“Benchmarking an Organisation”

Presentation by Jon WigleyIPPA Conference

Harrogate, September 14th 2013

AgendaSetting Expectations

“How MO`s measure up against their journey towards advance development and compare to

other MO`s working towards the same objective”Benchmarking process - Frameworks

Not-for-Profit v For-ProfitSimilarities and differences

AgendaWhat are we benchmarking?

Organisational excellenceIn whose eyes?Who matters?

Members, Peers, Service Partners, Industry, Clients, Employees, Volunteers…..Others?

AgendaAgainst whom are we benchmarking?

MO`s - Each Other?Other not-for-profit in the Health Industry?

Other not-for-profit?For profit?

Small Medium Enterprises (SMEs)?

AgendaBenchmarking based on what criteria?

Deliverables (kpi`s)+ Set

+ Monitored+ Reviewed+ Revised

Objective v Subjective+ Deliverables v Feelings

AgendaWhy are we benchmarking?Why is it important (to you)?

+ Excellence+ Better+ Challenge+ Change+ Positive Energy

AgendaSetting expectations (yours)?

What would you like to get out of this day?Why?

Introduction – Jon WigleyJon Wigley – Background

A Business CoachCoaching v Consulting

SMEs focusIndustries – Finance, Legal, Media, Technology,

Entertainment, etcPrivate Practice – Physiotherapy

First hand experience!

General IntroductionRapidly changing world and more demanding

pressures – drivers and impact…and opportunities!

Social trends: expectations and demandsTechnology & Social Networks: Communication

Mobility: LoyaltyAspiration: Consumerism

Recession: Cost/Value

Dynamics of a NFPThe prevailing dynamics of a Not-for-Profit

Honorary functions filled by dedicated insider practitioners, often for many years, even decades!

Passionately care about what they do xxxDay-to-day patterns of behaviour permeate their

voluntary contribution+ TRUST(ee)

+ COMMITMENT+ LOYAL(ty)

Similarity of NFPs to SMEsNot-for-Profit entities and the similarity to SMEs

The emotional pull of the small businessThe passion that create and drives an SME

The challenge of managing a small businessWorking “IN” v Working “ON”

Time – A most precious resourceCore skills and experience

Is business evolution predictable?

The evolution of a small businessIs there a typical mode of progression?

Anchor for our benchmarking – to know where we are up to, we need to reflect where we have come

from!How do we typically measure our progress?

Measuring objective progress

How do we typically measure our progress?Objective measures? Increase in:

TurnoverProfit

Number of clientsIncrease in pricing

Number of staffAmount/size of equipment, premises, etc

Measuring subjective progress

How do we typically measure our progress?Subjective measures? Feelings?! +/-

Feelings drive behaviour and have significant impact but often unconscious

Feelings can, and do, shift over timeBehaviour is managed with, and through, a

defined business culture

Stages - FeelingsThe “Stages” Framework

The major significance of feelingsHow they significantly and silently impact over

time on a business, a team, and every individualHow they shift over time

The Stages Framework - Presented

Functionality – The Key Skill

Functionality – The Key Skill Set to benchmarkBeing Functional – What does it mean?

“To serve a PURPOSE for which it was designed”“Fit for purpose”

Efficiency – minimum expenditure of time & effort“The purposeful use of resources to achieve a

desired outcome”

Functionality – benefits?Functionality – What will it achieve?

Clear management reportingMotivated staff

Lack of duplicationManagement focus that maximises skills

Time released

Functionality - AvoidsFunctionality – What will it avoid?

Duplication of effortManagement time lost

Bottlenecks“Work-arounds” (The Rock in the Stream)

Staff frustrationMiss-match of skills

No direct, clear communication

Functionality – 7 x key objectives

1. PROFITABILITY

(RESOURCES ALLOCATION)

Subjective: ObjectiveQualitative: Quantitative

People: Infrastructure

Functionality – 7 x key objectives

2. PRODUCTIVITY

(EFFICIENCY)

ProcessesMethodology

FormalityDisciplinePrecision

Management Tools

Functionality – 7 x key objectives

3. Building a STRONG FOUNDATION

Upon which to (GROW)

PlanningSchedulingManagingMonitoringReviewingRevising

Functionality – 7 x key objectives

4. POSITIVE ENERGY

(People and Roles)

Define the “right” rolesDefine the “right” people

Put the right people in the right roles(Remove the wrong people!)

