effective top managenent assessment

We offer our services in contract management to
increase your productivity and profits in a short
period of 6-12 months.
In this presentation we will tell you about our way of
effective assessment for top managers while changing
the company and in lack-of-time conditions.

Production and service
of mining and concentrating equipment

TOP managers:
how to assess
effectively?
30 января 2015 г. 3

30 января 2015 г. 4
«…Organizations cannot be controlled through direct
interventions, but they can be influenced by giving impulses rather
than instructions. To change the conventional style of management
accordingly requires a shift of perception that is anything but easy,
but it also brings great rewards. Working with the processes
inherent in living systems means that we do not need to spend a lot
of energy to move an organization. There is no need to push, pull,
or bully it to make it change. Force, or energy, are not the issue; the
issue is meaning.
Meaningful disturbances will get the organization's attention and
will trigger structural changes».
Fritjof Capra
The Hidden Connections:
A Science For Sustainable Living

30 января 2015 г. 5
WHEN IS IT NECESSARY
TO ASSESS TOP MANAGEMENT?

STAFF: 950
A COMPLEX OF MACHINERY SERVICES
machinery constructing, foundry and different
technology equipment service
A COMPLEX OF OUTER SERVICES
service of mining and ore
concentrating equipment
A COMPLEX OF ELECTRIC MACHINERY SERVICES
service of electric machinery of any types
and difficulty levels
30 января 2015 г. 6
STRUCTURE OF THE COMPANY, 2012

30 января 2015 г. 7
Production Usual deadlines and delivery failures for 6 months
Quality: 5 in 10-point scale
Finances RUR 40 000 000 losses.
Marketing Low competitiveness
Non-competitive pricing
Personnel Runoff of qualified specialists (turnover rate is 17,5%)
Lack of production discipline
Structure Surplus management (1,5 workers for 1 manager)
Low effectiveness of management system (orders and
terms are not executed usually)
Corporate culture Non-attractive employer
2012, MAY: AUDIT RESULTS

30.01.2015 Презентация
As employees see their company:
What do
managers think:
All problems are outside of the company:
- the best workers left for competitor companies
- accounts receivable are not covered by partners and this
causes lack of working assets
- low level of personnel qualification
What do
managers do:
Almost nothing to change the situation. They are absolutely
relaxed and satisfied by everything. It is proved by stability of
management number (Note! The common turnover of the
company in 2011 is about 17%)
What do workers
think:
All problems are inside the company:
- poor organization of the work (“there is an absolute jumble in
workshops”)
- poor possibilities to earn more money (because of that very jumble;
average salary level is about RUR 25 300)
- absolute managers’ indifference (nobody wants to do anything)
What do workers
do:
Those who can and want to work , leave for other companies

30 января 2015 г. 9
A dining place for managers

30 января 2015 г. 10
A dining place for workers

30 января 2015 г. 11
Manager’s job place

30 января 2015 г. 12
A job place in a workshop

30 января 2015 г. 13
May, 2012: Production area

30 января 2015 г. 14
May, 2012: Production area

Is it high time
to assess
TOP MANAGERS or we will wait more?
What assessment methods
have to be chosen?
30 января 2015 г. 15

30 января 2015 г. 16
Method Description
Case - study An analysis of concrete practical cases of different
scales. Assessed managers must determine the
most important issues of the offered cases and
suggest the ways to solve them.
In-basket Prioritizing, planning and decision making
according to the definite documents: letters,
reports, telephone messages etc.
360-degree analysis A manager is assessed by his chief, colleagues and
subordinates. Assessment forms are variable, but
all of them fulfill the same inquirers, which are
worked up by computer later. The main purpose of
the method is to have a full assessment data.
Assessment center A complex method which includes observation
and is based on the business games. Gives an
opportunity to analyze the levels of personnel
development and competence.
etc. ….
Managers assessment methods

30 января 2015 г. 17
HOW TO PREPARE THE TOP MANAGER
FOR THE ASSESSMENT?

30 января 2015 г. 18
1. TO SET THE GOALS
GOAL: to increase the productivity twice;
to have average salary about RUR 50000
(June 2012: RUR 25000)
to the end of 2014
Who is responsible
for goals achievement?
TOP MANAGERS

30 января 2015 г. 19
2. TO SET TOE PROBLEM BOARDS
Every employee may write about
problems to be solved in his working process.
Every day at 8 a.m. TOP MANAGERS
together with General Manager organize a
special meeting near these board.
For every problem there is a responsible
manager. For example, a responsible person for
the broken machine is a Chief Service Manager.
There also settled the terms for every problem
solving. These terms are good for the problem
declarant and everybody controls them. It is
always a declarant who may mark the problem
as “solved”.

