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The 12 Ladders The 12 Ladders toto
World Class World Class PerformancePerformance
Originally Developed by:Professor David Drennan,UKPromoted in Malaysia by:Ramli Abu Hassan – DPS.
WELCOME Everyone !
OVERVIEW PRESENTATION.
The 12 Ladders The 12 Ladders toto
World Class World Class PerformancePerformance
Originally Developed by:Professor David Drennan,UKPromoted in Malaysia by:Ramli Abu Hassan – DPS.
Our Agenda:
•What is World Class ?
•What are the World Class Companies in the 21st Century?
•What are the Malaysia Class CompaniesWorld Class
•About the 12 Ladders and their 5 Levels
•What’s THE TANGIBLE & INTANGIBLE BENEFITS TO YOUR ORGANISATION by embarking in this World Class Journey of Excellence?
Background on this World Class Performance
subject introduction in Malaysia.
Seminar:6thDec,2005
W/Shop:7thDec,2005
Clients:
Women’s Institute of Management,Tahan Insurance,Advanced Micro Devices (AMD),MPC,MICCI,others..
Background of Diversified Promotion & Service Sdn.Bhd. or (DPS) in short.
Website://uk.groups.yahoo.com/group/dpsworldclass YouTube:www.youtube.com/pramleeelvis
Mission Statement:Unleashing the hidden
talents of human capital through the right learning
and best practices.
Trading Business
Sports Business
Training & Consultancy Business
Acknowledgements:
In preparation of this Materials,we have made references to many sources like books,magazines,websites,search engines,publications,research papers,videos,photographs and others.We wish to express our sincere appreciation and gratitude to all the above persons,organisations and all concerned or involved.
For enquiries or details,please contact Ramli Abu Hassan at email:[email protected] or [email protected].
Profile: www.linkedin.com/in/ramlipromoter
Acknowledgements to ourQuality Gurus’:(Ramli’s Collectionsof Autographs.)
Philip B.Crosby
David Drennan
Masaaki Imai
Kaoru Ishikawa
•What is World Class ?
Definition:
“being able to compete with the best in the world at what you do.” (David Drennan – 1999)
Definition:World Class Quality
“standard of excellence,best of the best” (Malaysia Productivity Corporation -2001)
The 12 Ladders to World Class Performance1 Aligning Management Objectives2 Customer Focus3 Organizing the Workplace4 Visible Measurement Systems5 Managing For Quality6 Eliminating Waste7 B. O. P.'s and Continuous Improvement8 Teamwork9 Staff Empowerment and
Involvement10 Rewards and Recognition11 Purposeful Communications12 Continuous Learning
Please identify your Focus Ladders as we move along in this class?
What is World Class ?Definition:“one of the best in the world” (Macmillan English Dictionary-2002)
Definition:“is a play on words suggesting both the need to meet the highest standards anywhere in order to compete and the growth of a social class defined by its ability to command resources and operate beyond borders and across wide territories.” (Rosabeth Moss Kanter-1995)
What are the World Class Companies in this 21st Century?
For our 2~3 day Workshop sessions,we refer examples to the following World Class Companies (selected only):Ranking shown from Fortune Global 500-The World’s Largest Corporations.Eg.the 2006 Rankings
•Exxon Mobil (USA) No.1
•Motorola (USA) No.152
•Matsushita Electric Industrial Ltd (Japan) No.47
•INTEL (USA) No.144
•Microsoft (USA) No.140
•Walt Disney (USA) No.180
•British Aerospace Industries (UK)-reference
•IBM (USA) No.29
•Petronas (Malaysia) No.120
•Toyota Motor (Japan) No.8
•Ritz Carlton Hotels (USA)-reference
•Nordstrom (USA)-reference
•Quad Graphics (USA)-reference
What’s Good Being World Class?
YOU are now one of the best companies in the World.
Your Brand is known globally and respected. Others want to benchmark with Your
Performance. Customers know YOU and become more
loyal. Talented People want to work with YOU.
Street Smart,Book Smart,Business Leaders,Government Leaders,Management Gurus’-Who are the best to learn from ?
