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Most%Organiza-ons%Operate%below%their%OPTIMAL%CAPACITY.%
How%can%Organiza-ons%find%a%way%to%solve%this%predicament?%
Lower%Margins%–%Rising%Employee%Cost%–%Raw%Materials%Price%Hikes….%
More%Compe--on%–%More%Product%Variables%–%More%Regula-ons…..%
How%would%Manufacturing%Companies%operate%in%such%environment?%
Most%Manufacturing%Companies%are%under%intense%pressure%to%lower%margins,%facing%an%ever%rising%employee%cost%and%possible%price%hikes%in%raw%
materials.%Profit%margins%were%being%eroded%from%every%conceivable%direc>on.%This%further%adds%to%the%pressure%of%ever%growing%compe>>on%and%
now%need%to%work%with%more%product%variables%and%regulatory%requirements.%
Such%excep>onal%environment%leaves%Business%Owners/CEOs/Managing%Directors%liHle%op>on%but%to%find%cost%savings%on%an%unprecedented%scale%
and%>me%span,%despite%the%Companies%may%already%been%running%its%own%costIcontrol%projects%and%ini>a>ves.%
Manufacturing%
Companies%
Rising%
Employees%
Cost%
Lower%
Margins%
&%Profits%
Rising%
Materials%
Cost%%
More%
Compe--on%
More%
Regula-ons%
More%Product%
Variables%
Improving%Produc-vity,%Op-mizing%Manufacturing%Cost……%
How%can%Companies%Improve%Organiza-onal%Efficiency?%
For%Companies%to%be%successful,%key%Strategic%Objec>ves%and%Goals%must%be%implemented%effec>vely%and%on%a%>mely%basis.%%
Complexity%increased%with%the%size%of%the%organiza>on,%and%for%bigger%organiza>on%I%this%will%be%a%key%challenge.%%
Companies%will%require%close%coopera>on/%collabora>on%from%their%mul>ple%Divisions/Departments%to%successfully%implement%efficiency%
and%effec>veness%to%ensure%that%the%overall%Organiza>onal%Efficiency%is%achieved.%
In%achieving%Organiza>onal%Efficiency,%there%is%a%cri>cal%need%for%the%Companies%to%have%relentless%focus%on%the%two%key%areas%of%(i)%
Opera>onal%Efficiency%that%is%localized%at%work%sta>ons/units/departments%and%(ii)%Organiza>onal%Effec>veness%that%looks%at%how%the%
organiza>on%cascade%strategies/goals%and%align%all%departments%with%appropriate%performance%management%and%reward%infrastructures.%%
Opera-onal%Efficiency% Organiza-onal%Effec-veness%
Organiza-onal%%
Efficiency%
Lean%
Manufacturing%
Cost%Op-miza-on%
Mee-ng%Corporate%Strategic%
Objec-ves%and%Goals%
Overall%alignment%among%all%
Divisions/Departments%
Con-nuous%Learning%and%
improvement%opportuni-es%
Agility%to%manage%change%
Organiza-onal%
Effec-veness%an%be%
defined%as%the%ability%
of%the%Organiza-on%to%
be%able%meet%its%
objec-ves.%
%
%
%
%
%
%
How%do%we%address%
this%area?%
%
Collabora-ve%Work%
Environment%%
Process%
Improvement%
Most%Organiza-ons%are%doing%
some%form%of%efficiency%
improvement.%
Automa-on/
Technology%
Upgrade%
Superior%Opera-onal%Efficiency%doesn’t%guarantee%Organiza-onal%
Effec-veness.%What%are%the%barriers%to%Organiza-onal%Effec-veness?%
From%our%experience%working%with%Manufacturing%Companies,%the%few%cri>cal%barriers%to%Organiza>onal%Effec>veness%include:I%
1.  Poor%alignment%of%Company%Strategic%Objec>ves%among%the%various%Departments%to%deliver%the%Corporate%Goals%
2.  Lack%of%proper%cascading%of%Company%Strategic%Objec>ves%and%Goals%to%the%different%Tiers%of%the%Organiza>on,%leading%to%Employees%
at%the%Shopfloor%unclear,%unaware%or%even%misunderstand%these%Company%Strategic%Objec>ves%most%of%the%>me%
3.  Ineffec>ve%Performance%Management%infrastructure%and%behaviours%of%Line%Managers/Supervisors%in%driving%superior%performance%
4.  Poor%correla>on%between%Company’s%Reward%Structure%to%Performance%Management%leading%to%lack%of%differen>a>on%%
Organiza-onal%Effec-veness%
•  Poor%correla-on%between%
Rewards%to%Performance%
Barriers%%
Barriers%%
Manufacturing%
Companies%
Barriers%%
•  Ineffec-ve%Performance%
Management%Infrastructure%
•  Lack%of%Cascading%of%
Strategic%Objec-ves%%
•  Poor%Alignment%among%
Departments%
Introducing%Strategy%Deployment%Framework%(1/2)%
Structured(Approach(to(achieve(Organiza4onal(Effec4veness(
