Organizational velocity improving speed, efficiency & effectiveness of business sample

Organizational Velocity -

Improving Speed, Efficiency &

Effectiveness of Business

(Sample)

A faster organisation is normally a better organisation

ORGANIZATIONAL VELOICTY

Reactive speed

Proactive speed

Advantages

+ Money sooner

+ Anticipate competitors

+ Exceed customers expectations

+ Do more

+ Create new opportunities

+ Be vibrant and dynamic

+ Increase efficiency

Cautions

― Rushing with no information

― Executing poorly

― Not waiting for situation to evolve

― Pushing too hard

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Contents

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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



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

IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS

Process Recommendations ‘Dashboard’

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Notes: (1) ‘Big Bang For The Buck’ Opportunities



131

32

30

Focus

Opportunities

66

4

Total Potential

Opportunities Observed

164

17

5

• BBFTB Opportunities

― Efficiency gains: ~ $x.xm (~x FTEs)

― Specific effectiveness gain of ~$x.xM for

‘Order to Cash’ process

― Additional significant effectiveness

opportunities (sized as Low/Medium/High

only)

• Quick Wins:

― Efficiency gains: ~$x.xM

― Additional effectiveness opportunities (sized

as Low/Medium/High only)

• General Observations

― Efficiency gains from better meetings: ~$x.xM

(~x FTEs)

― Significant effectiveness opportunities (sized

as Low/Medium/High only)

Process

Audits (inc.

review of best

practise for

each process)

Benchmarking

General

Observations

Process

BBFTBs

Process

Quick Wins

General

BBFTB

Total Impact of opportunities

― Efficiency gains: $x.xM

― Specific effectiveness gains:

~$x.xM (Order to Cash)

― Additional significant

effectiveness opportunities

Financial benefits are often be derived from the Process Audits and General Observations

IMPROVING YOUR SPEED, EFFICIENCY & EFFECTIVENESS

Benefits ‘Dashboard’ EXAMPLE OUTPUT

4



Process Value Chain Overview Description of Main Activities Process Audit Results

Improvement Opportunities Prioritisation of Opportunities ‘BBFTB’ Opportunity 1 Pagers

1 2 3

4 5 6

A Process Audit consists of six steps

PROCESS AUDITS

Process Audit Steps Summary

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Description

Who?

• … • … • … • … • …

• … • … • … • … • …

Step 2 involves interviewing the Process Owner (and team) to detail each 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

2 Step

6



No action required

Moderate level of improvement possible

High level of improvement possible

• Each process is

rated for each of the

10 audit questions

across efficiency

and effectiveness

• ‘Worst’ rating across

the respective audit

questions drives the

overall rating for

that process for

each of efficiency &

effectiveness

The efficiency and effectiveness of each process is rated according to the extent of improvement potential…

PROCESS AUDITS

Rating Criteria 3 Step

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Easy

Moderate

Difficult

• Easy implementation without major investment, limited effort, no risk and no global

guideline restrictions

• Implementation with some financial investment, medium implementation effort, some risks

and/or some global guideline restrictions

• Difficult implementation with major financial investment, significant implementation effort,

implementation risk and/or global guideline restrictions

Ease of implementation

High

Medium

Low

• Frees up a large amount of time or resources to “do more” and/or increases the quality of

the outcome (effectiveness) to a very high degree

• Frees up a significant amount of time of resources to “do more” and/or increases the

quality of the outcome (effectiveness) significantly

• Frees some but limited time of resources to “do more” and/or increases the quality of the

outcome (effectiveness)

Value of opportunity

Rating Criteria for Improvement Opportunities

Step 5 - Each opportunity is then ranked by both value and ease of implementation against set criteria

PROCESS AUDITS

5 Step

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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, redesigning the process

PROCESS AUDITS

BBFTB Opportunities 6 Step

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Contents

10

CONTENTS

Page

Organizational Velocity 1

Improving your Speed, Efficiency & Effectiveness 4

• Process Audits 9

• Worked Example 20

• Workload Analysis 33

• Benchmarking 40

Becoming Faster – The Management Challenge 42



Create roadmap/

revise last year's

roadmap

Define issues and

opportunities

Define detailed

strategies (brands,

departments, etc)

Review detailed

strategy and

combine to

corporate strategy

Strategic Planning

Process Owner J. Smith

Input

• Strategic roadmap from

previous year

• Market, competitor, product

analysis

• Global strategy framework

Process frequency Annual

Involved parties

(internal, external) MD, CFO, Leadership Team

Main IT-systems,

-tools

Process customer

(internal, external) Leadership Team

Output • Strategic roadmap

Preparation of

presentation deck

Presentation and

discussion of

strategy Leadership

Team

The value chain for Strategic Planning identifies six key process stages

PROCESS AUDITS

EXAMPLE

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The efficiency audit highlights lack of alignment of activities and the lead 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

