This document discusses strategies for improving business performance. It covers: - Developing a strategy by setting objectives and getting a competitive position in the market. - Understanding core competencies and how successful companies develop in unexpected ways based on these competencies. - Defining the strategic path by analyzing the environment, possibilities, and core competencies to determine where to go. - Different generic strategies like low cost, differentiation, and response that provide competitive advantage. - The importance of objectives, targets, monitoring and feedback in performance management.

1. Business to Arts Strategy for Performance Improvement Alan Christie, University of Ulster

2. Strategy for Performance Improvement Managing strategy - course objectives introduction to strategy-purpose/value tools and techniques-practical formulation strategic thinking- vision and mission developing a strategy- setting objectives

3. Get a Competitive Position! On what basis will we compete? Which direction should we go? How do we get there? How will we stay there? Where next?

4. Successful Companies Understand their core competences and use them to develop in unexpected ways Re-write the rules so that only they can win Understand that CULTURE eats STRATEGY for breakfast … .the aim of today is for these lessons to be manifest in your strategy for development

5. I Will Use….. Everyday examples e.g. Nokia Tesco Ryanair!!!!! GOH to discover On what basis it competes? In which direction it is headed? How will it get there?

6. Defining the Path Where in the landscape are we? environmental analysis How is the landscape going to change? scenario possibilities

7. Defining the Path Where is it possible to go? Core competency analysis How do we get there? Strategic development

8. Strategy Process Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-10 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 Environmental Analysis Company Mission Business Strategy Function Area Strategies SWOT Analysis Operations Decisions Marketing Decisions Financial / Acct. Decisions

9. DEVELOPMENT STRATEGIES What basis? Which Direction? How? ALTERNATIVE DIRECTIONS Withdrawal Consolidation Market penetration Product development Market Development Diversification Related Unrelated ALTERNATIVE METHODS Internal Development Acquisition Joint Development / Alliances GENERIC STRATEGIES Price based Differentiation Focus

10. Elements of Strategic Management STRATEGIC CHOICE STRATEGIC IMPLEMENTATION STRATEGIC ANALYSIS

11. Competitive Advantage Through: Differentiation Low cost Response Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-11 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458

12. Competing on Differentiation Uniqueness - can go beyond both the physical characteristics and service attributes to encompass everything that impacts customer’s perception of value Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-12 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458

13. Competing on Cost Maximum value as defined by customer Does not imply low value or low quality Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-13 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458

14. Competing on Response Flexible Reliable Quick Requires institutionalization within firm of ability to respond Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-14 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458

15. Michael Porter’s Five Competitive Forces Competitors in the industry Competition among existing companies Bargaining power Customers Substitutes Suppliers Threat from substitutes Potential New Entrants Bargaining power Threat from substitutes

16. GROWTH STRATEGY NEW EXISTING PRODUCTS EXISTING NEW M A R K E T S Product Development Market Development Market Penetration Diversification excluded strategy

17. Mission Organization’s purpose for being Provides boundaries & focus Answers ‘How can we satisfy people’s needs?’ Expressed in mission statement Transparency Masters to accompany Operations Management, 5E (Heizer & Render) 2-6 © 1998 by Prentice Hall, Inc. A Simon & Schuster Company Upper Saddle River, N.J. 07458 © 1995 Corel Corp.

18. COW DOG STAR M A R K E T G R O W T H R A T E 10% 0 10X 1.0X 0.1X 20% RELATIVE MARKET SHARE

19. Re Write The Rules! The paradigm Development of Strategy Implementation Company Performance Step 1 Tighter Controls Step 2 Reconstruct or Develop New Strategy Step 3 Abandon Paradigm and Adopt New One

20. Performance Management Performance and Appraisal Steve Pollard, Associate Lecturer

21. Measuring Performance Where are we now? Where do we want to go to? How do we get there? HOW WILL WE KNOW?

22. Basic Questions How will performance be measured? i.e. by what indicators What are the performance targets set? How will progress be measured? Who will be responsible? How and when will the results be fed back into the planning cycle?

23. Performance Measures Income Response Times Satisfaction Value Added Turnover Ratios Quality Attendances Profit ? Cost

24. Good Targets ... relate to objectives are achievable … but also stretch are clear and stable over time are easily understood have commitment/are agreed have responsibility made clear are honest and unambiguous

25. The Dashboard Approach More than one measure A few critical areas: fuel; speed; time etc Much more than the rear view mirror Guides … not automatic pilot!

