How to run your business more efficiently and improve capacity

Transcription

1 How to run your business more efficiently and improve capacity Appolo Goma Acting Chief Operating Officer, Notore Chemical Industries Limited, Onne Plant Complex, Onne, Rivers State. Nigeria

2 Steps to running your business more efficiently Employ the three key principles Set the right targets for your employees Use PMS ( Balanced Score Cards) to drive efficiency

3 Step 1: Three Key Principles for efficient running of Business Clarity of purpose Clarity of plan Clarity of responsibility.

4 Three Key Principles for efficient running of Business 1. Clarity of Purpose When employees know the larger context, they can make better decisions and better prioritize. Clarity of purpose gives us the information we need to do our best work. Lack of clarity may lead to a lack of motivation.

5 Three Key Principles for efficient running of Business 2. Clarity of Plan If the team isn't clear on the plan, there's lots of confusion and everyone's wondering what will happen next. The question that will come to mind is; What are all the steps needed to reach our goal? Team members can add steps to a single, shared list, the list is always up-to-date, and everyone has access to it. Of course, steps may be modified as the project progresses, but the knowledge that nothing will fall between the cracks creates calm and comfort among team members. Everyone knows when each step will happen and what's next.

6 Three Key Principles for efficient running of Business 3. Clarity of Responsibility On a big project, it's bound to happen: one person thinks someone else was doing a task and nobody ends up doing it, or more than one person does it and you wind up with a duplication of efforts. With a productivity tool, this won't happen. Everyone on the team goes through the list and signs up for a task either because it's their passion or they're taking one for the team.

7 Step 2; Setting the Right Targets for your employee Target setting is the process of defining the performance level & outputs expected from team and individual employees within a specific performance period. The target set should: Enables the definition and agreement of job objectives and key result areas for each job position provides a basis (Key performance Indicator /measures) for determining the performance or contribution of an employee at the end of the appraisal period Be SMART.

8 Step 2; Setting the Right Goals/Targets for your employee cont d Goal Setting Tool Kit To link individual performance to organizational goals/objectives, the targets/goals set for the employee must be; S.M.A.R.T. Aligned Calibrated Cascaded

9 Step 2; Setting the Right Goals/Targets for your employee cont d To be effective at guiding business success, goals/targets need to be: SMART - Specific/Measurable/Attainable/Relevant/Time bound Aligned with the System s strategic goals Calibrated using specific measures, weights, and number of goals Cascaded to the right employees as appropriate.

10 Step 2; Setting the Right Goals/Targets for your employee cont d Let us take a look at these two set of goals/targets NOT S.M.A.R.T. Try to improve our production capacity.` S.M.A.R.T. To achieve production capacity of 1250MT/Day of Urea for 20 consecutive days in 2015

11 Step 2; Setting the Right Goals/Targets for your employee cont d Corporate Goals 1. To achieve production capacity of 1250MT/Day of urea for 20 consecutive days in To achieve 95% on time full delivery of product to customers in To reduce product defect rate by 10% in 2015 EXAMPLE of Alignment Departmental Goals 1. To achieve zero Break down maintenance in the plant for 30 consecutive days in To achieve 10% reduction in bagging Plant downtime in To sample, analyze, & communicate Urea biuret result to Urea Plant within every 3 hours in 2015.

12 Step 2; Setting the Right Goals/Targets for your employee cont d Goal Alignment Corporate Goals & Objectives (Based on Organizational Vision) Divisional BSC Goals & Objectives ( Based on Corporate goals) Sub-divisional BSC Goals & Objectives ( Based on Divisional Goals) Departmental BSC Goals & Objectives ( Based on The sub-divisional Goals) Unit BSC Goals & Objectives ( Based on the Departmental Goals) Unit members tasks, Goals & Objectives ( Based on the Unit Goals)

13 Step 2; Setting the Right Goals/Targets for your employee cont d CASCADING GOALS/ OBJECTIVES Question Is this goal business applicable? Considerations Does it support strategic goals? Is it written in SMART terms? For a cascaded goal, is it relevant to role of employee? Do the tasks visibly support the goal? Is the number of goals manageable? Does it demonstrate the following attributes: specific, measurable, attainable, relevant, and timely? The employee must have attainability. Can the tasks be used to explain an employee s effort to support the goal? A plan may already contain noncascaded goals. There should be no more than 4 to 6 goals.

14 Step 3; Use Performance Management System (PMS) to drive efficiency Use of Balanced Score Card The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives: Financial Perspective Customer Perspective Internal or Business Process Perspective Learning and Growth Perspective

15 Step 3; Use Performance Management System (PMS) to drive efficiency Identifying the components of the 4 perspectives Financial perspective - how does the firm look to shareholders? Customers perspective - how do customers perceive the firm? Internal Perspective- this perspective is concerned with assessing the quality of people and processes. Learning & Growth Perspective this is concerned with new product development, continuous improvement, HR development, etc.

16 Step 3; Use Performance Management System (PMS) to drive efficiency

17 Other Strategies for improving efficiency Focus on Capacity Building Give employees secure and consistent access to information Effective business Processes Well defined and communicated processes Provision of right tools and infrastructure Improve employee satisfaction.

18 Other Strategies for improving efficiency Reduce unproductive time. Develop a long-term technology plan Create a fun working environment Rewarding and recognizing performance

19 Thanks