Business Improvement. Embedding continuous improvement into your business
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- David Jackson
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1 Business Improvement Embedding continuous improvement into your business
2 Here s something to be thinking about constantly: being in the process of shifting from chaotic complexity to elegant simplicity. Robin Sharma It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change. Charles Darwin
3 Questions to ask Is your organisation open to change, building legacy, developing others and being a leader within the community? Is business improvement a separate function within your business or is it embedded within your business? Do people in your business understand the big picture and key result areas, or are they distracted by organisational politics, turf wars and white noise? Is your organisation focusing energy and effort on achieving the key business outcomes? Does you business have roles where their only job is to coordinate an internal business process? Are they adding value to the end customer? Do your people all make decisions like they were a mini CEO?
4 Questions to ask
5 Core Principles Constructive leadership styles Open to change, innovative, improvement & change is a journey Leadership without a title Everyone is a leader in their role or field. Individuals strive for personal development Less is more Simple, agile, effective and well understood processes What gets measured gets managed Transparency, accountability, objective Planning prevents poor performance Greater focus on looking forward and less time looking backwards
6 People vs Process Many businesses are very process centric Control mindset
7 People vs Process Need to balance both people & process Focus on key business outcomes and key result areas (KRAs) Focus best practice energy on those areas which are critical to the business Ensure non core processes contribute and support the achievement of key business outcomes Establish KPIs and layered review / planning gates for each KRA Openness and transparency to get alignment and buy in across the organisation Focus on People. See growth as a journey Culture, leadership, teamwork, personal growth, training Simple, agile and easily understood processes less is more Simple, layered and structured review / planning gates, key performance indicators, corrective actions, effective project and change management, simple yet effective technology
8 Business Key Result / Risk Areas (KRAs) Technology Principles Less is more Strategy defined by business strategy/ KRAs Capability not a solution Technology Leadership Process Constructive Leadership Open to change, innovative, improvement and change is a journey Process Principles Alignment of core and non core processes with organisations KRAs and organisations culture Stage review & planning gates PEME (TQM/ Demming) 1 % improvement every day Less is more People Capability Constructive Culture Training & succession planning Personnel development Mentoring & coaching Leadership without title People Culture Not driven by individual agendas sees growth as a journey for all Not threatened by change sees change as opportunity Balanced Scorecard What gets measured gets managed Cross section of KPIs (not just financial) Transparency One team approach Business Outcomes & KPI s
9 Human Synergistics Build a constructive culture Receptive to change Encourages growth & development Take on challenging opportunities Work on non constructive behaviours Competitive, oppositional, perfectionist, resist change Avoidance, conventional, dependent, power Not threatened by change sees change as opportunity Not driven by individual agendas sees growth as a journey for the team
10 Focus on 1% evolution drives revolution Financial Clients/ Stakeholders Prudent in your spending Getting the invoice out fast Make that daily phone call to one of your clients/ stakeholders. Don t hide away in your office. Go that extra mile Safety The standard you walk past is the standard you accept. Think before you act. How could I get hurt doing this job. Operations Walk the floor People Compliment your team every day. Live the values 24/7 If you see in-appropriate behaviour have the courage to call it.
11 Key Review / Planning Cycles Do you spend more time looking in the rear vision mirror or looking to where you are going? Does change come about due to external force or crisis, or are you constantly looking to improve from within?
12 Key Review / Planning Cycles Management Routines How we do business Key steps / Key review points Key meetings, review points, stage gates, discussions Linked to KRA s, KPI s and Business Outcomes Structured and disciplined Daily, weekly, monthly, annually Operational tactical strategic Accountability for corrective actions and improvement
13 Key Review / Planning Cycles Key Result Areas Financial Clients Safety Operations People Cycle Daily Weekly Monthly Quarterly Annual 3-5 Year Strategic Plan Evolve Plan Measure Execute Level Strategic Level (CEO, Senior Management, Board) Senior Management Level (Senior Management Team) Operational Level (Management, Project Managers) Team Level (Supervisor) Individual Level Business Outcomes Sustainability Shareholder Value Repeat Clients Engaged Staff
14 Financial Clients Safety Operations People Key Review / Planning Cycles Time Horizon Plan Execute Measure Evolve Daily Weekly Production Meeting Toolbox Meetings Management Meetings Sales Meeting Team Meeting Production Performance Safety Incidents Client Complaints Sales Report Production Output Monthly 1 on 1 - Coaching 3 W Action Items (3 W) 1 % Monthly Annual Production & Financial Forecast Resource Planning Business Plan & Capital Plan Team Building Performance Appraisal Balanced Scorecard Profit Loss/ Cash Flow Safety LTI, MTI, Near Miss Utilisation Balanced Scorecard Profit Loss/ Cash Flow Safety LTI, MTI, Near Miss Staff Engagement Major Projects (Stage Gate process) Break KPIs and review gates down to daily, weekly, monthly and annual cycles Link KPIs and review gates to Key Result Areas
15 Balanced Scorecards Would you fly in a plane with a pilot who has no instrumentation, and therefore determined their positioning and how the engines were running using instinct and experience? What gets measured gets managed Linking KPI s to KRA s Actual performance + forecast Lead and lag indicators Constant alignment
16 Balanced Scorecards
17 Business Performance KRAs Objectives Balanced Scorecard Financial Improving Cash-flow Increasing Profit Long term sustainability # days outstanding Profit contribution Clients Revenue streams Sales growth Working with clients of choice Margin Order book Safety Working towards zero harm Near misses, audits Lost time injuries (LTIs) Medical treated injuries (MTIs) Operations Increasing productivity Increasing production output Reduced inventory / WIP Volume Production Work In Progress ($) People Increased staff retention Increased staff engagement Increased innovation Pulse Survey Results Staff retention Employee Satisfaction
18 Collaboration Simple, integrated and effective less is more Do you really work as one team? How much time do you spend managing paper flow? Is your team mobile, agile and flexible? Systems that focus on less is more
19 Any questions?
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