Performance Improvement

Performance Improvement in 9 steps: "At corporate level Diagnose latest financial statements to determine SWOT. Define realistic corporate objective in term of ROE = P/S x S/A ..."

1. Identify the critical performance gaps and SWOT analysis
2. Redefined the business goals and market positioning.
3. The right Key Result Areas - key strategies
4. Design the right business model - costs volume profit planning.
5. Ensure adequate working capital based on the trading strategies.
6. Ensure adequate capacity but minimize investment in fixed assets: a balance between ownership and rentals.
7. Sustain Liquidity or cash flow planning where borrowings and loan repayments are planned.
8. BSC perspectives - link and integrate strategies into a strategic map
9. Realigned strategies to achieve the targeted ROE.  - Use Du Pont ROE chart.
10. Monitor functional strategies through Performance metrics or Key Performance Indicators
11. Introduce innovation in products, strategies and technology to better the best practices.

Call 012-2786282    arriffin@gmail,com

How to achieve improvement in transformation.

When management analyst discuss change, they have identified change at 2 levels - evolution and transformation. Evolution refers to insignificant but gradual change. However transformation refers to great change in positive results.

The Malaysian government under the leadership of PM Najib is stressing on positive change at transformation level.

It must however be noted that transformation change could only be achieved through change in one or all the key steps in process, information, structures, strategies, management drive and attitude.

Change must be systematic, integrated and directed at total or comprehensive level rather than piece meal or sporadic effort.

Has the Malaysian government made a drastic change in its administration to achieve the transformational results?

I have not seen any significant change that has taken place in the Malaysian government machinery except for a brainstorming sessions of selected groups of persons to arrive at key result areas.  I do not think this is enough for the expected transformation change.

Mind the gap

If you travel to London and Hong Kong, "mind the gap"s is a common phrases used in the Mass Transit System.  It refers to the gap between the train and the platform.  These gaps could cause careless revelers to fall into.

By constantly reminding revelers, nasty accidents could be avoided.

As managers, we should be constantly be reminded of our performance gaps i.e the gaps between actual and targeted.  We should examine the underlying causes of the gaps - factors that contribute to the gaps.

The accountants call these gaps as variances and they have classified them as price, volume and productivity.

Based on these analysis, rectifying or improvement action could be taken on the critical negative gaps.

Metrik Keusahawanan - kaedah baru dlm latihan keusahawanan

Kemahiran utama usahawan ialah

• Pembentukan produk dan perletakan dipasar (market positioning)
• Mengenal peluang, pulangan dan risiko dalam perniagaan
• Pembentukan Model dan Strategi yang menang dalam perniagaan
• Kepimpinan dan pengurusan terhadap sumber utama.

Soal dan Jawab tentang latihan keusahawanan kaedah metrik.

1. Apakah perbezaan kaedah ini dengan kaedah biasa latihan keusahawanan?
• lebih menyeluruh, 
• kuantitatif, 
• integrated dan 
• berstrategi untuk 
• menghadapi persaingan.
2. Apakah proses pembelajaran kaedah ini?
• kemahiran menetap matlamat semua jabatan
• kemahiran mengenalpasti punca utama hasil
• menetapkan petunjuk utama prestasi
• menetapkan sasaran prestasi
• pemetaan strategi  
3. Apakah kandungan latihan (sila lihat dibawah)
• Ciptaan vs tiruan
• risiko dan pulangan
• jualan dan kepimpinan
• modal dan kecairan
• matlamat dan strategi pencapaian
4. Metodologi latihan kami
• Aplikasi dan bukan hanya teori
• Buku kerja dengan kes kes tersusun
• Template excel yang telah diprogramkan
• Menyampaikan kemahiran
• Quantitative
• Mapping
• Cause effect relationship
• Linkaged
• Modelling
5. Satelah tamat kursus, peserta boleh menyediakan
• Model perniagaan yang viable (dayamaju)
• Membangunkan sifat keusahawanan
6. 7 langkah menyediakan RP
• Modelniaga dalam merancang keuntungan
• Modal kerja
• Modal tetap
• Ekuiti dan Pinjaman
• Aliran Tunai
• PTE dan carta Du Pont.
• Penyata Kewangan

            KANDUNGAN KURSUS

                                   (Lebih kuantitatif, integrasi dan strategik)

