Why Do We Need to Transform?
Transformation, Improvement, Innovation
- Transformation
- Transformation occurs when people inside an organization realize they have reached a higher level through continuous improvement and technological innovation
- Improvement and Innovation
- Improvement is small change while Innovation refers to breakthrough
Management Must Always Transform
- Management success is determined by creativity and teamwork at all organizational levels
- Reasons for company-wide improvement
- To achieve the company’s business plans / profits
- To foster, utilize and build the company’s improvement and development powers
- Types of Management Technologies
- Procedures – the basic steps for performing jobs
- Techniques – the ways in which jobs are performed well
Seven Conditions for Fast Track
- Top and middle management commitment to company-wide transformation
- Superior in-house development capabilities
- Intrinsic technologies mainly by R&D department
- Management technologies through daily work
- Superior managing capabilities
- Effective in-house education and on-the-job coaching
- Total active participation of staff departments in company-wide improvement
- Enabling structures to promote improvement in daily work
- Enabling structures that encourage creative improvement by integrating knowledge and experience
What Tool can we Use?
Policy Objective (PO) Matrix
- Policy / Objective (P/O) Matrix
- Tool for visualizing and translating top management’s commitment to improvement and transformation into concrete activities.
- Technique to manage company-wide activities to achieve policies and objectives.
- Purpose of P/O Matrix
Ÿ To deliberately promote and manage improvement activities in a way that achieves the goal of company-wide transformation.
Aim of the PO Matrix
- Provide a company with an enabling structure for achieving priority business plans
- Prevent a company from falling into undesirable state of affairs
- Facilitate the planning and establishment of policies and objectives
- Capture, document and co-ordinate a company’s highest priority tasks
- Develop business plans by integrating the knowledge and experience of all employees
- Allocate resources for improvement
- Provide an enabling structure for interdepartmental co-operation
- Make plans visible to anyone in the organization at any time
- Help a company respond quickly to changes in the surrounding environment
- Provide an enabling structure for anticipating and removing obstacles
- Prevent a company, when it becomes busy from making excuses for not improving
- Help a company use its full company-wide capabilities to carry out plans
- Periodically examine and study a company’s performance in implementing priority improvement plans
How to Build a PO Matrix
- Visualize the relationship of the following
- A business unit’s priority policies for companywide improvement during the current period and for the next two to three years
- Improvement objectives for the current period including the measures and means to achieve them
- Targets for each improvement project
- The overall results expected from all improvement projects
- Align the contents listed above throughout the organization, from
- Top management
- Business units
- Departments
- Sections
- Smaller organizational units as necessary
Important Considerations
- When to prepare a P/O Matrix
- In line with business planning cycles
- Managers are responsible for saying NO as soon as they get the feeling that something may not work
- Integrating with Culture
Ÿ It is important to develop policies with a mind for the national and organizational culture and adapt one’s management practices accordingly
- Responsibility for saying NO
How to Use the PO Matrix?
| | Visible Management |
| | Effective tool for communicating Top Management policies to entire company |
| | Visually shows which areas are targeted for improvement |
| | True Volunteerism |
| | People are motivated only when they thoroughly understand why policies and objectives (self-determined or top-down) are needed at a given time. |
| | Strengthening Leadership for Improvement |
| | Outlook – To develop a scenario for success, including the feasibility of and measures for achieving it |
| | Organization – To unite employees and other departments, as needed toward common goals |
| | Persuasion – To lay out a direction, determine priorities and explain why they are necessary. |
| | Quick Response to Changes in Surrounding Environment |
| | P/O Matrix should be changed to suit the current environment |
| | Committing to Profit |
| | Objectives & Targets not only help secure profits, but also strengthen improvement and development capability |
How to use in an SAP Roll-Out?
- Create Department level PO matrix
- Ÿ Define the guiding principles like “Stay Vanilla”, etc.
- Bring all Stakeholders together
- Collaborate and drive consensus (“kumbaya”)
- Define Functional Objectives
- Bring together Business Process Leads to lay down Functional Objectives
- Align Implementation Plan
- Agree on Results to be measured
- Cascade down to Program Charter
- Align Program Charter with the PO Matrix to define the KPI’s / Results
- Create Project Plan
- Align Project Plan in Solution Manager to the PO Matrix
- Establish measures
- Monitor and Refine
- Measure success of the program and refine targets
- Deliver Value
