Increasing Productivity and Client Focus for Competitive Advantage and Higher Profitability
| Date: 10 & 11 May 2012 Trainer: Andreas Petrou Location: CIIM Building, Nicosia
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OVERVIEW
Many organizations do not have a performance management system in place that indicates to what extent the company strategy is implemented and what corrective actions are required. As a result, firms cannot identify and improve consistently limiting factors such as unproductive processes, communication break-downs, unmotivated and ill-prepared staff.
In order to develop a performance management system, companies must operationalise their strategic priorities. This is not easy as they will have to deal with organizational constraints:
- Focus staff on what affects the bottom line; In service firms on managing the customer contact points
- Make management more productive by providing information and structure around the key performance areas
- Procure data to a single database from where to calculate indicators and produce reports
Given the complexity of these tasks and lack of experience to deal with such issues, training and guidance is needed.
The problem can be severe, especially for organizations who rely on staff to manufacture and deliver in real time their intangible products, second, service firms have large number of customer facing and back-office process often supported by many IT systems which makes difficult the extraction and analysis of data.
OBJECTIVES
The objective of the two-day training would be to help participants learn, 1) the process of developing a performance management system and 2) how to manage through a performance management system.
The specific learning outcomes organised by objective are shown below:
- Learn the process of developing such a system and the challenges involved
- Learn how to identify and measure Key Performance Indicators (KPIs) that can enhance productivity across decision making and key processes
- Learn how to identify critical success factors for the company
- Learn how to create linkage across the organization
- Learn how to automate data capturing and data presentation to enhance productivity
- Learn how to manage the business through a performance management system
- Learn how to focus staff on company priorities
- Learn how to build the right culture - around innovation, initiative and continuous improvement
- Learn how to link with the appraisal system and the budgeting process
Objectives of In-House Consulting
The company specific part will help the company introduce improvements in problematic areas of the performance management system.
Possible areas of improvement are identified below:
- Improve the conceptual framework
- Refine strategic priorities
- Identify key performance indicators
- Create linkage
- Improve ability to measure performance
- Define KPI formulas and agree targets
- Integrating data and ensuring data quality
- Help manage the system most effectively
- Managing departmental performance
- Linking with the appraisal system
AUDIENCE
Participants should be managers from all functions of the organization, as all managers will engage in the development and management of the performance management system. Managers from IT, Accounts, HR of the company will contribute to some technical issues around KPI calculations and data. All managers of the company will contribute in identifying the firm’s priorities and devising departmental KPIs.
FACULTY
Dr. Petrou is Assistant Professor of Strategy. He teaches classes for the MBA programme and executive courses on strategy design, strategy execution and project management.
Professor Petrou worked for a number of years as a consultant with Accenture where he helped companies design and implement strategies. He designed and implemented performance management systems for a number of Cypriot and other European organizations, and trained staff of how to employ this tool for facilitating strategy implementation and change. His performance management assignments include training and/or consulting with companies such as Unicom, CTO, Uniteam, Neocleous and Co, Thomas Cook, Barclays, Vodafone and Aviva.
CONTENT
Trends in organisations and the need for performance management
- Current trends that require immediate response
- Limitations of current measures and systems for performance measurement
- Areas for adding value
Most companies employ financial KPIs – what’s next?
Identifying KPIs
- What KPIs?
- Creating performance measures - Lead and lag measures
- KPI selection criteria
- Examples of KPIs from each of the four balanced perspectives
PRACTICAL SESSION: Identifying your company’s current KPI set
- What KPIs do you monitor
- How it works
The balanced scorecard system as a framework
- Why this system is suitable
- How it works
Key elements What changes could improve productivity
The company’s strategic priorities and KPI gaps
- Identifying critical success factors for strategy implementation
- Developing a set of balanced objectives and causal links
- A generic model with critical success factors
- Identifying KPI gaps
PRACTICAL SESSION: Company strategic priorities
- Identify your company’s strategic priorities
- Recognize priorities on the strategy map
Place the current KPI set on the map and identify gaps A Case study
Developing a KPI scorecard at corporate level
- Translating critical success factors to KPIs
- The KPI measurement process
- Linking KPIs to improvement initiatives
- KPI ownership issues
A case study
PRACTICAL SESSION: Developing a corporate scorecard for your company
- Link your company’s strategic priorities to KPIs
- Chose which KPIs the Management Committee should monitor
KPIs at Departmental Level
- Principles
- Types of KPIs - Examples
- A cascading example
- Aligning processes
- Aligning organizational culture
A case study Decide how KPIs should be calculated
PRACTICAL SESSION: Cascading KPIs and identifying levels of ownership
- Cascade corporate KPIs to departments
Identify new KPIs required
Reporting KPIs and taking corrective action
- Managing KPIs at different levels
- Tracking the action plan and benefits
Managing data quality
- Setting controls to ensure data quality
Managing the data procurement process
Aligning staff through the appraisal system
- What performance measures
- How to link to remuneration
Creating the right culture
- Recognising positive and negative behaviour and taking action
- Driving the agenda from the top
Exercise: Identify KPIs to include in the appraisal
Initiating a performance management improvement project
- Work Plan – time scales
- Critical factors for successful implementation
FEES AND GENERAL INFORMATION
This is a Vital Importance seminar and participants are eligible up to full subsidy (zero cost for participation) based on HRDA criteria or should they have to pay the amount could be significantly low.
The final cost for participation will be determined after completion of the relevant HRDA documents.
Criteria for the subsidy is set by the HRDA – the two main points affecting eligibility are (i) size of the organisation, (ii) cost of the individual attending to their organisation (please refer to HRDA’s “Guide and policies for subsidy” for full details on the HRDA website www.hrdauth.org.cy
Fees include tuition, educational materials, coffee breaks and meals
Cost for participation without HRDA subsidy is €1,500.
Due to CIIMs non-profit status NO VAT is charged
