內(nèi)容課件教案internal operations

1、Managing Internal Operations12ChapterScreen graphics created by:Jana F. Kuzmicki, Ph.D.Troy State University-Florida and Western Region “Winning companies know how to do their work better.” Michael Hammer and James Champy“If you talk about changebut dont change thereward and recognitionsystem, nothi

2、ng changes.”Paul AllaireChapter RoadmapMarshaling Resources to Support the Strategy Execution EffortInstituting Policies and Procedures that Facilitate Strategy ExecutionAdopting Best Practices and Striving for Continuous ImprovementInstalling Information and Operating SystemsTying Rewards and Incen

3、tives Directly to Good Strategy ExecutionMARSHALING RESOURCES TO SUPPORTSTRATEGY EXECUTION McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.Allocating Resources toSupport Strategy Execution Allocating resources in ways to support effective strategy execution involves Fundin

4、g strategic initiatives that can makea contribution to strategy implementationFunding efforts to strengthen competenciesand capabilities or to create new onesShifting resources downsizing some areas,upsizing others, killing activities no longer justified,and funding new activities with a critical st

5、rategy roleESTABLISH STRATEGY-SUPPORTIVE POLICIES McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.Fig. 12.1: How Prescribed Policies and Procedures Facilitate Strategy ExecutionCreating Strategy-SupportivePolicies and ProceduresRole of new policiesChannel behaviors and dec

6、isionsto promote strategy executionCounteract tendencies ofpeople to resist chosen strategyToo much policy can be as stifling as Wrong policy or as Chaotic as no policyOften, the best policy is empowering employees, letting them operate between the “white lines” anyway they think bestMcGraw-Hill/Irw

7、in 2005 The McGraw-Hill Companies, Inc. All rights reserved.ADOPTING BEST PRACTICES AND STRIVING FOR CONTINUOUS IMPROVEMENTInstituting Best Practicesand Continuous ImprovementSearching out and adopting best practicesis integral to effective implementationBenchmarking is the backbone of the process o

8、f identifying, studying, and implementing best practicesKey tools to promote continuous improvementTQMSix sigma quality controlBusiness process reengineeringWhat Is a Best Practice?Any activity that at leastone company has provedworks particularly wellA path to operating excellenceBest PracticesChar

9、acteristics ofBest PracticesThe best practice must havea proven record inSignificantly lowering costsImproving quality or performanceShortening time requirementsEnhancing safety orDelivering some other highly positive operating eTo be valuable and transferable, a best practice mustDemonstrate succes

10、s over timeDeliver quantifiable and highly positive results andBe repeatableCharacteristics of BenchmarkingInvolves determining how well a firm performs particular activities and processes when compared against“Best in industry” or “Best in world” performersGoal Promote achievement of operating exce

11、llencein performing strategy-critical activitiesCaution Exact duplication of best practicesof other firms is not feasible due to differencesin implementation situationsBest approach Best practices of other firms need to be modified or adapted to fit a firms own specific situationFig. 12.2: From Benc

12、hmarking and Best-Practice Implementation to Operating ExcellenceWhat Is Total Quality Management?A philosophy of managing a set of business practices that emphasizesContinuous improvement in all phases of operations100 percent accuracy in performing activitiesInvolvement and empowermentof employees

13、 at all levelsTeam-based work designBenchmarking andTotal customer satisfaction Popular TQM Approaches Demings 14 PointsBaldridge AwardCriteria The Juran Trilogy Crosbys 14 Quality StepsImplementing a Philosophyof Continuous ImprovementReform the corporate cultureInstill enthusiasm to do thingsright

14、 throughout companyStrive to achieve little steps forwardeach day (what the Japanese call kaizen)Ignite creativity in employees to improveperformance of value-chain activitiesPreach there is no such thing as good enoughWhat Is Six Sigma Quality Control?A disciplined, statistics-based system aimed at

15、Having not more than 3.4 defects per million iterations for any business practice - from manufacturing to customer transactionsDMAIC process (Design, Measure, Analyze, Improve, Control)An improvement system for existing processes falling below specification and needing incremental improvementA great

16、 tool for improving performance when there are wide variations in how well an activity is performedDMADV process (Define, Measure, Analyze, Design, Verify)An improvement system used to develop new processes or products at Six Sigma quality levelsTQM vs. Process ReengineeringReengineeringAims at quan

17、tum gains of 30 to 50% or moreTQMStresses incremental progressTechniques are not mutually exclusiveReengineering Used to produce a good basic design yielding dramatic improvementsTQM Used to perfect process, gradually improving efficiency and effectivenessApproach: Capturing Benefits of Best-Practic

18、e and Continuous Improvement ProgramsSelect indicators of successful strategy executionBenchmark against best practice companiesReengineer business processesBuild a TQ cultureRequires top management commitmentInstall TQ-supportive employee practicesEmpower employees to do the right thingsProvide emp

