ALIGNMENT Aligning your team to increase the profitability and - PowerPoint PPT Presentation

PERFORMANCE AND CULTURAL ALIGNMENT Aligning your team to increase the profitability and predictability of your business

HERE ARE TODAY’S 3 OBJECTIVES Point to areas in your Introduce a concept to you Give you strategies and ideas organization where you most that is the basis for aligning that you can apply to your often find some degree any organization, in the form business to bring about of misalignment of the Management greater alignment – which Performance System leads to greater predictability and profitability 2

ORGANIZATIONS ARE ALWAYS OUT OF ALIGNMENT What are some of the reasons why? 3

“THE ADVANTAGE” – PATRICK LENCIONI Results Accountability Commitment Healthy Conflict / Radical Candor Humility Vulnerability Based Trust 4

Define “winning” for your organization? EBITDA? Net Promoter Score? Product Development? 5

VS 6

Process fads don’t work 7 Alignment / MPR

PERFORMANCE AND CULTURAL ALIGNMENT To tackle performance and cultural alignment, three facets of the business need to be considered. Most businesses attempt to address only one at a time. Management Behaviors Beliefs Performance System 8

MANAGEMENT PERFORMANCE SYSTEM The Management Performance System is anchored by the tools that control the business plan. “Running the numbers” reveals misalignment. Execution Financial Plan Financial Reporting MP MR Forecast & Capacity Plan Assumption Reporting OP OR Schedule and Resource Plan Attainment Reporting Continuous Improvement Tools 9

HERE’S AN EXAMPLE FOR LABOR # Prospect # Orders Conversion Revenue Segment A Segment B Price/Units Planned $/Orders Gross Margin # Units Segment C Ancillary Units Good Units Cost of Goods Material Scrap Units Cost/Unit Labor Net Income PPV Hours Other expenses Process hours Standard speed $/Hour Overhead Costs Sales Down/Lost time Crewing Headcount General Taxes $/Person Admin Variance/other 10

BEHAVIOR When the tools are aligned, you now need leaders to Actively Manage . Execution Visibility C Suite Assignment C Suite Follow Up Leadership Assignment Leadership Follow Up Front Line Assignment Front Line Follow Up Problem Solving Behaviors 11

ACTIVE MANAGEMENT The Role of the Manager is to remove barriers to higher performance. This is true at all organization levels. Understand and Make it Follow up on Analyze Communicate Visible Results Variances the Plan Active Problem Solving 12

BELIEFS Leaders Cannot Delegate Culture The Power of 3 “ The culture of any organization is shaped by the worst behavior the ” leader is willing to tolerate. You have to “listen for values” - School Culture Rewired You need to incorporate your values into your Management Performance System 13

BRINGING IT ALL TOGETHER Make Performance Visible Rally Around a Common Have the Humility to Execution Purpose Improve Financial Plan Financial Reporting MP MR Forecast & Capacity Plan Assumption Reporting OP OR Schedule and Resource Attainment Reporting Plan Continuous Improvement Tool Apply Pressure 14

EXERCISE 15

HERE ARE TODAY’S 3 OBJECTIVES Point to areas in your Introduce a concept to you Give you strategies and ideas organization where you most that is the basis for aligning that you can apply to your often find some degree any organization, in the form business to bring about of misalignment of the Management greater alignment – which Performance System leads to greater predictability and profitability 16

PERFORMANCE AND CULTURAL ALIGNMENT For more information please contact Andrew Rush Carpedia International Corp. arush@carpedia.com 416.561.0577