Mean
Why 6 Sigma Quality is so Popular or a Fad? 6 sigma = Expected Yield (99.9997%)
6 sigma = Expected Defect (0.0003%)
ie. Almost 3 defects per million production qty.6 sigma =Almost ZERO DEFECT !
Why is it so important to Motorola and other Businesses?
If 0.5 % allowable defect rate,it will mean:
5 defects in 1000 production qty
50 defects in 10,000 production qty
500 defects in 100,000 production qty
5000 defects in 1,000,000 production qty
DEFECTS=DID NOT DO RIGHT FIRST TIME
DEFECTS=WASTES=MONEY=REDUCE PROFITS OR ADD MORE COSTS TO BZNS.
Benefits of the ZD Project in your Company / Organisation.
Petronas –Origin from MalaysiaWorld Class Performances:
Exxon Mobil–Origin from USAWorld Class Performances:Ranked No.1 in the World.
guiding principlesExxon Mobil Corporation is committed to being the
world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and
operating results while simultaneously adhering to high ethical standards.
The following principles guide our relationships with our shareholders, customers, employees, and communities:
We aspire to achieve our goals by flawlessly executing our business plans and by adhering to
these guiding principles and the foundation policies that follow.
Video Presentations – All About World Class Companies (Their Culture ,Their Passion ,Their Values,Their Successes,Their People,Their Leadership,Their Best Practices, etc..)
Co:Proctor & Gamble
Co: Ritz Carlton
Govt :US Army Co:Scana
Co: Jet Blue
• What is Malaysia Class ?Definition:
“being able to compete with the best in Malaysia at what you do” (Ramli Abu Hassan -2008)
Definition:
““one of the best in Malaysia” (Ramli Abu Hassan-2008)
Malaysia Quality Class-The 7 Excellence Indicators by MPC. Leadership Planning Information HR Management Process Improvement Customer Relation and Management Business Performance
No. Malaysia Quality Class-Excellence Indicators by MPC
1.0 Leadership
1.1 Sr.Exec Leadership
1.2 Organisation Culture
1.3 Responsibility to Community and the Environment
2.0 Planning
2.1 Strategy Dev’mt and Deployment
3.0 Information
3.1 Mgmt of Information
3.2 Comparison and Benchmarking
4.0 HR Mgmt
4.1 Human
4.2 Employee Involvement and Commitment
4.3 Employee Education,Training and Dev’mt
4.4 Employee Health and Satisfaction
4.5 Employee Performance and Recoqnition
No. Malaysia Quality Class-Excellence Indicators by MPC
5.0 Process Improvement
5.1 Innovation Process
5.2 Process Mgmt and Improvement
5.3 Supplier and Partnering Processes
6.0 Customer Relation and Mgmt
6.1 Customer Requirement
6.2 Customer Relationship
6.3 Customer Satisfaction
7.0 Business Performance
7.1 Customer Results
7.2 Financial and Mkt Results
7.3 People Results
7.4 Operational Results
Public Bank Berhad
WORLD / ASIA / ASEAN / Malaysia Class Performances:
Malaysia Airlines,
World/ASIA/Malaysia Class Performances:
Malaysia Airlines, the national carrier of Malaysia, is recognised as one of Asia's largest, flying more than 48,000 passengers to some 100 destinations across 6 continents everyday. The airline holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years including Best Cabin Staff Award successively from 2001 to 2007 (Skytrax) and Economy Class Onboard Service Excellence (Skytrax). It is also one of only 6 airlines worldwide to be accredited a 5-Star Airline by Skytrax, an accomplishment it has achieved for 3 consecutive years.
