Upload
mohamed-abada
View
70
Download
4
Tags:
Embed Size (px)
Citation preview
1
Managing with SAVI
A new approach to the basics
2
The management cycle
3
What does SAVI mean?
• GOAL SETTING:
– Stakeholders need Added Value from their Investment.
• DECISION MAKING AND CONTROL
– Screening Added Value Initiatives.
• PERFORMANCE MEASUREMENT/MANAGEMENT
– Speed, Accuracy, Volume and Investment.
4
CHAPTER 1- GOALS:
The Reason For Planning
Stakeholders need Added Value from their Investments
5
THE CYCLE OF ACHIEVING GOALS
• Figure 1.1
6
THE CYCLE OF ACHIEVING GOALS
• Figure 1.1
Long term
results
7
THE CYCLE OF ACHIEVING GOALS
• Figure 1.1
Long term
results
Budgets and
people
8
THE CYCLE OF ACHIEVING GOALS
• Figure 1.1
Long term
results
Budgets and
people
Implementation
9
THE CYCLE OF ACHIEVING GOALS
• Figure 1.1
Long term
results
Budgets and
people
Implementation
Performance Measurement
10
Figure 1.6 The beginning of the model
11
Figure 1.7 THE SAVI MODEL
12
Benefits Of Using The Model
• Forces management to think
• Enhances problem solving capabilities
• Improves the quality of decisions with the group approach
• Resource shortfalls are identified
• Resistance to change is reduced
• Builds a framework for performance improvement
13
Risks Of Using the Model
• The process is time consuming
• If planning and implementation are separate, responsibility is shirked
• Managers must be trained to respond when results are different than expected
14
What is goal setting?
• Strategic goal setting is an interactive and dynamic process involving constant review and assessment of:
– External environmental factors, now and in the future
– Internal business profile factors, now and in the future
– Performance tracking to measure results.
15
Preparing for effective Strategic Goal Setting
• The two most important issues of effective strategic goal setting are:
– Don’t wait for the culture to be in place before you begin.
– Make the necessary investment to keep the process alive.
16
Other important issues
• Remove the fear.• Keep an open mind and be honest with
yourself.• Be willing to challenge current practices.• Look outside for Best Available Practices.• Complete the full cycle of the model.• Use success as an opportunity to share
rewards.• Use failure as an opportunity to correct and
improve.
17
Five dimensions of goals
• Fig.1.10
Profit-S
Sustainability Of The Organization In The Economic System
Safety Of The Public And Employees, (including the Motivation and Retention of employees)
Stewardship Of The Natural Environment
Satisfaction Of Customers At All Levels
18
Corporate financial goal
Strategic issues
Objective Goal
FinancialMaximize financial returns to stockholders
To maintain an average return on investment of a minimum of 15% for the next five years
19
Corporate sustainability goal
Strategic issues
Objective Goal
Sustainability of the Organization In The Economic System
Maximize the impact of the organization on the regional economy
To create and maintain 50 new jobs per year for the next five years
20
Corporate safety goal
Safety Of the Public And Employees, (including the Motivation and Retention of employees)
Minimize the probability and severity of employee and public injury
To maintain an injury rate less than the national average for the next five years
Maximize the motivation and retention of employees
To maintain a 90% satisfaction level of employees and to have a retention rate higher than the industry average within two years.
21
Corporate stewardship goal
Stewardship Of The Natural Environment
Minimize the impact of operations on the natural environment
To reduce the level of solid particulate emissions to the landfill to 3 parts per million by June 2005.
22
Corporate customer goal
Satisfaction Of Customers At All Levels
Maximize the satisfaction of customers at all levels
To achieve and maintain a 90% customer satisfaction level regarding service, product quality and perceived value for the next five years
23
Figure 1.12 corporate goals to operating goals
Corporate Long-range Goal
Measurement Concept
Maximize financial returns to stockholders
To maintain an average return on investment of a minimum of 15% for the next five years
Operating Short-range goals by department
Measurement concept
Sales Department
Maximize Revenues
Increase total sales by 5% this year
Minimize selling costs
Reduce selling cost per customer by 5% this year
24
Strategic Goal Settingfour sections, figure 1.13
Sec. 1
VISION
Defining the long term picture of success
MISSION
Defining the organization in terms of what is done, who it is done for, where it is done and how it is done
VALUES
Defining how the people in the organization will treat customers, stakeholders and employees
25
Strategic Goal Settingfour sections
Sec. 2
CHALLENGES AND OPPORTUNITIES
Defining the opportunities that exist for the organization through an assessment of the external
environment and the challenges faced by the organization through an assessment of the
competencies an weaknesses of the organization
26
Strategic Goal Settingfour sections
Sec 3
CRITICAL SUCCESS FACTORS
Defining the areas of the organization that must be proactive in responding to opportunities and
challenges by matching what needs to be done with what can be done
27
Strategic Goal Settingfour sections
Sec 4
“CORPORATE” AND “OPERATING” STRATEGIC GOALS
Defining how the organization will take advantage of opportunities and overcome challenges to achieve the
mission from a corporate and operating view
28
Closing remarks
GOALS: The Reason For Planning