“Benchmarking an Organisation”

1. “Benchmarking an Organisation” Presentation by Jon Wigley IPPA Conference Harrogate, September 14th 2013

2. Agenda • Setting 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-Profit Similarities and differences

3. Agenda • What are we benchmarking? Organisational excellence In whose eyes? Who matters? Members, Peers, Service Partners, Industry, Clients, Employees, Volunteers…..Others?

4. Agenda • Against 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)?

5. Agenda • Benchmarking based on what criteria? Deliverables (kpi`s) + Set + Monitored + Reviewed + Revised Objective v Subjective + Deliverables v Feelings

6. Agenda • Why are we benchmarking? • Why is it important (to you)? + Excellence + Better + Challenge + Change + Positive Energy

7. Agenda • Setting expectations (yours)? What would you like to get out of this day? Why?

8. Introduction – Jon Wigley • Jon Wigley – Background A Business Coach Coaching v Consulting SMEs focus Industries – Finance, Legal, Media, Technology, Entertainment, etc Private Practice – Physiotherapy First hand experience!

9. General Introduction • Rapidly changing world and more demanding pressures – drivers and impact…and opportunities! Social trends: expectations and demands Technology & Social Networks: Communication Mobility: Loyalty Aspiration: Consumerism Recession: Cost/Value

10. Dynamics of a NFP • The 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 xxx Day-to-day patterns of behaviour permeate their voluntary contribution + TRUST(ee) + COMMITMENT + LOYAL(ty)

11. Similarity of NFPs to SMEs • Not-for-Profit entities and the similarity to SMEs The emotional pull of the small business The passion that create and drives an SME The challenge of managing a small business Working “IN” v Working “ON” Time – A most precious resource Core skills and experience

12. Is business evolution predictable? • The evolution of a small business Is 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?

13. Measuring objective progress • How do we typically measure our progress? • Objective measures? Increase in: Turnover Profit Number of clients Increase in pricing Number of staff Amount/size of equipment, premises, etc

14. 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 time Behaviour is managed with, and through, a defined business culture

15. Stages - Feelings • The “Stages” Framework The major significance of feelings How they significantly and silently impact over time on a business, a team, and every individual How they shift over time The Stages Framework - Presented

16. Functionality – The Key Skill • Functionality – The Key Skill Set to benchmark Being 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”

17. Functionality – benefits? • Functionality – What will it achieve? Clear management reporting Motivated staff Lack of duplication Management focus that maximises skills Time released

18. Functionality - Avoids • Functionality – What will it avoid? Duplication of effort Management time lost Bottlenecks “Work-arounds” (The Rock in the Stream) Staff frustration Miss-match of skills No direct, clear communication

19. Functionality – 7 x key objectives 1. PROFITABILITY (RESOURCES ALLOCATION) Subjective: Objective Qualitative: Quantitative People: Infrastructure

20. Functionality – 7 x key objectives 2. PRODUCTIVITY (EFFICIENCY) Processes Methodology Formality Discipline Precision Management Tools

21. Functionality – 7 x key objectives 3. Building a STRONG FOUNDATION Upon which to (GROW) Planning Scheduling Managing Monitoring Reviewing Revising

22. Functionality – 7 x key objectives 4. POSITIVE ENERGY (People and Roles) Define the “right” roles Define the “right” people Put the right people in the right roles (Remove the wrong people!)

23. Functionality – 7 x key objectives 5. SELF RESPONSIBILITY A (No Blame) Culture Responsibilities: Understood Taken ……Fully!

24. Functionality – 7 x key objectives 6. OWNERSHIP (Value) To own To possess To value The endowment effect – care, commit, contribute

25. Functionality – 7 x key objectives 7. EMPOWERED WORKFORCE (Power) Giving power Giving authority ……to THINK ……to ACT Leads to effective SUCCESSION!

26. The Functionality Cycle • Against which we can benchmark ourselves as we go through the cycle Positive – Happy with current status Average – OK but could do with some work Poor – Definitely needs work

27. The Functionality Cycle • INTENT Our fundamental purpose – Why do we exist? Focused, conscious, and clear – gives context to everything we do or think to do Objectives set, unified and communicated You Others The Business Are You?

28. The Functionality Cycle • RESOURCES Lead: Manage People: Infrastructure Character: Facilities Talents: Equipment Skills: Systems Wisdom: Knowledge Potential: Actual Do You use well?

29. The Functionality Cycle • STRUCTURE Clearly define the required outcomes Create a structure that reflects the full range of necessary tasks (see Workflow - next) Delegate responsibility, but be accountable Distribute power and authority Empower a sense of ownership Roles and responsibilities understood and taken Do you have?

30. The Functionality Cycle • WORKFLOW 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)

31. The Functionality Cycle • WORKFLOW (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 tools Do you have?

32. The Functionality Cycle • EFFICIENCY/TIME Efficiency – “The minimum expenditure of time and effort” Processes, Methodology, Formality, Discipline, Precision, Management Tools Time – Time released v Management Time Lost Awareness of value, allocation of usage, and effective delegation Are you?

33. The Functionality Cycle • CAPACITY 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?

34. The Functionality Cycle • Support 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, etc Do You?

35. The Functionality Cycle • PERFORMANCE The importance of high performance Leveraging potential Setting objectives Reviewing performance – feedback Acknowledgement Value(d) Do You?

36. The Functionality Cycle • QUALITY Quality is a state of mind Product (what) AND Service (How) Always add value to what we do and how we do it Reflects a chosen and sustained Position Enhances brand and reputation Attracts – clients, referrals, employees, etc How aware are you?

37. The Functionality Cycle • CREATIVITY Why is it important to encourage creativity? Fresh Challenge Positive Energy Change Open Are You?

38. The Functionality Cycle • FLEXIBILITY Why is it important to maintain flexibility? Speed Choice and change Individual needs Bespoke Dynamic Are You?

39. The Functionality Cycle • The Business Culture & Soft Skills Culture = Behaviour (expected) Articulated and aligned values Processes – Recruitment, Induction, Delegation, Performance, Mentoring, etc Communication, Relationships, Issues Encouragement, Motivation and Incentives How aware are you?

40. Summary Benchmarking – What, Against Whom, How and Why A rapidly changing world – drivers and impact The prevailing dynamics of a not-for-profit Similarities with SMEs Core Observations on SMEs The typical evolution of an SME – Stages Functionality & its 7 x Key Objectives The Functionality Cycle

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