Management Of Change
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Management Of Change

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Management Of Change Management Of Change Presentation Transcript

  • Management of Change Capacity Building Programmes for Entrepreneurs, Consultants and Policy Makers
  • Actually it is the only constant in our life! Additional information is presented in the slide notes Do You feel the Change?
  • Serge Golovanov PhD, Dipl. Engineer UNIDO International Consultant Director, Enterprise Performance Improvement Center Vienna, Austria Member of Board, INSME, Rome, Italy
  • The Programme objectives are to integrate:
    • Learning targets, methodology in strategic business management and industrial engineering
    • Practical applications of UNIDO Pharos software suite for business performance management, measurement and benchmarking to facilitate Management of Change by entrepreneurs
    • Developing of best practices providing systematic way of Change Management
  • 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 participants receive
    • Valuable knowledge capital
    • Best practices and Training materials
    • UNIDO software suite with 6 software items Pharos-Business Navigator, Enterprise Benchmarking and Advanced Data Export-Import, Financial Improvement Toolkit, Produce Plus Database and Graph
    • 2 End User licenses per each software
    • Follow-up assistance by consultants
    • UNIDO-Certificates “Business Excellence in Enterprise Performance Management”
  • Module 1. “Strategic & Financial Planning in industrial enterprise”.
    • 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,
  • Business Navigation in Times of Change: Measuring & Monitoring & Planning of results in the process of change
  • Sailing to target destination Initial position Business Target (Promised Land) Ideal path
  • Sailing with navigation: smooth, cost-effective and adaptive to changes
  • Sailing without navigation Investments, innovations and new technologies may not help in navigation in times of change however making impact from failure harder ! (e.g.. new ship or new engine may not change the outcome)
  • Result: Most of SMEs are running life time experiment “ W i n or D i e” ! Actual data by San Paulo Department of Statistics, Brazil: 5 billion dollars lost and 530 thousands jobs in the medium and low range of manpower are lost within one year in San Paulo State only. 1,000,000 businesses closed between 1990-2002 just in the State of San Paulo worth of 62 billion dollars in invoicing and consequent losses in taxes. (Source: Newspaper “O Estado de San Paulo”, Economy and Business Section, 4th December 2003) Similar situation exists in other developing countries lacking of official statistics. ?
    • Mistakes in making business decisions by management based on inadequate assumptions, information,
    • Financial mismanagement and ineffective use of own or borrowed financial resources
    • Only these 2 reasons constitute 65% of cases !
    Major reasons of SME mortality (10,9 million enterprises, data SEBRAE, BRAZIL) Were it the issues: Bad products? No market demand? Lack of financial resources or investments? No innovations? NO !!! It were the major problems!
    • Estimations of lost gross profit (GP) due to various inefficiencies, per annum
    • Enterprise Group 1 (GP € 400,000): 54,900 €
    • Enterprise Group 2 (GP € 3,000,000): 215,500 €
    The price of ignorance ( UK case studies, CoVE and MII, food industry):
  •  
  • Module 1: The Components
    • 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)
  • 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 UNIDO Pharos and FIT software
    • Pharos concepts: Key Performance Indicators (KPIs)
    • Main modules: Costs, Performance, Quality, Competitiveness, Product Contribution, Sales, Budgeting, Cash flow and Profit margins, Competitiveness
    • Defining business targets: Basic principles, Formulas, Setting up, Best practices, goal functions
    • Pharos enterprise database, preparing and updating, export-import for data exchange with third party software
    • Presentation of business results for prospective investors and programmes, using the results for compliance to BASEL II Standard to minimization of credit risks and its implications on enterprise capacity for investment
  • UNIDO Performance Measurement tools: Pharos Business Navigator (main menu)
  • Business benchmarking & reporting
    • The basic principles and implementation (averaging, reference date and period), KPIs used in benchmarking, benchmarking results and its tuning, report preparation, reviewing benchmarking graphs
    • Practical exercises: Developing sample enterprise database, Defining business targets, Making production planning and simulations, Running data export-import,
    • Preparing benchmarking reports
  • UNIDO Pharos performance measurement tools: Business Benchmarking Report
  • Viewing Key Performance Indicator change at a glance by performance summary graph
  • Key Business Indicators time-series in bench-marking module
  • 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
    • “ Where we are compared to others?” Self-assessment and positioning of enterprise achievements against the others by industry, region, country; obtaining the vision of industrial trends
  • SME Level Applications
  • Policy Making Level Applications Benchmarking & Monitoring performance of SME Groups
  • Policy Making Example: The Vision Positioning of reference enterprise in the national industrial sector benchmark scale “Best vs Least Performing SME”
  • Financial Improvement Toolkit (FIT)
    • FIT roadmap, installation, example enterprise database, user interface, basic features, functions, graphs, applications, main menu, utilities, Database preparation and update, Preparing reports and setting up best practices
    • Key Performance Indicators (KPIs), Applications for credit risk assessment and compliance to Basel II standard,
    • Presentation of business results to prospective investor or evaluation of capacity for investments
  • Financial Improvement Toolkit - FIT
  • Module 3. “Improving of the manufacturing efficiency and performance”
    • Which manufacturing operations add value?
