Impact Management System (IMS™)

"Graham is easy to work with provides clear direction and support as required. The approach is not over dominant but facilitates and guides discussion to the key issues and creates an environment which is challenging and productive. Questioning keeps the process honest and on track - a wide range of experiences and examples gives confidence and understanding that some aspects are really hard but others have done it before. Graham has done a super job". – Managing Director, London and South

A good strategic plan answers the questions, what are we trying to achieve? However, the strategy is only as good as the underlying operational plan and more importantly the management system that links the strategic and operational plan, keeping the business focussed on what it is trying to achieve.

It may surprise you learn that less than 5% of all the companies we have worked with over the last 20 years have a functioning management system.  Of those that have a management system it is not unusual to find that over a period of time is has become diluted in its effectiveness, as initiatives and fire fighting have taken over from the rigorous control of the business.

Less than 1% of organisations have taken time to make the linkages between the strategic plan, the operating model and the management system. Without this the best strategy can never fully deliver the results the business aims to achieve.  That is why we have developed the Impact Management System ™
The Impact Management System is a four stage programme that delivers the ‘what’ and ‘how’ of strategic and operational deployment consistently throughout the business.

Our approach

The first stage of deployment is to develop and embed the Executive Management System ™. Once this has been deployed the same principles are used to develop  the operational layers of the organisation though the Operational Management System (OMS™). This  ensures the strategic intent is maintained and the operational delivery is capable of achieving the strategic goals.
Taking the time to design the management system to ensure it is capable of delivering strategic targets is only part of the answer. The key to truly delivering is to ensure that the behaviours needed to drive the management system are also developed within the design. Ensuring that the management system is designed to deliver the strategy allows the organisation to assess whether their change or transformation plan is aligned to the strategic objectives or not.  It is not unusual to find that the change initiatives within an organisation are misaligned; this in itself is an opportunity to reduce costs and increase the speed of implementation.

Building the EMS™

The Impact team has been working with the Executive Leadership Team (ELT) of a large financial services client to support in the development of their Executive Management System (EMS™).  The ‘What’, the strategic direction of the organisation was already well articulated. The impact team worked with the ELT to develop the ‘How’, how will we accomplish this?

Working alongside the ELT (names & titles optional), a number of business critical metrics were developed to form an executive level management scorecard across each of the main operating model and financial elements within the organisation. Following the IMS™ approach, within four weeks the EMS™ scorecard was developed.   The next stage was to develop the Operational plan that would comprise all of the activities needed to drive the executive level metrics.
Once the operational plan template was developed, this was handed to each Regional Managing Director and Director of Commercial Support to complete before being consolidated.  The executive team then used a half day session to challenge the management system in order to ensure activities within the organisation delivered outputs that would positively impact the executive level scorecard.  The management system behaviours and meeting etiquette and effectiveness were also agreed.  The EMS™ now forms the focus of the executive committee meetings.

Delivering a Target Operating Model Analysis and Design

Since the financial crisis in 2008, financial services companies have been trying to slash costs whilst still delivering on their promises to customers. However, many companies are beginning to realise that the adoption of traditional cost saving approaches such as LEAN and Six Sigma in various guises are doing little more than moving cost around the business, sub optimising the value chain by deploying into disparate functions without an overarching strategy. For those who have managed to get LEAN and Six sigma to work, they often find it is not delivering the benefits promised, or not delivering within an acceptable timescale.
The only way to truly realise the full value within your business is to look at the business in its entirety; to understand each of the components elements, categorise these in a way that can be easily understood throughout the organisation and identify the main elements of the operating model that can be leveraged to deliver the cost reduction and transformation required.

Our approach

Impact was asked to work with a large financial services client with over 6,000 employees in over 300 locations in a highly distributed organisation across the United Kingdom.  The aim was to provide an overview of the key operating model elements and to successfully document and quantify potential savings equal to 10% of the cost base.
The Operating Model analysis work involved visiting a number of regional offices across five regions that contained key processes, roles and technology infrastructure.  Whilst in each of the regional offices, the Impact team worked to document all of the operating model elements from the management system through to the organisational design.
The full UK analysis highlighted a number of key levers that could be used to both improve service and reduce costs.  This was achieved in only 9 weeks using an international cross functional client team and external contractors.
The findings from each of the five regions were summarised and validated by each of the regional managing directors prior to being presented to the Commercial Director.

The Impact team ensured throughout the analysis work that senior stakeholders were kept informed every step of the way and once the analysis and business case were finalised and validated by the executive team, design work commenced.

The Results

The analysis delivered a series of design principles that not only achieve the required cost reduction target but also drastically improve processes, reduce costs and modify organisational design. The design clarifies roles within the organisation and improves the customer experience through bringing together disparate processes back into a cohesive whole that can be managed as a whole business.   In total the entire programme lasted three months, delivered against the organisational objectives set and once the implementation is completed will deliver a return of investment of 8:1.