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

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HERE ARE TODAY’S 3 OBJECTIVES

Point to areas in your

• rganization where you most
• ften find some degree
• f misalignment

Introduce a concept to you that is the basis for aligning any organization, in the form

• f the Management

Performance System Give you strategies and ideas that you can apply to your business to bring about greater alignment – which leads to greater predictability and profitability

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ORGANIZATIONS ARE ALWAYS OUT OF ALIGNMENT

What are some of the reasons why?

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Accountability Commitment Healthy Conflict / Radical Candor Vulnerability Based Trust Results

“THE ADVANTAGE” – PATRICK LENCIONI

Humility

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

• rganization?

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VS

Process fads don’t work

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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.

PERFORMANCE AND CULTURAL ALIGNMENT

Management Performance System Behaviors Beliefs

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The Management Performance System is anchored by the tools that control the business plan. “Running the numbers” reveals misalignment.

MANAGEMENT PERFORMANCE SYSTEM

Attainment Reporting

Execution

Assumption Reporting Financial Reporting Schedule and Resource Plan Forecast & Capacity Plan Financial Plan

MR OR MP OP

Continuous Improvement Tools

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HERE’S AN EXAMPLE FOR LABOR

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

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BEHAVIOR

When the tools are aligned, you now need leaders to Actively Manage.

Front Line Follow Up

Execution Visibility

Leadership Follow Up C Suite Follow Up Front Line Assignment Leadership Assignment C Suite Assignment Problem Solving Behaviors

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ACTIVE MANAGEMENT

Understand and Communicate the Plan Make it Visible Follow up on Results Analyze Variances Active Problem Solving

The Role of the Manager is to remove barriers to higher performance. This is true at all

• rganization levels.

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BELIEFS

The culture of any organization is shaped by the worst behavior the leader is willing to tolerate.

“ ”

• School Culture Rewired

Leaders Cannot Delegate Culture

The Power of 3 You have to “listen for values” You need to incorporate your values into your Management Performance System

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BRINGING IT ALL TOGETHER

Apply Pressure

Attainment Reporting Assumption Reporting Financial Reporting Schedule and Resource Plan Forecast & Capacity Plan Financial Plan

MR OR MP OP

Continuous Improvement Tool Execution

Have the Humility to Improve Rally Around a Common Purpose Make Performance Visible

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EXERCISE

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HERE ARE TODAY’S 3 OBJECTIVES

Point to areas in your

• rganization where you most
• ften find some degree
• f misalignment

Introduce a concept to you that is the basis for aligning any organization, in the form

• f the Management

Performance System Give you strategies and ideas that you can apply to your business to bring about greater alignment – which leads to greater predictability and profitability

PERFORMANCE AND CULTURAL ALIGNMENT

For more information please contact

Andrew Rush Carpedia International Corp. arush@carpedia.com 416.561.0577