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Lack of efficiency and effectiveness in an organization can have a significant impact on the overall cost of operation.
Organizational Velocity - Improving Speed, Efficiency & Effectiveness of Business provides a framework for diagnosing, assessing and implementing to improve the speed at which the organization operates.
There are two main areas for focus:
1. Process Audits - a framework for assessing key processes within the different functions of the organization and detailing where improvements are to be had
2. Workload Analysis - based on a workforce survey to identity where and what time in the organization is spent doing, including the efficiency and effectiveness of Meetings
The outcome from using the PPT framework will be a prioritised list of initiatives for implementation to increase organizational speed and reduce the cost of operation.
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2. Lack of Organizational speed is caused by multiple factors, but the most
mportant one is “Organizational Will”
ORGANIZATIONAL VELOICTY
ypical Causes of Operational Lethargy
Clarify
priorities
Review
allocation
Attitude/culture/incentive
Lack of SpeedLack of Speed Lack of SpeedInsufficient Resources
Lack of SpeedUnclear/Conflicting Priorities
Lack of SpeedOrganizational Will
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3. 1
2
3
4
5
6
Process BBFTB1 Implement Quick win Implement
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
• …
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
Process Recommendations Dashboard contains a ‘menu’ of prioritised
process improvement opportunities
MPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS
rocess Recommendations ‘Dashboard’
Notes: (1) ‘Big Bang For The Buck’ Opportunities
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4. Contents
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
• Worked Example 20
• Workload Analysis 33
• Benchmarking 41
Becoming Faster – The Management Challenge 43
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5. Description
Who?
• … • … • … • … • …
• … • … • … • … • …
Step 2 involves interviewing the Process Owner (and team) to detail
ach step of the process, describe it and who is involved etc
PROCESS AUDITS
How long?
When?
• … • … • … • … • …
• … • … • … • … • …
1. Detail each sequential step of
the process (through interview
with Process Owner & Team)
2. Complete more
detail for each
step
Step
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6. Improvement Opportunities
Efficiency Effectiveness
1 2
…which will lead too Step 4 - identification of the key improvement
opportunities
PROCESS AUDITS
Step
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7. Description of Opportunity
• …
Description of Benefit Estimated Value
• … • …
Recommended Next Steps
• …
Risks / Considerations Investment Required
• … • …
Step 6 is to produce a one page description for each opportunity,
edesigning the process
PROCESS AUDITS
BFTB Opportunities Step
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8. For this example six key functions were selected along with the in-
cope process to be audited
PROCESS AUDITS
In scope:
Out of
scope:
Research &
Technology
Management/
Admin
Marketing Sales Finance
Process
Leadership
Other areas
• Corporate
Reputation
• HR processes
• Legal processes
• IT processes
• Consumer
Services
processes
• Marketing material
production
• Public Relations
• Agency
relationship
management
• Field sales
• Pricing Strategy
• New business
• Asset Mgt
• Monthly Closing
• KPI reporting
• Tax
• s404
• SAP
• Cost Innovation
• Nutrition
• Supply Chain
processes
• Strategic
planning
• Brand Planning
• Advertising
planning
• Promotions
planning
(Powerplays)
• Account
management
• Trade Promotions
• IBP
• Order to cash
• Purchase to pay
• Annual Budgeting
• Forecasting
• Innovation
EXAMPLEExample used in
subsequent
slides
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9. The efficiency audit highlights lack of alignment of activities and the
ead time it too long
PROCESS AUDITS
Efficiency Questions Efficiency
Is there a need to completely
redesign the process?
Are any steps in the
process unnecessary?
Are the steps in the right sequence?
Are there large efficiency opportunities
within any of the steps?
Are too many people involved in the
process? (Decision matrix)
Does the process take too long?
