Why? What does it matter?
With no doubt, every one is very competent in his/her area.
But all together the results are no at the expected level. There are disruptions in all areas, poor service, urgencies and too many delays and crisis, quality problems, complaints, forecasts are inaccurate and clients unsatisfied. Margins are getting smaller and may affect treasury very soon. In general performance is by far, not adequate.
Therefore, something has to be done to feed the business. Have been trying many initiatives, ISO, planning, Lean manufacturing, Balanced Scorecard, Six Sigma, new ERP, CRM, finite scheduling, and so on. A lot has been spent on computer systems, some standards and other integrated, interfaces and so on.
And always the same results!
What if the problem is everywhere and nowhere at the same time? What if the problem is the lack of integration? What if every area, every department, every element of what we call “business” look to their own results? What if everyone is on their side?
Today we know that every company, every organization is a “system” that evolves and that relates to other “systems” outside. In reality, do we know how to conduct a “system”? and how do we learn to evolve?
Experience shows that a “system” can not be cured from the outside, so the ability to heal and to improve, to take a quantum leap in results must come from inside.
What to do?
In principle, guiding the organization more to processes and less to functional areas or departments. For this, we must have defined the key processes, the operative and the support ones. Processes will structure horizontally and we’ll give responsibility to multifunction teams.
Only one of these teams, representative sample of the company, will have the capacity to mobilize domestic intelligence that exists and belongs to the same “system”, that is greater than the sum of the individual intelligences. This team, properly trained, can offer solutions from inside.
Perhaps we will have to start with the management team. In this case, with external assistance, to get understanding, enthusiasm and managerial support.
And what for? With what result?
Simply, for best performance!
To make a qualitative leap in margins and results.
For greater flexibility and a shorter total cycle. From detecting a need or a change in the market until we have the answer.
For a lower financing requirement in internal operations, lower investment, in other words, a higher return on invested capital, adding the same value in less overall cycle time.
And most importantly, eliminate stress, psychological stress, situations in which the person is unable to respond well to the demands, simply because the system does not allow it.
How do we do?
Through a structured management process that integrates the key company processes. A kind of advanced S&OP. Incorporating the change and modifying obsolete premises, with the latest information from the environment and particularly those relating to customers, market and supply chain.
These key processes are:
- Managing innovation. All projects and programs
- Management of customers. Sales and demand forecasts.
- Operations management, supply and logistics.
- Support processes. Finance, IT, etc..
- Knowledge management and intangibles
A process with a forecast horizon to take decisions. That inluding the latest information on each of the processes and to help understand the implications of the changes and assess the impact on our resources.
The basics of the process are: one single set of reliable and shared data, a selection of relevant and accurate information and knowledge management.
The other basis is to continually review the premises with we were based in our forecasts, with revisions by exception, usually monthly, having a single realistic plan to provide visibility, revised and valid in all functional areas.
It contains the latest information available, incorporates the known changes in the environment and allows timely decisions not being just reactive.
This allows that strategy is connected with the day to day, take the right decisions and correct deviations.
Program
- The harmonic integral management. Leading the company with all assets and resources, tangible and intangible. Concepts
- Need for a strategic process for integrated planning of the business or operating unit.
- Description of the process. Start-up, how responsibilities are assigned.
- The sub-business processes: innovation management, demand management, supply management and support processes.
- Assessment of scenarios and preparation of decisions by the review of priorities.
- Management review and performance measures.
- Implementation. Action plans in global environments
- Hold the improvements gained. Conclusions.
