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Performance Improvement Roadmap V4
 

Performance Improvement Roadmap V4

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Comprehensive Business wide process for maximising performance

Comprehensive Business wide process for maximising performance

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    Performance Improvement Roadmap V4 Performance Improvement Roadmap V4 Presentation Transcript

    • PERFORMANCE IMPROVEMENT ROADMAP By Mike Mulcahy Sept 2011 “ Gilberts 6 windows on Human Performance”
    • This change process is not going to turn a VW into a Porsche 911, but it will turbo charge your engine, make sure all cylinders are firing & give your team advanced driver training and navigation skills !!
      • The 10 critical components;
      • Make sure you have the right people on the bus in the right seats before you start…how do you know ? Read Jim Collins “Good to Great” Level 5 leaders
      • Engage ALL the stakeholders, ask questions and listen…
      • Understand your numbers in detail (Use a Value Driver Model to help with this), benchmark your performance & measure the theoretical gap. Then get the businesses to take ownership by doing “deep dives” into material gaps, understanding & verifying them, then develop plan to close gap.
      • Set the bar high…make sure your staff are not afraid to fail… your leadership style is critical for this.
      • Understand the risks and develop mitigation strategies
      • Synthesize your story and communicate it to ALL. Make sure ALL the stakeholders understand the “size of the prize” or “how close the precipice is”…ensure they all share in the success
      • Instill Key Traits in your team for implementation;
        • Focus on what’s important – KPIs
        • Ensure there is Clear Accountability – Performance linked to incentive schemes and regular performance review
        • Discipline – You must have a Project Management Office (PMO) with leader with access to your ELT
        • Sense of Urgency (not impatience) – Daily, Weekly, Month Reporting
        • Persistence - never loose faith that you will prevail
      • You must have a closed loop “Planning & Performance” management process. This will help systematize the above traits.
      • Use the Pareto 80 / 20 approach to get low hanging fruit first
      • Use “Gilberts 6 windows on Human Performance” as a list of things you need to do to get your people performing
    • THE PROCESS
      • Process to take no more than 6 months to review and develop all plans and implementation to commence
      • Prepare business for IPO within 1-2 years
      • Restore credibility of the group with stakeholders & investment community through commitment to good governance.
      • Maximise the sustainable value of the business with;
        • ROC % exceeding 20% (excluding growth capital and growth costs)
        • Revenue CAGR% potential exceeding 20% YOY
        • Identify and mitigate key risks
      • Integrate the businesses developing one culture across the group that encourages & rewards integrity, professionalism & high performance where all stakeholders are proud to be associated with this business.
      Firstly, define your overall objectives of your change program EXAMPLE
    • Give your change project an inspirational name
      • How about ,
      • “ Project Mandela”
      • after one of the most inspirational leaders for change in our generation
      EXAMPLE
      • Stage 1 (2 months)
      • Listen &
      • ask questions
      • Identify potential
      • improvement
      • Sell Need for change
      • Stage 2 (4 months)
      • Deep Dive Reviews
      • Benchmark &
      • Re-engineer
      • Processes
      • Develop
      • Actions
      • Stage 3
      • Synthesize
      • & Implement
      THE CHANGE MODEL A visual model of the change process, timeframe and “Building Blocks” for change (Tailored to meet Objectives) Business Performance Review SYNTHESIZE, SIGN OFF. SYNDICATE, IMPLEMENT & MONITOR ACHIEVEMENT OF PLAN Stewardship Review & Control Processes Employee Survey Top 20 Leadership Interviews & Capability Review Behavioral change plan developed Ext. Customer Survey KEY GAP “Deep Dives” TO SUPPORT TARGETS WITH ACTIONS OHS & E Process Manufacturing Excellence Capability Work Cap. Mgt Spend Control Supply Chain Management IT Systems Capability Int. Customer Surveys by Dept Governance Framework, Policy & Process Standards Risk Review Recruitment, Training, Development & Retention effectiveness Customer Service Excellence Understand Strategy & Review Structure Alignment Cash & Debt Mgt Synthesize the critical reasons for change into a Story & Syndicate across/down the organisation to all stakeholders Product & Market Development Process Sales Capability Supplier Transactional Process Efficiency Procure to Pay Customer Transactional Process Efficiency Order to Fulfillment Employee Transactiona l Process Efficiency Payroll & Expense Reimbursement Planning & Performance Management Process Margin / Pricing Management Process Develop Value Driver Model & Theoretical Improvement Potential
