently Developed 20 10 10 55 85 100 100 100Utilization - Actions Leading to Improvement 20 10 10 35 65 90 100 100

Detailed Documentation Complete 10 25 50 75 100 100

Total 125 1.3 1.8 5.6 5.6 12.6 12.6 12.4 20.9 21.3 30.8 29.3 41.1 48.3 52.4 71.0 85.8 95.4 100.0

MPI 45 3.7 5.0 15.6 15.6 35.0 35.0 34.4 58.1 54.7 70.7 68.1 82.7 80.0 91.3 95.6 96.4 97.3 100.0

Implementation 80 2.5 8.4 7.5 17.8 30.5 30.5 57.1 79.8 94.4 100.0

Design Team Members

30-Aug 15-Sep 30-Sep 15-Oct30-Apr 15-May 30-May

30-Apr-1315-Aug15-Jun 30-Jun 15-Jul 30-Jul

0

10

20

30

40

50

60

70

80

90

100

30-Apr 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct

Are

a -P

erce

nt C

om

ple

te Actual

Target

Typical Project ScheduleTypical Project SchedulePMA Project UpdateCompany ExampleReport Date:

TargetStart Date Target Actual Variance

Total Project 1-Jun 7.7 7.4 (0.2)

Project Initiation 1-Jun 97.9 93.3 (4.6)

Area 1 1-Aug 12.6 12.6 -

Area 2 25-Aug 5.2 5.2 -

Area 3 15-Sep 0.0 0.0 -

Area 4 30-Sep 0.0 0.0 -

Area5 1-Dec 0.0 0.0 - 66

Area 6 1-Jan - 100

Area 6 1-Dec - 75

Area 6 1-Dec - 85

Area 6 1-Dec -

Area 6 1-Dec - 60

85

100

9/15/2009

Percent CompleteArea

Project Schedule

1-Ju

n-09

1-Ju

l-09

31-J

ul-0

9

30-A

ug-0

9

29-S

ep-0

9

29-O

ct-0

9

28-N

ov-0

9

28-D

ec-0

9

27-J

an-1

0

26-F

eb-1

0

28-M

ar-1

0

27-A

pr-1

0

27-M

ay-1

0

26-J

un-1

0

Project Initiation

Area 1

Area 2

Area 3

Area 4

Area5

Completion Percentages

0 10 20 30 40 50 60 70 80 90 100

Total Project

Project Initiation

Area 1

Area 2

Area 3

Area 4

Area5

% Complete

Actuals Target