A Sewells Group initiative in explaining the approach towards dealer profitability with performance improvement in a pilot group against a Control group.
The document is a research paper that proposes a performance management approach for small to medium-sized organizations with global operations. It presents a conceptual framework that integrates several performance measurement systems and tools. The framework includes: 1) an overall organizational performance measurement system and one for each business unit, 2) an informational system to integrate internal and external benchmarking, and 3) an implementation framework. The goal is to provide managers with a systematic approach to performance measurement, management, and improvement in a global context.
Management control system- Rendell Company case by Aviroop Banik,Rizvi Instit...Aviroop Banik
The document discusses the management control system of Rendell Company, which has 7 operating divisions. Currently, divisional controllers report to divisional general managers, with a dotted line to the corporate controller. There is a discussion on whether Rendell should adopt the control structure of Martex Company, where divisional controllers report directly to the corporate controller. Adopting Martex's structure could help achieve better goal congruence, but it may also be seen as the divisional controllers spying for the corporate office rather than being part of the divisional team.
Rendell Corporation is facing several challenges including slow growth, inability to adapt to new technology, lack of integrity in reports, insufficient analytical capabilities, and lack of metrics and feedback. The document examines Rendell's controller functions and compares them to Martex's system. It recommends that Rendell adopt aspects of Martex's approach to address Rendell's challenges, such as ensuring division controllers report to the corporate controller to align goals and establish common objectives and key performance metrics.
This document discusses the organizational structure of Rendell Company and issues with the current structure. It is proposed that the divisional controllers currently report to both the corporate controller and divisional general managers, but the corporate controller believes this results in biased reporting. The document analyzes Rendell's current structure and the alternative "Martex System" using SWOT analyses. It concludes with questions about changing responsibilities and reporting lines to establish a more transparent relationship between divisional and corporate controllers.
The document discusses factors ("Ps") that impact profitability for businesses. It identifies 17 Ps - Preparation, Plan, Processes, Performance, People, Passion, Progressive Thinking, Protagonists and Pioneers, Positive Thinking, Perfect versus Passable, Packaging, Price, Patience Persistence and Perseverance, Partnership, Paradigm Shifts, Pragmatic. Each P is described as an important contributor to achieving profitability. Key factors discussed include preparing by measuring profitability parameters, creating action plans, improving processes, managing people, packaging intellectual property for reuse, and maintaining a pragmatic approach.
Pharmaceutical companies are increasingly focusing on retaining their top sales staff through the use of variable compensation programs like incentives and rewards. Retaining sales reps is important due to the high costs of attrition. Companies are evaluating their incentive plans to ensure they are fair, understandable, and properly aligned with business goals to maximize staff motivation and retention. Regular diagnostic reviews of incentive plans can identify issues and lead to continuous improvements in plan design.
The document is a research paper that proposes a performance management approach for small to medium-sized organizations with global operations. It presents a conceptual framework that integrates several performance measurement systems and tools. The framework includes: 1) an overall organizational performance measurement system and one for each business unit, 2) an informational system to integrate internal and external benchmarking, and 3) an implementation framework. The goal is to provide managers with a systematic approach to performance measurement, management, and improvement in a global context.
Management control system- Rendell Company case by Aviroop Banik,Rizvi Instit...Aviroop Banik
The document discusses the management control system of Rendell Company, which has 7 operating divisions. Currently, divisional controllers report to divisional general managers, with a dotted line to the corporate controller. There is a discussion on whether Rendell should adopt the control structure of Martex Company, where divisional controllers report directly to the corporate controller. Adopting Martex's structure could help achieve better goal congruence, but it may also be seen as the divisional controllers spying for the corporate office rather than being part of the divisional team.
Rendell Corporation is facing several challenges including slow growth, inability to adapt to new technology, lack of integrity in reports, insufficient analytical capabilities, and lack of metrics and feedback. The document examines Rendell's controller functions and compares them to Martex's system. It recommends that Rendell adopt aspects of Martex's approach to address Rendell's challenges, such as ensuring division controllers report to the corporate controller to align goals and establish common objectives and key performance metrics.
This document discusses the organizational structure of Rendell Company and issues with the current structure. It is proposed that the divisional controllers currently report to both the corporate controller and divisional general managers, but the corporate controller believes this results in biased reporting. The document analyzes Rendell's current structure and the alternative "Martex System" using SWOT analyses. It concludes with questions about changing responsibilities and reporting lines to establish a more transparent relationship between divisional and corporate controllers.
The document discusses factors ("Ps") that impact profitability for businesses. It identifies 17 Ps - Preparation, Plan, Processes, Performance, People, Passion, Progressive Thinking, Protagonists and Pioneers, Positive Thinking, Perfect versus Passable, Packaging, Price, Patience Persistence and Perseverance, Partnership, Paradigm Shifts, Pragmatic. Each P is described as an important contributor to achieving profitability. Key factors discussed include preparing by measuring profitability parameters, creating action plans, improving processes, managing people, packaging intellectual property for reuse, and maintaining a pragmatic approach.
Pharmaceutical companies are increasingly focusing on retaining their top sales staff through the use of variable compensation programs like incentives and rewards. Retaining sales reps is important due to the high costs of attrition. Companies are evaluating their incentive plans to ensure they are fair, understandable, and properly aligned with business goals to maximize staff motivation and retention. Regular diagnostic reviews of incentive plans can identify issues and lead to continuous improvements in plan design.