30 января 2015 г. 20
ARE TOP MANAGERS READY NOW?
ARE THEY INTERESTED IN ASSESSMENT?

30 января 2015 г. 21
A WAY OF WORKING WITH
NONSATISFACTORY ASSESSMENT RESULTS

30 января 2015 г. 22
AS A RESULT
OF A WORK WITH PROBLEM BOARDS
2 DIRECTORS, SEVERAL MECHANICAL,
POWER ENGINEERS
AND FOREMEN
ARE DISCHARGED

30 января 2015 г. 23
«PROBLEM BOARD»
MADE OBVIOUS THAT IN A COMPANY THERE IS A PROBLEM OF SMEARED
RESPONSIBILITY CAUSED BY EXTRA MANAGEMENT LEVELS.
Who is responsible?
What to do?
What was the decision?

Area 1 Area 2
Exploitation
and service
director
General
Manager
Electric machinery
services complex
director
Machinery service
complex director
Chief
accountant
Complex of outer
services directorв
C
M
ED
C
P
E
D
La
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ur
Pr
ot
ect
ion
De
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rt
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od
uc
tio
n
an
d
ec
on
o
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c
se
rvi
ce
GC PT
D
E
M
S
W
PT
D
MS
W
ПЭО ОМТ
и
УП
SS
Accountan
t Service
Sales
Depar
tment
a
u
d
it
o
r
Legal
advis
er
PTD
Deputy General
Manager, Technical
Director
Chief
Mec
hanic
al
Engin
eer
Chief
Power
Engine
er
Planning
and
economics
Department
Chief
Welding
Specialist
A Head of
Supplying
Service Deputy
Chief of COS
A3A3A2a1Transport
Department
GC KU
FA MSA
2012: 1.5 workers for every manager
Correction of management system:
reduction of managers number

30 января 2015 г. 25
Structural changes of AEMS, LLC
A Complex of Machinery Service
MACHINERY CONSTRUCTING
AREA
New structure (since 01.08.2012)
Structural changes of AEMS, LLC
A workshop of electrical service
New structure (since 10.10.2012)

30 января 2015 г. 26
• RESPONSIBILITY IS CLEARLY DETERMINED, ALL DECISIONS GO DOWN QUICKLY AND WITH INSTRUCTIONS
• EVERY EMPLOYEE MAY ASK ANY QUESTION TO ANY MANAGER, INCLUDING GENERAL MANAGER
RESULT
TOP MANAGERS REALIZED LACK OF KNOWLEDGE AND COMPETENCE
WHEN FACING THE PROBLEMS.
THEY DID WANT TO GET NEW KNOWLEDGE!

30 января 2015 г. 27
TO PROVIDE NEW KNOWLEDGE
IT WAS CREATED
A CORPORATE UNIVERSITY
CU coordinates:
- Satisfaction of production information needs
- Personnel development
- Corporate culture development

30 января 2015 г. 28
- SATISFACTION OF PRODUCTION
INFORMATION NEEDS
«TWI. JOB INSTRUCTION» TRAINING«TOYOTA ENGINEERING CORPORATION» PROJECT
CU:
«EFFICIENT MANAGEMENT. LEADERSHIP» TRAINING

POSITIVE AUTHORITY
30 января 2015 г. 29
Reformulate,
be positive
and remain winner
anyway!
I can’t do that! I am ready to start and this will let
me learn the best way of realizing
this task!
This problem can’t be
solved!
We need to solve the problem, but
we have no proper action plan. Let’s
try and find it!

EFFECTIVE FEEDBACK TRAINING
30 января 2015 г. 30
EFFECTIVE FEEDBACK
Determines the definite
direction to make the
situation better.
Causes a wish to change
something, not defend.
2 MAIN RULES:
WHEN? – speak here and now and personally
HOW? – speak quiet, know the names

30 января 2015 г. 31
РАЗВИТИЕ ЛЮДЕЙ
Daily morning meeting «YELLOW SQUARE»
SUBJECT WEEKS
Personnel development:
DAILY MORNING MEETINGS
A PERSONAL EMAIL LETTERS FOR KEY
MANAGERS TO PREPARE FOR THEIR
REPORTS. THE LETTER IS SEND BY
RESPONSIBLE PERSON EVERY WEEK