1. Matlamat keusahawanan -  PTE
2. Bagaimana  mencapainya -   Key Result Areas - Strategi Perniagaan Utama
3. Sasaran pasaran dan kedudukan dipasar.
4. Mecipta model perniagaan yang unik. -  Kos, Harga dan Kuantiti. dan Untung
5. Kira Modal Kerja yang mencukupi yang ada kaitan dengan strategi niaga. (trading Strategies)
6. Meminimakan Aset tetap - Strategi Modal tetap
7. Unjuran Aliran tunai 
8. Perniagaan dibiayaikan oleh ekuiti dan pinjaman - berapa modal diperlukan.
9. Ramalkan Penyata kewangan -  diagnoskan dan pasti realiti.
10. KPI jabatan - kecekapan dan pertumbuhan/leveraging
11. Pemetaan strategi yang lebih menyeluruh.
12. Carta PTE Du Pont

  Faedah Khas /  Hasil dari menggunakan
Kaedah Metrik Keusahawanan

1. Model perniagaan dibincang
2. Relevan pada pasaran yang disasarkan.
3. Strategi strategi utama perniagaan
4. Petujuk petujuk utama ditekankan
5. Keuntungan dan kecairan turut dibandingkan.
6. Hasil gandaan perniagaan ditunjukkan.
7. Leveraging dan gandaan ditunjukkan
8. Lebih objektif dan kuantitatif
9. Lebih integrasi

Perbezaan dalam metodologi latihan

1. Mempelajari dan membentuk strategi perniagaan yang sesuai.
2. membentuk strategi yang berintegrasi dan pemetaan strategi.
3. Membentuk dan menyemak dengan model perniagaan

Memahami usahawan melalui 6 kaedah

1. Aras industri
2. Matlamat Jelas
3. Peluang
4. Strategi dan Pemetaan
5. Outcome modelling
6. Penilaian dan Perubahan
7. Key Performance Indicators

copyright 

arriffin@gmail.com 

012-2786282

Multilevel Marketing

These are some key steps in managing a multilevel marketing company.

1. Determine the mark-up policy based on the uniqueness of the product -  7 times - higher is better
2. Determine the payout percentage of the MLM to attract the network - 60%  - lower is better
3. The gross margin is determined by 100% deducting 60% plus product variable costs percentage - higher is better.
4. Determine the overhead costs required to manage the company.- lower the better
5. Is the break-even sales achievable with a known marketing strategy?

If it is not as the above, the MLM is not viable.

Quality management excellent Award - Malaysia

A 15 page requirement to be prepared by a company to be submitted and be awarded by the Malaysian Government through the Malaysian Productivity Board and the MInistry of Trade and Industry.

1. The performance improvement cycle are -  results, customers, process and people.

It evolves in the following management environment - leadership, planning,  information and evaluation.

We could do the above in 20 consultant man days for a medium size company to win the above award,

It is through understanding, planning, doing, evaluating, writing and winning.

(c) copyright -  Arriffin Mansor

Computing the ROI training

STEPS IN COMPUTING ROI TRAINING

1. Determine the course objective and goals in term of gains and benefits derived from the course.
• Identify the best practices to be adopted and the standard output they have achieved.
• Measure the current performance in term of efficiency or output or outcome measures.
• Compare before and after training performance of the trainees
• Accumulate the value until say for three years i.e whatever duration where values are drawn from training.
2. The KPI of the job holder would be a good measure of expected performance gains and opportunity cost.
3. Compute the course/ workshop/ seminar costs which include the opportunity costs of trainees
4. Divide gains or profits or benefits from training divide by the cost of training to arrive at the return on training. 
5. IF the benefits or gains to be derived from training is more than 1 year, the IRR and NPV is a better criterion in justifying training.
6. In general, the ROI on training has always been proven to be higher than 100% per year.

SYNOPSIS of ROI Training 

The purpose of this workshop is to impart knowledge and skills in measuring the effectiveness of training.  ROI is said to be the ultimate measure on the impact of training.

Since the benefits, accruing to training extends more than a year, the IRR would be a better indicator in measuring the impact.

The first day of this two day course shall focus on the ROI and the accumulation of costs and the benefits accruing from training.

The second day shall see the projection of benefits in terms of cash flows into the second and the years ahead.

Ready Templates and models (excel based) has have been designed for this course.

Performance improvement in Sales and Production departments as an impact of training are ter easy to calculate as compared to other department.

Profit center accounting must be prepared for each section and departments showing its income statements.

