Management of Sustainable Change:

Capacity Building and Industrial Modernization Programmes

Presentation

Applying UNIDO methodology and Pharos enterprise benchmarking software for improving capacity for Trade, Exports, competitiveness and sustainable development

Do you feel the change?

The world is changing.

Business owner and his employees (1895)

Making stogies Pittsburgh cigar factory (1900s)

Workers on the first moving assembly line (1913)

Assembly line at Chinese company (2000s)

“You can’t do today’s job with yesterday’s methods and be

in business tomorrow"

Who should attend?

The one on his way to the top.

The one not only driving but also thinking which way to choose.

The one feeling that something is wrong should try to improve it.

The one looking for new opportunities in business.

Who should attend:

• The business owners, entrepreneurs• Senior management and specialists

supporting strategic, financial and production management

• Assistants to senior management,• Business consultants• Vocational Training and Executive

Education professionals

What are the benefits?

Valuable knowledge capital

UNIDO Pharos software package had been applied to several industrial modernizations and capacity building programmes in several countries including Colombia,

India, Egypt, Bahrain, Lebanon, Zambia, Uganda, Kenya, Indonesia, Russia, Slovakia, United Kingdom

Training materials

Best practices

Follow-up assistance by the ELCIM consultants

Real life event

UNIDO Certificates “Business Excellence in Enterprise Performance Management”

Problems addressed

Enterprise level

1. Mistakes in making business decisions by management based on inadequate assumptions, information,

2. Financial mismanagement and ineffective use of own or borrowed financial resources

65%

Major reasons of SME mortality*

*10,9 million enterprises, data SEBRAE, BRAZIL

Initial position

Business Target

(Promised Land)

Ideal path

Sailing to target destination

Where is navigation? What are their chances?

Initial position

Business Target

(Promised Land)

Sailing without navigation

Ideal path…

Initial position

Business Target

(Promised Land)

Sailing with navigation

Sailing with navigation.

“We cannot change the direction of the wind, but can adjust my sails to always reach my destination.”

Awareness workshops

UNIDO Capacity Building and Upgrading Programmes with Enterprise Business Performance Management, Measurement

and Benchmarking components

Training Workshops

IT Tools for business performance

measurement and benchmarking

Consulting & Coaching on-site

Certification in Business

Excellence Achivements

Industrial centers in country

UNIDO, Vienna

Improving results: Industrial engineering

methods

Measuring business results

Developing best practices

Pharos - Business Navigator

Financial Improvement Toolkit - FIT

Produce Plus Enterprise Certificates

Benchmarks

Managerial Certificates

Objectives (1)

• Introducing best practices of systematic measuring of results, its maximizing, planning, eliminating inefficiencies

• Implementing effective productivity & industrial engineering methods with simple and inexpensive personal performance management tools.

Objectives (2)

• Combining methodology, best practices and software for improving productivity, competitiveness, quality for sustainable growth.

• SMEs becoming more transparent and prepared for national and international investments, have improved capacity for trade and exports.

Objectives 3

• Improving entrepreneurs capacity for managing investments, innovations, new technologies – “Management of Change”.

• Facilitating business developments, managerial potential, implementation of ISO 9001.

Strategic Planning

and Implementation

Measuring and benchmarking

strategic and financial results with

UNIDO Pharos and FIT software

Measuring and benchmarking

manufacturing results with

Produce Plus software

Programme

Modules

On-site enterprise consulting

and coaching

1

2

3

4

Module 1:Strategic Planning at Industrial

SME

Development strategies shall include • adapting to changing business

environment• potential risks • maximizing competitiveness. • different attitude and approach of

the enterprises, especially that of the owner and / or management

Module 1:Strategic Planning and

Implementation• Key competencies and skills of

Change Leaders

• Methodologies of Strategic Planning

• How to develop and implement a strategic plan? (Measure and Planning based on realities, simulating the decision options)

Module 1: Implementing Strategic Plan

• Targets and Milestones• Timetable • Organigram • Organizational Culture • Monitoring and Benchmarking of Key

Performance Indicators • Comparing assumptions vs. realities

Module 2: Improving Performance with ICT: Pharos Enterprise Benchmarking

• Integrated enterprise platform for unified measurement, monitoring and management of business performance, innovative, powerful yet easy to use

• Introducing business intelligence concepts at each organizational level

• Improving business culture of stakeholders for sustainable development

• Simplicity in learning and self-training facilitating exchange of best practices, benchmarking and transfer of knowledge between stakeholder groups

• Special focus to personnel of private and public enterprises

Module 2: Pharos Enterprise Benchmarking

• Methods and tools for easy setting and assessment of goals (organization, departments, individuals)

• Comparisons between organizations as well as traceability of change using real-time benchmarks

