Implementing Business Improvement

1. Implementing Business Improvement by “Managing Operational Performance” Systemising management process in a way that makes business improvement much easier

2. “A CEO’s nirvana” (‘Nirvana’ - any place of complete bliss and delight and peace) • To constantly increase the $ VALUE of the business ……… for future sale, capital raising, or franchising • To continually improve business efficiency and profits …….… without relying on CEO-initiated changes • To have control over staff execution of all plans ……… with openness and transparency and less personal CEO involvement • To instill a culture of continuous improvement in all staff…….… for the CEO to have confidence that operations will run properly when CEO is absent from the business

3. The “typical” CEO’s problems: • The business is not set up to operate without the CEO’s day-to-day hands-on involvement • The CEO is too busy working “in” the business to find time to work “on” the business, and has often lost track of what people do. • Poor staff productivity. It is “typical” that 60% of what staff actually do each day, does not add real value to the business • Personnel do not have fast access to the tools and knowledge required to do their jobs effectively and productively. • There is no “operational system” in place to control the efficient implementation of plans and actions. • Huge amounts of management time are wasted in follow-up and close supervision of internal staff just to get things done on time • Staff (and managers) do not understand the CEO’s thoughts behind the business and how he wants things done • Things happening at the “front-line” are rarely visible to managers (or the CEO) until it is too late to avoid adverse consequences. • The “front-line” does not understand how the rest of the business works, but most importantly, they do not understand their value within the business

4. Develop their strategic approach to their market Implement required operational processes Give people things to do Develop ways to do things better Make Changes Provide access to required knowledge Set Targets & Measure Results What do all businesses “do” ? Handle Exceptions Guess what …… this is exactly how AMS improves a business !!!!

5. The AMS Process simply overlays a business to “Improve Operational Performance” Develop the Strategic Business 5x5 view Develop their own strategic approach to their market Create Business DNA Operational Actions Implement required operational processes Give people things to do Develop ways to do things better Assign Job 5x5 actions Conduct audits of Improvement Make Changes Handle Exceptions Manage Projects Resolve Incidents Create direct links to required knowledge Provide access to required knowledge Set Targets & Measure Results Set Targets & Measure Results So AMS systemises the running of the business.

6. AMS creates a simple solution that integrates these functions and creates an “IP asset” of the business ….. that becomes an “Improvement & Control System” Firstly, improvement is about focusing on the right ”actions”….. i.e. the operational actions of the business that create the most value for the business Secondly, control is about “visibility and transparency”….. i.e. so that everything that the people “do” is clearly seen by everyone to be of value to the business It really is that simple …… if you have a system to guide you !!!

7. AMS therefore contains the THREE key components of “systemisation”: • A management PROCESS (the method). • An Internet-based Computer SYSTEM(the AMS-C software). • The operational KNOWLEDGE that defines the business (the content).

8. AMS CAN BE RUNNING WITHIN48 HOURS - AFTER YOUR BUSINESS DNA CREATION

9. The “Business DNA” Platform • We create a unique and simple view of all business operations and their risk to the business so that all employees UNDERSTAND • the business “actions” that are of real value; • where the business needs to improve; and • who is “accountable”. RESULTS • A “one page” graphical operational view of the business (the Business DNA), clarifying the key Actions (value processes) and a operational summary of the business for shareholders, customers, suppliers, and staff • An overall risk assessment of the major DNA Actions of the business resulting in a clear focus on specific areas requiring improvement. • A common understanding of the complete business operation and summary strategy for all managers and staff. • An understanding of where personnel accountability for operational action resides and therefore who caries the responsibility to improve these business operations. (Internet-AMS Business DNA) (Sample: Internet AMS Navigator) (Internet-AMS Accountability Matrix) Link to schematic

10. “People Improvement” Process • Get all of your people “doing the right things” for your Business Business Actions “People do what you INSPECT not what you EXPECT”. RESULTS • An individual’s Job 5x5 is created for each staff member as a direct result of “cascading down” from the business DNA actions and allocating all responsibilities and accountabilities to people • The setting of realistic Measures and Targets for all job actions (a simple one-page summary of every person’s job) • An assessment of importance for each person’s Job Actions. • Links to job-related knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job efficiency and productivity • The collection of staff “ideas” for improvement • Better utilization of people and an assessment of their capability to match their job • An effective and simple performance review system (Sample: Excel-AMS) Individual Actions (Internet-AMS Job 5x5) Link to schematic

