Organizational Velocity -
Improving Speed, Efficiency &
Effectiveness of Business
Lack of Organizational speed is caused by multiple factors, but the most
important one is “Organizational Will”
ORGANIZATI...
1
2
3
4
5
6
Process BBFTB1 Implement Quick win Implement
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
Yes No
Yes No
Yes...
Contents
9
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
•...
Description
Who?
• … • … • … • … • …
• … • … • … • … • …
Step 2 involves interviewing the Process Owner (and team) to deta...
Improvement Opportunities
Efficiency Effectiveness
1 2
…which will lead too Step 4 - identification of the key improvement...
Description of Opportunity
• …
Description of Benefit Estimated Value
• … • …
Recommended Next Steps
• …
Risks / Considera...
For this example six key functions were selected along with the in-
scope process to be audited
PROCESS AUDITS
In scope:
O...
The efficiency audit highlights lack of alignment of activities and the
lead time it too long
PROCESS AUDITS
Efficiency Qu...
Value of Opportunity
High valueLow Medium
Redesign of strategy planning
process
Driving strategy understanding
down in the...
Description of Opportunity
• Improve the communication of the
strategic roadmap and the department
roadmaps
• Everyone in ...
Contents
33
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
...
“Do you believe there is additional
capacity within the office to ‘do
more’?”
Yes55%
No 45%
• Average of an additional 14%...
• Weekly: 2
• Monthly: 56
• Other: 38
• Number of meetings: 119
• Weekly man hours: 364
Discrete
meetings
identified:
317
...
Whilst benchmarking needs to be contextualized, it can help identify
improvement opportunities or areas of focus
BENCHMARK...
Continuous
Process
Improvement
Organisation Speed Project
This process is the first step towards a continuous process
impr...
1
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Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business

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Lack of efficiency and effectiveness in an organization can have a significant impact on the overall cost of operation.

Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business provides a framework for diagnosing, assessing and implementing to improve the speed at which the organization operates.

There are two main areas for focus:

1. Process Audits - a framework for assessing key processes within the different functions of the organization and detailing where improvements are to be had
2. Workload Analysis - based on a workforce survey to identity where and what time in the organization is spent doing, including the efficiency and effectiveness of Meetings

The outcome from using the PPT framework will be a prioritised list of initiatives for implementation to increase organizational speed and reduce the cost of operation.

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Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business

