Leadership and strategies to respond to KPIs 13 Flashcards
Managers and leaders role in change and necessary attributes
Managers and leaders play a vital role in the successful implementation of change
Attributes necessary- diagnosing (understand situation as it is and knowing what could be expected in the future), adapting (ability to change to close performance gaps to competitors), communicating (effective articulation of the changes that are to happen, ‘pn the same page’)
Leaders need to be able to build relationships (increases likelihood of others doing what is asked of them), promote teamwork, coach and mentor, encourage diversity (gender, race, ethnicity, different perspective and expertise), and develop talent
Strategies to respond to KPIs
- Staff training and development
- Staff motivation
- Changes to management styles and managers’ skill development
- Increased investment in technology
- Improved production quality
- Cost cutting to gain efficiencies
- Lean production techniques
- Redeployment of resources within the business
Staff training and development
Employees are an asset and the competitive edge between a business over a competitor
If they feel valued, they will be committed to the success of the business, boost morale, productive
KPIs: level of staff turnover, rate of staff absenteeism, number of workplace accidents, number of staff complaints, rate of productivity growth
Strategies involved: Training and development for future growth/career development (valued)
Performance reviews
Open, transparent corporate culture where employees have equal opportunity and can dispute
Exit interviews, to see if there are any common concerns, improve current work procedures to retain staff
Surveys to identify training needs/individual requirements/ expectations
Staff motivation
Employees who are motivated will attend work and work productively
KPIs: rate of productivity growth, rate of staff absenteeism, level of staff turnover
Strategies involved: employee recognition and rewards (commission, bonus, gift, public recognition)
Performance management system where employees set goals, are assessed, and can reflect upon how much they’ve achieved and where they can improve
Policies (anti-discrimination, equal opportunity), shows that a business values their employees and is looking out for their wellbeing
Opportunities for growth and skill development through job rotation
Change in management style/skills
KPIs: net profit, sales, rate of productivity growth, rate of staff absenteeism, level of staff turnover
Strategies involved: The management style used by managers affects business performance, style used should depend on the situation and context e.g. autocratic when there is a deadline, a serious incident or inexperienced workforce
Increased investment in technology
Technology has continually advanced and can help businesses run a more efficient workplace
KPIs: level of wastage, number of workplace accidents, rate of productivity growth
Strategies involved: implementing modern technology like CAM (decreases costs and increases productivity)
Websites and online shopping may assist a business to increase sales and market share
Benefits include improvements in communication (speed and reach; email and phone, store information on the cloud; backed up, accessible, reduces storage cost)
Improvement in quality
KPIs: level of waste, rate of productivity growth, number of customer complaints
Strategies: quality control, quality assurance, TQM, benchmarking against the industry’s leading businesses, reviewing operations and training employees/managers
Benefits include reduced number of faulty products, decreases waste and increases productivity
Higher quality products that can command premium prices due to its perceived quality and reliability
Cost cutting
KPIs: level of wastage, rate of productivity growth, net profit
Strategies: reviewing every aspect of the business and cutting non-essential costs
Negotiating further with suppliers (cheaper prices or delaying of payment to avoid overdrafts)
Selling no longer needed assets (machinery)
Outsourcing tasks or sourcing supplies from overseas
Investing in renewable energy or tank water
Relocating to a low-rent area
Removing bottlenecks in a production process
Lean management techniques
Lean management is a management system where waste is avoided, increasing profits and productivity
KPIs: percentage of market share, net profit, rate of productivity growth
Strategies: JIT (increase efficiency, minimise materials, equipment, waste, labour, space and therefore costs)
Cell production (organises workers into cells with each cell comprising of multiskilled workers who produce a complete item, increased job satisfaction and motivation from contributions, therefore increasing productivity)
Benchmarking- measuring performance against competitors within the same industry (evaluates opportunities, strengths, weaknesses, helps with setting of goals)
Time based management- aims to increase efficiency by reducing time taken to produce outputs and lead time
Redeployment of resources
KPIs: level of waste, rate of productivity growth
Strategies: gains in efficiency by allocating materials, labour, and capital correctly
Retain employees who have already been invested in, less redundancies- less impact on staff morale, avoids damaging reputation, saves money no redundancy packages
Relocate tasks overseas
Lean management, 4R’s, establish a corporate culture where everyone is focused on keeping costs low, JIT
Low-risk strategies
participative approach to the implementation of change
• Two-way communication (managers and employees communicate freely)
• Empowerment of employees, part of decision making, take ownership of changes, more likely to support and maintain it
• Support and incentives (health and wellbeing of employees, job rotations, training promotions)
RELATE TO CS
High-risk strategies
autocratic approach to implementing change
• Threats (loss of job or demotion)
• Manipulation (details/consequences left out, facts distorter->pushing employees into making a decision)
RELATE TO CS
