Achieve Business Excellence by Managing Operational Performance Systemising
Achieve Business Excellence by “Managing Operational Performance” Systemising management process in a way that makes business improvement much easier
“A CEO’s nirvana” (‘Nirvana’ - any place of complete bliss and delight and peace) v v To constantly increase the $ VALUE of the business ……… for future sale, capital raising, or franchising To continually improve business efficiency and profits ……. … without relying on CEO-initiated changes To have control over staff execution of all plans ……… with openness and transparency and less personal CEO involvement To instill a culture of continuous improvement in all staff ……. … for the CEO to have confidence that operations will run properly when CEO is absent from the business
The “typical” CEO challenges: 1. 2. 3. 4. 5. 6. 7. 8. 9. Setting up the business to operate without the day-to-day hands-on involvement of the CEO To find time to work “on” the business (too busy working “in” the business) and to make sure people are doing the right things. Improving staff productivity. It is “typical” that 60% of what staff actually do each day, does not add real value to the business Giving people fast access to the tools and knowledge required for them to do their jobs effectively and at the highest quality level. Controlling the efficient execution and implementation of plans and actions on time. Reducing management time in follow-up and close supervision of internal staff on basic operational issues Getting staff (and managers) to understand the CEO’s thoughts behind the business and how he wants things done Improve “front-line” visibility to managers (and the CEO) to avoid any surprises. Communicating to all staff so that they all know and appreciate their value within the business
What do all businesses “do” ? Develop their strategic approach to their market Implement required operational processes Give people things to do Develop ways to do things better Make Changes Handle Exceptions Provide access to required knowledge Set Targets & Measure Results Guess what …… this is exactly how AMS improves a business !!!!
The AMS Process simply overlays a business to “Improve Operational Performance” Develop the strategic Strategic approach Business 5 x 5 viewmarket Develop their own to their Implement Create Business required DNAoperational Operational processes Actions Give people Assign Job things to do 5 x 5 actions Develop to Conductways audits do Improvement things better of Make Manage Changes Projects Handle Resolve Exceptions Incidents Create Provide direct access linkstotorequiredknowledge Set Targets & Measure Results So AMS systemises the running of the business.
AMS creates a structured solution that systemises these functions and creates a “valuable asset” of the business …. . that becomes an “Improvement & Control System” Firstly, improvement is about focusing on the right things …. . i. e. the operational actions of the business that create the most improvement value for the business Secondly, control is about “visibility and transparency” …. . i. e. so that everything that the people “do” can be clearly seen by everyone to be creating value for the business It really is that simple …… if you have a system help guide you !!!
AMS therefore contains the THREE key components of “systemisation”: (1) A management PROCESS (the method). (2) An Internet-based Computer SYSTEM (the AMS-C software). (3) The operational KNOWLEDGE that defines the business (the content).
AMS CAN BE RUNNING WITHIN 48 HOURS AFTER YOUR BUSINESS DNA CREATION
The “Business DNA” Platform q We create a unique and simple view of all business operations and their risk to the business so that all employees UNDERSTAND Ø the business “actions” that are of real value; Ø where the business needs to improve; and Ø who is “accountable”. RESULTS v v A “one page” graphical operational view of the business (the Business DNA), clarifying the key Actions (value processes) and a operational summary of the business for shareholders, customers, suppliers, and staff (Internet-AMS Business DNA) (Sample: Internet AMS Navigator) An overall risk assessment of the major DNA Actions of the business resulting in a clear focus on specific areas requiring improvement. A common understanding of the complete business operation and summary strategy for all managers and staff. An understanding of where personnel accountability for operational action resides and therefore who caries the responsibility to improve these business operations. Link to schematic (Internet-AMS Accountability Matrix)
“People Improvement” Process q Get all of your people “doing the right things” for your Business Actions “People do what you INSPECT not what you EXPECT”. RESULTS v v v v (Sample: Excel-AMS) An individual’s Job 5 x 5 is created for each staff member as a direct result of “cascading down” from the business DNA actions and allocating all responsibilities and accountabilities to people The setting of realistic Measures and Targets for all job actions (a simple one-page summary of every person’s job) Individual Actions An assessment of importance for each person’s Job Actions. Links to job-related knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job efficiency and productivity The collection of staff “ideas” for improvement Better utilization of people and an assessment of their capability to match their job An effective and simple performance review system Link to schematic (Internet-AMS Job 5 x 5)
“Improvement Audit & Projects” Process q We give you the way to fix the “risk” areas of your Business Action Audits RESULTS v v v v A detailed risk assessment of all “risk” areas of the business identified within the Business DNA. Action Improvement Audits (typically conducted by the person accountable) to rapidly identify what needs to be done Creation of business Measures and Targets for all high risk operational actions Execution of improvement projects for the priority areas of the Business DNA Creation of an “improvement focus for all staff Improvement in teamwork and feedback to all managers and staff Increased staff involvement and a pro-active contribution from everyone. (Internet-AMS Project Creation) Link to schematic
