M3 L4 Building a Solid Organizational Structure

Summary

The video script outlines a systematic approach to achieving operational excellence through organizational structure and workforce management. It emphasizes defining objectives, creating value streams, establishing roles and responsibilities, and implementing standard operating procedures. The script also highlights the importance of workload management, employee well-being, and the use of tools like the RACI matrix for clarity in task distribution. It concludes with a practical example of a coffee shop, demonstrating how these principles can be applied to real-world scenarios.

Takeaways

• 📈 **Defining Ideal Value Stream**: Start by defining a value stream that puts the customer at the center and aligns with your compelling vision.
• 🎯 **Setting Objectives and KPIs**: Establish clear objectives and key performance indicators (KPIs) to track progress towards your ideal value stream.
• 🛠 **Workforce Management**: Manage workload, standard operating procedures (SOPs), and roles and responsibilities to ensure efficient delivery of the value stream.
• 👥 **Right People, Right Place**: Workforce management is about having the right personnel at the right time and place, performing tasks correctly and at the right pace.
• 🔢 **Calculating Workload**: Understand the total man-hours required to meet objectives, such as making a certain number of sales calls per day.
• 💡 **Employee Well-being**: Consider the impact of organizational structure on employee well-being and strive to balance workload with employee health.
• 📋 **Standard Operating Procedures (SOPs)**: Develop detailed instructions for tasks to ensure uniformity, efficiency, and understanding of responsibilities.
• 📝 **Roles and Responsibilities**: Clearly define roles based on required skills and assign responsibilities for accountability and operational efficiency.
• 🏢 **Organizational Structure**: Create a structure that reflects roles and responsibilities, supports teams, and adapts to organizational growth.
• 📈 **Workload Management**: Regularly review and adjust workload to prevent burnout, ensuring tasks are equitably distributed and manageable.
• 🛑 **Adopting Technology**: Embrace new technologies to streamline operations, which can affect workload intensity and nature, and enhance productivity.

Q & A

What is the main focus of the transcript in terms of organizational development?

The main focus of the transcript is on defining an organization's ideal value stream with the customer at the center, establishing objectives and KPIs, and creating a value stream to provide value to customers. It also discusses the importance of workforce management in achieving these objectives.

What is the definition of 'workforce management' as mentioned in the transcript?

Workforce management is about having the right person at the right time in the right place doing the right work in the right way and at the right speed. It involves managing workload, standard operating procedures (SOPs), and roles and responsibilities to ensure objectives are delivered effectively.

Why is it important to consider employee well-being when structuring an organization?

Considering employee well-being is important because it ensures that the workload is manageable and relevant, preventing burnout and maintaining productivity. It also helps in creating a positive work environment that supports operational excellence.

What is the significance of standard operating procedures (SOPs) in an organization?

SOPs are detailed written instructions that ensure uniformity in the performance of specific functions. They help in mapping the steps in different tasks, determining the time required for each step, and understanding the skills necessary to perform each step, which informs training needs and assigns the right person to the right tasks.

How does defining roles and responsibilities help in executing standard operating procedures?

Defining roles and responsibilities ensures that every role is tailored to meet specific operational needs and that tasks are evenly distributed. It also enhances accountability and efficiency in operations by clearly assigning who is responsible for doing the work and who is accountable for the outcome.

What is the RACI Matrix and how does it help in clarifying roles and responsibilities?

The RACI Matrix is a chart that helps clarify the roles and responsibilities in completing tasks or making decisions within an organization. RACI stands for Responsible, Accountable, Consulted, and Informed. It ensures that for every task or decision, there are clear designations of who is responsible for doing the work, who is accountable for the outcome, who needs to be consulted, and who should be informed of the results.

How can workload calculation templates assist in managing an organization's workload?

Workload calculation templates help by listing all tasks and actions needed to meet objectives, estimating the time required to complete each task, and determining how frequently the task needs to be performed. This information aids in resource allocation, task reallocation, hiring decisions, and the implementation of new tools to enhance productivity.

