Title: SMART KPIs _ INTEGRATING
1Implementing Business Improvement
by
Managing Operational Performance
Systemising management process in a way that
makes business improvement much easier
2A CEOs nirvana
(Nirvana - any place of complete bliss and
delight and peace)
- 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
3The typical CEOs problems
- The business is not set up to operate without the
CEOs day-to-day hands-on involvement - The CEO is too busy working in the business to
find time to work on the business, and has
often lost track of what people do. - Poor staff productivity. It is typical that 60
of what staff actually do each day, does not add
real value to the business - Personnel do not have fast access to the tools
and knowledge required to do their jobs
effectively and productively. - There is no operational system in place to
control the efficient implementation of plans and
actions. - Huge amounts of management time are wasted in
follow-up and close supervision of internal staff
just to get things done on time - Staff (and managers) do not understand the CEOs
thoughts behind the business and how he wants
things done - Things happening at the front-line are rarely
visible to managers (or the CEO) until it is too
late to avoid adverse consequences. - The front-line does not understand how the rest
of the business works, but most importantly, they
do not understand their value within the business
4What do all businesses do ?
Handle Exceptions
Guess what this is exactly how AMS improves
a business !!!!
5The AMS Process simply overlays a business to
Improve Operational Performance
Develop their own strategic approach to their
market
Develop the Strategic Business 5x5 view
Implement required operational processes
Create Business DNA Operational Actions
Give people things to do
Develop ways to do things better
Assign Job 5x5 actions
Conduct audits of Improvement
Handle Exceptions
Make Changes
Resolve Incidents
Manage Projects
Provide access to required knowledge
Create direct links to required knowledge
Set Targets Measure Results
Set Targets Measure Results
So AMS systemises the running of the business.
6AMS creates a simple solution that integrates
these functions and creates an IP asset of the
business
.. that becomes an Improvement Control
System
Firstly, improvement is about focusing on the
right actions.. i.e. the operational actions
of the business that create the most value
for the business Secondly, control is about
visibility and transparency.. i.e. so that
everything that the people do is clearly seen
by everyone to be of value to the business
It really is that simple if you have a system
to guide you !!!
7AMS therefore contains the THREE key components
of systemisation
- A management PROCESS (the method).
- An Internet-based Computer SYSTEM(the AMS-C
software). - The operational KNOWLEDGE that defines the
business (the content).
8AMS CAN BE RUNNING WITHIN48 HOURS - AFTER YOUR
BUSINESS DNA CREATION
9The Business DNA Platform
- We create a unique and simple view of all
business operations and their risk to the
business so that all employees UNDERSTAND - the business actions that are of real value
- where the business needs to improve and
- who is accountable.
- RESULTS
- 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 - 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.
(Internet-AMS Business DNA)
(Sample Internet AMS Navigator)
(Internet-AMS Accountability Matrix)
Link to schematic
10People Improvement Process
Business Actions
- Get all of your people doing the right things
for your Business
People do what you INSPECT not what you EXPECT.
- RESULTS
- An individuals Job 5x5 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 persons job) - An assessment of importance for each persons 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
(Sample Excel-AMS)
Individual Actions
(Internet-AMS Job 5x5)
Link to schematic
11Improvement Audit Projects Process
Action Audits
- We give you the way to fix the risk areas of
your Business
- RESULTS
- 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
12Incident Resolution Process
- We give you a simple way for your people to track
the things that need to get done by the right
people.
- RESULTS
- 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
13The Knowledge Access Process
- 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
- 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
14Target, Measure Report Process
REMEMBER People do what you INSPECT not what
you EXPECT.
- RESULTS
- 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
15We 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)
16Summary of AMS Client benefits
Business
People
- Clarifies and Aligns both Staff and Management
Expectation - 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
- Develops staff performance indicators
- Tracks progress for each individual
- Encourages staff business interaction
- Between management and staff
- Improves inter-staff communication and teamwork
- Creates pro-active contribution
- Provides a common platform and framework for all
employees to participate and contribute to
Company success - Improves Productivity accountability of both
individuals and teams - Encourages reward assessment for actions and
staff that add value to the business
- Simple and Quick 5-step process
- Fixed price implementation stages
- Low cost and time-effective
- Ideal for all types and sizes of business
- Rapid Implementation
- Immediate Value for the Business
- Reduces Management Complexity
- Results are measured and visible
- Develops value-based performance indicators
- Provides non-financial audit of the business
- Optimises resources and adds to Profits
- Pragmatic Application of Technology
- Internet Browser based for wide adoption
- Internet storage of Knowledge for easy and simple
access - On-going Managed Service
- Knowledge Directory and Tools
- Online Coaching and email support
- Continuous Improvement
- Through do-it-yourself implementation.
17The AMS implementation building blocks to
Operational Excellence
18AMS Dual View Perspectives
View from a Whole of Organisation Perspective
(Search)
Knowledge
125 x Actions
Description
Risks
Audits
Ideas
Projects
Incidents
Business-wide view
1.11 1.12 1.13 . . . . . . . . . . . 5.54 5.55
1.13
Operational Action view
View from an Operational Action Perspective
19www.actionmanagement.com.au
20Internet-AMS
Click Here to run Demo
21The AMS Process simply overlays a business to
Improve Operational Performance
Develop the Strategic Business 5x5 view
Create Business DNA Operational Actions
Assign Job 5x5 actions
Conduct audits of Improvement
Resolve Incidents
Manage Projects
Create direct links to required knowledge
Set Targets Measure Results
So AMS systemises the improvement of a business.