In previous blogs we have designing good KPIs and adequate control of these KPIs described in two short step-by-step plans. In this edition we look at the bigger picture, using the Supply Value Performance Management (SVPM) Model and accompanying Quick Scan. This model describes the relationship between goals, processes and the organization. We would like to pay attention to this because research shows that more than 90% of the organizations fail to successfully execute its strategy. The SVPM model helps organizations to see where the pain points are in achieving goals and executing the strategy. In addition, the model provides a number of handles to get started.
To successfully implement a strategy, it is important that the goals, processes and organizational structure of an organization are well aligned. By structuring these aspects within an organization, it is ensured that all employees are familiar with the overarching strategy and objectives, but also how their work aligns with it. By consciously working on the link between goals, processes and organizational structure, an organization is set up as effectively and efficiently as possible.
Further professionalize your organization
The SVPM model is built to analyze and optimize the coherence of goals, processes and organizational structure. The model focuses on defining concrete goals derived from strategic goals, capturing processes that contribute to achieving these goals, and then getting the right people in the right teams to work together in the right way.
Organizing the organization in this way increases the involvement of employees because it is clear to which goals their activities contribute. This enables them to think along and improve. This can lead to higher customer satisfaction due to, among other things, better quality and faster turnaround times.
The SVPM Model can be divided into five competencies of an organization:
1. Objective refers to the organization's ability to set and improve its goals.
2. Efficiency describes whether the strategic objective of an organization or department is aligned with the processes, or the efficiency of processes. Do the processes enable an organization or department to achieve the associated goals, thereby contributing to the strategic objective?
3. Process performance refers to measuring performance in the processes (and continuously improving this performance).
4. Governance is about the control of and responsibility for processes and tasks, responsibilities and authorities.
5. Organization describes the maturity of your organizational structure with regard to the hierarchical structure, but also reporting and meeting structures.
To assess how an organization scores on these aspects, we distinguish between five maturity levels, based on the Capability Maturity Model. While processes at the lowest level are managed ad hoc and reactively, processes at the highest level are adjusted based on measurable results and there is a continuous focus on improvement.
Supply Value Performance Management Quick Scan
Based on the SVPM Model, Supply Value has developed a Quick Scan that provides direct insight into the maturity of an organization in the field of performance management. We invite you to complete our Quick Scan, which takes about 15 minutes and is free. After completing the form, we provide you, based on your input, with a free advice report with advice that you can start with tomorrow. In addition to advice on how to take your organization to the next level, we provide insight into how your company scores compared to other companies.
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