What is the importance of having a clear organizational structure in achieving operational excellence?

A clear organizational structure is the foundation of operations. It reflects the roles and responsibilities defined and adapts to the organization's needs. It is crucial for forming teams based on task grouping and skill sets, assigning managers or supervisors, and establishing governance mechanisms for smooth operations and accountability.

Can you provide an example from the transcript to illustrate the concept of workforce management?

The transcript provides an example of a sales department needing to make 80 sales calls per day. By calculating the total man-hours required and considering factors like availability and productivity, the department determines that it needs five people per day to meet its objective, illustrating the principles of workforce management.

What are the broader implications of adopting new technologies on an organization's workload?

The adoption of new technologies can streamline operations, affecting the intensity and nature of workload. It may lead to changes in the volume and type of work that needs to be completed, potentially reducing the need for manual tasks and increasing the focus on higher-level activities.

Outlines

00:00

📈 Workforce Management Foundations

This paragraph introduces the concept of workforce management as a critical component of an organization's structure. It emphasizes the importance of aligning organizational objectives with a well-defined value stream, and how this translates into workload. The paragraph explains the significance of standard operating procedures (SOPs) and roles and responsibilities in ensuring that tasks are completed efficiently and effectively. It also touches on the need to consider employee well-being in structuring the organization and provides a basic example of calculating the required workforce for a sales department to meet daily objectives.

05:03

🔍 Defining Tasks, Procedures, and Roles

The second paragraph delves into the specifics of defining tasks, standard operating procedures (SOPs), and roles and responsibilities within an organization. It highlights the process of mapping out steps for tasks, documenting necessary skills, and assigning the right people to the right tasks. The paragraph also discusses the importance of clarity in roles and responsibilities for accountability and operational efficiency, and it outlines the process for managing the workforce effectively, including the need for oversight and coordination.

10:04

📋 Tools and Templates for Workforce Management

This paragraph provides an overview of the practical tools and templates that can assist in managing an organization's workforce. It discusses the importance of workload calculation templates, resource lists, and SOPs for clarity and efficiency. The paragraph introduces the RACI (Responsible, Accountable, Consulted, and Informed) Matrix as a method for defining roles and responsibilities clearly. It also mentions the need for role description templates to outline specific duties, skills, qualifications, and performance metrics for each position within the organization.

15:05

☕ Applying Workforce Management in a Coffee Shop

The final paragraph illustrates the application of workforce management concepts using the example of a coffee shop. It discusses the importance of capacity planning during peak hours and how to calculate the effective working hours of a barista. The paragraph outlines the roles and responsibilities of both a full-time and part-time barista, and it emphasizes the need for detailed SOPs for coffee preparation and customer interaction. The example demonstrates how these principles can be applied to achieve operational objectives and maintain a structured approach to training and development.

Keywords

💡Value Stream

A value stream refers to the series of processes and actions that an organization undertakes to deliver value to its customers. In the video, the value stream is central to defining the organization's objectives and KPIs, ensuring that every step taken contributes to the customer's experience and satisfaction. For instance, the script mentions creating a value stream through which value is provided to customers, highlighting its importance in the organizational structure.

💡Objectives

Objectives are the specific goals that an organization aims to achieve. They are derived from the value stream and are cascaded down to different levels of the organization. The script emphasizes the importance of defining clear objectives to guide the organization's actions and measure its progress towards the ideal value stream. An example given is the sales department needing to make 80 sales calls per day to meet its objectives.

💡KPIs (Key Performance Indicators)

KPIs are quantifiable measures used to track the progress of an organization towards its objectives. In the context of the video, KPIs help in monitoring whether the organization is on track to deliver the defined value stream and achieve its objectives. They provide a measurable way to assess performance, as illustrated by the need for a sales department to track the number of sales calls made.