This document discusses methods for measuring corporate performance, including the balanced scorecard and stakeholder measures. It outlines the advantages and limitations of each. The balanced scorecard takes a holistic view across four perspectives: learning and growth, internal business processes, customers, and financials. It aims to align business activities with organizational strategy but can fail if not properly communicated. Stakeholder measures evaluate performance based on key stakeholder groups' priorities but balancing different stakeholders' interests can be challenging. The document provides an in-depth examination of these two approaches to corporate performance assessment.
1) TQM aims to implement strategy through a participative, systematic approach to continuous quality improvement. However, it assumes strategy implementation is a neutral process, when in reality the process should match the strategic plan.
2) TQM claims to improve customer focus, but in reality it can lead organizations to focus more on internal customers than external customers.
3) While TQM promises many benefits like improved productivity, its assumptions only hold true in certain conditions. Outside of those conditions, TQM may reduce organizational effectiveness rather than improve it.
1) The document discusses various strategies for business including corporate strategy, directional strategy, growth strategy, concentration strategy, and stability strategy. It also discusses implementing strategies through developing programs, budgets, and procedures.
2) Evaluation and control of strategies is discussed, including determining metrics, establishing standards, measuring performance, comparing to standards, and taking corrective actions. Different types of controls like behavior controls and output controls are also mentioned.
3) Finally, the document emphasizes that while strategy implementation carries risk, successful implementation can lead to significant gains for the business.
This document provides short summaries of material control and handling, labor productivity, personnel productivity, and strategic decision making. It also discusses operation strategy and its key elements. Finally, it describes different dimensions of quality including quality of design, conformance to design, utilization conditions, and after sales service. The key factors influencing plant location are also outlined, including availability of land, labor, inputs, transportation, markets, and infrastructure.
The document presents a conceptual model for performance measurement systems (PMS) with the following key points:
1) It outlines the main stages in developing and maintaining an effective PMS: design, implementation, use, review, and learning.
2) Within each stage, it provides recommendations from literature on important actions organizations should take, such as aligning the PMS with strategy, defining appropriate measures, and systematically reviewing results.
3) A conceptual model is proposed to guide organizations through the PMS process, listing actions for each stage to prevent critical steps from being missed.
4) The goal is for the conceptual model and literature review to facilitate both creating and improving an organization's PMS over time
This presentation is a resume chapter 5 on book Strategic Supply Chain Management - The 5th Disciplines For Top Performance by Shoshanah Chohen And Josep Roussel
CMMI was developed in the 1980s by the Software Engineering Institute to help organizations improve processes for developing software after many projects failed to be delivered on time and budget. The CMMI model identifies 25 processes areas that organizations can implement to improve capabilities and maturity in managing projects. Adopting CMMI has become a market demand as contractors providing software to the government must follow CMMI, and competing companies are using it for best practices. CMMI aims to improve an organization's performance and ability to consistently deliver high-quality products and services to customers. It provides a framework for comprehensive process improvement across three constellations: development, acquisition, and services.
This article reports the results of an analysis of 13 business transformation case studies. Some were successful, some failed and the rest were partly successful. It shows how the BTM2 (Business Transformation Management Methodology) disciplines influence the outcomes and explains why some are more successful than the others. By John Ward and Axel Uhl
Benchmarking involves measuring an organization's key processes and comparing metrics to industry standards and best practices. This identifies areas for improvement and helps set targets. The benefits of benchmarking include providing data to make strategic decisions, improving processes, and reducing costs. It is a continuous process that involves planning goals, gathering data, analyzing results, implementing changes, and recalibrating metrics over time.
Business continuity management (BCM) aims to establish a strategic and operational framework to improve organizational resilience against disruptions. Common issues include a lack of alignment between IT processes and business processes. To address this "gap", organizations should appoint an appropriate sponsor, follow best practices and standards, and regularly test plans. Effective BCM requires a holistic approach led by business needs rather than being delegated solely to IT.
Capability Maturity Model Integrity (CMMI)Ivan Lanin
CMMI (Capability Maturity Model Integration) is a framework for improving an organization's processes by implementing best practices. It includes process areas like project management, configuration management, and requirements management. CMMI models can be used to assess an organization's processes and identify areas for improvement. Organizations can progress through maturity levels from initial/ad hoc processes to optimized, quantitatively managed processes as they improve their capabilities in each process area. CMMI provides a structured way for organizations to improve their processes to better manage projects, costs, schedules, and quality.
STRATEGIC MANAGEMENT CH 7 : IMPLEMENTING STRATEGIES-MANAGEMENT AND OPERATIONS...astridatmalem
This chapter discusses strategy implementation and contrasts it with strategy formulation. Strategy implementation requires operational coordination across many individuals, focusing on efficiency. It involves altering structures, processes, and incentives to support new strategies. Annual objectives are important for allocating resources, evaluating managers, and monitoring progress. Organizational structure must match strategy to enable implementation. Restructuring changes ownership priorities while reengineering changes processes. Performance must be linked to strategies through compensation. Managing resistance to change is key to implementation. Culture influences implementation and must sometimes be modified to support new strategies. Production/operations decisions are important to consider. Employee stock ownership can motivate implementation.
