Presentation is loading. Please wait.

Presentation is loading. Please wait.

PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour.

Similar presentations


Presentation on theme: "PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour."— Presentation transcript:

1 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 1 Canadian Association of MoversDecember 3, 2007 Keys to Performance Improvement Growing, Measuring & Succeeding in a Mature Industry Philip Townsend Partner Advisory Services

2 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 2 Agenda 1. Establishing a context for our discussion -“A mature industry with a number of significant challenges” 2. A hypothesis for the Moving Industry in Canada -“Where might this industry be headed?” 3. Potential responses to this hypothesis -“A set of high level strategies” 4. Recommendations related to one of the hypothesis -“A performance improvement strategy for the long haulers” 5. Question and Answer -“An opportunity for discussion, debate and questions”

3 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 3 1. Establishing a context for our discussion “A mature industry with a number of significant challenges” Agenda

4 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 4 Growing, Measuring & Succeeding Performing organizations will face many challenges… “The great companies don’t make excuses, including how they didn’t do well because the economy was against them or prices were not good - they do well anyway … … the leading companies pursue excellence and change....” ….Paul O’Neill Former US Treasury Secretary

5 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 5 Growing, Measuring & Succeeding “Strong leadership and management, a motivated and engaged workforce, and sound business practices enabled by effective processes, tools and collaboration are essential. Having an effective framework to tie it all together in a cohesive, integrated way is the key.....” …Philip Townsend Partner PricewaterhouseCoopers Advisory Services What are the ingredients…

6 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 6 Growing, Measuring & Succeeding Serious shortages of staff resources (drivers, swampers, packers) Ever increasing fuel costs Ever increasing insurance costs Ever increasing equipment costs The Environment – the impact of “Green” on value and cost Low barriers to entry into the industry – “rogue movers” Traditionally low margins – insufficient return on capital/effort Demographics (workforce impact and changes in “movee” composition) Regional economic imbalances – “pressures from one way demand” Increasing regulation Roadway/infrastructure related congestion in certain regions of country Others? The Moving Industry is facing some tough challenges:

7 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 7 Growing, Measuring & Succeeding Two of the most critical factors impacting staff shortages: Demographics – aging workforce, increasing competition to attract and retain skilled, experienced employees, different drivers for satisfaction, fulfillment and loyalty for: -Baby Boomers, Gen X, Gen Y, “Gen Z” ! Changing workforce composition – increased immigration and migration resulting in changing needs and definitions for fulfillment linked to: -language, customs and ethnic backgrounds

8 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 8 Growing, Measuring & Succeeding One size does not fit all ! Baby Boomers (~ ) Generation X (~ ) Millennials (~1982 +) Outlook on lifeOptimisticSkepticalRealistic Attitudes towards work DrivenBalancedLooking for Meaning View of authorityLove/HateUnimpressedOblivious Relationship approach Self-SacrificeReluctant to Commit Committed to Success Decision makingTeam-OrientedSelf-ReliantGood for All Source: Steven Shepard, TELUS Senior Leadership Forum, 2004

9 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 9 Growing, Measuring & Succeeding A “Silver” Tsunami is Coming Baby Boomers (~ ) Generation X (~ ) Millennials (~1982 +) Outlook on lifeOptimisticSkepticalRealistic Attitudes towards work DrivenBalancedLooking for Meaning View of authorityLove/HateUnimpressedOblivious Relationship approach Self-SacrificeReluctant to Commit Committed to Success Decision makingTeam-OrientedSelf-ReliantGood for All Source: Steven Shepard, TELUS Senior Leadership Forum, 2004 Future Work Force

10 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 10 Why are the following factors so important? Demographics Changing workforce composition Because They are/will be inextricably linked to “employee engagement” “Employee engagement” will drive organizational performance Growing, Measuring & Succeeding The Global War for Talent is Here !