30 января 2015 г. 32
REGULAR ONLINE TRAININGS «Elimination of Waste»
SELF-DEVELOPMENT
PROGRAMMS
FOR PERSONNEL

30 января 2015 г. 33
TEAMBUILDING
100 PRS TEAMBUILDING, 2013, JUNE
OPEN DISCUSSIONS IN SOCIAL NETWORKS
CORPORATE SPORT COMPETITIONS

30 января 2015 г. 34
TOP MANAGERS:
HOW TO ASSESS
EFFECTIVELY?
OUR WAY:

AFTER 11 MONTHS WE HAD THE FOLLOWING
RESULTS IN ECONOMICS:
30 января 2015 г. 35
Productivity, RUR/PRS
2012 год 2013 год
40000
50000
60000
70000
80000
90000
100000
110000
120000

PRODUCTIVITY OF LABOUR, RUR/PRS
30 января 2015 г. 36
84.4
88.3
105.4
116.3
119.4
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2011
год
янв.13 фев.13 мар.13 апр.13 май.13 июн.13 июл.13 авг.13 сен.13 окт.13 ноя.13 дек.13
AxisTitle
АЭМС
Цель
A GOAL FOR
THE END OF
2014- 168,74
AEMS
PURPOSE

EBITDA (RUR THOUSANDS/PRS)
30 января 2015 г. 37
2.03
4.12
-1.67
8.73
15.85
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2011
год
янв.13 фев.13 мар.13 апр.13 май.13июн.13июл.13 авг.13 сен.13 окт.13 ноя.13 дек.13
АЭМС
Цель
ATHEPURP
OSE FOR
THE YEAR
2014
+25,42
AEMS
PURPOSE

AVERAGE SALARY, RUR/PRS.
30 января 2015 г. 38
25,000
33,252
36,313
37,777 38,319
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2011
год
янв.13 фев.13 мар.13 апр.13 май.13июн.13июл.13 авг.13 сен.13 окт.13 ноя.13 дек.13
АЭМС
Цель
A GOAL
FOR THE
END OF
2014 –
50000
AEMS
PURPOSE

NEW WORKSHOPS AND DINING ROOMS:
30 января 2015 г. 39
DINING ROOM FOR WORKERS
WORKSHOP 5S

30 января 2015 г. 43
QUALITY RATING,
MADE BY CUSTOMER
2013
EVERY LEVEL: 100%

30 января 2015 г. 44
ALL THESE FACTS are RESULTS
OF CARDINALLY CHANGED PROCESSES
«We should work on our process, not the outcome
of our processes»
W.E. Deming
Our managers’ effectiveness is now assessed
according to next criteria:
1. Problems solving
2. Index of social health (ISH)
(process aspect )

30 января 2015 г. 45
A good manager will discuss his
problems, a bad one will not!
Problems are possibilities indeed!
1. Problems solving

2. ISH
30 января 2015 г. 46
И удовлетворенности И Лояльности И информированности Социальная активность И инициатив
INTEGRAL ISH IN AEMS
-1
0,336
0,5
HIGH LEVEL
INITIATIVE INDEX
MIDDLE LEVEL
SOCIAL ACTIVITY
INDEX
AWARENESS INDEXLOYALTY INDEXSATISFACTION INDEX
LOW LEVEL
1

INDEXES ASSESED:
30 января 2015 г. 47
SATISFACTION INDEX – gives an important information of
what employees are satisfied with or not. Helps to
determine the directions of improvement of social and
bonus systems of the company.
LOYALTY INDEX - shows if the employees identify
themselves as parts of the company
AWARENESS INDEX – shows the ways of feedback
between management and workers in the company.
Realizing the possibility of structural changes in the
company one works and lives with a great part of
anxiety, that’s why it is so important to prepare and
inform personnel beforehand.
SOCIAL ACTIVITY INDEX – shows a potential for training
self-improvement of the employees.
INITIATIVE INDEX – shows personnel’s attitude to projects
and initiatives of the company and its readiness to
participate in them.