The document summarizes the company's 1st quarter 2009 financial results. Net sales were down 28% from the previous year due to a 29.8% decline in organic sales. Gross profit excluding restructuring charges was down 33.8% and operating income turned to a loss. Both the office furniture and hearth segments experienced sales declines over 30% and operating margins decreased significantly year-over-year. The outlook provided expects continued weak demand and sales declines in the 2nd quarter with gross margins and SG&A expenses further decreasing.
The document discusses a Total Quality Management (TQM) model for sustainability. The model identifies three key dimensions for integrating sustainability into corporate strategy: 1) identifying strategic sustainability issues, 2) engaging suppliers and customers to manage issues across the supply chain, and 3) promoting sustainability across all corporate departments. An eight-step process is then outlined for implementing the TQM for Sustainability model, including defining priorities, developing indicators, and continuous improvement. The model was piloted with a real estate development firm in Brazil.
The document discusses organization structure and departmentalization at Newell Rubbermaid. It describes how Joseph Galli restructured Newell Rubbermaid into four divisions organized by brand and geography. This improved coordination across units and aligned the company's structure with its strategy. The document also examines concepts of coordination, organizing resources, and leadership approaches relevant to Newell Rubbermaid's reorganization under Galli.
The document describes Alchemus' Performance and Competency Management System (PCMS) and HRMS software. The PCMS offers a comprehensive performance management solution that goes beyond traditional performance appraisals. The HRMS modules cover personnel data, goal setting, performance appraisal, compensation, payroll, and other HR functions. Key features of the PCMS include standardized processes, automated workflow, competency mapping, and tools to reduce bias and promote transparency.
This document discusses strategy implementation and organizational structure. It provides details on analyzing change during implementation, different types of organizational structures including functional, divisional/decentralized, and strategic business unit structures. The key points are:
1) Strategy implementation involves managing forces during action and requires motivation/leadership skills.
2) Organizational structure consists of organizing people efficiently to achieve goals and can be centralized/decentralized.
3) Common structures include functional (by department), divisional (by product/market), and strategic business unit (groups divisions with commonalities). Each structure has advantages and disadvantages for implementation.
BALANCE SCORECARD AND COMMUNICATION PLAN 1BALANCE SCORECARD A.docxrock73
BALANCE SCORECARD AND COMMUNICATION PLAN 1
BALANCE SCORECARD AND COMMUNICATION PLAN 10
Strategic Plan Part III: Balance Scorecard and Communication Plan
Name
BUS/475
Professor
Date
Balance Scorecard and Communication Plan
Assumptions, Risk and Change Management Plan
General motors need to have a plan to manage risks and changes associated with the newly established division. Risk management focuses on identifying and controlling events or areas that may cause unwanted changes in the new division. The unwanted changes will not only affect the new division, but it will also affect the mother company. However, in the case of any changed, either motivated by the company or unwanted changes, the company need a plan to manage the changes. Change management is a vital part of a successful new division. Change management plan focuses on setting up strategies that will enable the company to manage the changes reducing the effects it may have to the company’s operations and the employees.
The assumed risks and changes that may face the new division at General Motors include various critical challenges. For instance, the Chinese market is posing various opportunities and risks to the automotive industry. The other risks are getting enough human resource, legal challenges in some countries and consumer behaviors. The company also needs a sustainable business model that will enable then gain competitive market advantage. According to Wells (2013) risk in a company may originate from high capital costs associated with production and lumpy investment in models and plants.
The change management risk includes three stages that result to a certain change management plan. The stages are considered in conjunction with the magnitude and nature of the change. The company needs to understand the details of the changes and the associated risks. This stage includes change identification, particulars of the change, and change approach. The second phase includes implementation of change. It comprises of strategies implementation and releasing the strategy. Change is then reviewed in the appraisal of changes strategy in the third stage. The output of the three stages includes scheduling of the activities, action plan, communication plan, training plan, resistance to change plan, employee changes readiness plan, release plan, and review strategy.
Like change management plan, risk management plan also includes the identification of the risk details. While the company can identify the overall risk they may face, they should identify the risk that may happen at each stage of the project life cycle in the new division. The plan provides an evaluation of the identified risk and provides the mitigation actions. The risk management plan include the nature of the risk and their consequences, the probability of the risk occurring, the impact of the risk, priority of the risk, and mitigation steps to reduce or eliminate the risk. The Risk and Change Management Plan f ...
Creating the Performance Driven Organisation - Paul LimPaul Lim
The document discusses the importance of performance management for organizations. It outlines a methodology called VisionBridge for developing performance management programs. The methodology has three phases - identify, design, and execute. The identify phase uncovers business assumptions and maps operations. The design phase identifies key performance drivers, objectives, and indicators. The execute phase implements the performance system. The document argues that properly identifying and prioritizing the right performance metrics is critical for success. VisionBridge uses a technology architecture to integrate performance data across systems and support decision making.
This document discusses methods for measuring corporate performance, including the balanced scorecard and stakeholder measures. It outlines the advantages and limitations of each. The balanced scorecard takes a holistic view across four perspectives: learning and growth, internal business processes, customers, and financials. It aims to align business activities with organizational strategy but can fail if not properly communicated. Stakeholder measures evaluate performance based on key stakeholder groups' priorities but balancing different stakeholders' interests can be challenging. The document provides an in-depth examination of these two approaches to corporate performance assessment.