11 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 11 Lack of Employee Engagement - Some possible “symptoms” Mind the Job Satisfaction Gap: HR Professionals Underestimate Intensity of Employee Job Searches and Employees Fall Victim to "Grass is Greener" Syndrome Salary.com™ Survey Reveals Only 21% of Employees are Underpaid While Employers Are Vulnerable to Losing Most Productive Talent. Waltham, MA, February 22 nd, Salary.com, Inc. (NASDAQ:SLRYOver 60% of employees surveyed said they plan to look for a new job in the next three months; nearly double the 36% that employers believe are looking. More importantly, employers are at risk of losing their most productive talent -- people who have been in their position for 3-10 years. Nearly 66% of tenured employees plan to find new jobs over next 3 months.SLRY

12 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 12 Lack of Employee Engagement - Underlying Reasons Employees rate good relationships with coworkers, managers and good working hours as the top factors that keep them in their current jobs. This contrasts with responses from HR professionals who rated benefits, job commitment and culture as the leading contributors to employee retention. This perception gap can put employers at risk of losing key talent, simply because they are focusing retention efforts in the wrong places. Mind the Job Satisfaction Gap: HR Professionals Underestimate Intensity of Employee Job Searches and Employees Fall Victim to "Grass is Greener" Syndrome Salary.com™ Survey Reveals Only 21% of Employees are Underpaid While Employers Are Vulnerable to Losing Most Productive Talent.

13 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 13 Lack of Employee Engagement - Other Underlying Reasons Lack of a clear Vision and Mission for the organization Lack of a clear Strategy for the organization Strategy is not Communicated clearly throughout management and employee ranks Lack of a Plan to execute on the strategy Insufficient resources focused on Innovation to maintain relevance in the sector or marketplace Scarce Resources, spread too thin Inadequate Measurement Systems Broken and costly Processes Inadequate and inaccurate Information Multiple Initiatives that are not sufficiently linked to strategy Compensation/rewards not aligned to strategy and measures Stop and Reflect ! Does this in any way sound like your organization? Other factors that will impact “employee engagement”

14 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page A hypothesis for the Moving Industry in Canada “Where might this industry be headed?” Agenda

15 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 15 A hypothesis for the Moving Industry in Canada - “where might this industry be headed?” S ML Then S ML Now S ML Future ? Industry Participants by Relative Size (S=Small, Including “Rogue Movers”, M=Medium, L=Large) Industry dominated by few medium sized companies and fewer large companies with a reduced number of small players

16 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 16 A hypothesis for the Moving Industry in Canada - “where might this industry be headed?” Reasons for this hypothesis: Significant number of small to medium scale businesses are family owned – “succession breakdown” Increasing capital costs and low margins require increased scale of operations to create efficiencies and access to capital Continued “crisis state” in the area of adequate staffing Impact of demographics on labour pool Increasing environmental legislation Demographic trends on “movee” market – “aging populations tend to move less” “Rogue movers” will always find/have a reason to survive

17 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page Potential responses to this hypothesis “A set of high level strategies” Agenda

18 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 18 Potential Responses to this Hypothesis - “some high level strategies” For small companies -focus on quality and efficiency -align with large companies to supplement capacity and regional needs -create a sustainable business model -think about a succession plan early

19 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 19 Potential Responses to this Hypothesis - “some high level strategies” For medium companies -Focus on quality and efficiency -Focus on developing regional brand recognition -Prepare to be acquired by another medium or large company, or -Grow into a large player through acquisition or merger

20 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 20 Potential Responses to this Hypothesis - “some high level strategies” For large companies -Create alliances or partnerships with smaller companies to supplement regional capacity – build brand equity -Provide tools to these “partners” to create a seamless interaction between all the participants (movees, brokers, corporate relocation specialists, real estate agents, movers, other service providers, etc.) -Continue to grow through acquisitions to create efficiencies, capacity and scale -Use growth to create career paths for your people and to attract new talent to the industry -Seek opportunities to sponsor immigrant workforce

21 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page Recommendations related to one of the hypothesis “A performance improvement strategy for the long haulers” Agenda Growing, Measuring & Succeeding