01
1b
End ‘05
Apr ‘06
Critical
Level
RM600m
Cash Crisis02
-1.3b
-1.7b
2005
(9months)
2006
Full Year
Profit Crisis
COMMERCIAL
OPERATION
FINANCE
Flying to Win Customers
Financing and Aligning the Business on P&L
Unleashing Talents and Capabilities
Winning Coalitions
Mastering Operational Excellence
MISSION: To be a consistently profitable airline
STRATEGY:Business Transformation
PEOPLE
STAKEHOLDERS
Transforming the company “The MAS Way”VISION: To be the World’s Five Star Value Carrier
Record profits, record turnaround!Highest profits in 60-year history
’86/
’87
’87/
’88
91/9
2
88/8
9
90/9
1
89/9
0
112151 154
222
288
111144
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261233
319
(260) (700) (259) (417) (836)
337
461
326
(1,252)
(134)
851
92/9
3
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4
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05D
ec06
Dec
07
RM million
RM 1.3b
RM 320m RM 375m
RM 2.2b
RM851m2007 Profit
Profit is driven by operational improvements (not one-off gains)
2005 losses
One-off loss(E&M provision)
One-off gain(Sale of aircraft and
buildings)
Operational Improvement
We relentlessly reduce cost over the years
20062007
2008
-1200
-1000
-800
-600
-400
-200
0
-RM665m-RM738m
~RM 1 bn
LANDING & HANDLINGLANDING & HANDLING
AGENTS COMMISSIONAGENTS COMMISSIONFUELFUEL MANPOWERMANPOWER MAINTENANCEMAINTENANCE
ADVERTISING& SPONSORSHIPADVERTISING& SPONSORSHIP
MEAL WASTAGEMEAL WASTAGE
CONTRACTS &PROCUREMENTCONTRACTS &PROCUREMENT
Cop
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© J
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Reflection: What did it feel like?
It’s tough but it’s worthwhile !
Success Factors ++ are:(Ramli’s thoughts..) Leadership-J.Welch,K.Matsushita,HP Teh,.. People-Maybank,Genting,Toyota,JetBlue,. Culture-Disney,Panasonic,Microsoft,… Innovations-3M,Air Asia,Apple,… Global & Local Businesses-Exxon-
Mobil,Petronas,WalMart,… Tools & Techniques-Motorola(6 Sigma
Quality),Toyota(Lean Manufacturing-Visual Mgmt)Genting-RWB(Quality Round the Clock),Mamak Restaurants(fast,friendly,food choices)...
5 things Leaders’ Must Do: Help a group establish some sensible
direction.eg.Jack Welch@GE-Be No.1 or No.2 in the business,that’s it! Robert Kuok-Kerry Group
Great Leaders are all good at getting relevant partners aligned with,buying into and believing in. eg.Tony Fernandes@Air Asia in establishing LCCT-Sepang.Mokhtar Bukhairi-Al-Bukhairi Foundation.
The ability to create conditions that energize and inspire people.eg.Idris Jala@”MAS Way”BTP1&BTP2,Ananda Krishnan-Maxis etc.
A knack for allocating capital-eg.Francis Yeoh@YTL-REITs’,Properties,IPP,Azman Hashim-AM Bank.
Fall in love-passion,commitment, ferocity..eg.Nazir Razak@CIMB-Global Banker,Lim Kok Thay-Genting Berhad.
“Your Customers’ are more concerned of You fulfilling their requirements whenever they want it,to them that’s World Class !”
David Drennan.
• Product quality
• Value for money
• Reliability
• Good service
• Innovation
What Customers Value
Market Performance• Market share• Product innovation• Sales growth
Customers• Order to delivery time / waiting time• Right first time : service and product• On time in full (O.T.I.F.)• Customer complaints• Speed of problem resolution• Phone response time• Letter response time• Customer survey scores
Financial Performance• Return on capital / assets• Profit percentage on sales• Investor Returns• Share price• Unit costs
Performance Measures
Employees• Sales per employee• Profit per employee• Standard hours vs. attended hours• Absence• Staff turnover• Employee survey scores
Internal Efficiency• Sales per square foot• Profit per square foot• Added value time vs. process cycle time• Standard hours vs. attended hours• Stock turns• Overall machine efficiency• Costs of quality
inspection costs and delays; rework;scrap; customer returns; warranty
costs penalty costs; recalls• Time to market
Performance Measures
The 12 Ladders to World Class Performance1 Aligning Management Objectives2 Customer Focus3 Organizing the Workplace4 Visible Measurement Systems5 Managing For Quality6 Eliminating Waste7 B. O. P.'s and Continuous Improvement8 Teamwork9 Staff Empowerment and
Involvement10 Rewards and Recognition11 Purposeful Communications12 Continuous Learning
Most Admired Companies’Award(other attributes also apply)
1 Innovativeness2 Quality of Management3 Employee Talent4 Quality of Products / Services5 Long Term Investment Value6 Financial Soundness7 Social Responsibility8 Use of Corporate Assets
Have YOU selected your Ladders?