💡Workforce Management

Workforce management involves organizing, planning, and directing the workforce to meet the objectives of the organization. It includes managing workload, defining standard operating procedures, and assigning roles and responsibilities. The video script uses the term to describe the process of ensuring the right people are in the right place at the right time, doing the right work, as exemplified by the need for five salespeople to meet the sales call objective.

💡Standard Operating Procedures (SOPs)

SOPs are detailed, written instructions to perform tasks consistently and efficiently. They are a critical component of ensuring uniformity and quality in an organization's operations. The script mentions the importance of mapping out the steps in different tasks and documenting every step required to perform a task, which is essential for planning and resource allocation.

💡Roles and Responsibilities

Roles and responsibilities define the specific duties and tasks assigned to individuals within an organization. They ensure that every task has a clear owner and is aligned with the person's capabilities. The video script discusses the importance of defining roles based on the skills required and the steps outlined in SOPs, and assigning responsibilities to ensure accountability and efficiency.

💡Organizational Structure

The organizational structure refers to the arrangement of tasks, people, and roles within an organization to achieve its goals. It provides the framework for how work is divided and coordinated. The script explains that the organizational structure should reflect the roles and responsibilities defined and be adaptive to the organization's needs, as seen in the example of forming teams based on task similarity and skill sets.

💡Workload

Workload refers to the volume and type of work that needs to be completed by an organization. It is affected by factors such as strategic direction, available personnel, and skill levels. The video script discusses the importance of workload management to prevent burnout and ensure productivity, using the example of a sales department's daily call targets.

💡RACI Matrix

The RACI Matrix is a tool used to clarify roles and responsibilities within an organization. RACI stands for Responsible, Accountable, Consulted, and Informed. It helps ensure that for every task or decision, there is a clear designation of who is responsible for doing the work, who is accountable for the outcome, who needs to be consulted, and who should be informed. The script provides an example of using the RACI Matrix to define roles and responsibilities for tasks within an organization.

💡Operational Excellence

Operational excellence is the pursuit of high performance in an organization's core operations. It involves continuous improvement and the systematic management of processes, people, and technologies. The video script discusses operational excellence as a broad topic, with the foundational elements covered being organizational structure, workforce management, performance management, and quality management.

Highlights

Defining an ideal value stream with the customer at the center and establishing organizational objectives and KPIs to attain it.

Creating a compelling vision and deriving organizational objectives from the value stream.

The importance of workload management and its role in ensuring productivity and preventing burnout.

The concept of workforce management as having the right person at the right time and place doing the right work.

An example of calculating the required workforce for a sales department to meet daily objectives.

The impact of organizational structure on employee well-being and the need for a balanced workload.

The foundational role of organizational structure in operations and the derivation of workload from objectives.

The influence of strategic direction, personnel, and technology on workload distribution.

Standard Operating Procedures (SOPs) as a means to achieve uniformity in task performance.

The necessity of documenting every step in a task for effective SOPs and resource allocation.

Defining roles and responsibilities for executing tasks and enhancing operational efficiency.

The RACI Matrix as a tool for clarifying roles and responsibilities within an organization.

The importance of assigning clear accountability for each task or decision in the organization.

The process of filling out role description templates for outlining specific duties and performance metrics.

Using a coffee shop example to illustrate workforce management during peak hours.

The significance of capacity planning and effective service delivery within the coffee shop scenario.

Detailed role and time requirements for meeting service objectives in a coffee shop setting.

The integration of performance metrics and customer satisfaction ratings in workforce management.

The connection between operational excellence and broader topics like Performance Management and Quality Management.