    • Stage 1 - Key Points
      • Appoint “Director of Project Management Office or DPMO” to lead, drive, coordinate & report progress of overall change process
      • Appoint ELT member’s to sponsor each individual project for Phase One
      • Try and confine this stage to less than 2 months
      • It’s all about information gathering and engaging input from ALL the stakeholders
      • Spend time on this now and it will make getting sign off and support for implementation from stakeholders that much easier and
      • Also make it systematic and data driven as much as possible ie customer and employee rating questionnaire
      • Finally, make sure you adequately communicate its findings to ALL employees and other Stakeholders
    • Stage 1 – Building Blocks & Objectives
      • Understand Strategy & Review Structure Alignment - Understand existing strategy (Shareholder perceptions / expectations) & review alignment of organisation structure
      • Top Leadership Review - Understand ideas (SWOT) & leadership capability for each of the senior managers and high potential employee’s – “Are the right people on the bus in the right seats”
      • Internal Customer Surveys - Understand how each department is perceived by its internal customers for both KRAs and Key Behaviors
      • Business Performance Review - Understand current & forecast business performance. Develop 80/20 broad range of critical KPIs to quickly instill focus, accountability & sense of urgency
      • Risk Review - Understand the key business risks, their potential impact, the mitigation strategies & probability before & after mitigation
      • External Customer Survey - Understand the customer perceptions of our value proposition & business performance (& our SWOT)
      • Employee Survey - Understand the Employee perceptions of the business performance (& SWOT) & their own performance
      • Value driver model - Develop a “Theoretical Potential Improvement “ in the business by Developing a Value Driver model and benchmark all its components against best practice and measure gap,
      • Synthesize Story & Syndicate - Ensure everyone in the business can see the prize or precipice so they understand why we have to change
      • Sponsor: CEO
      • 1 week timeframe
      • Facilitated by CEO
      • 2 day workshop with Board & Leadership Team
      Objective: Understand existing strategy (and shareholder perceptions, expectations) and alignment of structure Strategy & Structure 5 Forces Review including trends and scenario’s SWOT Review Competitor Review Vision, Targets Options & Rational Key Actions Key Enablers, Resources & Risks
      • Sponsor: CEO
      • 6 week timeframe
      • Facilitated by External HR Consultant
      • CEO to identify review participants
      • CEO to prepare plan on what changes will be made
      Objective: Understand ideas (SWOT) & leadership capability for each of the senior managers and high potential employee’s – “Are the right people on the bus in the right seats” Top 20 Leadership Review Get all to read “Good to Great” & prepare comments Do 360 degree Performance Reviews List track record and key achievements in last 10 years One on One Interview with CEO Competency Gaps & progression potential Finalised Development Plans completed and implemented started Level 5 Related Skills and Attributes
      • Self Management
      • Goal Achievement
      • Results Orientation
      • Interpersonal Skills
      • Diplomacy and Tact
      • Personal Accountability
      • Influencing Others
      • Developing Others
      • Flexibility
      • Versatility
      • Teamwork
      • Decision Making
      • Resiliency
      • Self Starting
      • Accountability for Others
      • Continuous Learning
      • Conceptual Thinking
      • Empathetic Outlook
      • Leading Others
      • Customer Focus
      • Objective Listening
      Level 5 Related Values and Motivators Learning Leading Results The value of pursuit of knowledge, continuous improvement of self and the organization. The value of personal recognition and control over their own destiny and others. The value of practical achievements, ROI, on time achievement, energy and resources. Level 5 Related Behavioral Styles Consistency Influence Controlling Predictable, steady, composed. Steadiness supports   the hedgehog concept. Level 5s are not inherently charismatic. They tend to be compassionate, amiable, objective and logical. Levels 5s are not domineering or highly driven. They are inclined to be purposeful, moderate and conservative.