    • How to improve product and production performance?
    • How to measure and prepare major decisions regarding changes in manufacturing, introduction of innovations and restructuring of business to adapt to requirements of change?
    • How to prepare and run diagnostics / benchmarking for business actual results evaluation
  • 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
  • Produce Plus (main menu)
  • Working with Produce Plus
    • The modules and components
    • User interface
    • Diagnostic Questionnaire, Diagnostics results overview and reporting
    • Overview of Produce Plus indicators
    • Data collection and entry.
  • Working with Produce Plus
    • Production: Calculation of standard work rates, Measuring Actual Work Rates, Method of Data Entry
    • Quality: Defining Losses & rework, ‘Right first time’ approach, Quality Data
    • OEE – Overall Equipment Efficiency: What it measures and how calculated
  • Working with Produce Plus
    • Performance/Efficiency in Production: terminology, calculation of measures based on actual data,
    • Costs: complete Ex-Factory Cost, calculation of standard labor hours and cost, costs data entry
    • Labor Performance: its calculation, Data Collection and Entry, Use of factory floor control sheets
  • 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 by the Programme
    • Best practices in business improvement
    • Improvement of Key Performance Indicators (KPI) ~ 10% - 45% in average, e.g.. Gross Profits, Productivity (Added Value per Employee), etc.
    • Benchmarking & diagnostics reports for each enterprise
    • Benchmarking data for evaluation of sectoral performance
    • 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 business, innovations, competitiveness, productivity, quality and sustainability
    • 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
    The Example : Training Programme Efficiency for a Small Enterprise (actual data for shoe production factory, net profit only)
  • Average business result improvements achieved in UNIDO Pharos Programme implementations
    • Overall Productivity Increase (or value Added/person) + 9%
    • Improved Efficiency + 18%
    • Improved Gross Profit + 25%
    • Reduction in Labour cost - 15%
    • Overall Effective Efficiency increase + 5%
    • Acceleration of business development - 6 years
    • Source: UNDO Integrated Programme for Colombia, 2002-2004
    • Component II – Quality and Productivity in 4 industrial sectors, 40 enterprises (leather & shoes, electronics, textile, metal processing)
  •  
  • The Programme Content
    • Awareness seminars in country, promotion, contracting, selecting of enterprises and consultants
    • Training workshops for SMEs (3 days / module)
  • The Programme Components: Software 3. UNIDO Pharos Suite – simple & inexpensive software tools for Business Performance Measurement & Management & Benchmarking (includes min 2 End User Licenses per enterprise for strategic, financial and production management )
  • Programme components: on-site consulting & support
    • Training and certification of national consulting and support teams
    • On-site implementation: developing knowledge capital, setting best continuous improvement practices (up to 12 months, consultant assisting and supporting each enterprise).
    • Benchmarking and certification of each participating enterprise.
    • Final results evaluation, reporting, conference of stakeholders.
  • Programme Modules’ Schedule
    • Strategic Planning:
      • 2 days
    • Monitoring and improving business performance: 3 days
    • Monitoring and improving manufacturing performance: 3 days
    • On-site implementation support by local consultant:
      • up to 12 months, 2 working days per month
    • C o n c l u s i o n s :
    • Most SME industrialists do not have best practices of systematic measuring of results and its planning.
    • Implementation of productivity & industrial engineering methods using simple and inexpensive personal performance management tools allow eliminating inefficiencies systematically, maximizing business results.
    • The new Capacity building and Upgrading Programme provides practical combination of methodology, best practices and software for improving productivity, competitiveness, qua lit y for sustainable growth .
    • SMEs become more transparent and prepared for national and international investments , improve capacity for trade and exports.
    • The Programmes improves entrepreneurs capacity for Management the Change, investments, introducing innovations, new technologies.
    • C o n c l u s i o n s (cont)
    • The Programme facilitates business developments, managerial potential, facilitating implementation of ISO 9001 .
    • The Programme delivers unique content and provide comprehensive package of services at acceptable cost level resulting in important Knowledge Capital gains.
  • Thank you for reviewing this material. We look forward for collaboration with you and your colleagues in the Programme implementation in your country! Enterprise Performance Improvement Centre e-mail: info@wini2biz.com Additional information: www.win2biz.com