Business Management Health Assessment (BMHA)
“Designed for the Manufacturing Industry”
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BUSINESS ALIGNMENT & TURNAROUND
QUESTION => Manufacturers – Are you achieving 500% + on Overall Equipment Efficiency (OEE)? Are you achieving the planned ROI?
This week and rounding off this business management principle, we will focus on the management domain criticality of the WORKFORCE and how that affects business alignment.
The workforce is not only the mortar holding everything together, but also the foundation and structure that makes what your company does possible. It is the most prized element of a manufacturer that needs investment in terms of skills development, personal development, performance, job satisfaction, being part of something important and progressive, allowing the liberty of the workforce to contribute to improvement, profitability, and sustainment.
Some of the key elements we examine for workforce management can be categorized into accountability, authority, functional performance, and responsibility. This may have an oppressive tone, but they are what the workforce desires to feel and know they are contributing in a positive and productive manner. Everyone at the end of the day wants to know they made a difference and to do it again the next day.
Breaking the aforementioned down; when it comes to accountability, having clear and defined roles and accountability matrix (RAM) avoids confusion and the likelihood of your team stepping onto each others’ toes. When a RAM is established, we can attest to the enormous benefits organizations experience once it is institutionalized. It removes internal obstacles and threats to productivity and business proficiencies.
Whilst the word ‘authority’ may have a negative connotation in recent years, it remains a necessary aspect of the workforce playbook. Having clear authority definition makes it clear to the entire workforce who makes what decisions and how they themselves can contribute to decision maker that will benefit the entire organization. Simplistically put, there cannot be more than one quarterback on a team in play. Yes, back ups and assigned decision makers are critical to have in place, but the process of authority needs to be clear.
Lets move onto functional performance. If your company has the above sorted out, the access to performance is free to flourish. Of course, elements that drive performance as discussed in previous blogs are necessary. We are talking about the human element this week and we cannot overstate the importance of this aspect. Human nature is such that if they are not feeling that they are contributing, making a difference, etc, then complacency takes hold and most dangerous of them all is passive resistance. Yes, you see smiles, but that is masking what is really going on.
A carefully developed and administered Personal Development Plan (PDP) has proven to be very effective to foster what we have been talking about this week. PDP’s are for each manager to develop their objectives and goals associated with their direct supervisor/manager who is also linked to the senior leaderships PDP – business strategy, goals and objectives for the company. If this is done well, then the chain throughout the workforce is integrated. It all ties back to strategic and tactical planning of the organization supported by product, market need and the workforce making it happen.
We hope you have enjoyed reading our perspectives in this miniseries for business alignment and turnaround.
We look forward to your thoughts on this subject and stick with us next month for a new series on the Cost Reduction and Lean business management principle.
Until then, happy strategic planning. We encourage you to reach out to us on this and any topic we cover. We are practitioners with a true passion to help manufacturers like you meet your objectives. It costs nothing to enquire and we wager that you will be glad that you did.
Extended support by LYNXBMG enables manufacturers like you to execute continual improvement through mentoring of personnel and optimization of your operating processes.
Flexible Product Options:
Client self-performed assessment – Internally managed. Formalized Report-Out.
OPTION B
Assisted assessment – Leave the process to us – 3 Day on-site process with a LYNXBMG Business Development Expert to manage and document a deep dive of your operational business. Formalized Report-Out and Roadmap to develop the business.
With a completed BMHA, we guarantee leadership will have clarity on:
- The level of congruence within the functions planning, managing, and controlling the company.
- The level of congruence and integration of the management processes used to drive the company.
- The alignment of the business plan to the company’s core objectives.
- Strengths, weaknesses, opportunities, and threats within the company.
- Opportunities for cost reduction and performance improvements affecting overall equipment efficiency (OEE).
- Procurement and purchasing leverage opportunities.
- Operations and Quality Assurance alignment.
- Organization readiness & prioritization of what to focus on to develop the business.
- Progressive steps to achieving a lean enterprise.
- Expected ROI from development actions taken ~ 500+% based on OEE improvement to manufacturing quality, efficiency, resource allocation & management processes.