Managers give orders, workers just do what they have to.Some people don’t know who their boss is.Objectives are not written; the goalposts seem to keep
moving.Managers say: We don't need objectives, we know what to
do.
Each person’s responsibilities are clearly defined. There is a well-defined organisation chart. Top management have defined their goals but junior
management are not sure what they can do about them.Objectives are written, but not well followed up.
Top management decide on their annual objectives as a team.
These are turned into more specific team objectives at each lower
level of management. Regular follow-up reviews measure progress to date.At least 80% of objectives are achieved by year end.
The company’s goals are clear and actionable by everyone.Employees all understand exactly how they can contribute.Management co-ordinate their efforts across departments.At least 90% of objectives have been achieved by year end.
Measurable objectives are agreed annually in every dept.Teamwork and co-operation is expected at every level.People work to achieve the goals even under changing
conditions. 80% of goals are achieved by mid-term, 100% by year end.
Level 1
Level 2
Level 3
Level 4
Level 5
Aligning Management Objectives
Metropolitan Police Statement of Common Purpose
• to uphold the law firmly and fairly
• to maintain public peace
• to act with honesty and integrity
• to adopt the highest standards
• to be compassionate and courteous to others
• to uphold individual rights
• to behave in a manner which is neither sexist or
racist
• to serve the public
• to be a cost-effective service
• to co-operate with and consult the community
and
other agencies in pursuing police purposes
Metropolitan Police Simple, Actionable Goals
• to reduce crime
• to make it safe for anyone to walk anywhere anytime in the UK
• to treat everyone fairly
Characteristics of Good Goals
1 Simple, easy to understand without further explanation
2 Actionable every day by everyone in the business
3 Something all management by their daily actions will be able to show their genuine commitment to
4 Will stay constant (for at least three years)
5 Will be supported by regular feedback information on performance at all levels
6 Will give opportunities for recognition and celebration of success
Rubbermaid Goals
• Sales growth of 15% per annum
• Earnings growth of 15% per annum
• 33% of sales from products introduced in the previous five years
• Enter a new product category every 18 months
Microsoft’s
Mission:“At Microsoft,our mission and values are to help people and businesses throughout the world realize their full potential.”
Slogan: “ Your Potential,Our Passion.”
Petroliam Nasional Berhad (Petronas)
Vision: To become a “Leading Oil and Gas Multinational of Choice.”
Corporate Philosophy: To advance humanity through business by returning the value we create to our stakeholders.To contribute towards the well-being of the people and the nation.
Slogan: “Strategic Partner for Growth.”
Discussion Point
1 What are your company’s current top three goals or priorities?
2 To what extent do they meet the goals tests shown earlier?
3 What changes would you make, if any?
Employees think sales and marketing look after customers.Managers believe they are ‘professionals’ and already know
what customers want.Many managers and staff don’t think they have customers.
Everyone realises that the paying customer is the most important person in the business.
In-company, people know their customer is the next process.Customer complaints dealt with, but still seen as a nuisance.At least 80% of orders delivered to customers on time.
The company uses real survey data to measure performance.
Internal customers make contracts across departments.Written service standards established in every department.Complaints seen as opportunity to create improvements.At least 90% of orders delivered in full and on time.
Customer data discussed regularly at Board Meetings.Service standards met and exceeded across the company.Cycle time, order to delivery, reduced by 50%.At least 95% of orders delivered in full and on time.
Regular surveys and focus groups keep company ‘in touch’.Visible service improvements made year on year.Cycle time, order to delivery, reduced by 80%.Complaints under 0.5% and at an all-time low.100% of orders delivered in full and on time.
Level 1
Level 2
Level 3
Level 4
Level 5
Customer Focus
Questions to Internal Customers
1 What do we do well now which you appreciate and want us to continue?
2 What could we do which would improve our service to you?
3 If we were to concentrate on just two of these items, which would be most important to you?
Have YOU selected your Ladders?