1) TQM aims to implement strategy through a participative, systematic approach to continuous quality improvement. However, it assumes strategy implementation is a neutral process, when in reality the process should match the strategic plan.
2) TQM claims to improve customer focus, but in reality it can lead organizations to focus more on internal customers than external customers.
3) While TQM promises many benefits like improved productivity, its assumptions only hold true in certain conditions. Outside of those conditions, TQM may reduce organizational effectiveness rather than improve it.
1) The document discusses various strategies for business including corporate strategy, directional strategy, growth strategy, concentration strategy, and stability strategy. It also discusses implementing strategies through developing programs, budgets, and procedures.
2) Evaluation and control of strategies is discussed, including determining metrics, establishing standards, measuring performance, comparing to standards, and taking corrective actions. Different types of controls like behavior controls and output controls are also mentioned.
3) Finally, the document emphasizes that while strategy implementation carries risk, successful implementation can lead to significant gains for the business.
This document provides short summaries of material control and handling, labor productivity, personnel productivity, and strategic decision making. It also discusses operation strategy and its key elements. Finally, it describes different dimensions of quality including quality of design, conformance to design, utilization conditions, and after sales service. The key factors influencing plant location are also outlined, including availability of land, labor, inputs, transportation, markets, and infrastructure.
The document presents a conceptual model for performance measurement systems (PMS) with the following key points:
1) It outlines the main stages in developing and maintaining an effective PMS: design, implementation, use, review, and learning.
2) Within each stage, it provides recommendations from literature on important actions organizations should take, such as aligning the PMS with strategy, defining appropriate measures, and systematically reviewing results.
3) A conceptual model is proposed to guide organizations through the PMS process, listing actions for each stage to prevent critical steps from being missed.
4) The goal is for the conceptual model and literature review to facilitate both creating and improving an organization's PMS over time
This presentation is a resume chapter 5 on book Strategic Supply Chain Management - The 5th Disciplines For Top Performance by Shoshanah Chohen And Josep Roussel
CMMI was developed in the 1980s by the Software Engineering Institute to help organizations improve processes for developing software after many projects failed to be delivered on time and budget. The CMMI model identifies 25 processes areas that organizations can implement to improve capabilities and maturity in managing projects. Adopting CMMI has become a market demand as contractors providing software to the government must follow CMMI, and competing companies are using it for best practices. CMMI aims to improve an organization's performance and ability to consistently deliver high-quality products and services to customers. It provides a framework for comprehensive process improvement across three constellations: development, acquisition, and services.
This article reports the results of an analysis of 13 business transformation case studies. Some were successful, some failed and the rest were partly successful. It shows how the BTM2 (Business Transformation Management Methodology) disciplines influence the outcomes and explains why some are more successful than the others. By John Ward and Axel Uhl
Benchmarking involves measuring an organization's key processes and comparing metrics to industry standards and best practices. This identifies areas for improvement and helps set targets. The benefits of benchmarking include providing data to make strategic decisions, improving processes, and reducing costs. It is a continuous process that involves planning goals, gathering data, analyzing results, implementing changes, and recalibrating metrics over time.
Business continuity management (BCM) aims to establish a strategic and operational framework to improve organizational resilience against disruptions. Common issues include a lack of alignment between IT processes and business processes. To address this "gap", organizations should appoint an appropriate sponsor, follow best practices and standards, and regularly test plans. Effective BCM requires a holistic approach led by business needs rather than being delegated solely to IT.
Capability Maturity Model Integrity (CMMI)Ivan Lanin
CMMI (Capability Maturity Model Integration) is a framework for improving an organization's processes by implementing best practices. It includes process areas like project management, configuration management, and requirements management. CMMI models can be used to assess an organization's processes and identify areas for improvement. Organizations can progress through maturity levels from initial/ad hoc processes to optimized, quantitatively managed processes as they improve their capabilities in each process area. CMMI provides a structured way for organizations to improve their processes to better manage projects, costs, schedules, and quality.
STRATEGIC MANAGEMENT CH 7 : IMPLEMENTING STRATEGIES-MANAGEMENT AND OPERATIONS...astridatmalem
This chapter discusses strategy implementation and contrasts it with strategy formulation. Strategy implementation requires operational coordination across many individuals, focusing on efficiency. It involves altering structures, processes, and incentives to support new strategies. Annual objectives are important for allocating resources, evaluating managers, and monitoring progress. Organizational structure must match strategy to enable implementation. Restructuring changes ownership priorities while reengineering changes processes. Performance must be linked to strategies through compensation. Managing resistance to change is key to implementation. Culture influences implementation and must sometimes be modified to support new strategies. Production/operations decisions are important to consider. Employee stock ownership can motivate implementation.
The document summarizes the company's 1st quarter 2009 financial results. Net sales were down 28% from the previous year due to a 29.8% decline in organic sales. Gross profit excluding restructuring charges was down 33.8% and operating income turned to a loss. Both the office furniture and hearth segments experienced sales declines over 30% and operating margins decreased significantly year-over-year. The outlook provided expects continued weak demand and sales declines in the 2nd quarter with gross margins and SG&A expenses further decreasing.
