APM Models

Anthony’s Model

1. Strategic: long term goals & objectives

2. Tactical: resources used effectively and efficiently to accomplish goals

3. Operational: day-to-day tasks

SWOT Analysis

• Strengths

• Weaknesses

• Opportunities

• Threats

Converting weaknesses to strengths

Eliminating threats

PESTEL

• Political

• Economic

• Social

• Technological

• Environmental (Ecological)

• Legal

Porter’s Generic Strategies

1. Cost leadership

2. Differentiation

3. Focus (cost or differentiation)

Balanced Scorecard

1. Internal business process perspective

2. Innovation and learning perspective

3. Customer perspective

4. Financial perspective

Management must identify for each:

1. Objectives

2. Critical success factor

3. Key Performance Indicator

4. Targets

5. Initiatives

Perspectives are linked to business mission and high-level objectives

Advantages:

• Measures performance over range of areas which encourages longer-term view of performance

• There is a link to the strategy of the organisation

Disadvantages:

• Only considers limited number of stakeholders

• Cannot be quickly implemented

• Many companies use unsuitable KPIs

Benchmarking

1. Planning and organisation (e.g steering group)

2. Identifying key internal processes for analysis (Processes and metrics)

3. Researching potential partners

4. Developing plans for visits

5. Benchmarking teams to visit sites

6. Analysing data and developing plans for improvements

7. Implementation and monitoring

Types:

• Industry (competitive and non-competitive)

• Internal/Functional

• Best-in-Class/Process

Mendelow’s Matrix

• High Power + High Interest: Key players

• High Power + Low Interest: Keep satisfied

• Low Power + High Interest: Keep informed

• Low Power + Low interest: Minimal effort

Organisational purpose

• Mission

• Vision (Goals)

• Corporate objectives

SMART Objectives

• Specific

• Measurable

• Achievable/agreed/accepted

• Relevant

• Time-limited

The performance pyramid by Lynch and Cross

1. Corporate vision

2. Business units

   • Marketing performance

   • Financial performance

3. Business operating systems

   • Customer satisfaction

   • Flexibility

   • Productivity

4. Departments

   • Quality

   • Delivery

   • Cycle time

   • Waste

ROCE

ROCE = Operating profit / capital employed

Capital employed = Total equity + NCLs

Capital employed = Total assets - CLs

EPS

EPS = Profit for year / no. Shares

Total shareholder return (TSR)

Dividend per share + (Share price annual gain)

/ Share price at start of year

Interest cover

Interest cover: EBIT / Interest

Return of Investment

Manager ROI = Controllable profit / Capital employed

Division ROI = Traceable profit / Capital employed

Residual income

RI: Pre-tax profit - imputed interest

Economic value added

EVA = NOPAT - Finance charge

Finance charge = k x capital

NOPAT

NOPAT = Profit for the year + adjusted interest

Adjusted interest = interest + (1 - tax rate)

Net Promoter Score (NPS)

How likely is it that you would recommend to a friend or colleague?

9-10: Promoters - loyal and enthusiastic

7-8: Passive - satisfied and unenthusiastic

0-6: Detractors - dissatisfied

NPS = (% of Promoters) - (% of Detractors)

Anything above 0 is good

Triple Bottom Line

• People

• Planet

• Profit

Integrated report

• Organisational overview and external environment

• Governance

• Business model

• Risks and opportunities

• Strategy and resource allocation

• Performance

• Outlook

• Basis of preparation and presentation

The Six Capitals

• Financial

• Manufactured

• Intellectual

• Human

• Social

• Natural

McGregor’s Theories of Human Behaviour

1. Theory X (Top-down budgeting)

   • People dislike work

   • People dislike responsibility

   • They’re only motivated by money

   • They must be told what to do

2. Theory Y (Bottom-up budgeting)

   • People seek responsibility

   • They want to participate in decision-making

Fitzgerald and Moon building block model

Aligns Human Resource management with business strategy

Dimension block

• Financial performance (Result)

• Competitiveness (Result)

• Quality (Determinants)

• Innovation (Determinants)

• Flexibility (Determinants)

• Resource utilisation (Determinants)

Standards block

• Equity

• Ownership

• Achievability

Rewards block

• Clarity

• Motivation

• Controllability

Hopwood’s management styles

1. Budget constrained (based on short-term basis)

2. Profit conscious (based on reducing costs and increasing profit in long term)

3. Non-accounting (customer satisfaction etc)

Porter’s Value Chain

Primary activities

• Inbound logistics

• Operations

• Outbound logistics

• Marketing and sales

• After-sales service

Secondary activities

• Procurement

• Technology development

• Human resource management

• Firm infrastructure

Activity based management

Operational ABM: Reducing costs of activities and eliminating those that do not add value

Strategic ABM: Using ABC to decide which products and services to make and which customers to focus on

Total quality management

Continuous improvement in activities involving everyone (managers and workers) in the organisation to improve performance at every level

Kaizen costing

Continually trying to reduce the cost of a product

1. Setting standards and then continually improving these standards to achieve long term sustainable improvements

2. A focus on eliminating waste, improving processes and systems and improving productivity

3. Involvement of all employees and areas of the business

Six Sigma

Aims:

1. Improve customer satisfaction through better quality products and services

2. Reduce costs (e.g of poor quality)

DMAIC Methodology:

1. Define customer requirement/problem

2. Measure existing perdormance

3. Analyse existing process

4. Improve

5. Control

Value for Money Framework

1. Economy (Minimising inputs)

2. Efficiency (Maximising output/input ratio)

3. Effectiveness (Achievement objectives)

American Institute of Philanthropy Charity rating

60% of expenses to charitable programmes

40% of expenses to fund-raising activities , administration and management salaries

CRISP-ML Machine Learning Process Model

1. Business and data understanding

2. Data engineering (data preparation)

3. Machine learning model engineering

4. Quality assurance buikding

5. Deployment

6. Monitoring and Maintenance