1. TEMO
Spring 2011
Case 1 Analysis
“SOFT – PERFORMANCE”
Group 6
TEMO 2011 - Group 6 1
2. SOFT PERFORMANCE (SP)
-Owned and operated by 2 DTU students
-Employees: all DTU students
-Main Product: KPI management systems for companies
Rough Analysis:
-Decreasing Demand of the product
-Apparently the product is not used by clients
-High rotation of SP personnel
-No surplus from the business
TEMO 2011 - Group 6 2
3. Assumptions
• The product may be really helpful for companies but he is misused.
• The two funders want to get their master degree
TEMO 2011 - Group 6 3
4. SWOT Analysis
STRENGHTNESS WEAKNESSES
-Good technical capacities -No management experience in SP
-Relatively established brand -High rotation of personnel
-Experience developing their products -Inappropriate structure of the company
OPPORTUNITIES THREATENS
-Possibility to offer uploads and training -Possible new competitors with
for better using of the product. innovative products
-KPI’s can be changed for another
management tool
TEMO 2011 - Group 6 4
5. The problems
Not enough efficient
Not enough efficient
--Employees work overtime
Employees work overtime Good speed and flexibility
Good speed and flexibility
--Problems of cost management
Problems of cost management
--A produce is just used once
A produce is just used once
Competitive
Competitive
Advantage
Advantage
Responsiveness to customers
Responsiveness to customers
Product of high
Product of high --Demand is decreasing
Demand is decreasing
quality
quality --Clients do not know how to
Clients do not know how to
use the project
use the project
--KPIs can’t be affected by
KPIs can’t be affected by
middle manager
middle manager
TEMO 2011 - Group 6 5
6. It is vital to increase efficiency and effectiveness
Low Efficiency/ High Effectiveness High Efficiency/ High Effectiveness
Our Goal
Increase Effectiveness
Low Efficiency/ Low Effectiveness High Efficiency/ Low Effectiveness
SOFT-PERFORMANCE Increase
Efficiency
TEMO 2011 - Group 6 6
7. Increasing efficiency:
Four functions of management
Planing
Hours of work.
Project costs.
Company's future.
Oganising
Controlling Efficient.
Quality. Lost time.
Waste resources. Can’t study.
Feedback.
Leading
Employees are motivate.
Employees work better.
TEMO 2011 - Group 6 7
8. Organization model
Expected
Actual 2 funders
Experienced
CEO
2 funders
Experienced Experienced
salesman IT engineer
Students
Students
TEMO 2011 - Group 6 8
9. Organization Problem
Problem in the organization design
FM FM FM
They produce just one product
Demand is not at a high level all the time
Pure functional
organization
PM
SOFT PERFORMANCE
PM haven‘t any new
project or product
PM
Pure project
organization
TEMO 2011 - Group 6 9
10. Organization Problem
Problem in the organization design
perfect Solution:
Perfect mix of project
and functional
FM FM FM
organization
PM
They can handle
conflict in the
PM
organisation
PM
Balanced matrix organization
TEMO 2011 - Group 6 10
11. Controlling steps
Establish the standards of performance
Measure performance Deadlines
Time spent on work
Compare mesured performance and Value of the work
chosen standards
Evaluate the result and initiate changes
TEMO 2011 - Group 6 11
12. Increasing effectiveness
Old product New product Need to create
Effectiveness
a new product
Time
• Formation for company managers on how to use the results.
• Help for company to choose useful KPIs.
TEMO 2011 - Group 6 12
13. Conclusion: possible solutions
• Hiring a CEO.
• Hiring experienced IT engineer and
STRATEGICAL sales person.
• Learn the company how to work with the
TACTICAL results and how to define the KPIs.
• Start to develop new products.
• More efficient organisation
OPERATIONAL (deadlines, definition of tasks,…).
TEMO 2011 - Group 6 13