26. Your Dashboard? Cost Time ??? Volume ??? Quality

27. Further Module Aims To: Consider how we can achieve high performance Discuss operational planning and apply certain planning tools Evaluate the problem solving/decision making process Assess how we give feedback on performance

28. The Organisation People Hardware Software Manager’s Task: to deliver the best possible performance from the available resources

29. Performance Management Performance management is about monitoring performance against targets, identifying opportunities for improvement and delivering change Lets come back to this..

30. The EFQM Excellence Model Leadership People Policy and Strategy Partnerships and Resources Processes People Results Customer Results Society Results Key Performance Results Enablers Results

31. Think about an occasion when you/your team performed really well What went well? What or who motivated you? What conditions were in place that enabled your high performance? What lessons does this give you as a line manager in helping others to achieve high performance?

32. The DMP Achieving Results Personal Effectiveness Managing People Managing Communications Continuous Improvement Activity: In groups, pick out key factors from each of the 3 modules which ‘enabled’ the achievement of results Managing Change

33. Operational Planning Organisation/Personal Aims/ Objectives Planning and Organisation Implementation Monitoring and Control Evaluation

34. Aims and Objectives What is an Aim? What is an Objective? Specific Measurable Achievable Results Related Time Bound

35. Planning Mind Mapping

36. Aims and Objectives Activity: In groups, you are going to plan redecorating a room in your house. This includes some electrical rewiring and a new carpet. For now, we need your aim, objectives (specifications), and milestones.

37. Planning Identifying activities/estimating durations Allocating responsibilities Skills matrix Communications plan Quality plan Risk assessment and contingency planning

38. Planning, Implementation, Monitoring and Control The Gantt Chart

42. Improving Performance through Problem Solving Problem recognition Analysing the factors contributing to the problem Generating solutions Deciding on the solutions Implementation Review and evaluation

43. 1. Recognising and Identifying the Problem Key indicators of problems: Productivity Performance Quality Costs Budgets You need: Information Views Agreement that the problem needs resolution Agreed aims and objectives

44. Perceiving the Problem Problem

45. 2. Analysing the Causes for the Problem Problem-Solving Tools: Fishbone Diagram Ask Why 5 Times Method

46. The Fishbone Diagram 20% of service calls are more than one hour late P eople absenteeism overloaded staff untrained staff P lant business location E nvironment traffic roadwork weather E quipment unreliable equipment poor phones M ethods poor scheduling over-ambitious rotas region too big poor admin and filing unavailable spares M aterials

47. The Ask Why 5 Times Method Change policy Staff judged on activity not results Too busy – why? Include as agenda item Poor communications – why? Fix obvious. Locate less obvious Poor working conditions – why? Low moral – why? Record reasons High abenteeism – why? Consequent Improvement Level of Problem

48. 3. Generating Potential Solutions: the Creative Process Green Light Thinking Red Light Thinking Einstein: ‘Imagination is more important than knowledge’

49. 3. Generating Potential Solutions: the Creative Process

50. Developing Creative Thinking Attitudes Think – can do! Be open-minded to new ideas and the ideas of others Have an enquiring mind Never be satisfied – assume everything can be improved Don’t be put off by ridicule Put aside critical, analytical, judicial thinking while working creatively Look at a range of ideas/solutions – the first may not be the best

51. Brainstorming Leader writes up problem Group tosses out ideas Accept No editing Build/synergy Cut-off Screen/shortlist Individual scoring?

52. Deciding Which Solution to Implement The Decision Matrix Decision Tree Exercise Implementation Action plan

53. Review and Evaluation Have we achieved: our aims and objectives? targets? standards? An effective solution to the problem The journey to excellence through continuous improvement

54. Giving Feedback on Performance

55. Can We Change Things? Circle of Concern Circle of Influence Circle of Concern Being Reactive Being Proactive Circle of Influence

56. Performance Management Performance management is about monitoring performance against targets, identifying opportunities for improvement and delivering change

57. Can We Change Things? Forums: Line of command Talk back days Communications officers Intranet message board Sharing best practice Internal External

58. Reflection