      • Sponsor: CEO
      • 4 week timeframe
      • Facilitated by External HR Consultant
      • Employee questionnaires… example questions;
        • Summarise your CV
        • What are your Goals
        • Rate your Job Satisfaction
        • KRAs – describe your performance
        • What are your strengths
        • What do you need from company to perform better
        • What do you like about culture that must be retained
        • What do we need to improve about the culture
        • How can we improve the performance of the department
        • How can we improve the business performance
      • Redo in 12 months times to measure change
      Objective: Understand the Employee perceptions of the business performance (& SWOT) & their own performance Employee Survey 20% of employees interviewed by external facilitator All employees do questionnaire compiled by external consultant Present findings Redo every year to measure trend
      • Sponsor: CEO
      • 4 week timeframe
      • Facilitated by VP HR
      • For all Functional areas; Finance, IT, HR, Procurement, CS, Logistics, SCM, Manufacturing, OHS & E, S& M
      • Redo in 12 months to measure change
      Objective: Understand how each department is perceived by its internal customers for both KRAs and Key Behaviors EXAMPLE EXAMPLE Internal Customer Surveys KRA’s Behavior / Soft Skills
      • Sponsor: CFO
      • 2 week timeframe
      • Facilitated by CFO
      • One week preparation inputting 5 year history and forecasts
      • 1 day workshop presenting to Management Team to review performance. Agree on initial 80/20 KPIs
      • Design & implement daily, weekly reporting (see example in Appendix 1)
      Objective: Understand current & forecast business performance. Develop initial 80/20 broad range of critical KPIs to quickly instill focus, accountability & sense of urgency Business Performance Review OHS&E Financials Market Operations
      • Sponsor: CFO
      • 1 week timeframe
      • Facilitated by External consultant
      • 2 day workshop with Board & Leadership Team
      • Ensure they are incorporated into ongoing monthly reporting so that mitigation efforts are progressed
      Objective: Understand the key business risks, their potential impact, the mitigation strategies & probability before & after mitigation Risk Review Brainstorm Key Risks Select Top 10 Risks Agree on Potential impact (develop models) Potential Mitigation Strategies Probability before & after If risk & impact still too high develop more mitigation
      • Sponsor: VP S&M
      • 8 week timeframe
      • Facilitated by Market Research Consultant
      • Customer questionnaires. … example questions;
        • Rate our performance levels relative to competitors
        • Rate our behaviors relative to competitors
        • What are our biggest threats
        • What are our biggest opportunities
        • How can we help your business
      • Redo in 12 months times to measure change
      Objective: Understand the customer perceptions of our value proposition & business performance (& our SWOT) External Customer Survey 20% of customers interviewed by external facilitator All customers asked do questionnaire compiled by external consultant Present findings Redo every year to measure trend
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by Consultant
      • Prepare draft conceptual model (see example in Appendix 2)
      • 1 day initial workshop with commercial team & management reviewing/ explaining model concept and data requirements
      • Four week preparation inputting & verifying 5 year history and forecasts
      • Three weeks for benchmarking components
      • 1 day workshop presenting to Management Team to review performance and see major targeted performance gaps (see example in Appendix 3)
      Objective: Develop a “Theoretical Potential Improvement “ in the business by Developing a Value Driver model and benchmark all its components against best practice and measure gap, Value Driver Model Develop Draft Conceptual Models Populate models with data Benchmark model components to best practice Identify High Level gaps with targeted performance
    • Objective: Ensure everyone in the business can see the prize or precipice so they understand why we have to change
      • Sponsor: CEO
      • 1 week timeframe
      • Facilitated by CEO & ELT
      Synthesize Story & Syndicate
    • Stage 2 – Key Points
      • Based on results of Phase One the ELT determines which Phase 2 Projects will be undertaken
      • Appoint ELT member’s to sponsor each individual Phase 2 Project
      • The sponsor will develop Scope, deliverables/objective along with budget cost, timeline and resources and win approval from CEO
      • Try and confine this stage to no more than 4 months duration
      • Make sure you cover all key processes and departments. The items shown in the “Road Map Model should be viewed as starting point only
      • Setup Teams for each building block of “Project Mandela” model
      • Inspire & encourage teams to raise the bar as high as possible…do not fear failure
      • Engage 100% of employees in at least one project
      • Process for each team
        • Indentify “Best Practice” i.e. Safety – Dupont model
        • Process Map “As Is” Practice
        • Document Gaps and cost to business
        • Understand risk / cost / resources required to close gaps
        • Develop 80 / 20 strategy for quick implementation and realisation of majority of benefits
        • Develop longer term plan for delivering last 20% of benefits.