Transcripts

great work on defining your ideal value

stream with the customer at the center

of it and then writing down your

objectives and kpi that can help you

attain your ideal value stream you have

defined your compelling vision and then

created the value stream through which

you provide value to your

customers then from the value stream you

derive the organizational objectives

cascaded it down to the different levels

and then used kpis to track the progress

now to ensure that these objectives are

delivered well what you need in place is

the organizational structure to meet the

objectives you need to deliver a certain

workload according to specific operating

procedures which describe what you

should do in what time frame and at what

quality to deliver this output you will

need to define the roles and

responsibilities for the people who

deliver according to the standard

operator procedures satisfy the

customers and fulfill the value stream

managing these three elements workload

subs and roles and responsibilities is

called workforce management it is about

having the right person at the right

time in the right place doing the right

work in the right way and at the right

speed let's take a quick example let's

say a sales department needs to make 80

sales calls per day to meet the

objectives and deliver value to the

customer now every sales call takes on

average 30 minutes doing the math the

total man hours required is 40 hours if

we ignore unavailability like holiday

sickness and breaks and consider that a

salesperson makes eight hours of calls a

day then the department will require

five people per day to meet the

objective well established workforce

management ensures that there are these

five people who can take the workload

deliver according to their standard

operating procedures and clearly

understand their roles and

responsibilities before I go into each

of the subblocks I want to point out an

important thing when structuring your

organization you need to also consider

the impact of it on your employees

wellbeing as in the example you cannot

expect your people to work for 40 hours

per week I will show you through

calculations later how this is

significantly less so you are able to do

better workforce management and ensure

the well-being of your employees

let me first give you a quick overview

of each area and how they are connected

and then I will go into detail on the

areas as well as give you practical

tools and templates to handle this

important building block for your

organization organizational structure is

the foundation of your

operations within it workload is

directly derived from your objectives

you have established each objective your

organization sets should translate into

specific TP tasks and projects which

then form the workload for your

teams workload refers to the volume and

type of work that needs to be completed

by your

organization it encompasses the total

amount of work assigned to each team or

individual and its proper management to

prevent burnout and ensure

productivity it plays a crucial role in

assuring every team member knows what is

expected of them workload is affected by

different factors

changes in strategic direction or

business targets can lead to the

adjustment in workload the number of

available personnel and their skill

levels directly affect how workload is

distributed finally adoption of new

technologies can streamline operations

and affect the intensity and nature of

workload an important thing to remember

is that as a leader you must balance the

workload ensuring that the distribution

of task is Equitable and aligns with

your team members capabilities and

capacities you will also have to

regularly review the workload and ensure

it is manageable and relevant this might

include reallocating tasks hiring

additional staff or implementing new

tools to enhance

productivity next let's discuss standard

operating procedures or SS these are

detailed written instructions to achieve

uniformity of the performance of a

specific function an important part of

establishing stops is the mapping of the

steps in the different tasks and actions

that need to be done in your workload

you must document every step required to

perform a task this includes everything

from the initial input to the final

output then you will also need to

determine how long each step should take

this helps in planning and resource

allocation finally it is important to

understand what skills are necessary to

perform each step this informs training

needs and helps in assigning the right

person to the right tasks with Subs

clearly defined everyone understands

their tasks and how to execute them

efficiently ensuring consistency and

quality in outputs moving forward now

that you know what needs to be done how

it needs to be done when it needs to be

done and to what quality you are ready

to define the roles and responsibilities

necessary for executing these Subs

defining roles and responsibilities

involves two parts

first is a role definition based on the

skills required and the steps outlined

in your subs roles are crafted to fit

the task this ensures that every role is

tailored to meet specific operational

needs next is the assignment of

responsibility we also consider the need

for oversight and

coordination depending on the

criticality of tasks such as quality

control legal compliance or regulatory

requirements roles may be segmented to

include different supervisory

positions by clearly defining these

roles you are not only ensuring

accountability but also enhancing the

efficiency of your

operations now let us look at your