Scrap items, litter and tools are left scattered around.Walls, windows, floors and machines are dirty.The yard, car park and outside areas are untidy.Employees are sloppily dressed, desks and workstations are
untidy.
The floors and windows are clean. Un-needed items are disposed of. Needed items are easy to find and easy to put back.Desks are tidy: you can find whatever you want in ten
seconds.
Equipment is cleaned up - it looks like new.Pathways are clear and without obstruction. The workplace is bright (painted). Tools and materials in well marked, easily accessible places.
Daily operator inspections keep equipment clean and maintained in
good condition.Storage areas and materials so clearly labelled even new
employees can find them. Employees can retrieve what they need within three
seconds.Any filed item can be retrieved in one minute.
The workplace is habitually clean and well organised.The flow of operations is easy to see now. Storage sites and quantities are clearly marked. Staff know automatically when to re-order. Teams earn top scores even during surprise inspections.
Level 1
Level 2
Level 3
Level 4
Level 5
Organising The Workplace
Workshop on Organising the Workplace
Do YOU have a 5-S Good Housekeeping Practice in your company? If Yes,what are the main benefits and challenges to achieve the Level 5 Performance of World Class.
Only general company-wide measures used.Key measures not decided upon for each department.Measures may be known to supervisors, but not displayed.Some departments think their work is not measurable.
Company measures performance by fact and not opinion.Key performance targets decided on in every department.Measures show performance meeting the standards set.Budgets agreed by department and regular data fed back.Data available, but generally in different forms and places.
Performance measures publicly displayed in every dept., and simple enough to be understandable to all.
Data shows performance continuously improving.Standards clear for every job-holder and every process.Each manager agrees own budget and gets regular
feedback.
Team members themselves produce the agreed performance charts and graphs and update the displayed data.
Visible management systems instantly show up deviations from normal performance in all process areas.
One-page management in operation i.e. performance on key measures fed back to each manager on one page.
Company knows measurement is a necessity to keep improving.
Senior management or visitors are able to tell from displayed data how any department is performing at any time.
Level 1
Level 2
Level 3
Level 4
Level 5
Visible Measurement Systems
Workshop on Visible Measurement Systems.
Explain your many ways of introducing visible measurement systems in your company and what are the results so far?
What do you want to do more (if any) ?
People think that production is everything. They think it is the operator’s job to do and someone else’s job
(the inspector's) to catch mistakes.
Pay systems emphasise quantity rather than quality.The primary push is to “get stuff out of the door”.
The company has made the key mind-shift from quality defect detection to active prevention.
Staff are fully responsible for the quality of their own work, and knowexactly the standards they have to meet.
They treat the next person in the process as their customer.
Corrective action taken immediately on discovered defects. Operators use the ‘5 Why’s’ technique to solve problems.The defect rate has been reduced by at least half.Staff know ‘quality’ is not what they say it is, it is what the
customer says it is.
Mistake-proofing devices are being implemented Two-point inspection is installed.The defect rate is less than 0.5%. Customer service at an all-time high. Complaints low.
The abnormality rate is tracked i.e. deviations from normal rather than the defect rate.
The entire company has installed mistake-proofing devices. The abnormality rate is down to 0.1%. Customer complaints are down to zero.
Level 1
Level 2
Level 3
Level 4
Level 5
Managing For Quality
Workshop on Managing for Quality
Question:Explain your company’s management for Juran’s Cost of Poor Quality (COPQ) or Crosby’s Price of Nonconformance (PONC)?What are your status in terms of Failure Costs (Internal and External),Appraisal Costs and Prevention Costs.How do you plan to Control and Improve your COPQ / PONC?
Managers think that frantic activity equals productivity. Month-end rushes are common, people seem hugely busy,
they turn up late at meetings, etc.When you talk to them about making improvements they say
“We’re all too busy working!”
People know the value of doing things ‘right first time’.They understand that all activities that do not add value for
the customer are waste.Teams use process improvement charts to identify waste.Managers realise that machine monitoring (i.e. watching
machines working) is waste, and seek to eliminate it.
Process waste reduced by at least 20% e.g. scrap, rework, order cycletime, process steps, transport, etc.