  1. 1. Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business
  2. 2. Lack of Organizational speed is caused by multiple factors, but the most important one is “Organizational Will” ORGANIZATIONAL VELOICTY Typical Causes of Operational Lethargy Clarify priorities Review allocation Attitude/culture/incentive Lack of SpeedLack of Speed Lack of SpeedInsufficient Resources Lack of SpeedUnclear/Conflicting Priorities Lack of SpeedOrganizational Will 3 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  3. 3. 1 2 3 4 5 6 Process BBFTB1 Implement Quick win Implement • … • … • … • … • … • … • … • … • … • … • … • … Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Process Recommendations Dashboard contains a ‘menu’ of prioritised process improvement opportunities IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS Process Recommendations ‘Dashboard’ 6 Notes: (1) ‘Big Bang For The Buck’ Opportunities This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  4. 4. Contents 9 CONTENTS Page Organizational Velocity 1 Improving your Speed, Efficiency & Effectiveness 4 • Process Audits 9 • Worked Example 20 • Workload Analysis 33 • Benchmarking 41 Becoming Faster – The Management Challenge 43 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  5. 5. Description Who? • … • … • … • … • … • … • … • … • … • … Step 2 involves interviewing the Process Owner (and team) to detail each step of the process, describe it and who is involved etc PROCESS AUDITS How long? When? • … • … • … • … • … • … • … • … • … • … 1. Detail each sequential step of the process (through interview with Process Owner & Team) 2. Complete more detail for each step 2Step 12 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  6. 6. Improvement Opportunities Efficiency Effectiveness 1 2 …which will lead too Step 4 - identification of the key improvement opportunities PROCESS AUDITS 4Step 15 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  7. 7. Description of Opportunity • … Description of Benefit Estimated Value • … • … Recommended Next Steps • … Risks / Considerations Investment Required • … • … Step 6 is to produce a one page description for each opportunity, redesigning the process PROCESS AUDITS BBFTB Opportunities 6Step 18 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  8. 8. For this example six key functions were selected along with the in- scope process to be audited PROCESS AUDITS In scope: Out of scope: Research & Technology Management/ Admin Marketing Sales Finance Process Leadership Other areas • Corporate Reputation • HR processes • Legal processes • IT processes • Consumer Services processes • Marketing material production • Public Relations • Agency relationship management • Field sales • Pricing Strategy • New business • Asset Mgt • Monthly Closing • KPI reporting • Tax • s404 • SAP • Cost Innovation • Nutrition • Supply Chain processes • Strategic planning • Brand Planning • Advertising planning • Promotions planning (Powerplays) • Account management • Trade Promotions • IBP • Order to cash • Purchase to pay • Annual Budgeting • Forecasting • Innovation EXAMPLEExample used in subsequent slides 21 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  9. 9. The efficiency audit highlights lack of alignment of activities and the lead time it too long PROCESS AUDITS Efficiency Questions Efficiency Is there a need to completely redesign the process? Are any steps in the process unnecessary? Are the steps in the right sequence? Are there large efficiency opportunities within any of the steps? Are too many people involved in the process? (Decision matrix) Does the process take too long? • No • No • Yes • Lack of alignment in guidance provided, driving different activities • Needs wider involvement to achieve objectives • Limited visibility of actual workload leading into strategy planning • Total lead time is too long for the strategic planning process A B C D E F • Condensed and precise process (clear perimeter, input/output, etc); best practice time frame: 4 weeks • Ability to drive out of the box thinking (challenge status quo). Strategy should be built outside in (not just based on where the business is at today) • Shared understanding and buy-in from BU Priority Process Audit: Efficiency EXAMPLE 24 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  10. 10. Value of Opportunity High valueLow Medium Redesign of strategy planning process Driving strategy understanding down in the organisation BBFTB Opportunities Stimulate “out of the box” thinking Quick Wins Stimulate “out of the box” thinking Redesign of strategy planning process Driving strategy understanding down in the organisation 1 2 3 1 2 3 Easeofimplementation EasyDifficultModerate Each opportunity is ranked by both value and ease of implementation PROCESS AUDITS PRIORITISATION OF IMPROVEMENT OPPORTUNITIES EXAMPLE 27 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  11. 11. Description of Opportunity • Improve the communication of the strategic roadmap and the department roadmaps • Everyone in the organisation needs an understanding of how their work and outcome relates to the strategic goals and priorities Description of Benefit Estimated Value • Improved understanding of company goals and improved decision making on lower levels of the organisation • Medium, especially better decision making and higher engagement of total organisation Recommended Next Steps • Implement communication concept Risks / Considerations Investment Required • Management must be able to “translate” strategic goals to individual workplace • Low, time of management Driving strategy understanding down in the organisation PROCESS AUDITS EXAMPLEBBFTB Opportunity # S.P.2 30 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  12. 12. Contents 33 CONTENTS Page Organizational Velocity 1 Improving your Speed, Efficiency & Effectiveness 4 • Process Audits 9 • Worked Example 20 • Workload Analysis 33 • Benchmarking 41 Becoming Faster – The Management Challenge 43 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  13. 13. “Do you believe there is additional capacity within the office to ‘do more’?” Yes55% No 45% • Average of an additional 14% capacity by those employees that said “Yes” • The suggested additional capacity ranged between 5% (7 respondents) and 40% (3 respondents) Comments from Respondents • “Using our tools correctly would save time to create time” [10%] • “We need to change our effectiveness and speed in decision making and be more risk taking versus need to validate and research everything versus making business decisions based on experience and judgement” [40%] • “Our plant is at about 70%, another at about 65%, one at about 80% and the last one at about 50-60%” • “Everyone is busy and at capacity but not necessarily on the right things” [0%] • “We are already doing too much. We need to do less and focus on doing things properly instead of always rushing from one thing to another” [0%] • “In our dept we are fully busy so logical answer is "no" but we all find time for special projects/emergencies so the organisation does have some flex but suspect it is not sustainable the way we do it - we should plan it better and as a business agree things that won't be done in the future - that re- prioritising could mean a better use of capacity rather than a more capacity” Importantly, a workload survey provides an assessment of the willingness of the organisation to speed things up and get more done WORKLOAD ANALYSIS EXAMPLE 36 Workload Survey Findings This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  14. 14. • Weekly: 2 • Monthly: 56 • Other: 38 • Number of meetings: 119 • Weekly man hours: 364 Discrete meetings identified: 317 • Number of meetings: 198 • Weekly man hours: 553 • Weekly: 52 • Monthly: 53 • Other: 93 Cross functional meetings Individual department meetings • Weekly: 77 • Monthly: 109 • Other: 131 Total of 917 weekly man hours involved in meetings, or 16% of team time (not including preparing, arranging or following up meetings) A ‘meeting and project snapshot’ clarifies how well the business is using meeting and projects as tools to ‘get things done’ WORKLOAD ANALYSIS EXAMPLE 39 Time versus Employee Costs Spent for Key Work Activities This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  15. 15. Whilst benchmarking needs to be contextualized, it can help identify improvement opportunities or areas of focus BENCHMARKING Benchmarking Our Co.Benchmark 4 Benchmark 3 Benchmark 2 Benchmark 1 Our Co.Benchmark 4 Benchmark 3 Benchmark 2 Benchmark 1 Total FTES per HR FTE Marketing Spend/Net Revenue # # # # ? $ $ $ $ ? EXAMPLE 42 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  16. 16. Continuous Process Improvement Organisation Speed Project This process is the first step towards a continuous process improvement philosophy and a faster organisation BECOMING FASTER – THE MANAGEMENT CHALLENGE Continuous Improvement 45 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/organizational-velocity-improving-speed-efficiency-and-effectiveness-of-business-482
  17. 17. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

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