We believe that every job has more than one KPI measures.  The output or outcome could be calculated with each respective KPI measure.

References:http://traininginmalaysia.blogspot.com

Seven steps in training need Analysis

SEVEN STEPS IN TRAINING NEED ANALYSIS

1. Identify the performance gaps in the business by comparing against a standard in the industry.
• Use the ROE chart
• Use the business profit model  
• Use KPI efficiency and performance ratios
2. To determine the causes of poor performance – performance gaps analysis
• root cause analysis
• component ratio analysis
• Trend analysis
3.    To provide a basis of measurement –
• key performance indicators
• Input output analysis
• before and after training
4.    To determine the desired training outcomes – 
• desired competencies in the best practices
5.    To determine the contents and scope of training - 
• task and subtask analysis
• best practices
• innovation
6.   To determine the whether training is needed -  competency gap analysis through input-output analysis
• competency profile of the job holders as compared to ....
• identify unique competency gaps against industry standard joh holders.
• confirm competency with alternative approach such as BSC perspective, expert opinion, task analysis
7.   To gain management support -  ROI training where the gains and benefits are divided by the costs of training.

©  Arriffin Mansor 012-2786282

ROI Training - metric approach

Calculating ROI / IRR on training and development
	9.00-10.30		11.00-12.00	12.00-1.00		2.00-3.20		4.00-5.00
First day	Training evaluation – Kirkpatrick 4 level		Guidelines for evaluation of performance	Accumulate training  costs and benefits		ROI templates and calculations		Group work – computing the ROI case
Second day	Training Inputs and output analysis		Pitfalls in ROI  – measuring real efficiency	Projecting the net cash flows of training benefits		Group work - Computing IRR and NPV		Close Summary and action plans
	© ABM Consult

     11 steps to training need analysis

1. Identify the Critical performance gaps through benchmarking.
• Use the financial statements
• Use the ROE/ROA chart
• Profitable business model
2. Root cause depth analysis on the gaps
• component ratio analysis
3. Identify the true performance problems, issues and opportunities.
4. Identify the non-performers as individuals or groups.
5. Identify performance solutions and change required
• Non-training solutions
• Training solutions
6. Through best practices, conduct competency profiling of each non-performer.
7. Identify competency gaps within the non-performers.
8. Consider the costs of alternative training and coaching solutions.
9. Record before and after training performance outcome.
10. Estimate the gains and benefits as the outcome of training.
11. Compute the ROI of training to justify the training.

Competency concepts

What is competency?

A set of  best practices to be adopted and applied to produce an expected performance output.
A set of knowledge attitude and skills to produce a set of behaviours which could be observed, measured and evaluated to produce job or work outcome.

How to draw a set competency for a job.

• What are the objective and goals of the job?
• What are the duties and tasks needed to accomplish these?  Key Result Areas/Best Practices
• What are the actions do the job holder take?  Performance improvement matrix
• What results have been achieved: measurable performance.  KPIWhat is the different between competency based learning approach in contrast to the traditional academic based approach?

Competencies are identified through analyzing responsibilities, duties and tasks of a workman who has produced standard performance output. ry

The competency of any job would depend on the best practices in the industry.

The competency gaps is the different between the job holder competency against the best job holder in the industry.

Competency gaps are identified for the purpose of finding what training needs are needed for key job holders.
For example, an accountant are functioning primarily as follows:-

1. Producing efficiently financial statement as required by the laws
2. Producing periodical analysis and meaningful reports for the purpose of planning and decision making for all stakeholders.
3. Ensuring healthy cash flows and liquidity management.
4. Sourcing for cheap source of funds for the company and managing them efficiently and effectively.

Because of the above, the accountants must learn

1. Debit and credits up to Balance Sheet
2. Ratio analysis
3. Cash flows
4. Calculating cost of funds.

Through competency approach, a trainee learns to solve problems through applying the appropriate tools learned.

STAR: (Situation, Tasks, Actions, Results.)

