23Aug2016

Management Review Meeting

The management review meeting is one of the most important practices for any business. The key success factors and some standard metrics for any company are listed below.

Key Success Factors:

Planning Points

  • Diligent choice of metrics for review
  • Easily verifiable standard for each metric
  • Reporting must be more often than the review

Reporting Points

  • Previous Actuals, Goal/Target, Current Actual, Latest Estimate
  • Measures with Responsibility (Individual), Due Date and Status
  • Standard Agenda with prior (at least 2 working days) MIS reports

Pre Meeting Points

  • Visit the War Zone to feel the reality and the spirit
  • Prior discussion with all the involved on Pros/Cons

During Meeting Points

  • Random check of correctness/thoroughness of reports
  • Open discussion/debate before decision making

Post Meeting Points

  • Documentation of MoM with clear Responsibility/Due Date
  • Offline structured follow-up of all Open Points

Standard Metrics

Customers/Clients

  • Market share
  • Top Line
  • Price Change Rate
  • New Product/Project Status (On Spec | On Time | On Budget)
  • Customer Satisfaction (Complaints | Social Media Clutter)
  • Receivables Ageing

Function/Quality

  • Functional requirements for new developments
  • Corrective, Preventive and Predictive Measures for Complaints
  • Corrective, Preventive and Predictive Measures for internal rejections
  • Corrective, Preventive and Predictive Measures for incoming rejections
  • System, Process and Product Audit Status

Delivery

  • Volumes
  • OTIF (On-Time-In-Full) to Customer/Client
  • OTIF (On-Time-In-Full) from Vendors
  • Full kitting
  • Inventory coverage
  • Stocks Ageing
  • Payables Ageing

Cost

  • Productivity
  • Fixed cost development
  • Variable cost development
  • Unplanned cost
  • OEE and Utilisation of constraints
  • Overtime
  • Purchase Price Index
  • CAPEX Development

Personnel

  • Headcount development
  • Bench Strength
  • Absenteeism rate
  • Employee Engagement (Grievances | Social Media Clutter)
  • Maturity Level of Change Initiatives
  • Training and Development Status
  • Appraisal status
  • Talent pool status

I use the same basics to help my clients with Consultancoaching based on my structured Methodology to reap these benefits.

  • Upto 50% productivity improvement
  • Upto 70% reduction in throughput time
  • Upto 50% reduction in defects
  • Upto 50% reduction in inventory
  • Reduction in Receivables from >6M to <2M
  • >98% On-time in Full (OTIF) based on initially committed date
  • Upto 40% growth
  • Upto 50% improvement in profitability
  • Total internalization of the introduced practices
  • Significant reduction in MANAGEMENT ATTENTION

In order to reap these benefits, the L2L System too needs to be implemented thoroughly, if not already done.

However, it is very important to note that both the key success factors and the metrics need to be customised after a thorough Business Health Check, which needs to be repeated every year.

Happy Reading!!!