    • Stage 2 – Building Blocks & Objectives
      • Governance Framework, Policy & Process Standards - Ensure a governance framework is in place that meets best practice & exceeds all listing requirements
      • Behavioral Change Plan - From feedback, develop detailed behavioral change plan needed to meet all stakeholder objectives (mission, values, targets, etc)
      • Customer Service – Develop detailed plan to ensure the customer service is consistently competitive, value enhancing & meeting our promise to the customer ?
      • Stewardship Review & Control Processes - Verify Balance sheet values , identify any major write-offs and/or control weakness with actionable plan
      • Cash Management & Funding Process – Review adequacy of capital structure & funding facilities. Implement a process ensuring CFO has day to day control of funding and all material cash outflows
      • CAPEX & Discretionary Spend Process – Put process in place to ensure all CAPEX & Discretionary Spend (Marcom, R&M, etc) is properly justified, approved, prioritised, controlled in timely manner with post implementation review.
      • Working Capital Management – Put process in place to control & optimize WC % to “Best Practise”
      • Margin Management Review – Ensure Margin Management Performance & Processes are “Best Practise”. Identify margin improvement potential & process changes.
      • Planning & Performance Management System - Ensure there is a process in place that drives ongoing systematic improvement, provides clear accountability, focuses the business on things that are important and creates a sense of urgency
    • Stage 2 – Building Blocks & Objectives
      • Supplier – Procure to Pay – Reengineer Process to be “Best Practice”
      • Customer – Order to Fulfillment - Reengineer Process to be “Best Practice”
      • Employee – Payroll & Exp Reimbursement - Reengineer Process to be “Best Practice”
      • Sales Capability - Review Capability, Performance & Processes. Identify improvement opportunities
      • Product & Market Development Process - Do we have an effective process & have we identified & invested in a sufficient pipeline of growth opportunities to meet our growth targets ?
      • IT / IS Systems Capability - Are these systems appropriate for our strategic & operational needs and are they efficient and cost effective ?
      • OHS&E - Reengineer Process to be “Best Practice”
      • Manufacturing Capability - Reengineer Process to be “Best Practice”
      • Supply Chain Management - Reengineer Process to be “Best Practice”
      • People - Recruitment, Training, Development & Retention - Understand if performance shortfalls are due to any systemic factor that can be corrected. Reengineer Process to be “Best Practice”
      • Deep Dives - Turn “Theoretical Gap” into confirmed opportunities with management commitment and detailed hard action plans
    • Objective: Ensure a governance framework is in place that meets best practice & exceeds all listing requirements
      • Sponsor: Chairman
      • One week timeframe
      • Facilitated by CFO & Auditor
        • Listing & Regulatory governance requirements
        • Examples of “Best Practice” governance policies at other companies
      • CFO to provide example of DOA for review
      • CFO to provide example of Planning & Control Framework (See Appendix 4)
      • Two Day workshop attended by
        • ALL Board members
        • All ELT members
        • Facilitator
      • Conduct workshops to communicate all policies across all employees run by VP HR
      Governance Framework Mission & Values Delegation of Authorities Compliance & Audit Code of Conduct Planning & Control Syndicate
      • Sponsor: CEO
      • 8 week timeframe
      • Appoint external Consultant to Facilitate
      EXAMPLE Objective: From feedback, develop detailed behavioral change plan needed to meet all stakeholder objectives (mission, values, targets, etc) Behavioral Change Plan Review Stage 1 feedback from stakeholders Identify behavioral barriers to achieve objectives Identify solutions to remove barriers Develop action plan to implement Communicate to stakeholders
      • Sponsor: VP HR
      • 8 week timeframe
      • Appoint External HR Consultant to Facilitate
      • Use Gilberts 6 window model to determine process issues
      Objective: Understand if performance shortfalls are due to any systemic factor that can be corrected Recruitment, Training, Develop. & Retention Effectiveness Is there clear Directional Info. (PD,KRAs,Targets) ? Does the person have sufficient Resources or Tools to do the job ? Are rewards competitive, performance reviews effective & sufficient recognition given ? Are there training and development plans ? Do the employees have the capacity to do their role ? Are they motivated… a good fit or enjoyable workplace environment ?