The document discusses a Total Quality Management (TQM) model for sustainability. The model identifies three key dimensions for integrating sustainability into corporate strategy: 1) identifying strategic sustainability issues, 2) engaging suppliers and customers to manage issues across the supply chain, and 3) promoting sustainability across all corporate departments. An eight-step process is then outlined for implementing the TQM for Sustainability model, including defining priorities, developing indicators, and continuous improvement. The model was piloted with a real estate development firm in Brazil.
The document discusses organization structure and departmentalization at Newell Rubbermaid. It describes how Joseph Galli restructured Newell Rubbermaid into four divisions organized by brand and geography. This improved coordination across units and aligned the company's structure with its strategy. The document also examines concepts of coordination, organizing resources, and leadership approaches relevant to Newell Rubbermaid's reorganization under Galli.
The document describes Alchemus' Performance and Competency Management System (PCMS) and HRMS software. The PCMS offers a comprehensive performance management solution that goes beyond traditional performance appraisals. The HRMS modules cover personnel data, goal setting, performance appraisal, compensation, payroll, and other HR functions. Key features of the PCMS include standardized processes, automated workflow, competency mapping, and tools to reduce bias and promote transparency.
This document discusses strategy implementation and organizational structure. It provides details on analyzing change during implementation, different types of organizational structures including functional, divisional/decentralized, and strategic business unit structures. The key points are:
1) Strategy implementation involves managing forces during action and requires motivation/leadership skills.
2) Organizational structure consists of organizing people efficiently to achieve goals and can be centralized/decentralized.
3) Common structures include functional (by department), divisional (by product/market), and strategic business unit (groups divisions with commonalities). Each structure has advantages and disadvantages for implementation.
BALANCE SCORECARD AND COMMUNICATION PLAN 1BALANCE SCORECARD A.docxrock73
BALANCE SCORECARD AND COMMUNICATION PLAN 1
BALANCE SCORECARD AND COMMUNICATION PLAN 10
Strategic Plan Part III: Balance Scorecard and Communication Plan
Name
BUS/475
Professor
Date
Balance Scorecard and Communication Plan
Assumptions, Risk and Change Management Plan
General motors need to have a plan to manage risks and changes associated with the newly established division. Risk management focuses on identifying and controlling events or areas that may cause unwanted changes in the new division. The unwanted changes will not only affect the new division, but it will also affect the mother company. However, in the case of any changed, either motivated by the company or unwanted changes, the company need a plan to manage the changes. Change management is a vital part of a successful new division. Change management plan focuses on setting up strategies that will enable the company to manage the changes reducing the effects it may have to the company’s operations and the employees.
The assumed risks and changes that may face the new division at General Motors include various critical challenges. For instance, the Chinese market is posing various opportunities and risks to the automotive industry. The other risks are getting enough human resource, legal challenges in some countries and consumer behaviors. The company also needs a sustainable business model that will enable then gain competitive market advantage. According to Wells (2013) risk in a company may originate from high capital costs associated with production and lumpy investment in models and plants.
The change management risk includes three stages that result to a certain change management plan. The stages are considered in conjunction with the magnitude and nature of the change. The company needs to understand the details of the changes and the associated risks. This stage includes change identification, particulars of the change, and change approach. The second phase includes implementation of change. It comprises of strategies implementation and releasing the strategy. Change is then reviewed in the appraisal of changes strategy in the third stage. The output of the three stages includes scheduling of the activities, action plan, communication plan, training plan, resistance to change plan, employee changes readiness plan, release plan, and review strategy.
Like change management plan, risk management plan also includes the identification of the risk details. While the company can identify the overall risk they may face, they should identify the risk that may happen at each stage of the project life cycle in the new division. The plan provides an evaluation of the identified risk and provides the mitigation actions. The risk management plan include the nature of the risk and their consequences, the probability of the risk occurring, the impact of the risk, priority of the risk, and mitigation steps to reduce or eliminate the risk. The Risk and Change Management Plan f ...
Creating the Performance Driven Organisation - Paul LimPaul Lim
The document discusses the importance of performance management for organizations. It outlines a methodology called VisionBridge for developing performance management programs. The methodology has three phases - identify, design, and execute. The identify phase uncovers business assumptions and maps operations. The design phase identifies key performance drivers, objectives, and indicators. The execute phase implements the performance system. The document argues that properly identifying and prioritizing the right performance metrics is critical for success. VisionBridge uses a technology architecture to integrate performance data across systems and support decision making.
Management Strategy8Furtherance Analysis on Operation .docxinfantsuk
Management Strategy
8
Furtherance Analysis on Operation Improvement Plan IntroductionOn the previous assignment, operations improvement plan was defined as the action to advance all interests of the organization through restructuring the business processes operations rather than dealing with the existing problems. In this discussion, I will endear to further analyze the operations improvements plans on the Toyota Company, specifically, on how the Company management handles challenges through implementing new strategies: for this to reach, further data will be researched, and verified.
Discussion
Part 1
1. After the analysis of cause and effect and the flow charts results, it is important to note that the company lacks the proper communication. This deficiency is perhaps the cause and particular root to all company’s problem.
2. The flow chart result and that of the cause and effect diagram doesn’t conflict, they are all coherent to one another.
3. The created cause and effect diagram in the previous assignment posits all relevant information for the improvement process in the company, all process steps were documented.