Staff work faithfully to written Best Operating Practices.Employees handle two or more jobs or machines.Study groups meet to discuss how to reduce waste.
Process waste reduced by at least 50%.The overall actual work ratio has reached 75% or higher.Managers plan what specific value they will add every day.Equipment breakdowns are virtually eliminated.
The actual work ratio is at least 85%. New processes designed to squeeze waste out of the system. People see working without waste motion is actually easier.Even new employees can follow procedures easily.
Level 1
Level 2
Level 3
Level 4
Level 5
Eliminating Waste
Workshop on Eliminating Wastes
Using the Cause & Effect Diagram,show all your possible causes for errors(wastes) committed in your company ?
Can you identify the root causes of these errors?
What are the possible solutions to eliminate all these errors?
Staff don’t want to get involved in improvement activities.They say things like : “Why should we?”, “What’s in it for us?”,
or “That’s management’s job”.
Any suggestion boxes are little used or ignored.
Company realises there is a ‘best practitioner’ for any job, and that theymust capture this and make it standard practice.
Company starts writing Best Operating Practices (BOP’s).Employees contribute at least 6 improvement ideas a year.At least 50% of the ideas submitted are implemented.Teams are trained in improvement techniques.
BOP’s written and used for all routine jobs.Employees contribute at least 1 improvement idea a month.Two-thirds or more of employee ideas implemented.Team problem-solving sessions take place regularly, and
teams tackle at least two major projects a year.
BOP’s now written for all jobs, and by job-holders.Employees contribute at least 2 improvement ideas a month.More than 75% of employee ideas are implemented.Teams tackle three major projects a year.Benchmarking visits used to seek out and use best practice.
Employees average more than 4 improvement ideas a month.More than 85% of employee ideas are implemented.Teams tackle more than four major projects a year.Benchmarking visitors show company among ‘best in class’.
Level 1
Level 2
Level 3
Level 4
Level 5
Best Operating Practices & Continuous Improvement
Ref:Good to Great
By Jim Collins
Workshop on BOP and CI
In your company,do you have more Quality Control(Standardization) or Quality Improvement(Breakthrough)
projects done by your project teams like QCC@ICC,QIT,MQT etc..?
Provide some examples of both QC and QI projects.
People think of themselves as just doing a job, not in a team.Co-operation between work-groups is patchy; there is rivalry
and points-scoring between teams.Workers don’t act as a team with management - it’s difficult
to make changes without suspicion or opposition.
Staff co-operate with changes the company wants to make.Work-groups have specific measurable team objectives.Individuals and team leaders all have clear roles.Staff know who their customers are, external and internal.They look like a team, help each other to get the job done.
Work-groups meet as a team daily, or at least monthly.They make specific improvement contracts with customers.They display performance data publicly in their team area. Staff are multi-skilled and can cover a variety of jobs.
Teams are organised around processes or products.Teams set their own objectives, manage their own
budgets,resolve problems and make innovations.Cross-disciplined project teams are used to tackle big issues.
Teams exist everywhere, and have become a way of life.Self-directed teams set up and working effectively.The versatility in teams means they cope with change well.Teams celebrate achievements and expect success.
Level 1
Level 2
Level 3
Level 4
Level 5
Teamwork
Workshop on Teamwork
What do you think is the Top 5 attributes of Effective and Efficient (E&E)Teamwork in your company?
Please explain them and provide examples of their impact to TNB’s Business Performance like Profits,Productivity,Patron (Customer)Satisfaction,etc...
Employees don’t want any responsibility; they want managers to be responsible for everything.
Managers want employees just to do as they’re told.Few, if any, team involvement meetings are held.
Employees are treated like adults, and expected to behave like adults i.e. to work effectively without supervision.
Employees are given full responsibility for their own work.Teams are given all the information they need to do the job.Team meeting sessions are held at least monthly.
Every team understands its own Unique Contributions.Individuals know the boundaries of their authority, and take
initiatives to do it right for the customer at the time.Teams collect data on performance, and use this with their
manager to make continuous improvements.
Every job-holder knows his/her own Unique Contributions.Staff handle the whole job themselves, so managers can
concentrate on improving the current systems.
They meet their customers’ requirements even in difficult circumstances.