      • Sponsor: CFO
      • 3 week timeframe
      • Facilitated by CFO & Auditor – Template provided by CFO & signed off by Auditor
      • Three weeks to fill in template by accounting team with all supporting schedules
      • 2 day review with finance team facilitated by CFO & Auditor with output being actionable issue list
      Objective: Verify Balance sheet values , identify any major write-offs and/or control weakness with actionable plan Stewardship Review & Control Processes Prepare templates Undertake Stewardship Review Management signoff of findings & action plan Management process in place to ensure gaps are closed Implement Actions
      • Sponsor: CFO
      • 8 week timeframe including implementation
      • Facilitated by Treasurer
      • 2 day workshop designing online payment process led by Treasurer & Bank
      • Review Capital structure, facilities and WAC
      • Gain approval for changes from CEO & Board
      Objective: Review adequacy of capital structure & funding facilities. Implement a process ensuring CFO has day to day control of funding and all material cash outflows Cash Management & Funding Process Appoint Regional Cash Management Bank Design & Implement online payment process Review Capital structure, facilities Develop & implement centralized funding arrangements, align DOA
      • Sponsor: CFO
      • 8 Week Timeframe
      • Appoint facilitator
      • 2 day workshop to review and test process
      • Process signed off by ELT
      • Communication Workshops across all relevant people run by CFO
      Objective: Put process in place to ensure all CAPEX & Discretionary Spend (Marcom, R&M, etc) is properly justified, approved, prioritised, controlled in timely manner with post implementation review. CAPEX & Discretionary Spend Control Process Justification Templates & Models Approval Review Ranking Process Implementation Control Post Implementation Review Communicate across organisation Review DOA spend limits
    • Objective: Put process in place to control & optimize WC % to “Best Practise”
      • Sponsor: CFO
      • 8 week timeframe
      • Appoint facilitator
      Working Capital Management Set targets after understanding Value Proposition WC terms & benchmark its competitiveness Minimize payment runs to one per month Make Sales Dept responsible for collection & set weekly collection targets Clear Credit Limit, stop credit and legal proceeding rules enforced by Finance Implement Weekly Cash & WC Forecast / Control process Cost VP WC Terms into CPP margin numbers Monthly Sales & Operation Planning meeting to optimize DOI
      • Sponsor: CFO
      • 8 week timeframe
      • Appoint Consultant to Facilitate (PCM ?)
      • Understand margins
        • Pricing policies and processes
        • Costing policies and processes
      • Explain variations
      • Identify total improvement potential for margins
      • Identify gaps to “Best Practice” & agree on process changes
      Objective: Ensure Margin Management Performance & Processes are “Best Practise”. Identify margin improvement potential & process changes. Margin Management Review Margin Calculation Definition & Costing Methodology Pricing Process & DOA Compliance Cost Plus v Market Based Discount & Rebate Structure CPP Matrix Analysis (Variation) Reporting
    • Objective: Reengineer Process to be “Best Practice”
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by Consultant, FC & VP IS/IT
      Supplier Procure to Pay Identify Best Practice Map “AS IS” process Document Gaps to “Best Practice” Understand Risk/cost/resources to close gap Develop longer term plan for delivering last 20% Develop 80 / 20 strategy for quick implementation
    • Objective: Reengineer Process to be “Best Practice”
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by Consultant, FC & VP S&M
      Customer Order to Fullfillment Identify Best Practice Map “AS IS” process Document Gaps to “Best Practice” Understand Risk/cost/resources to close gap Develop longer term plan for delivering last 20% Develop 80 / 20 strategy for quick implementation
    • Objective: Reengineer Process to be “Best Practice”
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by Consultant, FC & VP IS/IT
      Employee Payroll & Exp. Reimbursement Identify Best Practice Map “AS IS” process Document Gaps to “Best Practice” Understand Risk/cost/resources to close gap Develop longer term plan for delivering last 20% Develop 80 / 20 strategy for quick implementation
      • Sponsor: VP Sales & Marketing
      • 8 week Timeframe
      • Appoint Consultant to Facilitate
      • KPIs compared;
        • Segment analysis – Quantity. margin p/t, MS%
        • Value Proposition – lead time, quality, Terms
        • Spend on Marcom, # of people, people cost
      Objective: Review Capability, Performance & Processes. Identify improvement opportunities Sales Capability Value Proposition Competitiveness Project Pipeline & Market Intelligence Data Systems 4P Effectiveness (Marcom) & Sales Incentives Customer & Channel Relationship & Selling Skills CPP Matrix Analysis (Variation) & Reporting Bid Quality & Turnaround Times
      • Sponsor: VP Sales & Marketing
      • 8 week Timeframe
      • Facilitated by External Consultant
      • With conservative development success, is there sufficient projects in the long term pipeline to meet growth targets ?