“Incident Resolution” Process q We give you a simple way for your people to track the “things that need to get done” by the right people. RESULTS v v v A system for capturing ad-hoc actions that need to be tracked to resolution. An audit trail of all “incidents” of the business for better “control, resolution, compliance and reporting” Open visibility of outstanding actions with an automatic follow-up system for all staff to utilise. An automatic Action Reminder system that ensures that actions are not forgotten or overlooked. A management reporting system to alert managers to overdue actions within their sphere of accountability. Link to schematic
The “Knowledge Access” Process q We give your people a simple way to get rapid access to all the knowledge of your business that they need to do their job. RESULTS v v Expansion of the “knowledgebase” of the business for better “how to” information and links to all information required to run the business and implement improvements Links to “how to” knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job responsibilities The collection of staff “ideas” for business improvement initiatives Fast access for all employees to any business information via a simple “knowledge directory” search Link to schematic
Target & Measurement Process REMEMBER: “People do what you INSPECT not what you EXPECT”. RESULTS v v v Link to schematic The AMS therefore becomes the way to track business improvement projects, incident resolution, and actions. Identification of best growth strategies for the business based on the real measurement of non-financial improvements obtained Improved staff learning and understanding of the business and the knowledge available Creation of an environment of initiative for new ideas and recommendations to be implemented Improved consistency of staff performance reviews encouraging higher productivity and promotion decisions A “continued improvement” culture expanding to all areas of the business
Far Pavilion Referrence “We have now implemented AMS in our Retail, Wholesaling and Warehousing business areas. As a result of the AMS approach, we have been able to gain significant improvements in all of these business areas. The increased efficiency that has been created as a byproduct of the AMS implementation has of course, resulted in increased profits (240%) in my company. My people now know what their job is and how they can add to the value of the company. Our commitment to AMS is long term and as we implement more of its elements we realise the benefits of the important operational management disciplines that it introduces into our business. ” Michael Edwards (Managing Director)
Summary of AMS Client benefits Business v v Simple and Quick 5 -step process Fixed price implementation stages v v v v On-going Managed Service v v Knowledge Directory and Tools Online Coaching and email support Continuous Improvement v v Through “do-it-yourself” implementation. Management of both Risk and Quality Between management and staff Improves inter-staff communication and teamwork Creates pro-active contribution v v Develops staff performance indicators Tracks progress for each individual Encourages staff business interaction Internet Browser based for wide adoption Internet storage of Knowledge for easy and simple access v Applies to all employees Clarifies any job ambiguities Removes uncertainty of responsibilities Provides criteria for staff to be accountable Focuses all employees on the Business Records capability & performance v v Immediate Value for the Business Results are measured and visible Develops value-based performance indicators Provides non-financial audit of the business Optimises resources and adds to Profits Clarifies and Aligns both Staff and Management Expectation Pragmatic Application of Technology v v Low cost and time-effective Ideal for all types and sizes of business Reduces Management Complexity v v v Rapid Implementation v v People Provides a common platform and framework for all employees to participate and contribute to Company success Improves Productivity & accountability of both individuals and teams v Encourages reward assessment for actions and staff that add value to the business
The AMS implementation building blocks to Business Excellence 5. OPTIMISE TRANSPARENCY TO STAFF Set Targets Measure Performance Report Progress • PUBLISH OPERATIONAL RESULTS for easy understanding & focus. 4. INCREASE EFFICIENCY & PRODUCTIVITY Link Knowledge Resolve Incidents Manage Time • INCREASE STAFF PRODUCTIVITY and motivation of current people. 3. ENGAGE ALL PERSONNEL Clarify Roles Give Accountability Define Jobs • CLARIFY STAFF EXPECTATIONS in their running of the business. 2. IMPLEMENT BUSINESS IMPROVEMENT PROCESS Conduct Audits Make Recommendations Manage Projects • STIMULATE INITIATIVES and instill a culture of improvement. 1. BUILD BUSINESS DNA Articulate Strategy Create Business Actions Assess Risks • STEP BACK and take a realistic operational view of your business.
AMS “Dual View” Perspectives View from a “Whole of Organisation” Perspective (Search) View from an Operational Action Perspective Knowledge 125 x Actions 1. 11 1. 12 1. 13. . . 5. 54 5. 55 Description Risks Audits Operational Action view Businesswide view Ideas Projects Incidents
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The AMS Process simply overlays a business to “Improve Operational Excellence” Develop the Strategic Business 5 x 5 view Create Business DNA Operational Actions Assign Job 5 x 5 actions Conduct audits of Improvement Manage Projects Resolve Incidents Create direct links to required knowledge Set Targets & Measure Results AMS systemises the management of any business.
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