Presentation on theme: "Compass Aligned Performance System"— Presentation transcript:
1 Compass Aligned Performance System A simple one page strategic performance process that develops and focuses organisations and individualsClive Howe
2 Compass Aligned Performance System Every organisation is perfectly aligned to get the results that it does!Let align your organisation to get the results that you want!Compass Aligned Performance SystemLooking for a simple, effective and affordable strategic planning, implementation and performance process that aligns all the staff to achieving the vision?Then is the tool for you.is delivered in a two day practical interactive session that produces a one page strategic plan, together with supportive individual performance plans for the next six months and an execution process to ensure the system is monitored and results are achieved.Any existing Strategic Plan or Balanced Scorecard can be incorporated into the model with ease.Further to the two day session there are follow up interventions designed around the organisational requirements to keep the focus and performance measures alive. Leaders will be coached on how to keep the plan active and to make adjustments when things change.The people who have to perform create the plans and, as a result, the buy-in and ownership is enhanced.The process is easily cascaded through the organisation from top strategy; to annual team plans; to individual plans and performance criteria. This holistic approach involves all the people in the organisation. This enables them to realise the contribution they are making to the achievement of the vision.In large organisations, key people will be coached on how to facilitate the process through a methodology that is participative and motivating. This allows staff to quickly and effectively contribute to the success of the organisation.OutcomesA common visionImproves executive time managementCreates a clear Strategic Focus at all levels in the organisationFocus on the important issues requiring greatest improvementDevelops an organisational culture based on a collectively created set of valuesGives an understanding of those issues that are critical to the achievement of the visionEach individual has a simple one page performance agreement for the next six monthsEstablishes tactics and actions to support the business goalsEstablishes measurable performance indicatorsEasy to change and adjust as requiredCreates a striking easy to follow planAllows for ownership of the processPeople are involved in the processMotivates and aligns the teamImproved communicationGets resultsThe 4 pillars that is built onSimplicityOwnershipFlexibilityAccountability
3 Compass Aligned Performance System A simple one page strategic performance process that develops and focuses organisations and individualsBackgroundThe process was developed by Clive Howe in 1999 having found that there was a need to simplify strategy and develop a process for easy implementation. He found that many organisations had very comprehensive and complex strategies but there was often a gap between the strategy and the operational implementation of this strategy. The process addressed this gap and people found that they could easily relate to the one page process. Over the years the process has developed and matured and many differing applications for the model have emerged. More than 130 organisations in Southern Africa, UK, Europe and Australia, have adopted or used the model in one form or another and this number is growing daily. The reason for this growth is the partner network of accredited facilitators who have access to the material and have been trained to facilitate the system.In July 2002 the book “Simple Solutions to Strategic Success” was published which gives a clear understanding of the elements of the process and its application. 15 months after the book was published it went into second print and continues to sell well.In 2004 a second book was published ”Simple Solutions to Balancing Your Life” and this shows how the process can be used to establish a life plan. A third book “Simple Solutions to Effective Marketing” was published in 2005.The model The model covers the main aspects of most strategic plans namely Vision, Values, Critical Success Factors, Key Performance Indicators and Strategic Objectives. It represents a 3 year plan for the organization. It is set out in a simple way so that one can see how all these align and are measured. The Key Performance Indicators are in the pink arrows on the left of the model and are the dash board measures for the organization.
