BUILDING SUSTAINABLE BUSINESSES

Transcription

1 BUILDING SUSTAINABLE BUSINESSES

2 LEARNING OUTCOME - Understand the operations flow and how to remove bottlenecks - Critically analyze the business model, evaluate the industry and align a strategy that will effectively sustain the business. - Identify different types of operational process suitable for the business model - Effectively understand the frame for developing a strategic plan for the business.

3 OPERATIONS

4 Marketing BUSINESS OPERATIONS OVERLAP Operations Finance Although the operations function is central to any organisation, it is only one of the three main core functions, the others being marketing and finance.

5 OPERATIONS MANAGEMENT Operations management is the activities, decisions and responsibilities of managing the resources dedicated to fulfilling customer requests through the production and delivery of products and services. That part of an organisation responsible for production is called the operations function and every organisation has one as delivery of a product and/or service is the reason for existence.

6 THE VALUE-ADD PROCESS Operations involves the conversion of inputs into outputs Value added Inputs:- Land Labor Capital Transformation/ Conversion process Outputs:- Goods Services Feedback Feedback Control Feedback

7 MANAGING YOUR OPERATIONS 1. Identifying your resources. 2. Knowing your processing capacity. 3. Ensuring the steady flow of inputs. 4. Motivating the processing team to high performance. 5. Ensuring that the value created is of high quality. 6. Delivering the goods / services to the customer through the appropriate channel. 7. Capturing value. 8. Obtain feedback

8 OPERATIONS MANAGEMENT - PLANNING Management - Chapter 8 8

9 OPERATIONS PLANNING - BENEFITS Improves focus and flexibility. Improves action orientation. Improves coordination. Improves time management. Improves control. 9

10 EFFECTIVE OPERATIONS MANAGEMENT 1. Reduces the costs of production and being efficient. 2. Increases revenue by increased customer satisfaction. 3. Reduces investment necessary to produce the required quantity by increasing the effective capacity of the operation. 4. Provides the basis for future innovation by building a solid base of operations skills and knowledge within the business.

11 PROCESS CHARACTERISTICS changes in the physical characteristics of materials or customers. changes in the location of materials, information or customers. changes in the ownership of materials or information. storage or accommodation of materials, information or customers. changes in the purpose or form of information. changes in the physiological or psychological state of customers.

12 BUILDING A SUSTAINABLE BUSINESS

13 STRATEGIC PLANNING

14 WHY STRATEGY? The choice of a future for the company and of a way to reach that future, understood as the framework that coordinates, unifies and integrates the company s decisions and actions.

15 STRATEGY IS NOT OPERATIONS Vision WHERE your business wants to be in the future Strategic goals WHAT your business has to accomplish to reach the vision Operational objectives HOW your business will achieve the goals

16 THE FIVE FORCES

17 STRATGEY CHOOSE YOUR STRATEGY Competitive Advantage Cost Advantage Market Dominance New Product Development Blue Ocean

18 DEVELOPING A SUCCESSION PLAN

19 WHAT IS SUCCESSION PLANNING? A deliberate and systematic effort by an organization to ensure leadership continuity in key positions, retain and develop intellectual and knowledge capital for the future, and encourage individual advancement. 19

20 SUCCESSION PLANNING Ensures that employees are recruited and/or developed to fill each key role Ensures that we operate effectively when individuals occupying critical positions depart. May be used for managerial positions or unique or hard-to fill roles. Align bench strength for replacing critical positions.

21 WHAT IS BENCH STRENGTH? An assessment of the organization s preparedness to replace departing staff in critical positions. Identifying people who are ready to step into someone else s shoes at the appropriate time under the appropriate circumstances with seamless transition.

22 SUCCESSION PLANNING IS NOT A one time event Decided by an individual Used solely for individual career advancement opportunities Reacting only when a position becomes open Line mangers relying solely on their own knowledge/comfort with candidates.

23 REPLACEMENT VS. SUCCESSION Reactive Pro-Active Form of Risk Management Substituting Narrow Approach Restricted Planned Future Development Renewing Organized Alignment Flexible 23

24 STEPS IN THE PROCESS Phase 1: Identify Key/Critical Positions Phase 2: Conduct Position Analysis Phase 3: Develop Succession Plan Phase 4: Monitor, Evaluate, Revise

25 PHASE 1: IDENTIFY KEY/CRITICAL POSITIONS Key Contributor- in achieving the organization s mission or would hinder vital functions Specialized Leadership The position requires specialized or unique expertise Geographic The position is the only one of its kind in a particular location Vacancy- Position will be vacant due to retirement/advancement in the organization/lateral moves

26 PHASE 2: CONDUCT POSITION ANALYSIS What are the external and internal factors affecting this position? What competencies or skill sets will be required? What are the gaps (competencies or skill sets not possessed by the current staff)? What strategies will be used to address the gaps?

27 PHASE 3: DEVELOP SUCCESSION PLAN The succession plan is the culmination of Phases 1 and 2. Reviews of the individual positions and high turnover job classes are rolled into one document and gaps and strategies are formulated at an organizational or unit level. The strategies to overcome the gaps are outlined to include target completion dates, responsible parties and required resources.

28 PHASE 4: MONITOR, EVALUATE, REVISE Select evaluation period-typically reviewed annually Be prepared to respond rapidly to unforseen changes to the plan Status/Progress updates should be monitored via the succession planning template

29 OVERVIEW OF PROCESS AND TOOLS Org.Strategic Initiatives, Mission Vision & Values Manager and Self Evaluations Decision-Making Matrix Executive Profiles & Organization Chart Dev. plans focus on both strengths And dev.areas Determine Competencies For Leadership Identify Key Leadership Candidates & Assess Against Competencies Determine Gap between Actual Performance & Behaviors vs. Required Competencies Assess Organizational Risks and Develop Strategies Monitor & Track Employee s Performance Process Design Process Implementation Process Management 29

30 Participants CHART RESULTS: TALENT SUMMARY Integration and Balance Functional Competencies Management of Budget Market Knowledge Technology and Business Methods Strategy and Planning Per sp ecti ve Cross Boundary Leadership Competencies Drive for Results Adaptability Organizatio n Alignment Communi action and Influence Develops Self and Others Participant 1 Participant 2 Participant 3 Participant 4 Participant 5 Participant 6 Participant 7 Participant 8 Participant 9 Participant 10 Participant 11 Participant 12 Participant 13 This graphical representation is a comparison of each individual s performance by competency (each row on the vertical axis represents an individual's score). - Exceeds Standards - At Standard - Needs Development 30

31 TIPS FOR DEVELOPING SUCCESSORS IN YOUR ORGANISATION Hire the best people in the market who share the same values and vision as the organisation; Empower and encourage employees to express themselves and get passionate about the business; Examine and evaluate all employees to identify potential successors; Give challenging jobs to Executives identified as 'high potential' to ensure they develop as quickly as possible; Develop and promote insiders who are capable of stimulating healthy changes and progress; Introduce a formal training programme for potential successors Once the critical few are underway, turn the attention to the next level of potential successors.

32 TIPS FOR A SUCCESSFUL SUCCESSION PLAN Ensure open and honest communication, involving all stakeholders (the owners, board and management); Develop and implement a careful, intentional succession process; Develop a timeline for shifting control of the company; Secure endorsement of the senior management team Install the successor. For family businesses, ensure that the successor is installed during the lifetime of the founder.

33 QUESTIONS?