Priority Process Audit: Efficiency EXAMPLE

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Improvement Opportunities

1. Reorder the activities of strategy planning process 2. Driving strategy understanding down in the organisation

3. Stimulate “out of the box” thinking

Efficiency Effectiveness

1 2

3

There are three key improvement opportunities

PROCESS AUDITS

EXAMPLE

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• Redesign the strategic planning

process with shorter timeline and 2-

step approach


• The shorter timeline provides the

opportunity to focus the planning effort

during a specific period of time and

base the strategic plan on the most

current information

• Do the strategic planning of supporting

functions in the second step improves

the alignment with the commercial

strategy

• $100k

10% less rework due to most current

information and 2-step approach

(strategy alignment)


• Review proposed process and timeline

• Implement new process for the next

strategic planning process


• Clear communication of deliverables

as needed in order to perform on the

compressed timeline

• Be aware of other activity during this

time:

― Year-end closing

― Submission of annual budget

• None, just communicate new process

and design templates/ guidelines

BBFTB #1 is to redesign the strategic planning process

PROCESS AUDITS

BBFTB OPPORTUNITY # S.P.1 EXAMPLE

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• 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


• 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


• Implement communication concept


• Management must be able to

“translate” strategic goals to individual

workplace

• Low, time of management

Driving strategy understanding down in the organisation

PROCESS AUDITS

EXAMPLE BBFTB Opportunity # S.P.2

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1. Strategic Planning

Process BBFTB Implement Quick win Implement

S.P.1 Redesign strategic planning

S.P.2 Communicate strategy S.P.3 Stimulate out of the box thinking

Yes No

Yes No Yes No

…and to the overall recommendations

PROCESS AUDITS

Process Recommendations ‘Dashboard’

2

3

4

5

6

• …

• …

• …

• …

• …

• …

• …

• …

• …

• …

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

EXAMPLE

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Meeting &

Project

Snapshot

Workload

Survey

Workload Analysis

• Survey the team to evaluate:

─ which processes employees

are working on

─ what activities they are

undertaking to get things

done

─ the autonomy of their role

─ general recommendations

and comments on whether

there is additional capacity in

the business to ‘do more’

• Completed by key people in

each department

• Identifies key recurring meetings

and standalone projects/

workstreams

Meeting Quality

Observations

• Attended and evaluated key

meetings

Measure and observe whether the organisation is running very ‘tight’

or whether there is room to capture efficiencies

Objective

In parallel to the ‘process audit’ work, a workload analysis will drive a clear understanding of how the organization spends its time

WORKLOAD ANALYSIS

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Key Workload Analysis Activities



“Do you believe there is additional

capacity within the office to ‘do

more’?”

Yes 55%

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”

Importantly, a workload survey provides an assessment of the willingness of the organisation to speed things up and get more done

WORKLOAD ANALYSIS

EXAMPLE

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Workload Survey Findings



24% 21%

11% 11%

8%6%

8% 11%

Meeting Related

Communicating internally

Communicating externally

Desk Work

Managing people

Other (Training etc)

Employee Cost

48%

2%

Time Spent

46%

3%

Represents ~$20m in

people cost.

A 10% improvement in

meeting efficiency

across the board

would release ~$2.0m

in resource

..as well as a perspective on the ‘activities’ people are undertaking on a day to day basis

WORKLOAD ANALYSIS

Time versus Employee Costs Spent for Key Work Activities EXAMPLE

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Meeting 1 2 3 4 5 6 7 8 9

Hygiene

On time 1 3 2 5 3 2 2 1 1

Pre-reading available 5 5 5 5 1 3 4 5 5

Pre-reading read 2 3 3 2 N/A 2 2 2 2

Behavior 5 5 5 5 5 5 5 5 5

Time Length 3 4 2 3 1 2 4 3 3

Frequency 5 5 5 5 1 5 5 5 5

Clear objective Decisions taken Yes No No No Yes Yes Yes Yes Yes

Other - information Yes Yes Yes Yes No Yes Yes Yes Yes

Participants Right people? 3 3 3 3 1 5 4 4 5

Actually there? Yes Yes Yes Yes Yes No Yes No No

Clear Agenda 5 3 5 5 5 5 5 5 5

Document

information

quality

Right info 1 2 3 3 1 4 3 3 5

Format 2 2 3 3 N/A 4 5 3 5

Follow ups Minutes/ Actions 5 5 N/A 2 5 2 5 2 2

Follow up N/A N/A N/A N/A Yes Yes Yes Yes Yes

5 = Very Good; 1 = Very Poor

An audit of meeting quality will give an insight to the companies ‘meeting culture’

WORKLOAD ANALYSIS

EXAMPLE

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For a better understanding of how to increase meeting efficient and effectiveness see STRATICX

document “Complete Toolkit for Improving Meetings”

Meeting Audit Heat Map



Whilst benchmarking needs to be contextualized, it can help identify improvement 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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Ultimately, the speed of an organisation is strongly influenced by its leadership, and their ability to inform culture and key processes

BECOMING FASTER – THE MANAGEMENT CHALLENGE

Inform, incent, monitor, fine tune, excel

Calibrate, give

Set, review Lack of Speed Priorities

Lack of Speed Resources

Lack of Speed Will

Becoming Faster – The Organizational Challenge

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