4. Further research is not needed on the identified causes on cause and effect diagram previously created. This is because all causes are all related and similar, and perhaps because communication as a cause has been already identified.
5. Because of the Toyota company structure which is subsidiary, there is no additional information from the key stakeholders, however, designation of the new strategy will be done and all stakeholders will be informed properly.
6. None of the information will impact change on the statement’s problem, instead, the information will aid in making the improvement and make the cause more effective.
BEFORE AND AFTER FLOW CHART
Toyota’s ineffective process (before)
Problem has been identified (communication)
1. Products quality not monitored
2. Ineffective communication
Company responds to regulatory probes and lawsuits
Toyota ineffective process (with revision)
Recall of the problem
Company’s denial
Company pays millions in penalty
Toyota effective recommended process (after)
Effective communication
Stakeholders’ notification
Consumers’ notification
Problem identified Evaluation of issue by leadership team
Close observation of manufacturers
New components supplier
Issue resolved
The before and after flow charts shown, identifies the rectification done in the previous chart in the assignment. In order t ...
The document discusses Prime Value Chain Analysis (PVC), a technique used to analyze an organization's critical activities that deliver value to customers. PVC helps organizations realign around key priorities by breaking down silos and prioritizing improvement efforts. It creates a dynamic view of major value-creating activities across the organization, regardless of functional boundaries. This helps organizations understand how different parts of the business support strategic goals and identify opportunities to improve performance through better alignment, structure, and execution. The document provides an example of a company that used PVC analysis to improve product development efficiency and effectiveness across silos.
This document outlines three generations of shared service centers based on their process, functional scope, geographic scope, and business impact/innovation:
1. The initial generation focused on cost reduction through consolidation and labor arbitrage. This delivered immediate savings but had limited business impact.
2. The second generation drove operational excellence and efficiency through further process consolidation, standardization, and continuous improvement. This expanded the geographic scope.
3. The third generation acts as true business partners, using standardization and technology to implement business impact projects and drive organizational transformation. This focuses on business outcomes over performance indicators.
This document outlines three generations of shared service centers based on their process, functional scope, geographic scope, and business impact/innovation:
1. The initial generation focused on cost reduction through consolidation and labor arbitrage. This delivered immediate savings but had limited business impact.
2. The second generation drove operational excellence and efficiency through further process consolidation, standardization, and continuous improvement. This expanded the geographic scope.
3. The third generation acts as true business partners, using standardization and technology to implement business impact projects and drive organizational transformation. This focuses on business outcomes over performance indicators.
At the core of Sewells Groups dealer focused philosophy are world class Performance Groups.
Peer-group forums where dealers are able to identify the financial drivers, processes and practices that lead to superior business results.
University of Phoenix Change initiative for Nokia Paper.docxwrite5
1) The document discusses strategy maps and balanced scorecards, tools developed by Robert Kaplan and David Norton to help organizations translate their vision and strategy into tangible goals and measures.
2) A strategy map visually represents an organization's goals, initiatives, and causal relationships across four perspectives: financial, customer, internal processes, and learning and growth.
3) A balanced scorecard integrates metrics across the same four perspectives to track critical success factors and ensure a balanced view of what is needed for successful change.
Wr bap program success metrics 28-june-2019 smc jc (v3)Jaime Brown
The document proposes metrics to measure the success of a new Business Administration Platform (BAP) program. It identifies six primary metrics: effort, support, adoption, not-in-good-order (NIGO) rates, cycle time, and sales. Secondary and tertiary metrics are also outlined to provide more granular data and serve as leading indicators. Baselines must be set before BAP deployment to enable tracking of improvements. A scorecard will be developed and updated weekly to monitor progress and trends. Feedback from upcoming field office visits may influence further refinement of the metrics.
The document outlines 10 key elements that should be included in an ERP project blueprint to help ensure project success. The blueprint should define: 1) the program management process; 2) current business issues; 3) overall project scope; 4) project organization and standards; 5) strategy development; 6) business case and roadmap; 7) benefits realization and strategy management; 8) benefits realization measurement; 9) IT transformation; and 10) data definitions, integration, and user testing. Defining these elements upfront in a blueprint can help proactively address questions and keep the project on track.
Strategic management theory and practicestrategic controssusere73ce3
This document discusses strategic control and crisis management. It outlines a 5-step process for strategic control: 1) determining the focus of control, 2) establishing standards for evaluation, 3) measuring performance, 4) comparing performance to standards, and 5) taking corrective action if needed. Strategic control helps ensure strategies are aligned with goals and the environment. It also facilitates continuous improvement. Crisis management involves planning for potential crises and learning from past crises to improve preparedness.
The document discusses using gross margin analysis to understand the key drivers affecting a company's margins. It outlines how margins can be impacted by factors like price, volume, product mix, channel mix, and sales region mix. Performing a gross margin analysis that separates out the impacts of these different factors can provide valuable insights into what is specifically driving changes in a company's margins and help identify areas to improve profitability. The analysis approach presented allows executives to better understand issues impacting margins and develop targeted action plans to address problem areas.