1.  Strategy%to%
Ac-on%
2.  Measure%to%Target%
3.  Recognise%to%
Reward%
High%Performance%
Organiza-on%
The% Strategy% Deployment% Framework% represents% a% structured% approach% to% help% the% Companies% to% achieve% Organiza>onal%
Effec>veness.% The% Strategy% Deployment% Framework% is% designed% to% be% a% holis>c% and% structured% approach% to% opera>onalize%
Organiza>onal%Strategy%to%specific%Ac>on%Plans%at%each%organiza>onal%levels,%with%aligned%KPIs.%%
The%Framework%have%three%Key%Phases:I%
2.%Measure%to%Target%
'Measure%to%Target’%is%the%process%by%which%organisa>ons%monitor%and%manage%the%execu>on%of%key%ac>on%items%on%an%ongoing%
basis.%Performance%is%measured%by%capturing,%consolida>ng,%repor>ng%and%analysing%actual%results%aligned%to%the%financial%and%
nonIfinancial%measures%prescribed%during%‘Strategy%to%Ac>on'.%The%goal%is%to%provide%insight%to%iden>fy%and%understand%plan%
devia>ons%early%and%define%and%execute%the%right%ac>ons%to%improve%performance.%The%process%culminates%with%a%realis>c%target%
of%the%expected%business%outcomes.%
3.%Recognise%to%Reward%
‘Recognise%to%Reward’%hard%wires%
the%behaviours%of%divisions,%teams%
and%individuals%to%ac>vity%
contribu>ng%to%delivery%of%
strategic%objec>ves.%This%requires%
linking%remunera>on%strategy%to%
delivery%of%the%measures%iden>fied%
in%'Strategy%to%Ac>on'.%Also%covers%
aligning%individual%performance%
management%to%business%
performance%management%and%
linking%performance%outcome%to%
the%learning%and%development%
programme.%
1.%Strategy%to%Ac-on%
'Strategy%to%Ac>on'%is%the%end%
to%end%process%by%which%
organisa>ons%ready%
themselves%to%execute%against%
their%strategic%objec>ves.%This%
process%includes%iden>fica>on%
of%key%objec>ves,%key%ac>ons%
and%related%key%measures.%
This%processes%is%cascaded%
ver>cally%and%aligned%
horizontally%to%ensure%
organisa>onal%alignment.%%
The%Strategy%Deployment%Framework%seeks%to%opera>onalise%strategy%by%crea>ng%a%“Virtues%Cycle”%where%the%organisa>on%
con>nuously%plans,%executes,%evaluates,%reIstrategizes%and%rewards%to%achieve%the%overall%business%goals.%
Introducing%Strategy%Deployment%Framework%(2/2)%
Structured(Approach(to(achieve(Organiza4onal(Effec4veness(
Key%Ac-vi-es:%
•  Kick%Off%
Workshop%
•  Company%
Strategic%
Objec>ve%
brainstorming%
•  Company%
Strategy%
Deployment%
Matrix%
Development%%
•  Departmental%
Strategy%
Deployment%
Matrix%&%Ac>on%
Plan%
Development%
Key%Ac-vi-es:%
•  Workshop%for%
the%review%and%
align%overall%
Company%
Strategy%Matrix%
with%all%
Departmental%
Strategy%
Matrixes%
Key%Ac-vi-es:%
•  Training%session%
with%key%
Managers%to%
communicate%
Company%&%
Departmental%
Strategy%
Deployment%
Matrix%&%
Department%
Ac>on%Plans%to%
all%employees%
•  Strategy%
Deployment%
Matrix%visual%
installa>on%
%
Linking&to&
Performance&
Management&
Track%
%
Review&&&Tracking&
Communicate%
Training&&&
Communica8ons&
Review%&%Align%%
Matrix&Review&and&
Alignment&
Engage%&%Develop%
Companies&Mgmt.&&
Engagement&&&Matrix&
Development&
Key%Ac-vi-es:%
•  Establish%review%
sessions%
structure,%
mi>ga>on%flow%
and%follow%up%
protocols%
•  Review%Sessions%
for%all%
Departmental%
Ac>on%Plans%on%
periodic%
(Weekly/
Monthly)%
•  Review%Sessions%
for%Strategy%
Deployment%
Matrix%
%
%
Key%Ac-vi-es:%
•  Confirm%
Performance%
Management%System%
and%Rewards%
Structure%
•  Translate%Strategy%
Deployment%Matrix%
&%Ac>on%Plans%into%
Individual%
Performance%
Management%Form%
•  Integrate%
Performance%
Tracking%and%
Coaching%to%Review%
Sessions%
%
1%–%3%months% 4th%Month%onwards%
Strategy%to%Ac-on% Measures%to%Ac-on% Recognise%to%Reward%Phase%
Performance%&%Rewards%
%
Typical Strategy Deployment Implementation for Organizations
Key activities through the different Phases and Sub-Phases
Dura-on%
How far and how quickly are your Organization current initiatives
in aligning corporate strategies in delivering Organizational
Effectiveness?