4 The compass consists of the Vision, Values and Critical Success Factors. As the word suggests, everything should align and be filtered through the compass. It is important that time is spent creating these and wording them correctly to ensure that they cover all aspect of the organisation.The Strategic Objectives in the yellow section need to be allocated to people within the organisation to ensure that there is somebody responsible for each one.The implementation model sits below this with each member of the leadership team committing to and agreeing on their contribution in the next 6 months. Every individual in the organization can also have a single 6 month plan based on the overall strategic direction.The 6 month individual plans cover the following: Objectives for the next 6 months and the supporting actions and tactics to achieve these. Each objective is also measured and there is space to write up how well they were executed. The 6 month plan also has space to show the big goal that the organization or department is aiming for within that period. There is a section to write up what personal development is needed during that time to make the individual more effective.The final section of the 6 month plan is there to outline the best practices needed to be a more effective person.All of these can be measured and there is space down the left side of the model to make comments etc. Thus the system is able to be used as a performance process.PERFORMANCE AGREEMENTCRITICAL SUCCESSFACTORSVALUESVISIONObjective Actions & TacticsMeasure Business Performance Personal Development Plan Best PracticesFeedbackThe next two pages are examples of the three year plan and a six month performance plan
5 CRITICAL SUCCESS STRATEGIC OBJECTIVES FACTORS VALUES VISION KEY PERFORMANCEINDICATORSSTRATEGIC OBJECTIVESCRITICAL SUCCESSFACTORSVALUESCUSTOMERSComprehensive up to date data base of all customers globally maintained PJWebsite to be interactive and designed for global use DVC.S.I. to be measured quarterly through outsourced partner PJComplaints logged through web site and dealt with daily – monthly check DVThree year advertising campaign to be established and agreed upon PMOpen up European market PJPARTNERSHIPSEstablish a supplier list that links with the global requirements RMSLA’s to be set up with all suppliers based on the win/win concept RMInvolve suppliers in the business so that they fully understand our requirements RMDevelop a true partner relationship with all suppliers RMWork towards an effective JIT system globally KCPEOPLEDevelop a performance management process globally and implement CHCreate a performance culture within the organisation CHEstablish a recruiting policy that is internationally accepted & attracts the right talent CHCreate an induction process for all levels of staff that is process based CHEnsure that appropriate Personal Development Plans are established for all CHINNOVATIONEnsure that all technical staff have a development plan for full qualification KCExecutives and management to attend MDP programme through University CHAnnual international conference to be attended by cross section of management PJDevelop a culture of innovation through formalized programme KCPersonal Development Plans to be carefully scripted and followed through CHQUALITYISO certification to be maintained and established at new businesses KCMission Directed Work Teams process to be fully operational in all regions KCTo reduce the warranty claims throughout KCTo measure and monitor product and service consistency PJINTERNATIONAL GROWTHTo develop the Australian market and establish suitable partner PJTo add critical mass to the European market – Germany in particular PJTo establish exchange process for technical know-how KCTo link customer in to the international loyalty programme DVFINANCIAL PERFORMANCEImplement common back office system throughout the regions DVAudit process to be quicker with per prepared audit packs JFDevelop monthly dashboards and implement JFDevelop stocks & debtors monitoring process to improve working capital JFManagement accounts to be completed for all regions – 3 working days JFVISIONC.S.I. +92%Reduce complaintsby 12%1. To identify, attract,satisfy and retain a sound customer base.INTEGRITYI will be open, honestand consistent in all client dealings.I will conduct business in an ethical wayCOMMITMENT TO SERVICEI will keep clients informed and to give a service and follow up that is world class.INNOVATION & LEARNINGI will keep up to date with developments in training and current business thinkingPROFESSIONALISMwill take pride in all I do and not allow work of a sub standard to go outTEAMWORKI will Do what it takes