slide 1 - improving enterprise performance by training and
TRANSCRIPT
Management of Sustainable Change:
Capacity Building and Industrial Modernization Programmes
Presentation
Applying UNIDO methodology and Pharos enterprise benchmarking software for improving capacity for Trade, Exports, competitiveness and sustainable development
Do you feel the change?
The world is changing.
Business owner and his employees (1895)
Making stogies Pittsburgh cigar factory (1900s)
Workers on the first moving assembly line (1913)
Assembly line at Chinese company (2000s)
“You can’t do today’s job with yesterday’s methods and be
in business tomorrow"
Who should attend?
The one on his way to the top.
The one not only driving but also thinking which way to choose.
The one feeling that something is wrong should try to improve it.
The one looking for new opportunities in business.
Who should attend:
• The business owners, entrepreneurs• Senior management and specialists
supporting strategic, financial and production management
• Assistants to senior management,• Business consultants• Vocational Training and Executive
Education professionals
What are the benefits?
Valuable knowledge capital
UNIDO Pharos software package had been applied to several industrial modernizations and capacity building programmes in several countries including Colombia,
India, Egypt, Bahrain, Lebanon, Zambia, Uganda, Kenya, Indonesia, Russia, Slovakia, United Kingdom
Training materials
Best practices
Follow-up assistance by the ELCIM consultants
Real life event
UNIDO Certificates “Business Excellence in Enterprise Performance Management”
Problems addressed
Enterprise level
1. Mistakes in making business decisions by management based on inadequate assumptions, information,
2. Financial mismanagement and ineffective use of own or borrowed financial resources
65%
Major reasons of SME mortality*
*10,9 million enterprises, data SEBRAE, BRAZIL
Initial position
Business Target
(Promised Land)
Ideal path
Sailing to target destination
Where is navigation? What are their chances?
Initial position
Business Target
(Promised Land)
Sailing without navigation
Ideal path…
Initial position
Business Target
(Promised Land)
Sailing with navigation
Sailing with navigation.
“We cannot change the direction of the wind, but can adjust my sails to always reach my destination.”
Awareness workshops
UNIDO Capacity Building and Upgrading Programmes with Enterprise Business Performance Management, Measurement
and Benchmarking components
Training Workshops
IT Tools for business performance
measurement and benchmarking
Consulting & Coaching on-site
Certification in Business
Excellence Achivements
Industrial centers in country
UNIDO, Vienna
Improving results: Industrial engineering
methods
Measuring business results
Developing best practices
Pharos - Business Navigator
Financial Improvement Toolkit - FIT
Produce Plus Enterprise Certificates
Benchmarks
Managerial Certificates
Objectives (1)
• Introducing best practices of systematic measuring of results, its maximizing, planning, eliminating inefficiencies
• Implementing effective productivity & industrial engineering methods with simple and inexpensive personal performance management tools.
Objectives (2)
• Combining methodology, best practices and software for improving productivity, competitiveness, quality for sustainable growth.
• SMEs becoming more transparent and prepared for national and international investments, have improved capacity for trade and exports.
Objectives 3
• Improving entrepreneurs capacity for managing investments, innovations, new technologies – “Management of Change”.
• Facilitating business developments, managerial potential, implementation of ISO 9001.
Strategic Planning
and Implementation
Measuring and benchmarking
strategic and financial results with
UNIDO Pharos and FIT software
Measuring and benchmarking
manufacturing results with
Produce Plus software
Programme
Modules
On-site enterprise consulting
and coaching
1
2
3
4
Module 1:Strategic Planning at Industrial
SME
Development strategies shall include • adapting to changing business
environment• potential risks • maximizing competitiveness. • different attitude and approach of
the enterprises, especially that of the owner and / or management
Module 1:Strategic Planning and
Implementation• Key competencies and skills of
Change Leaders
• Methodologies of Strategic Planning
• How to develop and implement a strategic plan? (Measure and Planning based on realities, simulating the decision options)
Module 1: Implementing Strategic Plan
• Targets and Milestones• Timetable • Organigram • Organizational Culture • Monitoring and Benchmarking of Key
Performance Indicators • Comparing assumptions vs. realities
Module 2: Improving Performance with ICT: Pharos Enterprise Benchmarking
• Integrated enterprise platform for unified measurement, monitoring and management of business performance, innovative, powerful yet easy to use
• Introducing business intelligence concepts at each organizational level
• Improving business culture of stakeholders for sustainable development
• Simplicity in learning and self-training facilitating exchange of best practices, benchmarking and transfer of knowledge between stakeholder groups
• Special focus to personnel of private and public enterprises