22 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 22 Its All About Your Organization’s People Partial Quote… “God give us men. The time demands Strong minds, great hearts, true faith and willing hands.” ….Josiah Gilbert Holland 19 th -century poet Note: Presenter’s Emphasis

23 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 23 Its All About Your Organization’s People Employee Engagement… “Its absence or disappearance will create a barrier to becoming and remaining a high performance organization” Philip Townsend Partner PricewaterhouseCoopers Advisory Services

24 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 24 Growing, Measuring & Succeeding - Foundational questions related to holistic Performance Improvement Six questions we need to ask ourselves, regularly: 1. Is my industry’s value chain still relevant and healthy? 2. Is my organization still a relevant part of the industry’s value chain? 3. Are we launching the right initiatives and executing them well? 4. Are we measuring performance? 5. Is what I am focusing on still relevant to the success of my organization? 6. Are our people engaged?

25 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 25 Growing, Measuring & Succeeding In order to grow, measure and succeed, organizations: Need to create a common language or lexicon about how to describe the way that the organization thinks and behaves about individual and enterprise performance Need this lexicon to permeate the organization and its people Need to adopt a framework or model that will help its people to “operationalize” the lexicon and the actions that are associated with high performance Corporate Performance Management (CPM) can represent an effective framework

26 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 26 Growing, Measuring & Succeeding CREATE VALUE FOR... …while reducing the Organization’s negative impact on the environment ALIGN Strategy Plan Measure IMPLEMENT SUSTAIN Insight Reward Execute EVALUATE Value Creation CEO & Board of Directors CFO & Finance CIO & Information Technology COO & Operations CHCO & Human Capital CMO, Sales & Marketing Shareholders & Stakeholders CustomersEmployees Suppliers & Partners KEY ENABLERS: Performance Culture Effective Governance Useful, Reliable Data Technology Enablement Effective Processes Skills & Capabilities CORPORATE PERFORMANCE MANAGEMENT (CPM) “Driving strategy into sustainable performance” KEY PLAYERS: © 2007 PricewaterhouseCoopers LLP All rights reserved.

27 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 27 Growing, Measuring & Succeeding CREATE VALUE FOR... …while reducing the Organization’s negative impact on the environment ALIGN Strategy Plan Measure IMPLEMENT SUSTAIN Insight Reward Execute EVALUATE Value Creation CEO & Board of Directors CFO & Finance CIO & Information Technology COO & Operations CHCO & Human Capital CMO, Sales & Marketing Shareholders & Stakeholders CustomersEmployees Suppliers & Partners KEY ENABLERS: Performance Culture Effective Governance Useful, Reliable Data Technology Enablement Effective Processes Skills & Capabilities CORPORATE PERFORMANCE MANAGEMENT (CPM) “Driving strategy into sustainable performance” KEY PLAYERS: This is the focus of my discussion Talent Management Processes ⊙ ⊙ ⊙ ⊙ © 2007 PricewaterhouseCoopers LLP All rights reserved. ⊙ ⊙

28 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 28 Linkage between Employee Engagement and Holistic Performance Improvement (Corporate Performance Management) The two are not mutually exclusive, nor should they be Employee Engagement and CPM need to have a “symbiotic relationship” – to create sustainability Employee Engagement is both a “contributor to” and a “benefactor of” a holistic CPM approach/model When combined, the result can be a whole new “organizational DNA” – one that sends a clear signal that you have entered “high performance territory”

29 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 29 Employee Engagement – a working definition Research/thought leadership being developed by consulting firms, practitioners and the academic sector Numerous definitions are available to define/explain the concept of “employee engagement” Conference Board’s definition provides a good, all round definition and framework to understand and begin to embed into your organization’s CPM framework Definition was developed by working group (Employee Engagement and Commitment) that met in November 2006 Making reference to a number of recent studies, the working group developed a “meta-analysis” of the drivers of employee engagement