• No
• No
• Yes
• Lack of alignment in guidance provided, driving different activities
• Needs wider involvement to achieve objectives
• Limited visibility of actual workload leading into strategy planning
• Total lead time is too long for the strategic planning process
A
B
C
D
E
F
• Condensed and precise process (clear perimeter, input/output, etc); best practice time frame: 4 weeks
• Ability to drive out of the box thinking (challenge status quo). Strategy should be built outside in (not just based on where the business is
at today)
• Shared understanding and buy-in from BU
riority Process Audit: Efficiency EXAMPLE
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10. Value of Opportunity
High valueLow Medium
Redesign of strategy planning
process
Driving strategy understanding
down in the organisation
BBFTB Opportunities
Stimulate “out of the box”
thinking
Quick Wins
Stimulate
“out of the
box” thinking
Redesign of
strategy planning
process
Driving strategy
understanding
down in the
organisation
1
2
3
1
2
3
Easeofimplementation
EasyDifficultModerate
Each opportunity is ranked by both value and ease of implementation
PROCESS AUDITS
RIORITISATION OF IMPROVEMENT OPPORTUNITIES EXAMPLE
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11. Description of Opportunity
• Improve the communication of the
strategic roadmap and the department
roadmaps
• Everyone in the organisation needs an
understanding of how their work and
outcome relates to the strategic goals
and priorities
Description of Benefit Estimated Value
• Improved understanding of company
goals and improved decision making
on lower levels of the organisation
• Medium, especially better decision
making and higher engagement of total
organisation
Recommended Next Steps
• Implement communication concept
Risks / Considerations Investment Required
• Management must be able to
“translate” strategic goals to individual
workplace
• Low, time of management
Driving strategy understanding down in the organisation
PROCESS AUDITS
EXAMPLEBFTB Opportunity # S.P.2
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12. Contents
CONTENTS
Page
Organizational Velocity 1
Improving your Speed, Efficiency & Effectiveness 4
• Process Audits 9
• Worked Example 20
• Workload Analysis 33
• Benchmarking 41
Becoming Faster – The Management Challenge 43
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13. “Do you believe there is additional
capacity within the office to ‘do
more’?”
Yes55%
No 45%
• Average of an additional 14% capacity by
those employees that said “Yes”
• The suggested additional capacity ranged
between 5% (7 respondents) and 40% (3
respondents)
Comments from Respondents
• “Using our tools correctly would save time to create time”
[10%]
• “We need to change our effectiveness and speed in decision
making and be more risk taking versus need to validate and
research everything versus making business decisions based
on experience and judgement” [40%]
• “Our plant is at about 70%, another at about 65%, one at
about 80% and the last one at about 50-60%”
• “Everyone is busy and at capacity but not necessarily on the
right things” [0%]
• “We are already doing too much. We need to do less and
focus on doing things properly instead of always rushing from
one thing to another” [0%]
• “In our dept we are fully busy so logical answer is "no" but we
all find time for special projects/emergencies so the
organisation does have some flex but suspect it is not
sustainable the way we do it - we should plan it better and as a
business agree things that won't be done in the future - that re-
prioritising could mean a better use of capacity rather than a
more capacity”
mportantly, a workload survey provides an assessment of the
willingness of the organisation to speed things up and get more done
WORKLOAD ANALYSIS
EXAMPLEWorkload Survey Findings
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14. • Weekly: 2
• Monthly: 56
• Other: 38
• Number of meetings: 119
• Weekly man hours: 364
Discrete
meetings
identified:
317
• Number of meetings: 198
• Weekly man hours: 553
• Weekly: 52
• Monthly: 53
• Other: 93
Cross functional meetings
Individual department meetings
• Weekly: 77
• Monthly: 109
• Other: 131
Total of 917 weekly
man hours involved in
meetings, or 16% of
team time (not
including preparing,
arranging or following
up meetings)
A ‘meeting and project snapshot’ clarifies how well the business is
using meeting and projects as tools to ‘get things done’
WORKLOAD ANALYSIS
EXAMPLEime versus Employee Costs Spent for Key Work Activities
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15. Whilst benchmarking needs to be contextualized, it can help identify
mprovement opportunities or areas of focus
BENCHMARKING
Benchmarking
Our Co.Benchmark
4
Benchmark
3
Benchmark
2
Benchmark
1
Our Co.Benchmark
4
Benchmark
3
Benchmark
2
Benchmark
1
Total FTES per HR FTE Marketing Spend/Net Revenue
#
#
#
#
?
$
$
$
$
?
EXAMPLE
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16. Continuous
Process
Improvement
Organisation Speed Project
This process is the first step towards a continuous process
mprovement philosophy and a faster organisation
BECOMING FASTER – THE MANAGEMENT CHALLENGE
ontinuous Improvement
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