Drive Business Performance Through New Metrics & Incentives
Dates Sep 15, 2008 - Sep 16, 2008 Dec 15, 2008 - Dec 16, 2008 Apr 28, 2009 - Apr 29, 2009 Aug 10, 2009 - Aug 11, 2009 Dec 14, 2009 - Dec 15, 2009
Cost (2008):
$2,495.00
Cost (2009):
$2,495.00
Accelerate business results with metrics that focus employee behavior on business performance at all levels. Drive Business Performance Through New Metrics & Incentivesdemonstrates how to achieve alignment between performance measurement for senior executives, functional, and non-managerial personnel, and the company’s strategy and reward systems.
This 2-day course provides you with a systematic approach and template to use for developing innovative compensation systems closely aligned with performance measurement systems.
Benefits
Contents
Who Should Attend
Instructor
Hours & Credits
Make more profitable decisions that are supported by appropriate metrics
Increase profits by identifying non-value add activities
Learn to identify the key levers that drive your company’s valuation
Create shareholder value by aligning your performance measurements and rewards with business objectives
Avoid common obstacles to implementing metrics and incentives
Improve financial data by learning how Generally Accepted Accounting Principles (GAAP) provide misleading information
Critical Factors in Implementing Effective Performance Metrics
How actual business performance and the measurement of performance are related
How measurement drives behavior
How data integrity can impact measurements
How the speed of technology change impacts performance metrics
How performance measurements often drive undesirable behavior and damaging decisions
How the drop in loyalty (company and employee) is driving a contractor mentality
How performance is measured across functional boundaries
How to define aggregate, functional, process, and operational performance measurements
Aligning Performance Metrics Throughout the Organization
Principles of business performance measurements that work
What happens when measurements are not properly aligned up and down the organization
What happens when measurements are not aligned across the organization
What happens when there are technical, organizational, and cultural impediments to alignment
Driving Corporate Economic Performance: Measures for Executive Leadership
Characterizing economic measurement formulas and determining when to appropriately use them
Using new measurements to discover new performance leverage points
Understanding the difference between economic profit measures and conventional profit measures
How Generally Accepted Accounting Principles (GAAP) can result in misleading perceptions of performance
Adjustments required to calculate economic profits and eliminate cost distortions
Connecting economic profit measurements to strategy formulation
Connecting economic profits to tactical plans and measurements
On-Line Demonstration: How to determine the appropriate aggregate performance measurement to shape desired behaviors. This section includes a business goal setting and goal testing demonstration.
Driving Functional Business Performance: Measurements for the Leadership Team and Critical Support Team …the Executive Dashboard
Developing a purpose for an executive dashboard
Constructing executive dashboard basic rules
Determining the dashboard ‘gauges’
Determining each gauge’s priority and relative value
Determining expected performance for each gauge
Developing routine methods for gathering and reporting information
Making adjustments to eliminate cost distortions at the functional level
Linking functional measurements back to economic profits
Driving Operational Performance: Measurements for the Technical Team and Critical Support Team
Identifying non-value adding activities
Accurately costing activities
Adjustments required to eliminate cost distortions at the activity center level
Eliminating cost distortions normally associated with traditional financial allocations
Costing with an activity based costing (ABC) approach
Examples of operational measurements
Linking operational performance to the functional dashboard
Linking operational performance to economic profits
On-Line Demonstrations: How employees can use operational measurements to self-identify, self-prioritize, and remove waste within their span of influence.
Driving Process Performance Improvement
Identifying core business processes
Identifying non-value adding required activities within core business processes
Costing processes accurately
Examples of process measurements
Linking process performance to the operational dashboard
Linking process performance to the functional dashboard
Linking operational performance to economic profits
Overcoming Implementation Obstacles and Challenges
Why there is so much resistance to changing performance measurements
Technical, organizational, and cultural implementation obstacles
GAAP (and accounting anomalies) versus the ‘new books’
Keeping measurements aligned
Aligning existing reward systems with new measurements
Institutionalizing the use of the new measurements
Understanding disclosure and compliance requirements
Using Incentive Compensation to Accelerate Performance
Getting employees to act like owners
Moving towards leveraged pay at all levels
Implications of the ‘contractor mentality’
Using tools to tie performance metrics to compensation policy
Assessing the importance of evaluation instruments
Compensating top leaders
Compensating functional leaders and employees
Cautions about changing compensation systems
CFOs, presidents and CEOs, vice presidents, and operational/functional managers responsible for dramatically improving their organization’s financial and operational performance.
Alan G. Dunn Sep 15, 2008 - Sep 16, 2008
Dec 15, 2008 - Dec 16, 2008
Apr 28, 2009 - Apr 29, 2009
Aug 10, 2009 - Aug 11, 2009
Dec 14, 2009 - Dec 15, 2009
Alan G. Dunn
Alan G. Dunn is president of GDI and chairman of GDI's business investment firm. He specializes in global manufacturing management, cost management, and business finance. Previously, Mr. Dunn was a partner at Coopers & Lybrand and a vice president at Gemini Consulting.
Mr. Dunn has worked with: AlliedSignal, American Cyanamid, Amgen, AT&T, Ballard Power Systems, Baxter, Boeing, General Instrument, General Motors, Intel, Johnson & Johnson, Lockheed Martin, Loral, Monier Lifetiles, Phelps Dodge, Sony Corporation, Sybron Dental Specialties, Technicolor, Toshiba Corporation, United Technologies, U.S. Borax, the U.S. Department of Energy, and Warner Bros.
Mr. Dunn is an international educator, speaker, and author on performance measurement, manufacturing systems, cost management, value engineering, business process reengineering, information systems management, business transformation, corporate governance, and business finance. He has addressed the American Production and Inventory Control Society (APICS), the Council of Logistics Management (CLM), the Product Development Management Association (PDMA), the Society of Manufacturing Engineers (SME), the National Association of Accountants (NAA), and the Young Presidents’ Organization (YPO). Mr. Dunn teaches the Caltech Industrial Relations Center course, Drive Business Performance Through New Metrics & Incentives and the manufacturing cost strategies course, Accelerating Cost Reductions.
His articles have been published in the Los Angeles Times, Journal of Manufacturing Systems, Material Handling Engineering, Automation, Production and Inventory Review, Managing Automation, Warehouse Cost Digest, Transformation Magazine, and Industrial Engineering Management.
Mr. Dunn has served on the boards of directors of both public and privately held international companies in the aerospace, asphalt production, automotive, and nutriceutical sectors. He is currently an active member in the National Association of Corporate Directors (NACD). The NACD chose Mr. Dunn to receive their 2007 Private Company Director of the Year Award. This award is given to a director who exemplifies the knowledge, leadership, and excellence in corporate governance that the NACD strives to promote through education, publications, and public service.
Participants are invited to attend a dinner the first evening of the course, providing an oppportunity to share information and ideas with the instructors and other participants.
The California Institute of Technology Industrial Relations Center is registered with the National Association of State Boards of Accountancy (NASBA)
as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org.
Comments from Past Participants
“Alan Dunn is outstanding.This is the first program I’ve attended that speaks specifically and clearly about how company performance can be improved and analyzed from A to Z. I will definitely use what I learned about identifying the key levers that drive company valuation as well as the majority of the tools taught in the course. “
Nicholas P. Mitrakis Director, Finance Siemens Energy & Automation, Inc.
"This course is excellent. I learned a process for creating complete performance metrics for my company. I will start by creating fundamental economic models for two operating divisions at my company."
Peter Buck Corporate Controller National RV Holdings, Inc.