B
y Paul Watson, Dmitry Maslow and Nicholas ChilesheA management functional assessment model (MFAM) can help organizations attain and sustain a competitive advantage in the marketplace. The model aids managers in determining the key activities to address in order to improve corporate efficiency and effectiveness based on satisfying stakeholders. And it does it via an easy-to-use scorecard.
While using Six Sigma's DMAIC methodology is a critical component of the model and essential to its success, the MFAM is based on these key functions of management:
- Forecasting/Planning – Determining the shape of future strategies, its function is to address three questions: 1. Where is the company now in terms of its vision and mission? 2. Where does it want to be as part of its future corporate plans? 3. How is the company to achieve set aims based upon determined forecasts?
- Organization – It consists of managerial tasks aimed at maximizing business processes with a concentration on effectiveness and efficiency.
- Motivation - It has many aspects both intrinsic and extrinsic.
- Control – Dependent upon constant feedback from each stage of the business processes, it is aimed at checking quality and measuring performance indicators. A correct monitoring system allows for an increase in the efficiency and effectiveness of organizational activity. Organizations must consider feeding forward information for effective control. This can be fully achieved by deploying the DMAIC methodology.
- Coordination – It is the analysis of deviations of business processes and updating of the current plans in a holistic manner based on feedback. Again, this can only be fully attained by the application of the DMAIC concept.
- Communication – It is the link and the lifeblood of corporate activity and its effectiveness is measured within the context of the five other functions.
The first five functions are encapsulated within an effective and efficient communication system (Figure 1).
| Figure 1: MFAM Incorporating the DMAIC Cycle |
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Using the MFAM Scorecard
An MFAM performance scorecard (Table 1) can help determine the level of management maturity in an organization. Each of the management functions contains five basic assessment criteria. Use the 0-4 scoring scale (4 is highest) to rate each criteria on the scorecard. Table 2 shows how the scores are interpreted.
Scoring Scale:
0 = No activity demonstrated
1 = Activity not consistently utilized
2 = Activity utilized but dependent upon the situation
3 = Activity deployed permanently and systematically
4 = Activity deployed permanently and systematically, monitored and reviewed for improvement via benchmarking
| Table 1: Management Functional Assessment Model Scorecard |
| Function | Assessment Criteria | Score |
Forecasting/
Planning | 1.1 Setting the objective and strategic planning process in motion
1.2 Gathering and analyzing information related to clients and markets
1.3 Detailing business processes
1.4 Gathering and analyzing information related to competitors and benchmarking
1.5 Resources planning
Total Forecasting/Planning Assessment (maxium 20) |
|
| Organization | 2.1 Creating the correct organizational structure
2.2 Establishing authority and the responsibility for all personnel
2.3 Creating a self-learning organizational culture
2.4 Developing a value system based on enhancing performance
2.5 Deployment of new technology linked to corporate enhancement
Total Organization Assessment (maxium 20) |
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| Motivation | 3.1 Developing a cooperative culture based upon stakeholder satisfaction
3.2 Ensuring staff have the skills, resources and competencies to perform set tasks
3.3 A consideration of personal needs linked to self-actualization
3.4 Engagement in processes, increase areas of responsibility and self-monitoring
3.5 Results satisfaction – feedback on performance in a timely manner
Total Motivation Assessment (maxium 20) |
|
| Control | 4.1 A monitoring system for each key stage of business process
4.2 Measuring performance levels
4.3 Determining customer satisfaction levels
4.4 Determining the efficiency and effectiveness of resource utilization
4.5 Conducting a comparative analysis between set targets and actual results, leading to appropriate actions
Total Control Assessment (maxium 20) |
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| Coordination | 5.1 Unity of all other functions
5.2 Establishing effective internal communications
5.3 Developing a conflict solving system
5.4 Updating of deviations: revision and possible re-coordination of other resources
5.5 Ensure effective Information management
Total Coordination Assessment (maxium 20) |
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| Total Management Assessment Score (maxium 100) | |
| Table 2: Interpreting MFAM Scores |
Level
| Total Score |
Assessment |
I | (0-20) | No methodology or system. Management purposes are not defined. For further development, it is necessary to reconsider core business principles. |
II | (21-40) | Management has the potential for development. Managers should develop their leadership skills, define organizational purposes clearly and develop a strategy based on TQM principles. |
III | (41-60) | Management systems are in evidence. It is necessary to pay attention to the optimization of business processes and improvement of quality at each stage. Perfect a control system and taking into account the importance of stakeholders. |
IV | (61-80) | Constant quality checks within the management system take place. Utilize external benchmarking in order to improve corporate performance. |
V | (81-100) | The maximum outcomes in all areas of corporate activity are reached. The management system is benchmarked and monitored in a drive for continuous improvement. |
Linking DMAIC and MFAM
DMAIC control is exercised by the feedback and feed forward of information on actual performance when compared with the predetermined plan. Therefore planning and control are closely linked. Control is concerned with the establishment of deviations from planned activities/objectives and initiating effective and efficient corrective actions. These assessments also may establish areas of best practice to be disseminated throughout the organization.
The management functional assessment model incorporating DMAIC encapsulates the facility for organizations to fully engage in a drive for continuous improvement. Thus, every time the MFAM is implemented and the scoring process applied, DMAIC is embodied within the model. In this way forecasts and plans linked to deployment strategies are evaluated and appropriate actions determined via assessment and review. Only by employing this approach can the full benefits of MFAM deployment be attained.
The development of the MFAM is based upon the key functions of management. The model is applicable for all organizations engaged in a competitive market. Organizations perform more effectively and efficiently when all interrelated activities are understood and systematically managed. Further decisions relating to operations and planned improvements need to be based upon reliable and valid information which includes stakeholder perceptions. The model enables this to be accomplished by incorporating within its framework the DMAIC concept. Corporate excellence is measured by an organization's ability to satisfy its customer base and attract new clients – thus the strategic link of MFAM to DMAIC.
About the Authors: Paul Watson is a professor at the School of Development and Society at Sheffield Hallam University in the United Kingdom. He can be reached at p.a.watson@shu.ac.uk. Dmitry Maslow has a doctorate degree and is on the economics and management faculty at Ivanovo State Power University in the Russian Federation. He can be reached at maslow@front.ru. Nicholas Chileshe has a doctorate degree and is on the faculty at the School of Development and Society at Sheffield Hallam University in the United Kingdom. He can be reached at n.chileshe@shu.ac.uk.