Individuals agree self-set objectives and do self-appraisal.Teams set and meet their own improvement objectives.They both meet and beat their customers’ expectations.Teams involved in recruitment, equipment purchase, area
layout, producing their own budgets, etc.
Level 1
Level 2
Level 3
Level 4
Level 5
Staff Empowerment and Involvement
Workshop on Staff Empowerment and Involvement
Do YOU have any empowerment given to your staff?
If Yes,describe some of them and what are the results?
The company pays only as much as it has to to get staff.Pay systems are complicated and unpublished.Overtime is frequent, often to cover ad hoc problems.Anomalies exist and complaints frequently arise.
Pay systems have been simplified, are understandable and published.
Employees are paid about the average for the work they do.Regular hours cover the normal work. Overtime is minimal.Additional skills acquired lead to additional pay.
Employees are paid above the average for above average performance.
Appraisal system rewards motivated performance.Different sickness benefit and pension schemes still applied.Recognition system in place and working.
Surveys conducted to ensure pay remains above average.Appraisal systems apply throughout the company.Sickness benefit and pensions schemes the same for all.Profit-sharing means staff are keen to see company profitable.
Staff have a ‘no redundancy’ undertaking.Above average pay attracts and retains the best staff.Appraisals encourage continuous improvement and continuous
learning.Recognition system regularly encourages the behaviours the
company wants to see.
Level 1
Level 2
Level 3
Level 4
Level 5
Rewards and Recognition
Workshop on Rewards and Recoqnition.
Name some of your company’s Rewards and Recoqnition projects/programs?
What are their impact to your company’s overall business results including staff morale,productivity and quality work.
Work-team meetings are patchy or non-existent.The grapevine is strong, notice boards poorly cared for. There are constant complaints about poor communications.People say : ‘Nobody tells us anything’.
Communications process from top management to front-line staff well set up.
Staff have all the information they need to do a good job.Managers are trained in, and hold, regular team meetings.Notice boards are well-sited, well-presented and maintained.Meeting rooms are available with good visual aids.
Top management meet with all staff at least once a year.Managers know their messages, and live them by example.Meetings are purposeful, and follow published guidelines.House journal is lively, interesting, and widely read.
Information cascades from top mgt. meetings to front-line staff within 48 hrs.
Front-line teams hold start-of-day meetings, and have communication boards in their sections.
Strong upward channel means front-line points are heard by senior mgt.
Matrix calendar of communications shows all communication channels, and who does what, when.
Company uses well a variety of communications channels - meetings, notice boards, paper, computer, and video.
Surveys show steadily improving communications scores.
Level 1
Level 2
Level 3
Level 4
Level 5
Purposeful Communication
Workshop on Purposeful Communication.
What are the new modes of communication nowadays in your company and how effective are they?Please explain with examples.
Employees not enthusiastic about learning new skills.Minimal induction training, little off-the-job training.Experts generally opposed to sharing their skills with others, feeling
their jobs would thereby be threatened.
Minimum of one day’s training for everyone every year.Staff trained to handle multi-tasks in operations and office.Tradespeople trained and operate across skill boundaries.Skill and training records maintained for every person.All inductees get initial training and are linked to a mentor.
Learning objectives built into all appraisals every year.Complete cross-skilling operated within work groups.Using a points-based system, the average worker has doubled their
skill points. Job rotation is happening in every area of the company.
Minimum of three days’ training for everyone every year.Training facilities have become ‘state-of-the-art’.Managers and Directors have become trained trainers.Whole workforce becomes more skilled/valuable every year.
Company realises that continuous skills training turns their people into a competitive (and only) appreciating asset.
Minimum of five days’ training for everyone every year.Larger companies operate an in-house University.Continuous learning has become a way of life.
Level 1
Level 2
Level 3
Level 4
Level 5
Continuous Learning
Workshop on Continuous Learning
Do YOU have a Corporate University(CU)-(in house university/academy/centre of excellence)in your company?If YES,please describe your CU roles and responsibilities?If NO,what are your plans to have one?
How effective are they in helping your company achieve their business results.
Discussion Point
1 Which Ladders do you think it would be good for your company to focus on?
2 What are likely to be the biggest obstacles to your success?
3 How could you minimise or eliminate these?
Have YOU selected your Ladders?
