Management of Sustainable Change : Capacity Building and Industrial Modernization Programmes Presentation

1. Management of Sustainable Change:Capacity Building and Industrial Modernization Programmes Presentation Applying UNIDO methodology and Pharos enterprise benchmarking software for improving capacity for Trade, Exports, competitiveness and sustainable development

2. Do you feel the change? The world is changing.

3. Business owner and his employees (1895)

4. Making stogies Pittsburgh cigar factory (1900s)

5. Workers on the first moving assembly line (1913)

6. Assembly line at Chinese company (2000s)

7. “You can’t do today’s job with yesterday’s methods and be in business tomorrow"

8. Who should attend?

9. The one on his way to the top.

10. The one not only driving but also thinking which way to choose.

11. The one feeling that something is wrong should try to improve it.

12. The one looking for new opportunities in business.

13. Who should attend: • The business owners, entrepreneurs • Senior management and specialists supporting strategic, financial and production management • Assistants to senior management, • Business consultants • Vocational Training and Executive Education professionals

14. What are the benefits?

15. Valuable knowledge capital

16. UNIDO Pharos software package had been applied to several industrial modernizations and capacity building programmes in several countries including Colombia, India, Egypt, Bahrain, Lebanon, Zambia, Uganda, Kenya, Indonesia, Russia, Slovakia, United Kingdom

17. Best practices Training materials

18. Real life event Follow-up assistance by the ELCIM consultants

19. UNIDO Certificates “Business Excellence in Enterprise Performance Management”

20. Problems addressed Enterprise level

21. Major reasons of SME mortality* • Mistakes in making business decisions by management based on inadequate assumptions, information, 2. Financial mismanagement and ineffective use of own or borrowed financial resources 65% *10,9 million enterprises, data SEBRAE, BRAZIL

22. Sailing to target destination Business Target (Promised Land) Ideal path Initial position

23. Where is navigation? What are their chances?

24. Sailing without navigation Business Target (Promised Land) Initial position

25. Ideal path…

26. Sailing with navigation Business Target (Promised Land) Initial position

27. Sailing with navigation.

28. “We cannot change the direction of the wind, but can adjust my sails to always reach my destination.”

30. Objectives (1) • Introducing best practices of systematic measuring of results, itsmaximizing, planning, eliminating inefficiencies • Implementing effective productivity & industrial engineering methods with simple and inexpensive personal performance management tools.

31. Objectives (2) • Combining methodology, best practices and software for improving productivity, competitiveness, quality for sustainable growth. • SMEs becoming more transparent and prepared for national and international investments, have improved capacity for trade and exports.

32. Objectives 3 • Improving entrepreneurs capacity for managing investments, innovations, new technologies – “Management of Change”. • Facilitating business developments, managerial potential, implementation of ISO 9001.

33. Strategic Planning and Implementation 1 Measuring and benchmarking strategic and financial results with UNIDO Pharos and FIT software 2 Programme Modules Measuring and benchmarking manufacturing results with Produce Plus software 3 On-site enterprise consulting and coaching 4

34. Module 1:Strategic Planning at Industrial SME Development strategies shall include • adapting to changing business environment • potential risks • maximizing competitiveness. • different attitude and approach of the enterprises, especially that of the owner and / or management

35. Module 1:Strategic Planning and Implementation • Key competencies and skills of Change Leaders • Methodologies of Strategic Planning • How to develop and implement a strategic plan? (Measure and Planning based on realities, simulating the decision options)

36. Module 1: Implementing Strategic Plan • Targets and Milestones • Timetable • Organigram • Organizational Culture • Monitoring and Benchmarking of Key Performance Indicators • Comparing assumptions vs. realities

37. Module 2: Improving Performance with ICT: Pharos Enterprise Benchmarking • Integrated enterprise platform for unified measurement, monitoring and management of business performance, innovative, powerful yet easy to use • Introducing business intelligence concepts at each organizational level • Improving business culture of stakeholders for sustainable development • Simplicity in learning and self-training facilitating exchange of best practices, benchmarking and transfer of knowledge between stakeholder groups • Special focus to personnel of private and public enterprises

38. Module 2: Pharos Enterprise Benchmarking • Methods and tools for easy setting and assessment of goals (organization, departments, individuals) • Comparisons between organizations as well as traceability of change using real-time benchmarks • Scalable support of organizations in their growth path from small to large (5 => 1000 employees) • Integrating features of Pharos-Business Navigator, FIT, Produce Plus and BEST • Transparency of business results for prospective investors and modernization programmes • Compliance to BASEL II (minimization of credit risks) • Customizable benchmarking indicators and reports

39. SME Level ApplicationPharos Package Enterprise Data Base Update Calculation of Indicators Business Profile Benchmarking Reports And Graphs

40. Module 2: Improving Performance: Business benchmarking & reporting Developing best practices: problems and how to address them, Managerial dedication, Value of unmeasured, Staff attitude, training and stimulation: who is really interested in the measurement results? Making the measurement, management and benchmarking the component of a business culture, Expected results and realities in practice

41. Module 2: Improving Performance: Business benchmarking & reporting • “Where we are compared to others?” • Self-assessment and positioning of enterprise achievements against the others by industry, region, country; • obtaining the vision of our own progress and its relevance to overall industrial trends

42. Module 3: Participants learn and practice: • Introduction to Performance Measurement in manufacturing • Relation between lean manufacturing and production performance measurement, diagnostics and benchmarking, value added stream mapping • Application of Pharos to production performance management

43. Module 4: On-site enterprise consultingand coaching • On-site implementation: developing knowledge capital, setting best continuous improvement practices (up to 12 months, consultant assisting and supporting each enterprise).

44. Module 4: On-site enterprise consultingand coaching • Training and certification of national consulting and support teams • Benchmarking and certification of each participating enterprise • Final results evaluation, reporting, conference of stakeholders

45. The Programme Modules Integrate • concepts, • methodology, • training and reference materials, • practical exercises, • lecturing, • action learning, • team work/group work, • case studies, simulations, • games and computer-based training

46. Expected Results (1) • Best practices in business improvement • Improvement of Key Performance Indicators (KPI) up to 300%, includingGross Profits, Productivity (Added Value per Employee), etc. • Benchmarking & diagnostics reports for each enterprise • Benchmarking data for evaluation of sectoral performance

47. Expected Results (2) • Documented resultsof the Programme implementation • Investment facilitation due to increased transparency of businesses • UNIDO Certificates of Achievements in Business Performance Excellence • Improved culture in Management of business, innovations, competitiveness, productivity, quality and sustainability • Installation of Pharos benchmarking software in participating enterprises

48. We really appreciate PHAROS - as a concept and as a Business Performance tool and the way of presentation of its output Indicators". S.D.Sardesai, General Manager

49. Case study: Shoe Factory, Colombia

50. Return of Investment into Programme participation Case study: Shoe Factory (Bogota, Columbia 2002) • Average annual sales, USD - $632 000 • Net Profit average % (leather & shoe production) - 5% • Increase of net profits, post programme in % - 24% • Increase of net profits, post programme in USD - $7,584 • Participation costs per annum < $2,500