process for not only managing but also

leading the workforce

management for this you will need to

ensure that you have the right people in

the right place at the right time doing

the right tasks effectively

finally let us look at the broader

picture the organizational

structure this structure should reflect

the roles and responsibilities you have

defined and be adaptive to your

organizational

needs as the organization grows you will

have to work with forming different

teams based on grouping of similar tasks

and skill sets you form teams that can

effectively work together and leverage

their strengths for management and

oversight you have to assign manag or

supervisors to oversee these teams

especially where similar objectives are

managed to ensure cohesion and

streamlined decision

making finally you will also need to

establish governance mechanisms like

reporting decision making and escalation

paths to ensure smooth operations and

accountability remember I told you that

these are all of the blocks that you

need to attain operational excellence I

am sure you already have some things in

place if you don't have anything at all

in place don't be

demotivated by being a part of this

growth program you are already on the

right track and I'm here to help you

through the coaching sessions as well as

answer all your questions during the Q&A

sessions or in the

community now that you are familiar with

the different subblocks let me help you

with different nuances of each of the

subblocks as as well as provide you with

tools and templates that can help you

from your vision and your objectives you

understand the volume of the work that

needs to be done from the Calk you

understand the input needed and the

output that needs to come out of the

process for this I have the workload

calculation template for you start by

listing all the tasks and actions that

need to be done to meet your objectives

there will be recurring as well as ad

hoc ones for each task estimate the time

required to complete it be as precise as

possible we can also use past data for

similar tasks to make your assumptions

more

accurate next write down how frequently

the task need to be performed daily

weekly monthly Etc in the template

filling the total hours required for

each task next I want you to create a

list of all the resources that you need

to build your ideal organ ganization

Human Resources technological tools

physical space and financial assets

probably you already have it when you

wrote down the inputs in your cyoc map

in this

module I have provided a simplified

template in the workbook for you to do

this so you can go into further details

here next for each critical process

identifi it in your value stream mapping

you should have a soap that outlines the

necessary steps responsible parties

required inputs and expected

outputs this Clarity helps minimize

errors and increase

productivity you will find a template in

your workbook for creating soaps where

you will write down first the purpose of

the soap where you outline the reason

for the so and the intended

outcome next the scope of it where you

describe where the stop supplies

including the areas departments or

processes it covers

then you will cover the

responsibilities here you will list the

roles and responsibilities of

individuals involved in the process

referring to the arachi Matrix where

necessary afterwards you will write down

the list of step-by-step instructions

that clearly outline how to complete the

process or task in a sequential order

you can include details such as specific

actions to be taken required tools

equipment ment of software safety and

compliance considerations and decision

points and criteria for making decisions

include any diagrams or flowcharts to

complement the written instructions

screenshots or pictures help to improve

the interpretation of the

instructions finally detailed

documentation or records that must be

completed during or after the process

include templates or references as

necessary we can also include a section

to explain how the adherence to the so

will be monitored and measured outlining

any auditing or review processes it is

also important to keep a record of

revisions to the so including the

revision date description of changes and

who is responsible for any questions

related to the changes feel free to

customize the template to fit your

operational needs and ensure it is

easily understandable by all employees

involved in the different processes and

tasks

now that you have determined the

required workload and the standard

operating procedures the next step is to

define the roles and the

responsibilities you will need to

determine the roles you require to

handle the workload then you will have

to assign them

responsibilities in your workbook you

will find the template to create the

different roles for your

organization to get responsibilities for

your organization you will be using the

raky Matrix

The racky Matrix is a chart that helps

clarify the roles and responsibilities

in completing tasks or delivering within

an

organization raki stands for responsible

accountable consulted and

informed it ensures that for every tasks

or decision there are clear designations

of who is responsible for doing the work

who is accountable for the outcome who

needs to be consulted during the process

and who should informed of the

results in your workbook you will find

the racki template in the first row you

will write down the different roles you

have recognized and in the First Column

you will write down all the tasks and

decisions you have

identified for each task or decision you

