Management, marketing and project management relationships in service systems

Management by Competences. Theory of vitality. Process and resource management. Strategic company orientation and planning. People evaluation and motivation. Risk Management. Lessons learnt from Interim Project point of view.

= Management by Competencies =

MbC is designed to help companies to achieve vitality. Sustainably successful company ~ Vital company ~ Company, in which attaining of current goals does not diminish the chance to achieve its goals in the future.

￼Company management approach based on harmonical development of :


 * World of requirements and
 * Requirements have to fit to current possibilities
 * World of possibilities
 * Possibilities have to be developed to be ready to meet requirements of the future Ultimate goal of MbC is to achieve vitality!

Management controls and regulates duality of these two worlds to achieve synergistic effects.

MbC interconnects world of requirements and world of possibilities to keep them in harmony. Performance assessment is based on results - however, MbC focuses on the source of performance, i.e. competencies of people MbC deals with problems causes, not consequences!

￼￼Human responsibility 

Every success or failure of any company corresponds to the competencies of people responsible for company performance Competence focus • Problems are analyzed to reveal unsatisfactory or completely missing competencies In achieving vitality of company - people are the only critical aspect!

￼￼Problems arise when performance requirements exceeds the possibilities

￼￼ Competence of a person is sum of

◦ job performance, i.e. human labor, and

◦ potential, i.e. human resources

 Competence ought to be always contemplated in the context of certain task to be performed

= Theory of Vitality =

The pyramid of Vitality
 (bottom->up): Usefulness -> Effectivity -> Stability -> Dynamics 

The pyramid of Vitality describes a strategy of building a vital company. Vital company = A state, in which the company is able to repeatingly achieve its goals without diminishing the possibility of success in the future. A vital company predicts and makes the changes internally as well as externally, in its own field. Vital company = dynamic company.

Building Usefulness :

Subjects - ( who may need us ?) -> Needs ( What may the subjects need?) -> Services / Products ( How we can satisfy the needs?)

Building Effectivity:

Processes - (What procedures will lead to services and products?) -> Resources (What resources will these processes consume?) -> Structures (How do we organize keeping up these processes and resources ?)

The subject of Value Proposition (VP) has to be provided: • in appropriate amount,

• in appropriate quality, and

• with minimum costs!

Sum of output values has to be greater than sum of input values!

• Value of output depends on its usefulness! To develop effectivity, it is crucial to have processes well defined and described!

Building up Usefulness and Effectivity leads from Crisis to Equilibrium.

 Stability 


 * Stability is ability to safely find new equilibrium anytime circumstances change!
 * It is about sustaining company at worst in equilibrium (regarding semaphore) state under any circumstances
 * Be stable is to be able to adapt and react to change
 * Success criteria
 * To learn from own results (successes and failures) - hard  requirement
 * To make people accept what is going on - soft requirement
 * stability = feedback + acceptance

Building Stability:

Goals (feedback to leadership) -> Ways (feedback to management) -> Results (workers monitoring the situation and act as a source of feedback)

Developing Stability leads to cyclic management (monitoring &lt;-&gt; correction system). Cyclic management works, if the whole system of goals, Ways and Feedback is understood and supported by people.

 Dynamics 


 * dynamics in a company is about initiative takeover by individual s
 * to be dynamic means to proactively predict and influence what is going to happen in both inner and outer environment

= Process Management =

￼￼￼￼￼￼￼￼￼Process is a sequence of activities to be performed

• Activity is an basic element of process

• In general, processes are contemplated to be repeatable

Process transforms inputs to outputs. To develop a company effectivity, it is crucial to have processes well defined and described.

Benefits of well-defined processes:


 * ￼￼￼￼￼￼￼￼Process measurement
 * Process effectivity evaluation
 * Accurate definition of process resources
 * Accurate responsibility assignments
 * Process support and integration
 * Process management and adjustment
 * Processes Resources Structures ￼￼￼￼￼

Types of processes:
Ortoprocesses -  deliver services / products for external customers • bound to business cases • start by order and end by payment

Paraprocesses - ￼deliver internal products critical for all three key functions (performance, management, leadership) • parallel processes supporting ortoprocesses

Metaprocesses - deliver changes to the company system

= Resources Management =

Types of resources:


 * Hard resources - easy to specify and measure
 * Physical
 * Intellectual
 * Financial
 * Soft (human) resources - hard to specify and measure. People are the bearers of these soft resources.
 * Abilities (what we know and what we can do)
 * abilities are confirmed and strengthened by being used by their bearer
 * abilites as resources have to be a subject of systematic planning from the management perspective
 * managers should lead people towards gaining new abilities or expanding the existing ones. If not possible, one has to look for new team members.
 * Qualities (the way we are)
 * can be changed only very slowly, if at all
 * have to be recognized, accepted and respected
 * = character traits / temperament, preferences of personality type (according to MBTI personal types)
 * Attitudes (what we want and believe in)
 * influenced by : company culture, motivation and ability to comprehend corporate ideas
 * manager's tasks: to recognize negative attitudes, understand their causes and try to correct them
 * correction at system or individual level

Resources derivation :

Activity (What will exactly happen within the activity?)

V

Demands (What exactly will one have to do?)

V

Requirements(Which abilities and to what extent will one have to posses?)

V

Person(Who fits the demands and requirements the best?)

= Strategic orientation and Planning =

System of Corporate Ideas
(Strategic Frame) -> (Goals & Objectives) -> ( Products, Services, Processes & Projects, Resources, Tasks, Competencies, Feedbacks, Feedforwards, HR development, etc..)