30 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 30 Employee Engagement – a working definition There is general agreement that “employee engagement” involves the interplay of three factors: -Cognitive commitment -Emotional attachment -The behavioral outcomes that result from an employee’s connection with their organization

31 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 31 Employee Engagement – a working definition The following 8 drivers were identified: -Trust and Integrity -Nature of the job -Line of Sight between Individual Contribution and Company or Team Performance -Career Growth Opportunities -Pride About the Organization -Coworkers/Team Members -Employee Development -Personal Relationship with One’s Immediate Manager

32 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 32 Employee Engagement – a working definition A composite definition for “employee engagement” was crafted by the working group to read as follows: “Employee engagement is a heightened emotional and intellectual connection that an employee has for his/her job, organization, manager, or co-workers that, in turn, influences him/her to apply additional discretionary effort to his/her work.” Note the Key Words: “Additional Discretionary Effort” Translation: Organizations want/need to capture “the head, the heart and the hands” of their employees

33 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 33 Weaknesses in Traditional Approaches to CPM “Not everything that counts can be counted; not everything that can be counted counts.” ….Albert Einstein

34 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 34 Weaknesses in Traditional Approaches to CPM Approaches have often served to reinforce organizational silos In some organizations, its seems like “Strategy” is only for the Board, the C-suite, the owner(s) or the family; not to be truly shared with management and staff Approaches have often focused primarily on the concept of measurement “What gets measured”..is too much or uses wrong measure Strategies get developed with insufficient current knowledge about the organization’s industry value stream Plans fail to incorporate environmental plans and impacts

35 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 35 Weaknesses in Traditional Approaches to CPM Lack of a clear line of sight between the organization’s Vision, Mission, Strategy, Brand Value, Business Plan, Budget, Results Reporting and departmental/functional/personal objectives, targets and goals Balanced scorecards that have not been appropriately cascaded down throughout the organization Performance measures that include too many lagging indicators of performance Performance measures are defined despite the lack of required data or the cost to capture the data

36 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 36 Weaknesses in Traditional Approaches to CPM CPM initiatives that are too focused on technology solutions or driven by IT departments CPM initiatives that do not leverage good CPM/BI tools CPM initiatives that have not created “actionable insights” CPM initiatives that do not create a clear line of sight between the employee’s contribution and the organization’s recognition, reward and development systems CPM approaches that embed “too much science” and “not enough art” - example: fancy dashboards with insufficient dialogue throughout the organization

37 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 37 Weaknesses in Traditional Approaches to CPM Approaches that do not regard CPM as a “system” for how to operate a business or an organization Approaches that have confused CPM with Business Intelligence (BI) requirements and tools Approaches that do not make adequate provision for training and support through change management techniques Approaches that do not foster a “coaching culture” Approaches that do not recognize and embed drivers of “employee engagement” into the CPM model that is adopted by the organization

38 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 38 What Needs to Change? - Creating a “sticky” version of CPM “Productivity…[is being] better today than yesterday, and that tomorrow will be better than today….” The concept of what is better and how to become better is changing. …. Arturo L. Tolentino Head of the Management Development Program, Job Creation and Enterprise Department, International Labour Office.

39 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 39 What Needs to Change? - Creating a “sticky” version of CPM Organizations should research and identify a CPM model that makes sense for their operating environment and culture – one that is holistic in nature and its application Organizations need to engage the “key players” as Champions of CPM – its not an option, its essential -CEO & Board of Directors, Owners -Chief Financial Officer -Chief Operating Officer -Chief Information Officer (Director of IT) -VP of Human Resources -VP of Sales and Marketing

40 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 40 What Needs to Change? - Creating a “sticky” version of CPM Organizations need to establish a culture where CPM is seen by employees as an enabler, a tool that can make their jobs easier – not just a measurement tool associated with “bad consequences” for them at a personal level BI is required by “knowledge workers”, not the average employee BI should be used to help understand the business drivers Key Performance Indicators (KPI’s) need to reflect the business drivers and should be embedded in the CPM system