Strategic management theory and practicestrategic contromayank272369
This document discusses strategic control and crisis management. It outlines a 5-step process for strategic control: 1) determining the focus of control, 2) establishing standards/benchmarks, 3) measuring performance, 4) comparing performance to benchmarks, and 5) taking corrective action if needed. Strategic control is important for evaluating strategy success/failure and making adjustments. It also discusses the importance of monitoring the external environment and being prepared for crises through planning.
This document provides an overview of developing a performance measurement system using a balanced scorecard approach. It discusses 6 key sections: 1) introducing performance measurement, 2) measurement as a management support system, 3) the balanced scorecard, 4) developing a customized balanced scorecard, 5) setting targets and incentives, and 6) implementing a new performance management system focused on continuous improvement. The document emphasizes developing a balanced set of measures across financial, customer, internal process, and learning/growth perspectives to drive strategic implementation and improvement.
This document provides an overview of developing a performance measurement system using a balanced scorecard approach. It discusses 6 key sections: introduction to performance measurement; measurement as a management support system; the balanced scorecard; developing a customized balanced scorecard; target setting and incentives; and implementing a new performance management system. The document includes examples of balanced scorecards and outlines the steps to create customized balanced scorecards that align measures to strategic objectives.
This document provides an overview of performance measurement and developing a balanced scorecard across 6 sections. It includes 3 charts on performance measurement systems that demonstrate a balanced scorecard decomposes strategy implementation to all organization levels and identifies improvement opportunities. The balanced scorecard is shown to be an integral part of business planning that measures focused performance across financial, customer, internal process, and learning/growth perspectives.
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1. SEWELLS
PERFORMANCE
INSIGHTS
Balance As A Driver Of Sustained
Retail Automotive Performance
sewellsgroup.com
2. Sewells Performance Insights
BALANCE AS A DRIVER OF SUSTAINED RETAIL
AUTOMOTIVE PERFORMANCE
The pursuit of automotive retail excellence is an ongoing and multifaceted task. It relies on bold leadership, confident
management and above all a clear grasp of the key drivers and enablers that form the basis for performance
enhancement. One of the primary drivers in this regard is balance or Mix, in other words the contributions that are
made across all business units and in particular from fixed operations.
When one considers that a typical new vehicle sales department will contribute upwards of 80% of a dealership’s
total turnover while only producing 35% of its gross profit and that a service department will produce a similar
amount of gross off only 15% of turnover, it serves to reason that dealers who focus on enhancing their workshop
performance will boost the performance of the total dealership.
To understand how this works in practice we hold up the example of a group of 20 dealerships who participated in
a focused service improvement program. Dealers were selected from a broader franchise group of 180 dealers and
represented a spread of locations and sizes.
The program consisted of three primary phases:
1. Engagement & Education - As a starting point Dealer Principals and Fixed Operations Managers were invited to
attend a one-day performance management workshop. Objectives of this interaction were to introduce and map out
a blueprint for business performance (based on the Sewells Group MRA model) and to establish the key drivers that
form the basis of performance improvement.
2. Dealership Assessment - In a bid to ascertain the issues on the ground, each dealer underwent an on-site
review of their performance and processes. This included an initial desktop analysis and an interactive one-day visit
by a senior consultant. The outcome of this analysis was the production of a comprehensive performance report,
highlighting the current status and identifying future opportunities.
3. Management Team Feedback & Action Planning - The final formalized phase of the initiative included the
engagement of the senior dealership management team in a structured feedback and action planning session. This
facilitated process served to clarify findings from the dealership assessment and provided an opportunity for debate
and the formulation of strategies to address the issues that were presented. The outcome of the session was a set of
actions that were to be pursued by the management team.
The overall aim of the program was to improve bottom-line service performance and to contribute towards a better
balanced and more sustainable dealership model. The key methodology lying in the encouragement of senior
dealership managers to take responsibility for their own results and to support them by providing perspective and
focus on the fundamental drivers.
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3. Sewells Performance Insights
RESULTS
With bottom-line service performance being held out as a success factor, an assessment was made of average
monthly service performance for the 12 months before program commencement (FY June 2009) and again for
the 12 months post program conclusion (FY June 2011). The results reflected in Figure 1, illustrate a marked
improvement in performance for the participating (pilot) group, with a monthly percentage gain of 30.3% versus a
variance of -6.2% for the non-participating (control) group.
Figure 1: Change in Bottom-line Service Performance
An important consideration is how these results were achieved? Intuitively performance can be driven by one of three
ways or via a combination of all three. This includes improving throughput i.e. focusing energy on selling more, by
improving margins i.e. focusing on Mix, or by reducing expenses. Ultimately how these factors are manipulated in
relation to each other plays a significant role in determining the end result. Consider Table 1 below which reflects how
the pilot group performed versus the control group in each of these areas and in particular how this affected their
overall result.
PILOT GROUP CONTROL GROUP
% Change in Service Turnover + 1.42% + 1.08%
% Change in Service Gross Profit + 5.02% + 1.06%
% Change in Service Expenses + 1.42 % + 2.56%
% Change in Operating Profit + 30.3% - 6.2%
Table 1: Percentage Change in Service Variables
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4. Sewells Performance Insights
Reflected in Dollar terms these results are telling. The impact for dealers participating on the program was on
average a net gain of $65,496. When considered against a market driven reduction in profit for the control group
of $14,916, the result translates into a variance of over $80,000 for each participating dealership (see Figure 2). The
impact of this result on the overall sustainability of the business, not to mention the positive consequences relating
to incentive plans and increased resourcing capability is notable.