The Cascading TOM ProcessThe start-point is the Strategy TOM held with the top management team, in which the longer-term goals and critical scorecard measures are agreed upon for the whole business.
With that foundation, TOMs are then conducted with every work-team in the organisation until every Division, every department, has committed itself to performance measures which not only support the overall
goals of the business, but reach down to affect the behaviour of the front-line staff who daily either make the company's products or serve the company's customers.
Preparation PhaseThe consultant first spends an hour and a half or so in individual
discussions with each of the team members. Where appropriate, it is also useful
to conduct the consultant on a short tour of the operation to see just what goes on, and to understand better the nature of the work
and the business.
A few days later, a one-day Seminar is held with the team together, during which we describe the concepts behind company-wide measurement systems, and explain some of the techniques and strategies used by other companies which have helped take them to world-
class levels of performance.
Towards the end of the seminar we issue everyone with a previously agreed Pre-Think Document. This lays out the agenda items for the Team Objectives
Meeting, and asks each team member to write down their personal views and ideas on each of the subjects covered, so that they have some considered ideas to contribute when they
come to the TOM itself.
Strategic Team Objectives MeetingA week or so later the Team Objectives Meeting is held undisturbed over
two or three days in a suitable off-site location. This can be during normal workdays or a mixture
of weekday and weekend days, as the company decides. The Pre-Think Document items then become the agenda for the meeting. Two key rules
apply at the TOM :
Nothing is agreed as a decision unless it has the 100% agreement of the team. That way, no-one gets railroaded into something they don't think will work, or they
don't agree with.
However, those actions which are agreed become commitments i.e. the team agrees to do whatever it takes to see them achieved.
Now,YOU must take action on your FOCUS Ladder/s to achieve World Class Performance (Level 5)?
World Class Audit-How to DO!
Step One –Please Rate your current performance of the 12 Ladders.Level 1 for Ordinary Perfomance and Level 5 for World Class Performance.(where we are now!)
Step Two-Allocate the Ladders to one of the three categories (importance)
Step Three-Take Action!You now know your priorities,so take action to move to the Next Level of Performance!
What are your results ? Revolusi Aksi @ Action Revolution !
Category 1 =Must Do,requires urgent attention in the short to medium term.
Category 2 =Should Do,requires attention in the medium to long term.
Category 3 =Can Wait,requires attention once we have dealt with Category 1 and Category 2 Ladders.
Implementation PhaseThe accumulated flipcharts from the TOM are compiled into an Action
Document, detailing the goals the team have agreed upon as a company for the next three years or so, the key measures they have decided are crucial to the business's success, and laying out how
they intend to cascade the process down through the company.
Review dates are put in place, so the team can examine
actual achievements versus plan on a regular basis, and take appropriate action to stay on track with their original commitments.
The Cascading TOM’s Process
1 Preparation Phase• Individual discussions• Seminar• Pre-Think Document
2 Team Objectives Meeting• Focussing on customers• Turning co. goals into
objectives• Deciding on key measures• Visit by Super-boss
3 Implementation Phase• Action Document• Follow-up Reviews
TOM Cascade
Team A
Team B
Team C
Team D
What are the Tangible and Intangible Benefits to your Organisation/Co? Now,YOU know what Level you are as far as
the 12 Factors (Ladders) are concerned and can take immediate action to move to Level 5 (World Class)
By doing the World Class Scorecard you can be focus on the Top 4 Ladders that is critical to your Organisation/Co success
Do Team based Projects on the Ladders to get better results like profits,quality,cost down,high morale,better branding,sustainable management etc…
How can DPS helped YOU?
Organise World Class Performance Workshops for your People – a 3 day workshop session.Max-30 participants for active individual & team discussions and workshops.
Assist YOUR Action Plans by World Class Project Teams facilitation and completion for Top Mgmt Approval.
And others (as agreed upon)
The 12 Ladders The 12 Ladders toto
World Class World Class PerformancePerformance
Thank You For Your Participation.
For further enquiries,please contact:
Ramli Abu Hassan-Managing Director of DPS
HP:019-2537165
E-mail:[email protected]
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