19、loyees with quick access to required information using on-line systemsPreach that performance can/must be improvedCharacteristics of ContinuousImprovement ProgramsCan greatly enhance a companysCompetitive capabilitiesAbility to achieve a competitive advantageHave hard-to-imitate aspectsRequire subst

20、antial investmentof management time and effortExpensive in terms of training and meetingsSeldom produce short-term resultsLong-term payoff instilling a culture that strives for operating excellence McGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.INSTALL INFORMATION AND OPE

21、RATING SYSTEMSInstalling Strategy-Supportive Information and Operating SystemsEssential to promote successful strategy executionTypes of support systemsOn-line data systemsInternet and company intranetsElectronic mail merce systemsMobilizing information and creating systemsto use knowledge effective

22、ly can yieldCompetitive advantageExamples of Support Systems On-line reservation system Accurate and expeditious baggage handling system Strict aircraft maintenance programAirlinesInternal communication systems allowing it to coordinate 60,000 vehicles handling anaverage of 5.2 million packages per

23、dayLeading-edge flight operations systems allow a single controller to direct as many as 200 of 650-plus aircraft simultaneouslyE-business tools for customers Examples of Support SystemsFederal ExpressExamples of Support SystemsSophisticated maintenance support systemOtis ElevatorMost sophisticated

24、retailing systemsof any retailer in worldWal-MartExamples of Support SystemsComputerized systems at each outletfacilitate ordering, inventory, payroll,cash flow, and work flow functionsDominos PizzaSystems monitor hourly sales tosuggest product mix changes andto improve customer response Mrs. Fields

25、 CookiesWhat Areas ShouldInformation Systems Address?Customer dataOperations dataEmployee dataSupplier/partner/collaborative ally dataFinancial performance dataExercising Adequate ControlOver Empowered EmployeesChallengeHow to ensure actions of employeesstay within acceptable boundsControl approache

26、sManagerial control Establish boundaries on what not todo, allowing freedom to act with limitsTrack and review daily operating performancePeer-based controlMcGraw-Hill/Irwin 2005 The McGraw-Hill Companies, Inc. All rights reserved.DESIGN STRATEGY-SUPPORTIVE REWARD SYSTEMSGaining Commitment: Componen

27、tsof an Effective Reward SystemMonetary IncentivesBase pay increasesPerformance bonusesProfit sharing plans Stock optionsRetirement packagesPiecework incentivesNon-monetary IncentivesPraiseConstructive criticismSpecial recognitionMore, or less, job securityStimulating assignmentsMore, or less, auton

28、omyRapid promotion Approaches: Motivating Peopleto Execute the Strategy WellProvide attractive perks and fringe benefitsRely on promotion from within when possibleMake sure ideas and suggestions ofemployees are valued and respectedCreate a work atmosphere where there is genuine sincerity and mutual

29、respect among all employeesState strategic vision in inspirational terms to make employees feel they are part of something worthwhileShare financial and strategic information with employeesHave knockout facilitiesBe flexible in how company approaches peoplemanagement in multicultural environmentsExa

30、mples: Motivational PracticesNo Lay-Off PoliciesJapanese automobile producers, along withseveral U.S. based companies (Southwest Airlines,FedEx, Lands End, and Harley Davidson) haveno lay-off policies, using employment securityboth as a positive motivator and a meansof reinforcing good strategy exec

31、ution.Stock OptionsProcter & Gamble, Merck, Charles Schwab, General Mills, Amgen, Tellabs, and Eli Lilly provide stock options to all employees. Having employee-owners sharing in acompanys success is widely viewed as away to bolster employee commitment.Examples: Motivational PracticesExamples:Motiva

32、tional PracticesCisco SystemsOffers on-the-spot bonuses of up to$2,000 for exceptional performance.NordstromPay salespeople higher than prevailing rates, plus commission. “Rule #1: Use good judgment in all situations. There will be no additional rules.”Examples:Motivational PracticesLincoln Electric

33、Rewards productivity by paying for each pieceproduced (defects can be traced to worker causing them). Bonuses of 50 to 100% are common.GE Medical SystemsBased on a program called Quick Thanks!,an employee can nominate any colleague to receive a$25 gift certificate in appreciation for a job well done

34、.Balancing Positive vs.Negative RewardsElements of both are necessaryChallenge and competition arenecessary for self-satisfactionPrevailing viewPositive approaches work betterthan negative ones in terms of EnthusiasmEffortCreativityInitiativeLinking the Reward Systemto Performance esTying rewards to the achievement of strategic and financial performance targets is managements single most powerful tool to win the commitment of company personnel to effective strategy executionObjectives in designing the reward sy