We organise the following competency based seminars in Kuala Lumpur
(How to do it -  the tools that has been practised successfully)

1. Performance Audit - 2 day
• Evaluating past performance and the underlying factors
2. Performance Improvement - 7 steps approach - 1 day
3. Strategic Management - 2 day
• Metric Structure and Strategic Mapping
4. Strategic Finance in spreadsheet - 2 day
• 7 steps in business finance
5. HR Measures and Accountability - 1 day
• Measuring HR performance
6. Cash flows and Project Evaluation - 2 day
• Excel spreadsheet based
• Understanding discounted cashflow techniques
7. Business Planning in 7 steps - 2 day
• systematic approach to business
8. Performance Planning and Appraisal - HR purposes - 2 day
• The key HR function
9. Training Need Analysis - 2 day
• Performance gaps
• Competency gaps
• Justifying training
10. Compensation for performance - 1 day
11. Performance Management System - 3 day
12. Performance leadership and team building
• Team synergy and management

for more information call us now 012-2786282
arriffin@gmail.com

COSTS, VOLUME, PROFIT ANALYSIS

Return on Equity Chart  -   use as total diagnostic tool.

STRATEGIC MAPPING

Competency based steps in business
Job or work based methodology

1. Evaluate past performance using financial statements
2. Identify SWOT through gap analysis/ benchmarkings
3. Determine Market positioning
4. Know the market segment and competition.
5. Adjust business strategies
6. Refine market strategies
7. Ensure adequate working capital with a practical trading strategies
8. Minimise investment on fixed capital but ensure adequate capacity.
9. Financed the business by balancing equity with loan funds
10. Ensure continued liquidity through cash flow projections
11. Check goals achieved through Du Pont ROE chart.
12. Construct future financial statements
13. Test for reliability and reality with ratio analysis

Our Specialised expertise

We conduct training and provide consultancy services in the following areas:-

1.          Training Need Analysis
2.          Turnaround Management
3.          Performance Improvement
4.          Performance Planning &  Performance Appraisal
5.          Performance Planning and Budgeting
6.          Impact Study
7.          Installing a KPI management system
8.       Spreadsheet Finance
9.       Cash flows and project evaluation
10.       Business planning in 7 steps
11.       Marketing plans and budgeting
12.      HR accountability
13.       Performance leadership and team building
14.       Performance Audit

.    

For further information please visit our blogs on performance, training and business planning.

FINANCE FOR NON-FINANCE Course Title

Target groups		Executives, managers, entrepreneurs & directors
Learning Objective		To acquire key financial knowledge and skills for the purpose of managerial decision making and planning.
Delivery Strategies		Zero based lectures, group dynamics and case analysis
		Excel based templates and models demonstrations
Course Contents		1.       To determine the right size - Cost volume profit analysis
		2.       Trading and Working capital strategies
		3.       Fixed Asset Strategies and depreciation
		4.       Equity and financial leverage
		5.       Return on Equity Financial Structure (Du Pont format)
		6.       Cash Flow Projections (liquidity management)
		7.       Proforma Financial Statements
		8.       Financial Key Performance Indicators
Duration		2 working days
Course Benefits		Improve planning and operating decisions through financial criteria
Our unique Training Approach		Excel based financial models and templates
Training Aids		Please  bring calculators or laptops for the whole session
Cases to be discussed		Break even analysis
		Key Financial Ratio Analysis
		Annual Percentage Rate for loan repayment
		Cash flow Projections
© Arriffin Mansor 2011

Tel 012-2786282

‘arriffin@gmail.com

http://abmconsult.blogspot.com

Managing by Performance

	MANAGEMENT BY PERFORMANCE
	9.00-10.30		11.00-12.00	12.00-1.00		2.00-3.30		4.00-5.00
First Day	What is performance Framework- Value Chain		Key Result Areas – identifying them	Management by Objectives- Cascading the objectives		Performance Planning Meetings		Role Plays
Second Day	Benchmarking and Key Performance Indicators		Performance Measurement	Linking performance into a strategic map		Action Plans		Calculating performance workshop
CASES- First day	Value chain		ROE chart	Goal setting and cascading		The leader and his team		Climate in performance planning
Second day	How to benchmark?		Types of KPIs	BSC perspectives		Sample of action plans		evaluate performance -using  Input output techniques

Copyright:   Arriffin Mansor 012-2786282

1. What is performance and how to measure it.
2. Performance measures should be clear and ultimately falls to Return on Equity.
3. Compare performance against industry standards to get the critical performance gaps
4. Analyse results for performance issues and problems.
5. Use component analysis to get to the root cause factor
6. Solve performance gaps with solutions and changed strategies.
7. Study the critical non-performers profile against the standards.
8. by comparing against best practices competency gaps are identified.
9. Confirm competency gaps through alternative means
10. Estimate costs of training
11. Estimate the benefits and gains derived training
12. Compute ROI training