      • KPIs compared;
        • Time to Market
          • New Channel
          • New Segment
          • New Product
          • New Geographic Location
        • % Projects on / ahead of target
        • 3,5 Year Forecast Gap to Target
      Objective: Do we have an effective process & Have we identified & invested in a sufficient pipeline of growth opportunities to meet our growth targets ? Product & Market Development Process New Channels New Products / Services Expand Up / Down Value Chain New Segments M & A opportunities Geographic Footprint Expansion / Coverage
      • Sponsor: CFO
      • 8 week timeframe
      • Appoint external IS/IT Consultant to Facilitate
      • Do we have sufficient measurement systems ie KPIs = downtime, Support costs, Development Costs, Coms Costs , manual and legacy systems
      • Along with pareto analysis , reason codes for all problems
      • Do we know “Best Practice” performance and process ?
      Objective: Are these systems appropriate for our needs and are they efficient and cost effective ? IS / IT Systems Capability Measurement KPIs Competitiveness of IS system Age of Infrastructure Outsourcing Options Skills & Experience Technology as enabler of growth
      • Sponsor: VP Operations
      • 8 week timeframe
      • Appoint external Consultant to Facilitate
      • Do we have sufficient measurement systems ie KPIs = Customer complaints & Returns, DIFOT%, Customer Loyalty - % of their spend, premium over Next Best Alternative
      • Along with pareto analysis , reason codes for all problems
      • Do we know “Best Practice” performance and process ?
      Objective: Develop detailed plan to ensure the customer service is consistently competitive, value enhancing & meeting our promise to the customer ? Customer Service Excellence Measurement of KPIs (Lead Time, Stock Outs, $DOI, DIFOT%, distribution costs) Benchmark & Pareto Performance Gap Competitiveness of Value Proposition Quality Process On Time Process
      • Sponsor: VP Operations
      • 8 week timeframe
      • Appoint External OHS & E Consultant to Facilitate
      • If we don’t know what is “Best Practice” then we need to find out… eg BHPSTEEL in 1995 sort advice from leader DUPONT
      Objective: Are the OHS & E processes and performance at “Best Practice” levels X OHS & E Process Does the leadership put OHS & E as #1 priority ? Have we implemented mitigating strategies for all High Impact risks / activities ? Do we measure incident pyramid ? Do 100% of employees conduct and questioned in regular audits ? Are all issues raised in Audits closed out in a timely matter Is there regular and sufficient training given ?
      • Sponsor: VP Operations
      • 8 week timeframe
      • Appoint external manufacturing Consultant to Facilitate
      • Do we have sufficient measurement systems ie KPIs = downtime, Yield Loss, Throughput, Material Usage Variance, Variable costs, Fixed costs
      • Along with pareto analysis , reason codes for all problems
      • Do we know “Best Practice” performance and process ?
      Objective: Are the Manufacturing processes and performance at “Best Practice” levels Manufacturing Excellence Capability Measurement Fit for purpose Raw Materials & efficient utilization & batch size Appropriate Equipment (quality and efficiency) Repairs & Maintenance Skills & Experience Production Planning Process & Product Complexity
      • Sponsor: VP Operations
      • 8 week timeframe
      • Appoint external manufacturing Consultant to Facilitate
      • Do we have sufficient measurement systems ie KPIs = Procurement cost, Stock Outs, $DOI, Distribution Costs
      • Along with pareto analysis , reason codes for all problems
      • Do we know “Best Practice” performance and process ?
