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Rahul Deo GuptaMBA, B. Tech., BSMP, PMP
Head of Enterprise Project Management Office (EPMO)
Rafal Real Estate Development Co.
“Cascading objectives across an organisation through an effective SMO”
Who we are …
2
Headquartered in Riyadh, RAFAL Real Estate Company was founded in late 2007, with the objective of developing distinguished communities with unique lifestyle, offering both, clients and Investors, a real opportunity to live and invest in style
3
Our projects …
• The highest residential property in Riyadh and the first vertical residential compound in Saudi Arabia
• An ‘iconic’ property that people aspire to
4
Our projects …
• The discreet service will exceed expectations and make our guests’ feel at home
• Defining global living in Riyadh
5
Our projects …
• An aspirational and iconic mixed use residential tower managed by Kempinski
• Designed to reflect high standards of luxurious life style
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Our projects …
• An integrated, closed and vibrant residential environment
• Everything around you is designed for your comfort and lifestyle
7
Through the eyes of SMO
SMO SMO
8
Question 1 ???
What areObjectives, Initiatives & KPIs
?
9
Objectives, Initiatives & KPIs …
I want to reduce my weight
Why would you want to reduce weight?
to remain healthy
Objective ?
Measure“to remain healthy”?
Work out some indicators• BMI• blood pressure• sugar in blood• cholesterol level, etc.
How“to remain healthy”?
Identify initiatives• Jog for 30 minutes every day• Having a prescribed diet, etc.
Key Performance Indicators• blood pressure• cholesterol level
Objective
10
Objectives, Initiatives & KPIs …
Strategy
Objectives
KPIs Initiatives
RemainHealthy
11
Question 2 ???
How can I arrive atObjectives
?
12
A step backwards …
• Assessment
• Mission, Vision, Values
• Customer Value Proposition
• Strategic Themes
• Environment scan including Stakeholders requirements• SWOT
• Product/ Service attributes• Image• Relationship
A step backwards …
13
Affinity Diagram
Strategic Themes
• Strategic Themes
T1• Business Growth
T2• Business Value
Proposition
T3• Operational Excellence
Strategic Themes Intended ResultsBusiness Growth • We are close to our customers
• We are the market leaders in sectors we serveBusiness Value Proposition • We are a customer centric organization
• We add value to our customers• We develop local core technologies
Operational Excellence • Our processes efficiently and effectively deliver the customer needs
14
A step backwards …
Strategic Theme: Business Growth
• Partnering with the customers for a long term
relationship
• Being close to the customers with an intention
to understand their needs better and offering
them cost effective solution
• Being able to “earn” the customers’ trust
• Getting the rightful place in the customers’
share of wallet
Them
eSt
rate
gic
Res
ult
Fina
ncia
lC
usto
mer
Inte
rnal
Pr
oces
ses
Lear
ning
&
Gro
wth
We are close to our customers We are the market leaders in sectors we serve
Strengthen Customer Relationship process
Develop skills & knowledge
Enhance delivery of customer requirements
Attract & retain the best talent
Improve market expansion process
Improve Customer satisfaction
Increase sales
Business Growth
15
Objectives (Strengthen customer relationship process)…
Description:Customer relationship management process runs throughout the customer lifecycle starting from being aware till disposal. All departments function according to the needs of the customers.
Intended Results:• Happy and loyal customers giving us more business• Increase in new customers• Increased customer loyalty• Increased presence in end user market (Moving from B2B to B2C)
Candidate measures:• $ Revenue from repeat customers• % Customer satisfaction score• # new key customers• % share of wallet of key customers
Candidate initiatives:• Train sales employees on Key account management• Launch SAP for visit management
Owner: National Sales Manager
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BSCFi
nanc
ial
Cus
tom
erIn
tern
al P
roce
sses
Lear
ning
&
Gro
wth
P2. Improve JVs, Mergers & Acquisitions processes
P1. Strengthen Customer Relationship process
P5. Enhance Operational processes
LG1. Enhance employee engagement
LG2. Attract & retain the best talent
LG3. Develop skill & knowledge
P4. Enhance Market expansion processes
LG4. Enhance succession planning
C1. Improve Customer satisfaction (Internal & External)
C2. Improve delivery of customer requirements
The Customer Honesty Reliability Adaptability
Our
Va
lues
F1. Enhance revenue F2. Improve profits F3. Reduce Cost
P3. Improve project management processes
17
Strategy management
Mission
Vision
Strategic Objectives
Initiatives
KPIs
18
Question 3 ???
What exactly are KPIs
?
19
KPI definition
Measure Name $ Revenue from repeat customers Strategic ObjectiveStrengthen Customer Relationship Management process
Measure Owner XXXXXXX Unit of Measure Million SAR
Measure Calculation Formula= Sum of (Sales from repeat customers – Discounts to repeat customers)
Frequency of Update Monthly Frequency
of reporting Quarterly
Measure Data Element Sales from repeat customers Discounts to repeat customers
Measure Data Source(for defined data element above) Sales register Sales register
Current Value of Measure (Baseline _Dec 2015) YYYY Red <=95% Target Value Yellow >95% & <100%
Target ValueGreen >=100% Target
Value
Target Value of Measure
2016 2017 2018 2019 2020
XXX XXX XXX XXX XXX
Approval
Name/ Designation XXXX Signature/ Date
Name/ Designation XXXX Signature/ Date
20
Stretched Targets and Performance
PERF
ORM
ANCE
STRETCHED TARGET UNREALISTICALLY STRETCHED TARGET
Burn off Zone
Disengagement & counter productive Zone
TARGET
Under performance
Zone
Performance Zone
21
Question 4 ???
How can I cascade the Objectives
?
