2. The Basics
Any business is based on three cornerstones: assets, strategy
and execution.
This discussion will concentrate on the process to improve
execution of your business strategy.
PMA’s premise is that by getting everyone focused on the right
metrics, organizations can accelerate improvement.
At the end, ask yourself:
Could your teams do better at implementing your strategy faster
if they were more focused with measurements and action
management systems?
3. The FTEA Method
Our Method is based on Focusing, Targeting, Evaluating and
Acting.
By working systematically within each department, you can go
far beyond “training” and “projects” to involve staff in measuring
and improving their own performance.
All employees can be engaged so that they become committed
to continuous incremental improvement (aka Kaizen).
Comments like “that’s the way they want it”, “they never listen to
us” and “what can I do about it” can be replaced with “they do
listen” and “I am empowered and accountable”.
4. Any business is a sequence of steps
and functions
Sales
Sales Support
Management of Steps
• How do you know if you are effective?
Business
Planning
Process
• How do you generate improvement?
Operations
Delivery
Inventory Mgmt
A/P and A/R
5. For each step, there are definable
Key Success Factors
Like :
• Productivity
• Cost
• Quality
• Customer Service
• Value Recovery
• Safety
For each KSF we can measure success (KPIs)
6. Management Process Fundamentals
Focus Evaluate
• KSF’s Target • Measure Act
• KPI’s • Report
•Controllable •Analytical, not •Real time •Specific
•Measurable historical •Visible •Urgent
•Relevant •Attainable •Quantitative •Accountable
•Front line and qualitative
ownership
7. What are your significant steps
and functions?
Management of Steps
Processes
Business
8. Choose One Business Process Step
Area / Function ________________________
Focus Target Evaluate Act
KSF KPI Measure Report
Defined frequency
Self / system / Daily / Weekly / review and
manager Monthly Summary Opportunity Log
Controllable Analytical, not historical Real time Specific
Measurable Attainable Visible Urgent
Relevant Front line ownership Quantitative and qualitative Accountable
10. Did you have a good day?
Informally ask employees at a specific function if they
had a “good day”.
Do they all:
– reference their answers to common “Key Success factors”
and their personal “Key Performance Indicators”
– relate their personal performance to their targets
– identify why there were variances and
– either tell you what is being done or what could be done?
Or do they leave you wondering what they really did
all day?
If it’s the latter, consider what the impact would be if
you could get everyone focused on your objectives
instead of theirs?
11. Management Process Fundamentals
Focus Evaluate
• KSF’s Target • Measure Act
• KPI’s • Report
•Controllable •Analytical, not •Real time •Specific
•Measurable historical •Visible •Urgent
•Relevant •Attainable •Quantitative •Accountable
•Front line and qualitative
ownership
12. Value of Overall Improvement?
Business KSF Improvement Value per Unit ($) Overall Impact ($)
potential
Total ________
13. Project Approach
Implementation
Process •Intensive involvement
Project Improvement •Hands-on training
•Accountability
Initiation •Team training
•staff / hourly
•Results focus
•Change from
•Evaluate current •cross-functional “program” to routine
management systems •Redesign specific •Post - project reviews
•interviews management systems
•quantitative studies •FTEA framework
•qualitative studies •analyze current system
•Train internal manager •identify weaknesses
•Staff training / involvement •redesign
•Establish project direction •Staff / hourly ownership
•identify goals
•identify KSF’s
•prioritize areas
•Select redesign teams
14. Typical Area Schedule
Area 4 Area Start Date: 30-Apr-13 Weight 1
Weight 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct
MPI A T A T A T A T A T A T A T A T A T A T A T A T
Map Current Process 2 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Identify Areas of Opportunity 2 20 50 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Review with Management 1 25 25 50 50 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
Process Redesign 0
Establish KPIs 2 50 50 75 75 90 100 100 100 100 100 100 100 100 100 100 100 100