      • Monthly Sales and Operations Planning Meeting
      Objective: Are these processes and performance at “Best Practice” levels Supply Chain Management Procurement Warehousing & Stock Management Distribution Forecast Accuracy Outsourcing Production Planning Process & Product Complexity
    • Objective: Ensure there is a process in place that drives ongoing systematic improvement, provides clear accountability, focuses the business on things that are important and creates a sense of urgency
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by External Consultant
      • See example in Appendix 5
      Planning & Performance Management Process Strategy , benchmark & 5 year plans Action Plans to close gap along with 1 year budget Integrate with Individual STI targets Monitor Performance Daily, Weekly, Monthly KPI Reporting Take Corrective Actions to close gaps Undertake Individual Performance Reviews
      • Sponsor: CFO
      • 8 week timeframe
      • Facilitated by
      • See example “Deep Dive” in Appendix 6
      Objective: Turn “Theoretical Gap” into confirmed opportunities with management commitment and detailed hard action plans Performance Gap “ Deep Dives” Identify items that make up at least 90% of Gap Undertake “Deep Dives” for these items with “Best” Understand why, & develop plan for closure of gap Reviewed & Signed off by CFO
    • APPENDIX
    • APPENDIX 1 EXAMPLE DAILY (Email Template) Good News - Wins MTI, LTI, Enviro Incident, Fraud Incid Resignations - Key Management Bad News Despatches Unit Volume - Yesterday Unit Volume - MTD % of Mth Fcst Margin % - Act & Mth Fcst Orders Received Unit Volume - % of Mth Fcst Margin % - Act & Mth Fcst Cashflow - Act & Mth Fcst Cash Position WEEKLY KPIs. (Email Template) Act Cashflow v 1 week Fcst Fcst Cashflow Next Week Act Sales Rev v 1 week Fcst Fcst Sales Rev Next Week Interco Payables Overdue % Receivables Overdue % Inventory Over 30 days Inventory - % of Mth Fcst DIFOT % - Act & Mth Fcst MONTHLY ELT REVIEW AGENDA Minutes of Last Meeting Traffic Light Summary OHS&E C.S. - DIFOT % & Lead Time Days PEOPLE - Behavioural Change Agenda EBIT - Variance Analysis Volume - Pipeline & Market Margin Spread Selling Price Variable Costs Costs & Efficiencies Manufacturing Logistics S & M Admin & Other REVENUE - Variance Analysis CASHFLOW - Variance Analysis WC Inventories Receivables & Payables Capex & Disposals Project Progress Update Risks & Opportunities Agreed Actions & Checkout ONE HOUR ALERT (Phone Call) LTI Environment Issue Fraud Reporting / KPI pipeline – Daily, Weekly, Monthly
    • APPENDIX 2 EXAMPLE Value Driver Model
    • EXAMPLES OF EBIT IMPROVEMENT PROCESS APPENDIX 3 EXAMPLE
    • MISSION VALUES COC & DOA VISION TARGETS
      • REPORTING
      • Hourly Alert
      • Daily – KPIs
      • Weekly – Cash
      • Monthly – BPR
      • Qtrly – Forecasts
      • Annual – Budget
      • A
      • B
      • C
      • D
      • A
      • B
      • C
      • D
      • SITE VISITS
      • CEO Business Reviews
      • CEO / CFO Major Capital Project Reviews
      • CFO Stewardship & Commercial Reviews
      • ELT Monthly Reviews
      • Board Meetings
      • External & Internal Audits
      ELT GOVERNANCE FRAMEWORK
      • OTHER
      • “ Whistle Blower” System
      • OHS & E Alert System
      • Weekly Telecons – Cash
      • COC & DOA Training Programs
      • Values / Leadership Training Program
      • OCT
      • Forecast Review
      • JUL
      • LY Review
      • FEB
      • Capex & WC
      • AUG
      • Behavioral Change
      • MAR
      • Deep Dive Signoff
      • SEP
      • OHS&E
      • APR
      • Budget & Risk Review
      • JAN
      • Strategy & Growth
      • MAY
      • Stewardship & Internal Audit
      • NOV
      • Benchmark
      • JUN
      • People & KRAs
      • DEC
      • CPP
      ELT MONTHLY ONE DAY REVIEWS SPECIAL AGENDA (DEEP DIVES) APPENDIX 4 EXAMPLE
    • APPENDIX 5 EXAMPLE MONTHLY KPI REPORT – Situation, Reason, Action
    • EXAMPLES OF EBIT IMPROVEMENT PROCESS APPENDIX 6 EXAMPLE