for my team to succeed whilst supporting the success of the greater teamRESPECTI will treat others as Iwould like to be treatedAll regions to haveSLAs in place2. To create mutually beneficial relationshipswith selected suppliers3. To recruit, attract,develop and retainworld class talent.Staff T/O less than 12%4. To ensure ongoing innovation and learningtakes placeWe will be a global player offering superior service to selected customers. We will be leaders in our field and be known for our innovation.10:2:81 MDP per reg. annuallyTechnical Qualificationstracked5. To have a sustainable quality process to reduce waste and ensure consistency of productMDWT level 3ISO installed6. To continuallynetwork with local & International organisationsto ensure global footprint.Germany 10m Australia 8m7. To ensure all administrative and financial controls are rigorously adhered to.18% PBTDebtors 37 daysStock turns 12XYZ COMPANY- 3 YEAR
6 H2 PERFORMANCE AGREEMENT – December 2006 CRITICAL SUCCESS FACTORS VALUESObjectives for the next 6 monthsVISIONFeedback Measurement Actions and Tactics Objective1. To identify, attract, satisfy and retain a sound customer base.INTEGRITYI will be open, honestand consistent in all client dealings.I will conduct business in an ethical wayCOMMITMENT TO SERVICEI will keep clients informed and to give a service and follow up that is world class.INNOVATION & LEARNINGI will keep up to date with developments in training and current business thinkingPROFESSIONALISMwill take pride in all I do and not allow work of a sub standard to go outTEAMWORKI will Do what it takes for my team to succeed whilst supporting the success of the greater teamRESPECTI will treat others as Iwould like to betreatedFully operational end of JuneFind suitable company and mirror the UK process Preliminary work by end FebruaryTo establish C.S.I. proceduresEnd May SLAs agreedSet up initial meeting in January to communicate requirements. Project team to be established. Full reporting to board on progressTo Implement SLAs with both major suppliersCompleted by July 2005Train both modules during December. Split team into 3 divisionsTo train sales force on new systemSuccessful well planed reviewsManagement training on process- JanuaryClearly cascaded objectives to be agreed onTo start the performance agreement process and cascade to next levelIncrease market share by 10%ABC Cosmetics, work off A & B account data base and set up meetings etc. December progressMake in roads into the Northern RegionDebtors 41 daysStock turns 14Weekly checks on debtors and relationship building,Incorporate Stock JIT process in SLAsImprove working capital2. To create mutually beneficial relationships with selected suppliers3. To recruit, attract, develop and retain world class talent.4. To ensure ongoing innovation and learning takes placeWe will be a global player offering superior service to selected customers. We will be leaders in our field and be known for our innovation.10:2:8Actual:Business Performance: € 150 Mil T/O € 20 Mil PBTComments:Personal Development Plan:1. More proficient with computer mobility – s etc. a fully mobile office2. Read one business book each month3. Attend Focus open programme 12 May4. Start on MDP programmeBest Practices:Daily: Get up and GO meeting 8 minutes,Check s morning and evening,Follow up on leads on a daily basis, Update data base,Follow up on quotes and proposals same day,Weekly: Weekly planning done every Thursday afternoon,Tidy up s and delete unnecessary,Debtors reports to be discussed and acted upon,Sales progress to be discussed at weekly meetingWeek 3 - customer interfaceMonthly: Execution meetingBoard meeting, Assess working capital plan for the next 3 months, Management accounts to be completed within 3 days, Reconcile all paper work payments etc.Quarterly: Newsletter to be sent out to database,6 monthly: Revisit and set Performance agreement with all staff5. To have a sustainable quality process to reduce waste and ensure consistency of product6. To continuallynetwork with local & International organisations to ensure global footprint.7. To ensure all administrative and financial controls are rigorously adhered to.XYZ COMPANY- July 2006