22
Objective cascade
Now
Targ
et
Bsin
ess a
s Usu
al
Sub
Obj
ectiv
e 1
Sub
Obj
ectiv
e 2
Sub
Obj
ectiv
e 3
Sub
Obj
ectiv
e 4-10
1030507090
110130150
Strategic Objective -Enhance Revenue
MSA
R
GOOD
Sub
Obj
ectiv
e 1
1 Increase Sales in New Market
1.1 Set up a new Sales Team
1.1.1 --- Recruit
1.1.2 --- Train
1.2 Conduct Market promotions
1.1.3 … … … …
1.2.1 --- Market Promotion
1.n Increase Production
1.n.1 --- Increase Productivity
1.n.m.1 --- Prepare Procurement Plan
1.n.1.1 --- Implement Kaizen
1.n.m --- Enhance Monthly Production
Sub
Obj
ectiv
e 2
Sub
Obj
ectiv
e 3
Sub
Obj
ectiv
e 4
National Sales Mgr.
National Sales Mgr.
HR Manager
HR Manager
… … …
Mktg. Manager
Product Manager
Production Manager
Shop Manager
Line Manager
Production Manager
Procurement Manager
23
Initiatives definition
Initiative Name & Description
Implement Key Account Management : Implement the best practices of Key Account Management
Strategic Objective Strengthen Customer Relationship Management process
Owner XXXXXX Start Date 01-Dec-2015Manager Director Business Development, AHC Completion Date 31-May-2016Intended results
Key account customers are identified along with their needs and those are delivered
Assumptions & Constraints
We have in-house capability to implement the initiative
Purpose To increased customer loyalty & grow the business Commitment 3 resources working 10 Hours per week
RisksInitiative many not be completed in time if resources are not available as scheduled due to other priorities
Total Budget (kSAR) 45
# Major Tasks/ Milestones Start Date Completion Date
Deliverable Owner
Milestone budget (kSAR)
1 Project kickoff & build project charter 01-Dec-2015 15-Dec-2015 Mgr. BD2 Initial study and gap analysis 15-Dec-2015 30-Dec-2015 Mgr. BD3 Brainstorming for solutions 01-Jan-2016 15-Jan-2016 Mgr. BD4 Implement the solutions 15-Jan-2016 31-May-2016 Director BD 4556
Project performance measure
$ revenue from repeat customers
Red <=95% Target Value
Yellow >95% & <100% Target Value
Green >=100% Target Value
ApprovalName/ Designation XXXXX Signature/
DateName/ Designation YYYYYYYY Signature/
Date
24
Objective cascade
Corporate BSCFCPL&G
SBU BSCFCPL&G
SBU BSCFCPL&G
Individual Goal sheetF KPIC KPIP KPIL&G KPI
Example of Objective CascadeLevel Perspective Objective KPI Target OwnerCorp Finance Enhance revenue $ Revenue
(MSAR)500 Group CEO
SBU Finance Enhance revenue $ Revenue (MSAR)
100 SBU CEO
Dept Finance Enhance revenue from C-Region
$ revenue (MSAR)
50 Regional Manager -Central
Ind Finance Enhance revenue from Riyadh branch
$ revenue (MSAR)
15 Branch Manager - Riyadh
Corp Customer Expand customer base in MENA
# new customers
300 Corp. Sales Mgr
SBU Customer Enhance customer base
# new customers
100 Manager – National Sales
Dept Customer Enhance customer base in C-Region
# new customers
40 Regional Manager –Central
Ind Customer Enhance customer base in Riyadh branch
# new customers
15 Branch Manager - Riyadh
Individual Goal sheetF KPIC KPIP KPIL&G KPI
Departmental BSC
FCPL&G
Departmental BSC
FCPL&G
25
Question 5 ???
How to tie up the individual performance to Objectives
?
26
Objective cascade to EPMS
Section A : Objectives has 75%
weightSection B:
Competencies has 25% weight
27
Objective cascade
Corporate
Business
Department
Individual
Obj
ectiv
eCa
scad
eStrategyReview
28
Question 6 ???
How to depict single KPIs measuring multiple
Objectives
?
29
X Matrix
Breakthrough Objectives(Themes)
KPIs
& Ta
rget
sObjectives
Initiatives
Theme 1Theme 2Theme 3Theme 4
Objective 1
Objective 2
Objective 3
Objective 4
Objective 5
Objective 6
Initiative 4Initiative 3Initiative 2Initiative 1
Initiative 5
KPI &
Targ
et 6
KPI &
Targ
et 5
KPI &
Targ
et 4
KPI &
Targ
et 3
KPI &
Targ
et 2
KPI &
Targ
et 1
Nam
e 6
Nam
e 5
Nam
e 4
Nam
e 3
Nam
e 2
Nam
e 1
Reso
urce
s/ O
wne
r
Owner: XXXXX
30
X Matrix
Breakthrough Objectives(Themes)
KPIs
& Ta
rget
sObjectives
Initiatives
Theme 1Theme 2Theme 3Theme 4
Objective 1
Objective 2
Objective 3
Objective 4
Objective 5
Objective 6
Initiative 4Initiative 3Initiative 2Initiative 1
Initiative 5
KPI &
Targ
et 6
KPI &
Targ
et 5
KPI &
Targ
et 4
KPI &
Targ
et 3
KPI &
Targ
et 2
KPI &
Targ
et 1
Nam
e 6
Nam
e 5
Nam
e 4
Nam
e 3
Nam
e 2
Nam
e 1
Reso
urce
s/ O
wne
r
Owner: XXXXX
RelationshipStrongPartialNone
31
Critical Success Factors
Leadership support
Communication
Initiative management
Right team
Process orientation
IT as enabler
Reviews
Prioritization/ Focus
Freedom to fail
Questions ?
Thank You
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