Managing Business Performance
- 1. Measuring Business PerformanceShortened presentation from that delivered to the ACCA North West Roger Brown, nuOrder Limited Delivering consulting solutions to SME’s & Corporates and large organisations
- 2. nuOrder provides professional, bespoke, totally independent business consulting services to SME’s, Corporates and large organisations .We have brought to the SME market a truly holistic, unique, yet simple and affordable approach to developing and growing a business, enabling business people to witness real tangible differences within their organisations, from increased turnover and profit, to staff improvements, sustainable growth and more personal freedom.Our main services: Business & Financial Consulting Interim Management
- 3. SME & Corporate Clients
- 4. Measuring a businessStrategy & Planning - do you know where the business is going?Management - are the teams achieving the business goals?Sales - do you convert enough business? Marketing - are you getting enough leads? Production & Operations - are you efficient? Finance - is your profitability and cashflow adequate? HR - do you have a highly performing team?
- 5. Developing a businessEvery business has 5 interconnected business functionsChanging one WILL impact on the others. FactSo, even if a business has one of those functions needing specific attention, or a requirement to develop all the above functions you should recognise all the business functions in all solutions> ACTIVITY > DEMAND > SUPPLY > PROCESS FinanceH.R.OperationsSalesMarketing
- 7. Why measure?How do you know if it’s working?
- 8. What do we need to get better at?
- 9. What should we do?
- 10. Just by measuring it will get better
- 11. Goal SettingActivity drives results
- 12. KPI’s can measure allparts of a businessFinanceH.R.OperationsSalesMarketing Comparison to peers and sector Immediate and long term factors What drives the business … what you produce or sell NOT just for the sake of it !! …… target overload
- 13. TECHNOLOGYTAXESBusiness doesn’t stand stillCompetitionBusinessDeclinesSolution…Anticipate change Grow your business
- 14. Strategy & PlanningGreater focus on what clearly matters
- 15. Increased awareness of profit potential
- 16. Clearly defined direction
- 17. Sense of control
- 18. Balance between personal and business objectives
- 19. Agreement to collective goalsStrategic Management Corporate Strategy: refers to the overarching strategy of the diversified firm. Such a corporate strategy answers the questions of "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?" Business Strategy: refers to the aggregated strategies of single business firm or a strategic business unit (SBU) in a diversified corporation. Functional Strategy: Include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies. The emphasis is on short and medium term plans.Tied to the corporate objectives, and hence to some extent their strategies are derived from broader corporate strategies.
- 20. Where to from here? Build a vision for the business Test the business model Construct a vibrant business plan Implement review and correct Gain further Knowledge Change the way people think Seek growth and build a team Work on changing the business everyday“All achievement has it’s beginning in an idea”
- 21. An excellent business?A bias for action — Do it. Try it. Customer focus — Get close to the customer.Entrepreneurship — Even big companies act and think small by giving people the authority to take initiatives.Productivity through people — Treat your people with respect and they will reward you with productivity.Value-oriented CEOs — The CEO should actively propagate corporate values.Stick to the knitting — Do what you know well.Keep things simple and lean — Complexity encourages waste and confusion.1982 Tom Peters
- 22. Balanced ScorecardActivity Based ManagementTotal Quality ManagementRisk AnalysisTalent Management
- 23. Balanced ScorecardThe “new” balanced scorecard transforms an organisation’s strategic plan from an attractive but passive document into the "marching orders“ on a daily basisTranslate strategy into action
- 24. 4 Key elements4 key elements
- 25. Where does it fit?
- 26. Activity Based ManagementDef’n: (ABM) is a method of identifying and evaluating activities that a business performsABM establishes relationships between overhead costs and activities so that overhead costs can be more precisely allocated to products, services, or customer segments.
- 27. Risk AnalysisDef’n: a technique to identify and assess factors that may jeopardize the success of a project or goal. Use in financial simulations – base costs, ‘risk costs’, ‘contingencies’ Don’t ignore real & present risks – Royal Bank of Scotland
- 28. Risk Analysis & StrategyEvaluation
- 29. Talent ManagementHR Management & AnalyticsPerformance ManagementCompensation ManagementSkills & Competency Management360 Degree FeedbackCareer & Succession PlanningLearning ManagementOrganisational ChartingDef’n: refers to the process of developing and integrating new workers, developing and retaining current workers, and attracting highly skilled worker
- 31. Learning PointsDecide what to measure
- 33. Test & measure
- 35. Compare to peers“Even a bad plan implemented on Monday is better than a good plan implemented on Friday”
- 36. and act on business results
- 37. Thank you for your time today…[email protected]