11. “Improvement Audit & Projects” Process Action Audits • We give you the way to fix the “risk” areas of your Business RESULTS • A detailed risk assessment of all “risk” areas of the business identified within the Business DNA. • Action Improvement Audits (typically conducted by the person accountable) to rapidly identify what needs to be done • Creation of business Measures and Targetsfor all high risk operational actions • Execution of improvement projects for the priority areas of the Business DNA • Creation of an “improvement focus for all staff • Improvement in teamwork and feedback to all managers and staff • Increased staff involvement and a pro-active contribution from everyone. (Internet-AMS Project Creation) Link to schematic

12. “Incident Resolution” Process • We give you a simple way for your people to track the “things that need to get done” by the right people. RESULTS • A system for capturing ad-hoc actions that need to be tracked to resolution. • An audit trail of all “incidents” of the business for better “control, resolution, compliance and reporting” • Open visibility of outstanding actions with an automatic follow-up system for all staff to utilise. • An automatic Action Reminder system that ensures that actions are not forgotten or overlooked. • A management reporting system to alert managers to overdue actions within their sphere of accountability. Link to schematic

13. The “Knowledge Access” Process • We give your people a simple way to get rapid access to all the knowledge of your business that they need to do their job. RESULTS • Expansion of the “knowledgebase” of the business for better “how to” information and links to all information required to run the business and implement improvements • Links to “how to” knowledge, documents and procedures within the Knowledgebase to enable each person to fulfil and track their specific job responsibilities • The collection of staff “ideas” for business improvement initiatives • Fast access for all employees to any business information via a simple “knowledge directory” search Link to schematic

14. “Target, Measure & Report” Process REMEMBER: “People do what you INSPECT not what you EXPECT”. RESULTS • The AMS therefore becomes the way to track business improvement projects, incident resolution, and actions. • Identification of best growth strategies for the business based on the real measurement of non-financial improvements obtained • Improved staff learning and understanding of the business and the knowledge available • Creation of an environment of initiative for new ideas and recommendations to be implemented • Improved consistency of staff performance reviews encouraging higher productivity and promotion decisions • A “continued improvement” culture expanding to all areas of the business

15. “We have now implemented AMS in our Retail, Wholesaling and Warehousing business areas. As a result of the AMS approach, we have been able to gain significant improvements in all of these business areas. The increased efficiency that has been created as a byproduct of the AMS implementation has of course, resulted in increased profits (240%) in my company. My people now know what their job is and how they can add to the value of the company. Our commitment to AMS is long term and as we implement more of its elements we realise the benefits of the important operational management disciplines that it introduces into our business.” Michael Edwards (Managing Director)

16. Summary of AMS Client benefits Business People • Simple and Quick 5-step process • Fixed price implementation stages • Low cost and time-effective • Ideal for all types and sizes of business • Rapid Implementation • Immediate Value for the Business • Reduces Management Complexity • Results are measured and visible • Develops value-based performance indicators • Provides non-financial audit of the business • Optimises resources and adds to Profits • Pragmatic Application of Technology • Internet Browser based for wide adoption • Internet storage of Knowledge for easy and simple access • On-going Managed Service • Knowledge Directory and Tools • Online Coaching and email support • Continuous Improvement • Through “do-it-yourself” implementation. • Management of both Risk and Quality • Clarifies and Aligns both Staff and Management Expectation • Applies to all employees • Clarifies any job ambiguities • Removes uncertainty of responsibilities • Provides criteria for staff to be accountable • Focuses all employees on the Business • Records capability & performance • Develops staff performance indicators • Tracks progress for each individual • Encourages staff business interaction • Between management and staff • Improves inter-staff communication and teamwork • Creates pro-active contribution • Provides a common platform and framework for all employees to participate and contribute to Company success • Improves Productivity & accountabilityof both individuals and teams • Encourages reward assessmentfor actions and staff that add value to the business

17. AMS “Dual View” Perspectives View from a “Whole of Organisation” Perspective (Search) Knowledge 125 x Actions Description Risks Business-wide view Audits Ideas Projects Incidents 1.11 1.12 1.13 . . . . . . . . . . . 5.54 5.55 1.13 Operational Action view View from an Operational Action Perspective

18. www.actionmanagement.com.au

19. Internet-AMS Click Here to run Demo

20. The AMS Process simply overlays a business to “Improve Operational Performance” Develop the Strategic Business 5x5 view Create Business DNA Operational Actions Assign Job 5x5 actions Conduct audits of Improvement Manage Projects Resolve Incidents Create direct links to required knowledge Set Targets & Measure Results So AMS systemises the improvement of a business.