7 Execution Sheet Name: Period: Personal Development Plan Execution SheetName:Period:Results to dateTasks & Activities this periodObjectives – My focus this periodPersonal Development PlanStill need to start with the GermanBusiness book reading is going well. Just finished Blue Ocean Strategy by W. Chan Kim and Renee MauborgneWalking and diet going well at presentHave completed the research and decided on the most appropriate method etc.Finalise the C.S.I. process to be adoptedTo establish C.S.I. proceduresAre awaiting final draft agreementWill complete next monthTo Implement SLAs with both major suppliersAll manuals and training materials have been finalisedTraining is scheduled for week 3 this monthTo train sales force on new systemWorking well at this level and will need to cascade this after trainingThis will start next monthTo start the performance agreement process and cascade to next levelPeter has made some good contactsWill be visiting potential customers with Peter on the 10th & 11thMake in roads into the Northern RegionSales people are working on debtors daysMeeting to discuss progress to be held on 15thImprove working capitalAreas requiring assistance or a decision:Need to discuss and present the final C.S.I. process for approval – need 15 minutes
8 How to keep the c@ps process alive (The Execution Sheet) Once the 3 year and the individual 6 month plans have been established, it is important that the process is kept alive.One of the biggest problems in business today is how to execute on the strategy.The Execution Sheet is an important document, that if used correctly, will ensure that the process is monitored and that individuals are held accountable for the aspects that were agreed in the planning stages.2 days before the monthly meeting (or weekly if this is the case) each person attending the meeting should complete the Execution Sheet stating how they are doing against each objective outlined in the 6 month plan. They should also fill in the progress that has been made to date. If they need assistance or a decision. (this should be filled in in the shaded section at the bottom of the page)These should be ed to the person chairing the meeting who will do a triage prior to the meeting and decide what is really important.At the meeting each person will have 3 minutes to outline the progress of their objectives. Should any discussion be required or a decision be needed this will be taken care of in the meeting. It must be noted that the meeting is not a platform for general discussion or operational issues, but rather to discuss things that need to be communicated, require a decision or need someone to clear the path for the person who is discussing their Execution Sheet.The idea of this meeting is to establish how the objectives are progressing and where help is needed.It is critical that these meetings are very focussed and are of a short duration. Should anyone not complete their Execution Sheets then their objectives will not be discussed or mentioned.It requires discipline to have the meetings and to complete the forms.The same form can be used for one on one meetings with managers that are held before the six month is completed.
9 Some organisations that have used the c@ps process Aberdare CablesAfrica Legend IndigoAmamzintoti Primary SchoolBay Precision & Mining (Pty) LtdBeier Safety FootwearBevcanBidvestBig Five MunicipalityBowmark Capital –UKCanovaChipkins Bakery SuppliesChryslerCity of Joburg EE & Skills development strategyClifton SchoolComrades MarathonControl Instruments AutomotiveControl Instruments Pi ShurlokCorrusealCSDTT - Centre for Skills Development Transfer & TrainingDecorlandDeloitte GHRDDepartment of Education - MpumalangaDepartment of Justice - KZNDepartment of Transport - KZNDepartment of Health - KZNDiscount SteelDoculamDunlop factory Durban & LadysmithEast Coast RadioEdcon (Transformation)Fulton SchoolGateway SchoolGEA Processing TechnologyGrindrod J&J LogisticsGreen OfficeHomenetHusquarnaImpetus –UKIndependent SystemsInterquad - UKKingdom HoldingsKingswood - UKKloof ConservancyKPMG – Information Risk ManagementKramp SA & UKKZN WildlifeLibertyList of Life - UKManlineMAPPP SetaManor Gardens – UKMaurice Kerrigan PresentationsMica HardwareNatal Sharks (Pty) Ltd Natal TechniconNavago Machine ComponentsNedcorNetcareNetlearnNitrochemOmnia Speciality FertilisersOmobono - UKOptimus – A News Corporation Company - UKPenzance Primary SchoolPerryHill InternationalPetzetakis AfricaPinnacle MicroPressure Die CastingProvincial Central Stores – KZNPublicis Blueprint –UKQuick CashRamsay Production EngineersReserve Bank SARGA Reinsurance CompanyRhodes UniversityRobertsons FoodserviceSanlam – HR forumSanofi SynthalaboShuter & ShooterSea Fish – UKSikaSLOT Student Leavers Opportunity TrainingSouth African Sugar AssociationSouthern ProfilesStihlSt Peters SchoolStandard BankStanbic Bank (Botswana, Tanzania,Mozambique, Uganda, Swaziland, Namibia,Kenya, Ghana, Zambia, Malawi, Nigeria)StratAfrique -GhanaSue Ryder Care – UKSutherland Associates (Pty) LtdTecmedTechnology ConceptsTransnet HousingTrellidoorTrust PersonnelUnigestion – UK, France, SwitzerlandUnilever South East AfricaUnique Trust – GhanaUNISA – CVI ProgrammeUnited Credit - AustraliaUniversity of Stellenbosch Business SchoolVirgin ActiveVital FoodsW Brick & BlockWhirlpoolWilecWork wise - AustraliaWimbledon Racquetball and Fitness Club -UKWorldwide African Investment HoldingsXerox SAXMA Ltd UK