Strategic frame:

 * defines company and its business
 * an instrument of strategic management
 * defines only boundaries, which delimit space for free activity of management
 * submission for company management
 * Strategic frame ought to be an eternal source of inspiration, orientation and motivation for people working for company, for suppliers, investors, ...
 * Strategic frame is the seed the company ideas grow from
 * Absence of strategic frame is often reason of chaos in companies which leads to their failure

​ Strategic frame elements:
  Identifies business opportunities in surrounding environment    Clarifies why intended business will generate sufficient income to sustain itself in the future    Includes trend estimations of target customers behavior and other subjects considering development in environment
 * Business hypothesis
 * Gains trust of investors, owners, managers, workers
 * business, market, political, technological, economical, ecological and social 


 * Delimits a space where the company will operate and describes the position which company want to fill

&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;
 * ​ Vision
 * Answers the question: What the business and company will look like in a distant future?
 * Reflects feelings and ideas of leaders (emotional perspective)
 * ​ Includes measurable parameters and its values indicating achievement of vision (rational perspective)


 * Mission
 * Indicates the benefits for customers, suppliers, employees
 * Offers products and services to satisfy needs of the subjects
 *  Appeals to  wider  customer groups 
 * Attracts attention rather than explaining usefulness exactly


 * Strategy
 * Defines specific business activities which enable to sustain success of company both in the presence and in the future
 * markets to operate on, customers and clients to serve, competitive advantage to gain
 * The parts of the strategy focused on the presence and on the future have to be clearly distinguished
 * to avoid confusion of managers
 * to prepare step changes to surprise both clients and competitors

&lt;/div&gt; &lt;/div&gt; &lt;/div&gt;
 * Values and Rules
 * Focus on potential ways leading to achievement of goals outlined in vision
 * Emotionally, it is a set of shared and felt values which company ought to obey when realizing the vision
 * examples: Give-Take Matrix compliance, exploit any flaw in law at all costs
 * Shared values are rationalized into the set of clear rules which observance is measurable
 * example: every contract must be revised by XY from the perspective of Give-Take Matrix compliance
 * example: every contract must be revised by XY from the perspective of Give-Take Matrix compliance

​ Strategic frame creation:

 * 1)  Environment understanding
 * 2) * ​  trends, challenges, opportunities
 * 3)  ​Emotional perspective
 * 4) * unconsciousnes​
 * 5) * wishes, intuition, instincts
 * 6) Rational perspective
 * 7) *measurable parameters
 * 8) *consciousness

Strategic Continuum
 Primary focus    Secondary focu  s 

Operational Strategic Interval (OSI)

 * Company
 * benefits from current competitive advantage
 * delivers products or services through defined processes with all necessary resources
 * generates profit for owners and further company development
 * Leaders
 * practically do not interfere
 * Managers
 * monitor and tune performance
 * Workers
 * perform and directly realize current strategy

First Developing Strategy Interval (First DSI)

 * Company
 * prepares itself to realize upcoming step change by bringing new competitive advantage formulated by First DSI-strategy
 * Leaders
 * consult FDSI-strategy with managers
 * Managers
 * validate First DSI-strategy
 * (re)define (new) products and services, (re)define (new) processes and projects, produce necessary resources, KPIs, etc
 * (re)define (new) requirements
 * Workers
 * prepare their resources to meet new requirements

Second DSI

 * Company
 * seeks for- and designes new change steps bringing new competitive advantage - the core of Second DSI "strategy--to-be"
 * Leaders
 * seek for new opportunities, business hypotheses and essential competitive advantages
 * revise strategic frame
 * use intuition, invention, creativity in the following contexts:
 * needs of current and potential customers, trends in society, technology, politics, economy, ... following contexts: needs of current and potential customers, trends in society, technology, politics, economy, ...
 * Management
 * may help with creating feasibility studies of SDIS - strategy-to-be
 * prepare their resources to meet new requirements
 * Workers
 * specialists may help with creating feasibility studies mentioned above

= People Evaluation =

Short-term assessment of performance

 * an interview focused on quality of performed tasks in the last period
 * once month
 * short-term feedback
 * immediate influence of incentives
 * archived for the purpose of long-term assessment

Long-term assessment

 * Of Performance
 * analysis of the performance to find optimization regarding the corporate requirements and worker's possibilities
 * utilization of the pyramid of culture
 * long-term feedback
 * Of Resources
 * resources measurement
 * outlook to the future
 * career development (horizontal and vertical careers)
 * long-term feedforward

Irregular assessment of competencies

 * applied when possibilities and requirements do not match each other
 * worker has gained new abilities for another task than he/she performs
 * worker repeatadly doesnt perform as expected
 * assessed worker is assigned to a trial task
 * trial task is supervised
 * supervisor recommends one of the following:
 * admission of new competence
 * further resource development
 * change of requirements

= People Motivation =

The theory

Stimuli -> [processing] -> Feeling (pleasant / unpleasant) -> [processing] ->Need (to preserve / change) -> [processing] -> Behavior (passive / active)

Motivation vs. Stimulation
Motivation 

Principles of Motivation:   Motivation is about reaching harmony in
 * what does one person feels as their inner needs
 * what this person is assigned to do for company
 * the action that is required for people is given in relation to their current needs of people
 * requires the ability to estimate the current needs of people
 * in regards to the pyramid of vitality refers to USEFULNESS and EFFECTIVITY</li>

 Stimulation  &lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;
 * ​ Making person and task to be assigned to fit each other
 * adjust person to the task
 * adjust task or its submission to person
 * ​ Golden rule
 * ​ “Do not adjust people to their task, but adjust tasks to people and their needs!”
 * ​ Manager skilled in motivating is able to
 * reach desired result and
 * make people happy and satisfied with their work
 * requires perpetual input of time, money and effort to stimulate people
 * the action that is required for people is given in relation to the general working stimuli (e.g. financial incentives)
 * in regards to the pyramid of vitality refers to STABILITY and DYNAMICS