30 января 2015 г. 48
1,9
13,2
3,8
60,4
20,8
7,0
33,3
42,1
17,5
0
10
20
30
40
50
60
70
%
РМК Литейный РМК АНОФ-2
оценочные суждения работников
полностью согласен
согласен
затрудняюсь ответить
не соглсаен
абсолютно не согласен
I am satisfied with the regular part of
my salary
SATISFACTION INDEX
My job is interesting for me
3,8
49,1
35,8
3,8
7,5 10,5
57,9
17,5
12,3
1,8
0
10
20
30
40
50
60
%
Оценочное суждение работников
согласен
не согласен
I am satisfied with my social guarantees
20,8
62,3
13,2
3,8
10,5
63,2
17,5
8,8
0
10
20
30
40
50
60
70
%
согласен
I am satisfied with my position in the company
17,0
54,7
15,1
13,2 14,0
68,4
7,0
10,5
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
%
согласен
Absolutely agree
Agree
Hard to say
Do not agree
Don’t agree absolutely
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree

LOYALTY INDEX
30 января 2015 г. 49
18,9
69,8
5,7 5,7
15,8
73,7
5,3
1,8 3,6
0
10
20
30
40
50
60
70
80
%
согласен
I am in good relationships with my chief
11,3
64,2
17,0
5,7
1,9
8,8
38,6
31,6
17,5
3,5
0
10
20
30
40
50
60
70
%
согласен
In our workshop there is a comfortable
atmosphere
5,7
30,2
34,0
28,3
1,9
5,3
26,3
38,6
28,1
1,8
0
5
10
15
20
25
30
35
40
%
согласен
I appreciate the management policy of
the company
0
5
10
15
20
25
30
35
11,3
5,3
24,5
33,3
32,1
33,3
24,5
19,3
7,5
8,8
%
согласен
абсолютноне согласен
Our enterprise has good chances in
future
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree

AWARENESS INDEX
30 января 2015 г. 50
7,5
47,2
20,8 20,8
3,8
10,5
50,9
26,3
10,5
1,8
0
10
20
30
40
50
60
%
согласен
I know that our enterprise developes
Production System
5,7
30,2
35,8
20,8
7,5
1,8
40,4
35,1
19,3
3,5
0
5
10
15
20
25
30
35
40
45
%
согласен
I understand goals and tasks of changes
11,3
20,8
28,3
34,0
5,7 5,3
50,9
26,3
12,3
5,3
0
10
20
30
40
50
60
%
согласен
Our management regularly organize
meetings in our workshop
5,7
22,6 22,6
45,3
3,8 5,3
49,1
29,8
12,3
3,5
0
5
10
15
20
25
30
35
40
45
50
%
согласен
Our workers are constantly informed about
processes in the company
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree

SOCIAL ACTIVITY INDEX
30 января 2015 г. 51
17,0
37,7
22,6 22,6
14,0
45,6
21,1
15,8
3,5
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
50,0
%
согласен
I want to get an extra professional
qualification and to develop my
competence
13,2
30,2
34,0
17,0
5,7
7,0
43,9
26,3
17,5
5,3
0
5
10
15
20
25
30
35
40
45
%
согласен
I do know that my chief will hear my
ideas
1,9
39,6
28,3
20,8
9,4
5,3
33,3 33,3
17,5
10,5
0
5
10
15
20
25
30
35
40
%
согласен
I like our corporate events
7,5
45,3
32,1
9,4
5,7 5,3
54,4
26,3
12,3
1,8
0
10
20
30
40
50
60
%
согласен
I would like to learn more about
Production System
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree

INITIATIVE INDEX
30 января 2015 г. 52
7,5
45,3
32,1
9,4
5,7 5,3
54,4
26,3
12,3
1,8
0
10
20
30
40
50
60
%
согласен
I want to get new knowledge about PS
7,5
28,3
41,5
22,6
5,3
43,9
31,6
15,8
3,5
0
5
10
15
20
25
30
35
40
45
%
согласен
I have opportunities to be initiative
5,7
35,8
24,5
32,1
1,9
7,0
40,4
31,6
19,3
1,8
0
5
10
15
20
25
30
35
40
45
%
согласен
I have an opportunity to enlarge my salary
by enlarging productivity of my labor
5,7
7,5
45,3
37,7
3,8 5,3
24,6
36,8
26,3
7,0
0
5
10
15
20
25
30
35
40
45
50
%
согласен
I have an opportunity to make a carrier
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree
Absolutely agree
Agree
Hard to say
Do not agree

A new sense for AEMS team
is to create a Production System of a world scale
(assessed in no less than 3 points in GBM)
together with
TOYOTA ENGINEERING CORPORATION
to the end of 2015
30 января 2015 г. 53

effective top managenent assessment

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Editor's Notes