Establish Target Setting Method 2 50 50 75 75 20 100 75 100 75 100 75 100 100 100 100 100 100
Establish Evaluation Process 3 50 50 75 75 30 100 50 100 100 100 100 100 100 100 100 100 100
Design Action Planning Process 2 75 75 50 100 60 100 75 100 90 100 100 100 100 100 100
Team Presentation to Management 2 100 100 100 100 100 100 100 100 100 100 100 100 100
Complete Detailed Tools / Programming 15 10 10 20 40 60 60 75 80 80 90 100 100 100 100 100
Set Targets 5 50 50 20 75 30 100 30 100 50 100 100 100 100 100 100
Establish Baselines 5 10 20 50 60 100 100 100 100 100 100 100
Summary Documentation Complete 4 10 10 10 20 10 30 30 40 50 60 70 80 100
Implementation
System Rollout / Initial Training 4 50 50 100 100 100 100 100 100 100 100 100
System Mechanics 0
Tracking Tools Completed & Accurate 10 35 20 70 100 100 100 100 100 100 100
Reports Generated / Distributed On Time 8 15 40 70 70 85 100 100 100 100
Meetings Held as Scheduled 8 10 10 55 85 100 100 100
Utilization - A.P.s Consistently Developed 20 10 10 55 85 100 100 100
Utilization - Actions Leading to Improvement 20 10 10 35 65 90 100 100
Detailed Documentation Complete 10 25 50 75 100 100
Total 125 1.3 1.8 5.6 5.6 12.6 12.6 12.4 20.9 21.3 30.8 29.3 41.1 48.3 52.4 71.0 85.8 95.4 100.0
MPI 45 3.7 5.0 15.6 15.6 35.0 35.0 34.4 58.1 54.7 70.7 68.1 82.7 80.0 91.3 95.6 96.4 97.3 100.0
Implementation 80 2.5 8.4 7.5 17.8 30.5 30.5 57.1 79.8 94.4 100.0
Design Team Members
100
90
80
Actual
70
Target
60
50
a c
r e
e rm
C
A -P
p
o
n
40
t
l
30
20
10
0
30-Apr 30-Apr 15-May 30-May 15-Jun 30-Jun 15-Jul 30-Jul 15-Aug 30-Aug 15-Sep 30-Sep 15-Oct
15. Typical Project Schedule
PMA Project Update Completion Percentages
Company Example % Complete
Report Date: 9/15/2009 0 10 20 30 40 50 60 70 80 90 100
Target Percent Complete
Total Project
Area Start Date Target Actual Variance
Total Project 1-Jun 7.7 7.4 (0.2) Project Initiation
Project Initiation 1-Jun 97.9 93.3 (4.6)
Area 1 1-Aug 12.6 12.6 - Area 1
Area 2 25-Aug 5.2 5.2 -
Area 2
Area 3 15-Sep 0.0 0.0 -
Area 4 30-Sep 0.0 0.0 - Area 3
Area5 1-Dec 0.0 0.0 - 66
Area 4
Area 6 1-Jan - 100
Area 6 1-Dec - Area5 75
Area 6 1-Dec - 85
Area 6 1-Dec - Actuals Target
Area 6 1-Dec - 60
Project Schedule 85
100
27-May-10
28-Nov-09
29-Sep-09
28-Dec-09
30-Aug-09
26-Feb-10
28-Mar-10
27-Jan-10
29-Oct-09
26-Jun-10
27-Apr-10
31-Jul-09
1-Jun-09
1-Jul-09
Project Initiation
Area 1
Area 2
Area 3
Area 4
Area5
Editor's Notes
Your business has a sequence of events from making a sale through delivering the product or service and getting paid for it. At each step in that process, there is a formal or informal system to show how well it is being done. This can range from informal feedback and continuous crisis management through a formal, quantitative system that drives definition of problems and action to continuously improve. An organization with the former is continuously chasing problems. One with the latter can be an industry leader with superior customer loyalty and profitability. We are going to work through one area of your business to demonstrate
So now we will redo this system, keeping in mind typical KSfs.
Your business has a sequence of events from making a sale / through delivering the product or service and getting paid for it. We are talking about what kind of management system exists at each step in that sequence.
Work left to right. The objective is to demonstrate that there could be a more intensive system that could prompt improvement actions to eliminate obstacles.
So if every functional group followed such a process, what high level improvements could be made. Customer satisfaction = more share / volume, reduced cost of replacing lost customers, perhaps higher margins, higher margin product mix, improved communication / partnership and collaboration on new product development, less sales time wasted solving problems… Volume may be a big one. Needs new business development. May be an existing issue or could come from process improvements making volume growth available – key is incremental margin! Cost reduction is important, but less so if they are not at capacity. Value will be big in resource based businesses. Also could be a planning / sales issue if capacity is consumed on low margin per unit of capacity items (do they know?) Quality = less downfall, cust sat’n, less problems… Other???
