MPC Seminar 2 in-class summary exercise: Identifying results, action and people controls
Table:18 widely adopted management practice dimensions in manufacturing firms from the world management survey (http://worldmanagementsurvey.org/).
Operations Management
1. Adoption of Lean Manufacturing: Assesses how well lean (modern) manufacturing techniques have been introduced
Better practice: All major aspects of Lean have been implemented
Worst practice: Other than just-in-time, no other aspects of Lean have been introduced
2. Rationale for the adoption: Assesses the motivation and impetus behind changes to operations and what change story was communicated
Better practice: Lean was introduced to meet business objectives
Worst practice: Lean was introduced to catch up to competitors
3. Process problem documentation: Assesses processes for and attitudes to continuous improvement and whether learning’s are captured / documented Better practice: Exposing problems is integral to individuals’ responsibilities rather than ad hoc solutions
Worst practice: No process improvements are made when problems occur
4. Operations Performance tracking: Assesses whether performance is reviewed with appropriate frequency and communicated to staff
Better practice: Performance is continuously tracked and communicated to all staff using a range of visual tools
Worst practice: Tracking is ad hoc, and measures being tracked do not indicate directly if overall business objectives are being met
5. Operations Performance review: Assesses whether performance is reviewed with appropriate frequency and communicated to staff
Better practice: Performance is continuously reviewed, based on indicators tracked; follow-up ensures continuous improvement
Worst practice: Performance is reviewed infrequently and only success or failure is noted
6. Operations Performance dialogue: Assesses the quality of review conversations
Better practice: Regular performance conversations focus on addressing root causes. Purpose, agenda, and follow-up steps are clear to all
Worst practice: Relevant data are often not present at meetings or discussion is based on data that is not meaningful. Agenda and purpose are not clear
7. Consequence management: Assesses whether differing levels of performance (not personal but plan / process based) lead to different consequences Better practice: Failure to achieve agreed targets drives retraining or moving individuals around.
Worst practice: Failure to achieve agreed targets does not carry any consequences
Performance Management
8. Types of goals: Assesses whether targets cover a sufficiently broad set of metrics and whether financial and non-financial targets are balanced
Better practice: Goals are a balance of financial and non-financial goals
Worst practice: Goals are exclusively financial or operational
9. Interconnection of goals: Assesses whether targets are tied to the organization’s objectives and how well they cascade down the organisation
Better practice: Corporate goals increase in specificity as they cascade through the business units
Worst practice: Individual workers are not aware of how their contribution is linked to corporate goals
10. Time horizon: Assesses whether the firm has a ‘3 horizons’ approach to planning and targets (short and long term goals and targets)
Better practice: Short-term goals are set so that they become a staircase to reach the long-term goals
Worst practice: Top management’s main focus is on short term goals
11. Setting stretch goals: Assesses whether targets are based on a solid rational and are appropriately difficult to achieve
Better practice: Goals are demanding for all divisions, and are grounded in solid economic rationale
Worst practice: Goals are either too easy or impossible to achieve
12. Clarity of goals: Assesses how easily understandable performance measures are and whether performance is openly communicated to staff
Better practice: Performance measures are well defined and well communicated;