Functionality – 7 x key objectives

5. SELF RESPONSIBILITY

A (No Blame) CultureResponsibilities:

UnderstoodTaken

……Fully!

Functionality – 7 x key objectives

6. OWNERSHIP

(Value)

To ownTo possessTo value

The endowment effect – care, commit, contribute

Functionality – 7 x key objectives

7. EMPOWERED WORKFORCE

(Power)

Giving powerGiving authority

……to THINK……to ACT

Leads to effective SUCCESSION!

The Functionality CycleAgainst which we can benchmark ourselves as

we go through the cyclePositive – Happy with current status

Average – OK but could do with some workPoor – Definitely needs work

The Functionality Cycle INTENT

Our fundamental purpose – Why do we exist?Focused, conscious, and clear – gives context to everything

we do or think to doObjectives set, unified and communicated

YouOthers

The BusinessAre You?

The Functionality Cycle RESOURCES

Lead: ManagePeople: InfrastructureCharacter: FacilitiesTalents: Equipment

Skills: SystemsWisdom: Knowledge

Potential: ActualDo You use well?

The Functionality CycleSTRUCTURE

Clearly define the required outcomesCreate a structure that reflects the full range of necessary

tasks (see Workflow - next)Delegate responsibility, but be accountable

Distribute power and authorityEmpower a sense of ownership

Roles and responsibilities understood and takenDo you have?

The Functionality CycleWORKFLOW

Create an effective interface and balance between:+ Strategic Operations (Long-term planning)+ Business Operations (The day-to-day work)+ Support Operations (The essential back office)

The Functionality CycleWORKFLOW (cont`d)The efficient workflow is based upon the clear definition and understanding of:Structure, Roles & Responsibilities, Reporting Lines, Policies & procedures, Communication, KPIs, Monitoring, Evaluation, Feedback, and Training……..All supported by quality management toolsDo you have?

The Functionality CycleEFFICIENCY/TIME

Efficiency – “The minimum expenditure of time and effort”Processes, Methodology, Formality, Discipline, Precision, Management ToolsTime – Time released v Management Time LostAwareness of value, allocation of usage, and effective delegationAre you?

The Functionality CycleCAPACITY

The full and conscious leverage of existing resources – today?

Planning for future growth and the necessary increase in resources – tomorrow?

Investment Planning?Right People: Right Roles

Do You?

The Functionality CycleSupport Operations

Most SMEs completely under-value/estimate the importance of the following functions and as a consequence do not invest sufficiently in their proper management:IT, Finance, Legal, Administration, Secretarial, HR,

Premises, Compliance, etcDo You?

The Functionality Cycle• PERFORMANCE

The importance of high performanceLeveraging potential

Setting objectivesReviewing performance – feedback

AcknowledgementValue(d)

Do You?

The Functionality CycleQUALITY

Quality is a state of mindProduct (what) AND Service (How)

Always add value to what we do and how we do itReflects a chosen and sustained Position

Enhances brand and reputationAttracts – clients, referrals, employees, etc

How aware are you?

The Functionality CycleCREATIVITY

Why is it important to encourage creativity?Fresh

ChallengePositive Energy

ChangeOpen

Are You?

The Functionality CycleFLEXIBILITY

Why is it important to maintain flexibility?Speed

Choice and changeIndividual needs

BespokeDynamic

Are You?

The Functionality CycleThe Business Culture & Soft Skills

Culture = Behaviour (expected)Articulated and aligned values

Processes – Recruitment, Induction, Delegation, Performance, Mentoring, etc

Communication, Relationships, IssuesEncouragement, Motivation and Incentives

How aware are you?

SummaryBenchmarking – What, Against Whom, How and WhyA rapidly changing world – drivers and impactThe prevailing dynamics of a not-for-profitSimilarities with SMEsCore Observations on SMEsThe typical evolution of an SME – StagesFunctionality & its 7 x Key ObjectivesThe Functionality Cycle

BenchmarkingStages – Where are you as an MO; Where are You?7 x key Objectives – Profitability, Productivity, Strong Foundation, Positive Energy, Self Responsibility, Ownership, Empowered WorkforceFunctionality Cycle – Intent, Resources, Structure, Workflow, Efficiency, Capacity, Support Ops, Performance, Quality, Creativity, Flexibility, Culture & Soft SkillsDid you get what you wanted from the day?