10 Clients comments: “I thoroughly enjoyed and tremendously benefited from your presentation and the hard work you took us through. The process is the most concise, coherent and effective goal-setting procedure I have come across. I will be applying it in many more scenarios than just my business.” Scott Marques- Managing Director, Imtec Sales (Pvt) Ltd.“It’s unusual to find a process that broadly covers all the elements of a business. I would never have believed so much could be achieved in such a short space of time. I can highly recommend the process.”Simon Thomas - Managing Director, GEA Process Technology“...this is the most comprehensive strategy integration plan I have been exposed to” Russel Swarts – CFO, Worldwide African Investment Holding”Of all the strategic processes I have been exposed to, is the most practical I have seen.”Simon Cleasby - Managing Director, Tongaat Hulett Triangle“I thought I would share some of our achievements with you for October. We broke all records and I firmly believe that this success has been due to the process. So to you many thanks.”Doug Stubbs – Director, Omnia“I wanted to give you some follow-up on DRG Outsourcing’s progression. This year our sales are up 82% over sales for the first six months last year. We have seen growth in the right areas, and much of our success can be traced to our discussions and plans. PRO67 is well on track. Thank you and Regards, DaveDavid White“The plans have given our area managers a great deal of focus and is aligned with our strategic intent.”Rob Clark - Managing Director, Omnia Speciatities.“I couldn’t believe that we could achieve so much in such a short time frame. I really has helped us focus on the critical issues.”Patience Makjadi – Manager, Transnet Housing“We have been using now for 2 years and it has transformed the way we do business”Mark Fitzgerald – Director, Publicis Blueprint -UK
11 For more information please contact: Clive Howe +27 824545680 The 2 day programmeThis programme deals with the creation of a strategic plan and how to implement the strategies and inculcate the values that have been established. Two days will be spent in a workshop environment creating an overall strategic plan and focusing on the individual plans needed to sustain and achieve the overall vision.Who should attend : All management staff who are involved in planning.The Programme Outline :The objectives and outcomes of the programme.Short presentation aroundExercises to develop creative thinking in preparation for opening the mind.Internal analysis of all aspects of the organization done using the three C’s model – Concept, Competencies, Commitment – group feedback.External view of the organisation and the environment (Stop, Start and Continue exercise)Developing a 3 year vision for the organisationA practical exercise that relates to the setting and achieving of a vision.The development of Critical Success Factors from which the strategies and tactics emanate.Creating Key Performance Indicators – measurables and benchmarks.The building of strategic objectives that support the Vision, Values and C.S.Fs.All this work will be documented and captured in the format.The development of a set of values and acceptable behaviours, which will create the culture of the organization.Much of this should be completed during the first day so that delegates will see the model at the start of the second day.Time will be spent adjusting the content and making changes.Allocation of responsibilities for each Strategic Objective.Creation of individual 6 month plans to support the overall strategic planSharing of these individual plans to gain agreementThe execution process and how this should workAn exercise on planning and strategizing will be done.Each delegate will have a hard copy with the overall plan on and the blank for creating their plans.How to communicate and involve other staff with buying in of the Vision.The way forwardDuration: 2 days initially to set up the process and then follow up sessions to ensure that the process is working and results are being measured.For more information please contact: Clive HoweOr look on the website:
12 The strategy canvas of(What differentiates from other strategic processes)A survey conducted by 13 independent consultantsHighOther processesLowPriceComplexityAccountabilityExecution processFlexibilityDrill downTime(duration)Time to produce final documentationOwnershipPerformanceSustainability