205
Use the checklist below to assess the current state of your business.
Consider each criterion in turn and use the following scoring system to
identify current performance.
0 Not done or not defined within the business, unaware of its
importance to management.
1 Aware of area, but little or no work done in the business.
2 Recognised as an area of importance. Some work done in
this area.
3 Area clearly defined and work done in the area.
4 Consistent use of best practice tools and techniques in this
area across the business.
5 Area is recognised as being ‘best in class’ and could be a refer-
ence point for best practice.
Reflect on the lowest scores and identify those areas that are critical to
success and flag them as status Red, requiring immediate attention.
Then identify those areas that you are concerned about and flag those
as status Amber, implying areas of risk that need to be monitored closely.
Finally, flag the remaining areas as Green to confirm that you are happy
these areas of the business are under control at the moment.
T1 ORGANISATIONAL
EFFECTIVENESS AUDIT
206
The audit reflects the effective organisation model found in Chapter 4.
PART D DIRECTOR’S TOOLKIT
Business processes
Operational management
External environment
Leadership
team
Strategic
projects
Internal environment: skills,
capabilities, reward system, meeting,
communication, technology
Reporting
Reporting
Strategy
ID CATEGORY EVALUATION CRITERIA SCORE STATUS
P1 Leadership 0–5 RAG
A Leadership team An individual or management team
is clearly charged with control of the
business or business unit
B Inspiration The behaviour and interactive style
of the senior management team
constantly reflect and reinforce the
value and importance of the strategy
207
ID CATEGORY EVALUATION CRITERIA SCORE STATUS
P2 Strategy 0–5 RAG
A Vision A vision is communicated that
articulates clear business goals for
a strategic time frame, based on an
understanding of external markets
and internal capabilities
B Strategic emphasis A clearly articulated and
communicated strategy supports
decision-making in the business
and enables operational drivers
and strategic goals to be managed
together without fundamental
conflicts
C Resources The business strategy can be and is
used to prioritise resource allocation
across different initiatives and
projects
P3 Strategic projects
A Prioritisation A body or an individual exists to
clarify project priorities across the
business, ensuring that high-priority
projects are given resources and
lower-priority projects are slowed or
cancelled
B Planning A simple process for planning
projects exists, which is widely used
and all those involved understand
how to use it
C Monitoring Project progress (or lack of) is
monitored at a sufficiently powerful
level with the net result that projects
deliver expected benefits on time
P4 Business processes
A Identification Key business processes are
identified, have clear contribution to
the value of the business and are well
defined with clear responsibilities
B KPIs KPIs link the phases and outputs
of processes to vision and strategy
and drive process performance
improvement
C Performance
improvement
There is a systematic approach (such
as regular management meetings)
to review KPIs and take action to
improve process performance
ORGANISATIONAL EFFECTIVENESS AUDIT
208
ID CATEGORY EVALUATION CRITERIA SCORE STATUS
P5 Operational management 0–5 RAG
A Structure and
definition
A clear management structure with
clear individual roles is aligned
to monitoring and continuously
improving the business processes
and the internal environment.
B Capability There is a process for assessing
individuals’ capabilities and fitness
for their roles before and during their
tenure
C Information
management
Information systems support the
execution of the business processes
P6 Reporting
A Full visibility and
control
The management team has full
visibility and control of all relevant
business processes
B Alignment to KPIs All reporting systems are aligned to
the KPIs for the business
C Decision-making Reported information is regularly
reviewed and acted on
P7 Internal environment
A Right skills All staff and management have the
right skills to deliver their roles and
the business actively develops all
individuals’ skills
B Supportive culture There is a culture that supports the
goals and values of the business and
encourages staff to work in the style
required by the business
C Performance
system
There is a reward and recognition
system (not necessarily financially
based) that encourages people to
perform in their roles
D Learning Insights and lessons learned are
captured and used to improve
processes and projects in order to
maximise performance and avoid
repetition of mistakes
E Meetings Meetings have clear rationale,
articulated objectives and agendas
and are well run
F Communication Communication is encouraged in all
directions so that all those involved
in the business know the vision and
changes that may be affecting them
PART D DIRECTOR’S TOOLKIT

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