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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

Do you feel the change?


The world is changing.

Business owner and his employees (1895)

Making stogies Pittsburgh cigar factory (1900s)

Workers on the first moving assembly line (1913)

Assembly line at Chinese company (2000s)

You cant do todays job with


yesterdays methods and be in
business tomorrow"

Who should attend?

The one on his way to


the top.

The one not only


driving but also thinking
which way to choose.

The one feeling that something is wrong


should try to improve it.

The one looking for new opportunities in business.

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

What are the benefits?

Valuable knowledge capital

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

Best practices
Training materials

Real life event

Follow-up assistance by the ELCIM consultants

UNIDO Certificates
Business Excellence in Enterprise Performance Management

Problems addressed
Enterprise level

Major reasons of SME mortality*

65%

1. Mistakes in making business decisions


by management based on inadequate
assumptions, information,
2. Financial mismanagement and
ineffective use of own or borrowed
financial resources

*10,9 million enterprises, data SEBRAE, BRAZIL

Sailing to target destination


Business Target
(Promised Land)

Initial position

Where is navigation? What are their chances?

Sailing without navigation


Business Target
(Promised Land)

Initial position

Ideal path

Sailing with navigation


Business Target
(Promised Land)

Initial position

Sailing with navigation.

We cannot change the direction of the


wind, but can adjust my sails to
always reach my destination.

UNIDO Capacity Building and Upgrading Programmes with


Enterprise Business Performance Management, Measurement
and Benchmarking components

Awareness
workshops

Training
Workshops

IT Tools for business


performance
measurement and
benchmarking
Pharos Business
Navigator

Measuring
business results

Benchmarks

Produce Plus

Improving results:
Industrial engineering
methods

Enterprise
Certificates

Financial
Improvement
Toolkit - FIT

Developing
best practices

UNIDO,
Vienna
Industrial
centers in
country

Consulting &
Coaching on-site

Certification in
Business
Excellence
Achivements

Managerial
Certificates

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

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.

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

Strategic Planning
and Implementation

Measuring and benchmarking


strategic and financial results with
UNIDO Pharos and FIT software

3
4

Measuring and benchmarking


manufacturing results with
Produce Plus software
On-site enterprise consulting
and coaching

Programme
Modules

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

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)

Module 1:
Implementing Strategic Plan

Targets and Milestones


Timetable
Organigram
Organizational Culture
Monitoring and Benchmarking of Key
Performance Indicators
Comparing assumptions vs. realities

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

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

SME Level Application


Pharos Package
Enterprise
Data Base Update
Manager

Calculation of Indicators
Business Profile
Benchmarking Reports
And Graphs
Laptop

Owner

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

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

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

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

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

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

Expected Results (1)


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

Expected Results (2)


Documented results of 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

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

Case study: Shoe Factory, Colombia

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

Expected Results of Capacity Building Programme


Management of Change:

Margen de Utilidad Operacional:


+ 53.7%
Incremento de Ventas:
+ 37.9%
ndice de Servicio al cliente:
+ 99.28%
Estructura de la Organizacin:
+ 26.09%
Gestin de Mercadeo:
+ 26.19%
Eficiencia en la Gestin de la Produccin: 66.32%
Maneo del Recurso Humano:
+34.71%
Administracin Econmico-Financiera: + 60.93%
Estrategia Empresarial:
+ 77.37%
*Source: UNDO Integrated Programme for Colombia 2002-2004, Component II, Pharos

Conclusions:
The National Entrepreneurship Capacity
Building and Industrial Modernization
Programmes provide unique answer
Management of Sustainable Change
Investments
Innovations
New technologies

Questions please?

Thank you!

Contacts:
Serge Golovanov
Ph.D., Dipl. Eng., Director,
Enterprise Performance Improvement Center
GOLEM IMS GMBH, Vienna, Austria
UNIDO International Consultant
e-mail: info@win2biz.com

References

Industrial upgrading programme overview and relevant documents


http://win2biz.com/unido_sw/eng/SME-Prog-intro.htm
Pharos enterprise benchmarking software:
http://win2biz.com/unido_sw/eng/peb.htm
http://win2biz.com/unido_sw/eng/faq.htm
http://win2biz.com/eng/Interview2.htm

Source materials by

NYPL Digital Gallery, http://digitalgallery.nypl.org/nypldigital/index.cfm


Nationals Archives and Record Administration,
http://www.archives.gov/exhibits/twww/
Dongguan Digi-in Digital Technology Co.,Ltd, http://www.digi-in.com.cn/en/index.asp
http://www.istockphoto.com