41 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 41 What Needs to Change? - Creating a “sticky” version of CPM Adopt the right enabling CPM and BI technology solutions for your organization Keep corporate performance management software data current and correct – essential to build trust with users Don't just automate existing processes; think strategically Formally train employees with the actual corporate performance management software Pick the right mix of KPIs (not too many) – right mix includes: operational, financial, leading, lagging indicators Identify owners for every KPI – before tracking begins Tie reward, recognition and compensation system to KPI’s and their owners

42 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 42 What Needs to Change? - Creating a “sticky” version of CPM Recognize business transformation is required across all people, processes and systems, and designate a change- management leader Don't focus on methodologies – focus on changing the organization’s culture Understand that ROI will come from transformation, not just new technology associated with CPM and BI Ensure that the CPM project is managed by business-savvy people Tie funding and investment to results as measured within your organization’s CPM framework

43 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 43 What Needs to Change? - Creating a “sticky” version of CPM “Marry up” CPM and approaches to risk management – define and embed measures of risk as part of your organization’s performance management framework Use your organization’s CPM framework to define how your organization will deal with and manage its impact on The Environment – i.e. carbon emissions targets and measures “Marry up” CPM and the principles/tools used to develop strategy, plans, launch initiatives, measure and reward so that they are based on both the “Voice of the Customer” and the “Voice of the Business”

44 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 44 What Needs to Change? - Creating a “sticky” version of CPM Organizations need to adopt a framework of measuring “employee engagement” – one that is specifically tailored to meet the organization’s needs and one that provides meaningful ways to measure the strength of “employee engagement” – use a Workplace Engagement Survey Teams operating within an organization need “psychological contracts” as well as “economic contracts” in order to have: - a common set of expectations with management - to feel that commitments are kept Tie some portion of management compensation to improvements in the “employee engagement index”

45 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 45 What Needs to Change? - Creating a “sticky” version of CPM Business Strategy provides the context for ALL Improvement initiatives Understanding the linkages between all Strategic objectives ensures that KEY drivers of the business are addressed and enables a balanced and effective distribution of resources and focus Specific measures and targets for the strategic objectives drive prioritization of improvement themes Strategic Context Data driven disciplined approach ensures identification of the right initiatives that help meet the targets and support achievement of the strategic objectives Adoption of leading practices in process improvement and change management delivers optimum results Operational Context Characteristics of an Improvement Focused Organization “Voice of the Customer” “Voice of the Business”

46 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 46 Growing, Measuring & Succeeding CPM – an approach to think/act strategically & tactically None of the concepts associated with CPM are new Making “Holistic CPM” part of your organization’s DNA will provide a vehicle for sustained high performance Holistic CPM represents a framework to marshal the “art” and the “science” of good management Holistic CPM is applicable to everyone (private sector, public sector, services, manufacturing) Holistic CPM, if applied properly, can put real meaning in the axiom – “our people are our most important asset” There is power in “being transparent” – Holistic CPM can provide the framework to achieve transparency

47 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 47 What Needs to Change? If this describes your organization, free up time to focus on the “big picture” – the tools, techniques, methods and people are available to help you ! Lack of a clear Vision for the organization Lack of a clear Strategy for the organization Strategy is not Communicated clearly throughout management and employee ranks Lack of a Plan to execute on the strategy Insufficient resources focused on Innovation to maintain relevance in the sector or marketplace Scarce Resources, spread too thin Inadequate Measurement Systems Broken and costly Processes Inadequate and inaccurate Information Multiple Initiatives that are not sufficiently linked to strategy Compensation/rewards not aligned to strategy and measures

48 PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. Page 48 Thank you ! “If you have an important point to make, don’t try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time with a tremendous whack.” ….Winston Churchill

49 The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. © 2007 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. PwC Questions ?


Download ppt "PricewaterhouseCoopers LLP The colour contrast has been set to maximum. Click on PwC, Tools, Colour Contrast, to select Normal-contrast colours. The colour."

Similar presentations


Ads by Google