have identified and the roles associated

with the different tasks assign one of

the following categories in The racki

Matrix responsible

these are the individuals who will

execute the task or make the decision

there might be several people

responsible for a task but ensure that

the tasks are assigned so that the work

is evenly distributed and clear

accountable this is the person who is

ultimately accountable for the

completion of the tasks or the decision

made there should be only one person

accountable for each task or decision to

ensure Clarity and avoid

confusion consultant these are the

individuals who provide input or

feedback before the task is completed or

the decision is made there are usually

stakeholders or experts whose opinions

are valuable but are not directly

responsible for the action

informed these are the people who need

to be kept in the loop with updates on

task or decisions they are not directly

involved in the task but need to be

aware of its progress or

conclusion once you have done the racky

exercise you will have visualized the

distribution of

responsibilities this will ensure that

every necessary task has someone clearly

responsible and accountable for its

completion make sure when you assign

responsibilities that you consider the

accountability aspect clearly here you

might want to think about quality

control supervisors and managers that

your organiz ation

requires the next step is to fill out

the role description templates in the

workbook based on the number of roles

feel free to duplicate the templates so

you are covering all of

them the detailed role descriptions will

help you outline the specific duties

required skills qualifications and

Reporting relationships for each

position the template also includes

performance metrics and key performance

indicators for assessing the roles

Effectiveness these Ro description

templates will also help you if you need

to hire new people to fulfill the new

rules now let me take the coffee shop

example to explain these subblocks

within organizational

structure for our coffee shop efficient

service is crucial especially during

peak hours which are between 7 and 10:00

a.m. and around lunchtime until 400 p.m.

during these hours about 60% of our

customer traffic occurs effective

capacity planning ensures that we can

serve each customer their coffee within

2 minutes as per our objective let's

break down the workforce management

needed to achieve this first let's

understand employee availability and

productivity assume we have one

full-time equivalent Barista nfte is

expected to work 40 hours per week but

we need to take account for holidays and

sick leaves distracting average leaves

and sickness we are left with

approximately 35 1 half hours of actual

availability for every

week after accounting for nonproductive

time such as meetings and training

totaling about 75 minutes a week the

productive time per week drops to around

34.25 hours assuming an 85 productivity

rate which is standard in many service

Industries the effective working hours

or net occupancy rate for our bar Vista

is about 29 hours per week let's look

into detailed role and time requirements

to meet our service objective each

coffee takes approximately 2 minutes to

prepare during peak hours if we project

serving 120 customers each morning

sessions from 7: to 10: a.m. this

translates to 240 minutes of pure coffee

making time however when considering

customer greeting time this time even

increases

for our workforce management strategy

given the time needed to serve each

customer and the high influx during peak

hours having a single Barista is

insufficient therefore to avoid service

delays and maintain quality employing an

additional part-time Barista during peak

times becomes

necessary now let's define their roles

and

responsibilities the role of the Mista

is that they are the primary coffee

maker and customer service

representative their responsibilities

are brewing coffee initial customer

greeting order taking and ensuring

quality

control we can use performance metrics

for them which are average time per

coffee served and customer satisfaction

ratings we will also need a support

Barista who Parts part-time during Peaks

their role is to assist during high

traffic periods their responsib ability

is to assist in order preparation

handling additional orders maintaining

cleanliness and restocking

ingredients the performance metrics is

the efficiency in assisting primary

tasks now comes the standard operating

procedures the soap for coffee

preparation should include detailed

steps from grinding beans to presenting

the coffee to ensure consistency and

speed the sub for customer interaction

should include guidelines on greeting

order taking and feedback collection to

enhance customer

experience by detailing these roles

responsibilities and procedures the

coffee shop can not only achieve its

operational objectives but also ensure a

structured approach to training and

development aligning with the overall

goal of operational excellence in this

lesson you learned a systematic approach

to organizational structure and managing

your

Workforce as I said earlier operational

excellence is a massive topic and what I

cover here are only the found

foundational elements of it when talking

about operational excellence there are

two topics that are very important that

Encompass and support the entire

framework here these are Performance

Management and Quality Management in the

next lesson we will take a quick dive

into into these two topics

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