•  We%don’t%just%iden>fy%
opportuni>es%for%improvement%
or%poten>al%paths%to%improve%
Organiza>onal%Effec>veness;%we%
actually%implement%the%changes%
to%make%it%happen.%%
•  ChangeDynamics%dis>nguishes%
itself%from%its%compe>tors%by%
working%sideIbyIside%with%client%
management%at%all%levels%to%
implement%the%changes%which%
deliver%sustainable%improved%
Organiza>onal%Effec>veness.%
•  For%more%informa>on:%call%us%at%
+016I6822028/+013I3986896%or%
visit%www.changedynamics.biz.%
Call%us%today%for%a%complimentary%
2bday%Organiza-onal%Diagnos-cs%to%
determine%your%Organiza-on’s%
current%effec-veness.%
Our Team
Koh Mui Han
Principal Consultant
•  Certified practitioner for
psychometric tools: Thomas DiSC,
Harrison Assessment and EQi-2.0
•  Certificate in Content Strategy for
Professionals, Media Management
Center, Northwestern University
•  Bachelor of Food Science and
Technology, Universiti Putra
Malaysia
Shanmuga Pillaiyan
Principal Consultant
•  Masters of Business Administration
(Finance) – University of
Nottingham, UK
•  Bachelor Of Engineering –
Information Systems Engineering,
Imperial College Of Science
Technology and Medicine, UK
Shanmuga’s%consul>ng%career%spans%over%13%years.%%During%this%>me%he%has%
worked%in%several%leading%global%consul>ng%firms%such%as%Accenture,%IBM%and%
PricewaterhouseCoopers%(PwC)%Advisory%Services.%He%also%brings%global%
experience%via%his%project%experience%in%Japan,%New%Zealand,%India%and%
Philippines.%Shanmuga%was%the%overall%Project%Leader%to%put%in%place%a%strategy%
alignment%infrastructure%for%a%megaproject%involving%mul>ple%complex%
stakeholders.%This%infrastructure%helped%to%create%beHer%alignment%with%all%the%
key%HODs%by%crea>ng%a%new%culture%of%defining,%tracking%and%developing%ac>on%
plans.%%
He%also%has%a%proven%track%record%of%successful%leading%System%Integra>on%
projects.%He%has%also%helped%clients%to%develop%strategic%plans%for%transforming%
their%business.%He%was%instrumental%in%developing%the%new%targetIopera>ng%
model%for%a%large%Malaysian%Postal%&%Courier%company.%
Mui%Han%has%extensive%experience%in%leading%diverse%consul>ng%and%training%
assignments%across%different%industries.%He%was%with%
PricewaterhouseCoopers%(PwC)%Advisory%Services%where%he%implemented%
various%consul>ng%projects%in%the%areas%post%merger%integra>on,%HR%
transforma>on%and%post%implementa>on%review.%
Mui%Han%helped%a%regional%client%to%streamline%Performance%and%Career%
Management%programs%in%improving%the%produc>vity%and%employee%
reten>on.%He%also%helped%a%mul>na>onal%building%manufacturing%to%align%
compensa>on%prac>ces%as%part%overall%organiza>onal%transforma>on%to%
improve%produc>vity%and%organiza>onal%effec>veness.%
As%a%person%who%was%managing%manufacturing%opera>ons%and%key%account%
rela>ons%in%the%FMCG%industry,%Mui%Han%brings%with%him%his%experience%in%
the%manufacturing%field%and%combines%it%with%consul>ng%needs%of%his%clients.%%
•  Email: muihan@changedynamics.com.my
•  Mobile: 016-6822028
•  Email: shan@changedynamics.com.my
•  Mobile: 013-3986896
ChangeDynamics%Consul-ng%%
20%Jalan%BP14/5%Bandar%Bukit%Puchong%2%
47120%Puchong,%Selangor,%Malaysia.%
%
Website:%www.changedynamics.biz%
Mobile:%+6016%–%6822028%
Email%:%muihan@changedynamics.com.my%

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Improving Organizational Efficiency by Enhancing Organizational Effectiveness