LEADERSHIP AND STRATEGIES TO RESPOND TO KPIs CHAPTER 13 LEADERSHIP AND STRATEGIES TO RESPOND TO KPIs

The importance of leadership in change management Leaders and managers play a vital role in any organisational change. Without strong leadership, change is likely to fail.

The importance of leadership in change management The three attributes necessary for effective leadership are: diagnosing – being able to understand the situation as it is now and knowing what could be expected in the future adapting – being able to adapt behaviour and other resources to help close any performance gaps communicating – even if a leader knows what needs to be done, it is important to communicate this to others.

The importance of leadership in change management If leaders do not have the skills to articulate strategy, implement changes effectively and keep all staff informed about decisions impacting on them, the introduction of a change can lead to a situation where employees and even middle and front-line managers become cynical and begin to resist the change. For change to be successfully implemented and sustained, leaders need to focus on building relationships with employees, management, shareholders and external stakeholders. By cultivating teamwork, coaching and mentoring, encouraging diversity, developing talent within the organisation and having open communication, business transformation is more likely to be successful.

Management strategies to respond to KPIs and other business trends and data Businesses use KPIs and other data to analyse performance and develop strategies to improve business processes. To analyse KPIs, a business must: Collect information Store information in a usable format Ensure records are accurate Analyse any trends

Management strategies to respond to KPIs and other business trends and data There are some considerations about KPIs that a manager should have: Determine what KPIs are going to be analysed and compared Establish a threshold over time to determine whether or not variations in the data are significant Investigate significant variations to determine the reasons for it

Management strategies to respond to KPIs and other business trends and data A business’s most valuable asset is its staff. Ensuring staff have the right skills for the job and are happy is vital. (motivated) If a KPI reveals that staff are dissatisfied, strategies must be implemented to rectify the issue. This could be in the form of training and development, or motivational strategies.

Management strategies to respond to KPIs and other business trends and data The strategies used will be influenced by management style and the manager’s skills. KPI trends may also reveal a need for a manager to improve their own skills, or alter their management style.

Management strategies to respond to KPIs and other business trends and data Technology is a major driver of change. Due to the rapid rate of technological development, businesses need to have strategies that allow them to take advantage of new technologies.

Management strategies to respond to KPIs and other business trends and data Businesses should strive to improve the quality of their products. In addition, effort needs to be made to ensure customers perceive quality in products. Quality products can lead to higher profits (ability to charge more), reduced waste and increased productivity.

Management strategies to respond to KPIs and other business trends and data Businesses can respond to some KPIs by trying to cut costs. This can, for example, improve efficiency and increase profit. It is important that businesses analyse their operation thoroughly in order to ascertain the best way to reduce costs. For example, improving a manufacturing process may deliver better improvements than reducing the size of the workforce.

Management strategies to respond to KPIs and other business trends and data Lean production techniques can be used to reduce costs, increase efficiency and remain competitive/ The 10 rules of lean production are: eliminate waste minimise inventory maximise flow pull production from customer demand meet customer requirements do it right the first time empower workers design for rapid changeover partner with suppliers create a culture of continuous improvement (Kaizen)

Strategies to overcome employee resistance to change The majority of people do not like change. While some see change as exciting and welcome a challenge, most people become comfortable with routine and tend to stay in their comfort zones. The uncertainty of change, and of the future, means that it becomes a stressful experience. Before taking action, managers must make time to understand the people they are dealing with, and how and why they feel the way they do. There are different ways to overcome employee resistance to change; these can be either high-risk or low-risk.

Strategies to overcome employee resistance to change low-risk strategies participative approach to implementation of change, use of communication, Empowerment of employees, work groups and support for those who are impacted upon

Strategies to overcome employee resistance to change high-risk strategies autocratic approach to implementing change, involving use of force, threats and manipulation of situations