Module 2: Pharos Enterprise Benchmarking
• Methods and tools for easy setting and assessment of goals (organization, departments, individuals)
• Comparisons between organizations as well as traceability of change using real-time benchmarks
• Scalable support of organizations in their growth path from small to large (5 => 1000 employees)
• Integrating features of Pharos-Business Navigator, FIT, Produce Plus and BEST
• Transparency of business results for prospective investors and modernization programmes
• Compliance to BASEL II (minimization of credit risks) • Customizable benchmarking indicators and reports
SME Level ApplicationPharos Package
Laptop
Owner
EnterpriseData Base Update
Calculation of IndicatorsBusiness Profile
Benchmarking ReportsAnd Graphs
Manager
Developing best practices: problems and how to address them, Managerial dedication, Value of unmeasured, Staff attitude, training and stimulation: who is really interested in the measurement results? Making the measurement, management and benchmarking the component of a business culture, Expected results and realities in practice
Module 2: Improving Performance: Business
benchmarking & reporting
• “Where we are compared to others?” • Self-assessment and positioning of
enterprise achievements against the others by industry, region, country;
• obtaining the vision of our own progress and its relevance to overall industrial trends
Module 2: Improving Performance: Business
benchmarking & reporting
Module 3: Participants learn and
practice:• Introduction to Performance
Measurement in manufacturing• Relation between lean manufacturing
and production performance measurement, diagnostics and benchmarking, value added stream mapping
• Application of Pharos to production performance management
Module 4: On-site enterprise consulting
and coaching
• On-site implementation: developing knowledge capital, setting best continuous improvement practices (up to 12 months, consultant assisting and supporting each enterprise).
Module 4: On-site enterprise consulting
and coaching
• Training and certification of national consulting and support teams
• Benchmarking and certification of each participating enterprise
• Final results evaluation, reporting, conference of stakeholders
The Programme Modules Integrate
• concepts, • methodology, • training and reference materials, • practical exercises, • lecturing, • action learning, • team work/group work, • case studies, simulations, • games and computer-based training
Expected Results (1)
• Best practices in business improvement
• Improvement of Key Performance Indicators (KPI) up to 300%, including Gross Profits, Productivity (Added Value per Employee), etc.
• Benchmarking & diagnostics reports for each enterprise
• Benchmarking data for evaluation of sectoral performance
Expected Results (2)• Documented results of the Programme
implementation• Investment facilitation due to increased
transparency of businesses• UNIDO Certificates of Achievements in
Business Performance Excellence• Improved culture in Management of
business, innovations, competitiveness, productivity, quality and sustainability
• Installation of Pharos benchmarking software in participating enterprises
We really appreciate PHAROS - as a concept and as a Business Performance tool and the way of presentation of its output Indicators". S.D.Sardesai, General Manager
Case study: Shoe Factory, Colombia
Return of Investment into Programme participation
Case study: Shoe Factory (Bogota, Columbia 2002)
• Average annual sales, USD - $632 000• Net Profit average % (leather & shoe
production) - 5%• Increase of net profits, post programme
in % - 24%• Increase of net profits, post programme
in USD - $7,584
• Participation costs per annum < $2,500
Expected Results of Capacity Building Programme “Management of Change”:
• Margen de Utilidad Operacional: + 53.7%• Incremento de Ventas: + 37.9%• Índice de Servicio al cliente: + 99.28%• Estructura de la Organización: +
26.09%• Gestión de Mercadeo: + 26.19%• Eficiencia en la Gestión de la Producción: 66.32%• Maneo del Recurso Humano: +34.71%• Administración Económico-Financiera: + 60.93%• Estrategia Empresarial: + 77.37%
*Source: UNDO Integrated Programme for Colombia 2002-2004, Component II, Pharos
Conclusions:
The National Entrepreneurship Capacity Building and Industrial Modernization Programmes provide unique answer
• Management of Sustainable Change• Investments• Innovations • New technologies
Questions please?
Thank you!
Contacts:
Serge GolovanovPh.D., Dipl. Eng., Director,
Enterprise Performance Improvement CenterGOLEM IMS GMBH, Vienna, Austria
UNIDO International Consultant
e-mail: [email protected]
References
• NYPL Digital Gallery, http://digitalgallery.nypl.org/nypldigital/index.cfm• Nationals Archives and Record Administration, http://www.archives.gov/exhibits/twww/ • Dongguan Digi-in Digital Technology Co.,Ltd, http://www.digi-in.com.cn/en/index.asp• http://www.istockphoto.com
Source materials by
• Industrial upgrading programme overview and relevant documents http://win2biz.com/unido_sw/eng/SME-Prog-intro.htm
• Pharos enterprise benchmarking software: http://win2biz.com/unido_sw/eng/peb.htm http://win2biz.com/unido_sw/eng/faq.htm http://win2biz.com/eng/Interview2.htm