• Scalable support of organizations in their growth path from small to large (5 => 1000 employees)

• Integrating features of Pharos-Business Navigator, FIT, Produce Plus and BEST

• Transparency of business results for prospective investors and modernization programmes

• Compliance to BASEL II (minimization of credit risks) • Customizable benchmarking indicators and reports

SME Level ApplicationPharos Package

Laptop

Owner

EnterpriseData Base Update

Calculation of IndicatorsBusiness Profile

Benchmarking ReportsAnd Graphs

Manager

Developing best practices: problems and how to address them, Managerial dedication, Value of unmeasured, Staff attitude, training and stimulation: who is really interested in the measurement results? Making the measurement, management and benchmarking the component of a business culture, Expected results and realities in practice

Module 2: Improving Performance: Business

benchmarking & reporting

• “Where we are compared to others?” • Self-assessment and positioning of

enterprise achievements against the others by industry, region, country;

• obtaining the vision of our own progress and its relevance to overall industrial trends

Module 2: Improving Performance: Business

benchmarking & reporting

Module 3: Participants learn and

practice:• Introduction to Performance

Measurement in manufacturing• Relation between lean manufacturing

and production performance measurement, diagnostics and benchmarking, value added stream mapping

• Application of Pharos to production performance management

Module 4: On-site enterprise consulting

and coaching

• On-site implementation: developing knowledge capital, setting best continuous improvement practices (up to 12 months, consultant assisting and supporting each enterprise).

Module 4: On-site enterprise consulting

and coaching

• Training and certification of national consulting and support teams

• Benchmarking and certification of each participating enterprise

• Final results evaluation, reporting, conference of stakeholders

The Programme Modules Integrate

• concepts, • methodology, • training and reference materials, • practical exercises, • lecturing, • action learning, • team work/group work, • case studies, simulations, • games and computer-based training

Expected Results (1)

• Best practices in business improvement

• Improvement of Key Performance Indicators (KPI) up to 300%, including Gross Profits, Productivity (Added Value per Employee), etc.

• Benchmarking & diagnostics reports for each enterprise

• Benchmarking data for evaluation of sectoral performance

Expected Results (2)• Documented results of the Programme

implementation• Investment facilitation due to increased

transparency of businesses• UNIDO Certificates of Achievements in

Business Performance Excellence• Improved culture in Management of

business, innovations, competitiveness, productivity, quality and sustainability

• Installation of Pharos benchmarking software in participating enterprises

We really appreciate PHAROS - as a concept and as a Business Performance tool and the way of presentation of its output Indicators". S.D.Sardesai, General Manager

Case study: Shoe Factory, Colombia

Return of Investment into Programme participation

Case study: Shoe Factory (Bogota, Columbia 2002)

• Average annual sales, USD - $632 000• Net Profit average % (leather & shoe

production) - 5%• Increase of net profits, post programme

in % - 24%• Increase of net profits, post programme

in USD - $7,584

• Participation costs per annum < $2,500

Expected Results of Capacity Building Programme “Management of Change”:

• Margen de Utilidad Operacional: + 53.7%• Incremento de Ventas: + 37.9%• Índice de Servicio al cliente: + 99.28%• Estructura de la Organización: +

26.09%• Gestión de Mercadeo: + 26.19%• Eficiencia en la Gestión de la Producción: 66.32%• Maneo del Recurso Humano: +34.71%• Administración Económico-Financiera: + 60.93%• Estrategia Empresarial: + 77.37%

*Source: UNDO Integrated Programme for Colombia 2002-2004, Component II, Pharos

Conclusions:

The National Entrepreneurship Capacity Building and Industrial Modernization Programmes provide unique answer

• Management of Sustainable Change• Investments• Innovations • New technologies

Questions please?

Thank you!

Contacts:

Serge GolovanovPh.D., Dipl. Eng., Director,

Enterprise Performance Improvement CenterGOLEM IMS GMBH, Vienna, Austria

UNIDO International Consultant

e-mail: info@win2biz.com

References

• NYPL Digital Gallery, http://digitalgallery.nypl.org/nypldigital/index.cfm• Nationals Archives and Record Administration, http://www.archives.gov/exhibits/twww/ • Dongguan Digi-in Digital Technology Co.,Ltd, http://www.digi-in.com.cn/en/index.asp• http://www.istockphoto.com

Source materials by

• Industrial upgrading programme overview and relevant documents http://win2biz.com/unido_sw/eng/SME-Prog-intro.htm

• Pharos enterprise benchmarking software: http://win2biz.com/unido_sw/eng/peb.htm http://win2biz.com/unido_sw/eng/faq.htm http://win2biz.com/eng/Interview2.htm