Business Plan for Operations and Performance Measurement Reporting. Kris Shah Baylis Medical Co.

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1 Business Plan for Operations and Performance Measurement Reporting Kris Shah Baylis Medical Co.

2 Agenda Intro to Baylis Medical Business Plan vs Living Documents Performance Measurement Reporting Why? How? Etc Balance Score Card Conclusions

3 Baylis Medical Co. Began as an importer and distributor of medical products for the Canadian market The Company has grown into a leading developer, manufacturer, and distributor of high-technology medical products used in Pain Management, Cardiology and Radiology

Canadian market The Company has grown into a leading developer,

Baylis Medical Company 25 years, + 130 employees

clean room 20,000 sq ft of manufacturing space Export to

4 Baylis Medical Company 25 years, employees Facilities R&D, Manufacturing in Toronto 3,500 sq ft of clean room 20,000 sq ft of manufacturing space Export to over 60 countries Extensive research resources and collaborations

6 Business Plan for Operations Business plan for operations differ from business plans used for external consumptions: Meant for internal use Shorter, more focused plans Action oriented to realize the business strategy Internal and externals plans should be consistent

internal use Shorter, more focused plans Action oriented to

7 Business Plan for Operations Plan for each key aspects of operations: Product development Financial Human Resources Operations/Manufacturing Compliance/regulatory IP

8 Business Plan for Operations Having developed an action plan for each major operation, measurement of your results is essential

9 Performance Measurement Reporting Why do formal measurements? How often to report? What should you be measuring?

10 Why do Measurements? You get what you measure Jack Welsh

11 Why do Measurements?

12 How Often to Report? In a business situation daily or hourly touch points occur between team members Often this is seen as sufficient especially in small teams High frequency touch points are often not sufficient to see the forest from the trees

13 How Often to Report? Performance measurement must be done Weekly Key customer deliverables Actions that can be completed in short duration Monthly More formal performance measurement system should be put in place Look at all key performance indicators Attended by all senior/key staff

Actions that can be completed in short duration Monthly More formal

14 What to Measure? On a monthly basis Look at parameters related to: Survival Key strategic indices Key Performance Indicators KPI will change over time KPI must be evaluated against a pre-defined criteria

15 What is KPI? A key performance indicator is measured reflecting how an organization is doing on specific aspect of performance Key activity needed to achieve a strategic objective A mix of KPIs will provide comprehensive picture of the organization

16 KPI KPI is tied to your strategic objectives Critical Success Factors Corresponding Performance Metric - Increase customer satisfaction - Net promoter score - R&D efficiency - Product development scheme

Metric - Increase customer satisfaction - Net

17 Balance Score Card Concept developed by Drs. Kaplan and Norton at Harvard Transforms a strategic plan into measurable actionable plan What should be done and measured Execute and measure your strategy View organization as a whole Develop matrices Collect data Analyze data with respect to strategic imperatives

actionable plan What should be done and measured Execute and measure your

19 Balance Score Card Improve organizational performance by measuring what is important Focus on the drives of future performance Align strategic imperatives with work people do on a day to day basis Improve communication among team members

performance Align strategic imperatives with work people do

20 Balance Score Card

21 Balance Score Card

22 Balance Scorecard

24 Common Pitfalls Confusion over number of metrics Unaligned metrics Overly aggressive targets Risk of data manipulation

25 Conclusion Business plans for operations are a living document that tend to be action oriented with performance measurements Measuring performance on a monthly basis is critical to align strategy to operations Balance Score Card provides a clean framework

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