Figure 2: Impact on Monthly Service Performance
Focusing on improving the Mix of the business goes a long way towards driving these results. Mix in the service
department translates to the ability of the department to generate and sustain gross margin. The increase of 5% in
Gross Profit versus an increase in Turnover of 1.4% enables the dealership to actively grow the bottom line without
necessarily requiring any investment in infrastructure or additional resources. Essentially it’s about focusing energy
on added customer value, the effective utilisation of resources (as reflected in workshop productivity and technician
efficiency) and on service quality. These factors are inevitably reflected in line items such as sales, gross profit (GP),
parts and hours per repair order (see Figure 3).
Figure 3: Impact of Improved Mix on Service Performance
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5. Sewells Performance Insights
DISCUSSION
Reflecting on the results presented there are both tangible and intangible factors which lead to improved
performance for any department.
The tangible components of success relate to the logical or rational financial drivers. We know for example that if we
sell more or gross more that performance will increase. Likewise we know that if we trim expenses the bottom line
result will be better. The key with these factors is twofold.
First to ensure that the objectives sought are clearly quantified and articulated to all stakeholders (a fundamental
requisite of any robust action planning process).
Second the dynamics of change must be clearly understood and managed.
Simple rules apply in this regard, fundamentally any percentage change in Gross Profit must exceed that for Turnover
and similarly any percentage change in Gross Profit must exceed that for Operating Expenses. Businesses which
comply with these conventions will inevitably experience positive growth on the bottom-line.
Bearing that in mind what was of interest was the fact that the pilot group managed to grow their service
contribution in spite of market conditions. While turnover increased marginally over the period under consideration,
the number of retail repair orders processed declined (see Figure 4).
The ability of a business to add value ‘against the run of play’ can only happen if the dynamics of growth are
understood.
Figure 4: Change in Retail Repair Orders Processed per Annum
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6. Sewells Performance Insights
Intangible success factors are by nature harder to explain and pin down. What were the underlying factors, beyond
the simple financial realities that contributed to the pilot group producing superior results to non-participating
dealers? The answers to this question are drawn from direct experience and observation. The process undertaken
by each of the dealers included an on-site assessment of their operation and a subsequent management feedback
session.
This process provided consultant access to the inner-most workings and culture in each dealership and provided some
interesting insights. While not present in every participating dealership three factors distinguished pilot group dealers
from the control group.
Comprehension of the MRA business model
The Sewells MRA model is provides a proven framework for retail automotive performance enhancement. As such the
degree to which it is understood, embraced and integrated into the dealership management environment provides a
tell-tale sign of the probability of success. The model provides clear direction on the drivers and enablers of bottom-
line performance, focusing management efforts on three key factors, namely margin management (Mix), expense
management (Retained), and asset management (Activity). Introduced to the pilot group during the initial education
session, its value and deployment as a benchmarking tool was evident in all pilot group members and degree of
integration across top performing group members was unmistakable.
Focus on performance drivers, in particular MIX
The results outlined in this commentary have shown that the degree of Mix or balance in an organisation is a clear
determinant of bottom-line performance. Gross Profit or margin management as an indicator of Mix was found to
be a point of focus throughout the pilot group. Evident in issues such as customer value-add, minimization of rework
and maximization of technician efficiency, the focus on Mix (in relation to both turnover and expenses) serves as a
catalyst for profit maximization. This is enhanced by broadening the focus across practical service department issues
such as the retention of sublet margins, effective labour rates and the balance between retail, internal and warranty
work. The key takeout of this is the undeniable fact that dealers who prioritise the accumulation of gross across the
dealership, tend to be far better positioned to capitalize from any associated growth in turnover thereby laying a solid
platform for growth.
Management team engagement and ownership
Possibly the most interesting and important of the observed insights was the degree to which the management team
connected with the process of change and embraced the opportunity for improvement. In a business environment
cluttered with ‘performance elixirs’, quick fixes and day-to-day operational distractions the ability to stop and reflect
and where on where the business is headed is an under-estimated factor. Without exception those successful dealers
within the pilot group who excelled, demonstrated a level of undistracted devotion to the task at hand. Identifying
challenges and quantifying objectives and tasks is one thing but the execution of actions can be held out as an
essential ingredient. Certainly knowing what to focus on and how to achieve it is shaped by the business model and
process at hand but ultimately success lies in the ability to get the job done.
The notion of enhancing retail performance through considered processes and the application of a structured
business model lies at the core of the Sewells Group offering. Our experiences reflected in this document provide
evidence of this approach. Assigning credit for results achieved is a complicated and precarious endeavour and
ultimately something which can only be claimed by those who achieve it. That said observations regarding success
are easier to offer and factors such as the focus on organizational balance and the belief of the management team sit
comfortably. The results speak for themselves.
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7. The Sewells Group specializes in the
enhancement in retail automotive
performance. Partnering with dealers
and OEM’s and assisting them with
dealer development strategies; services
include training, consulting and
business management.
If you have any questions
regarding this document please
contact info@sewellsgroup.com
About the Author:
Greg Strydom is a Partner in Sewells
Group’s Melbourne office. He works
with dealers and OEMs, specialising
in performance consulting and dealer
development initiatives.