TEMOSpring 2011

Case 1 Analysis“SOFT – PERFORMANCE”

Group 6

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SOFT PERFORMANCE (SP)

-Owned and operated by 2 DTU students-Employees: all DTU students-Main Product: KPI management systems for companies

Rough Analysis:

-Decreasing Demand of the product-Apparently the product is not used by clients-High rotation of SP personnel-No surplus from the business

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Assumptions

• The product may be really helpful for companies but he is misused.• The two funders want to get their master degree

STRENGHTNESS WEAKNESSES

-Good technical capacities-Relatively established brand-Experience developing their products

-No management experience in SP-High rotation of personnel-Inappropriate structure of the company

OPPORTUNITIES THREATENS

-Possibility to offer uploads and training for better using of the product.

-Possible new competitors with innovative products-KPI’s can be changed for another management tool

SWOT Analysis

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Competitive Advantage

Competitive Advantage

Not enough efficient

- Employees work overtime- Problems of cost management- A produce is just used once

Not enough efficient

- Employees work overtime- Problems of cost management- A produce is just used once

Good speed and flexibility Good speed and flexibility

Product of high quality

Product of high quality

Responsiveness to customers

- Demand is decreasing- Clients do not know how to use the project- KPIs can’t be affected by middle manager

Responsiveness to customers

- Demand is decreasing- Clients do not know how to use the project- KPIs can’t be affected by middle manager

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The problems

Low Efficiency/ High Effectiveness High Efficiency/ High Effectiveness

Low Efficiency/ Low Effectiveness

SOFT-PERFORMANCE

High Efficiency/ Low Effectiveness

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Our Goal

Increase Effectiveness

Increase Efficiency

It is vital to increase efficiency and effectiveness

Increasing efficiency:Four functions of management

PlaningHours of work.Project costs.Company's future.

ControllingQuality.Waste resources.Feedback.

LeadingEmployees are motivate.Employees work better.

OganisingEfficient.Lost time.Can’t study.

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Organization model

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2 funders

Students

Actual

Expected

Experienced CEO

2 funders

Experienced IT engineer

Experienced salesman

Students

Organization ProblemProblem in the organization design

FM FM FM

Pure functionalorganization

They produce just one product

Demand is not at a high level all the time

PM

PM

PM

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SOFT PERFORMANCE haven‘t any new project or product

Pure project organization

Organization Problem

Problem in the organization design

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perfect Solution:

FM FMFM

PM

PM

PM

Perfect mix of project and functional organization

Balanced matrix organization

They can handle conflict in the organisation

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Controlling steps

Establish the standards of performance

Measure performance

Compare mesured performance and chosen standards

Evaluate the result and initiate changes

Deadlines

Time spent on work

Value of the work

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Increasing effectiveness

Old product New productEffectiveness

Time

Need to create a new product

• Formation for company managers on how to use the results.

• Help for company to choose useful KPIs.

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Conclusion: possible solutions

STRATEGICAL

TACTICAL

OPERATIONAL

• Hiring a CEO.• Hiring experienced IT engineer and

sales person.

• Learn the company how to work with the results and how to define the KPIs.

• Start to develop new products.

• More efficient organisation (deadlines, definition of tasks,…).

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Thank you!!

QUESTIONS ???