PWC中国企业改造工具库—10.3-implchecklist

PROJECT INITIATION DOCUMENT (PID)PURPOSETypically, engagements take place at client's sites using accommodation and facilities provided by the client. The purpose of the PID is to ensure that scope, change teams, TMAs, accommodation needs, physical resources (e.g. desks, printers, telephones etc) and tools are understood by all parties and available at the appropriate time.OVERVIEWThe following checklist is provided to assist with setting up an appropriate project infrastructure.Project set-up•TOE in place and scope (using a work plan) understood by all parties ➢7 Keys in place•RA project team and client change team in place➢Project startup workshop with RA team, client senior management and change team •Transition Management Activities attended to➢Stakeholder Management (especially links to project sponsor/ senior management) ➢Communications Plan➢Team Building➢Skills Transfer•main address where RA staff are located•security passes for RA staff•health & safety arrangements (inc. fire precautions/ exits)•meeting rooms•meal arrangements•address of other sites•local information; maps, hotels, amenities•accommodation for staff living away from home•otherProject support•number & location of desks, 'phones, faxes, printers, photocopiers, modem facilities •project library & release of documentation•collection & consolidation of timesheets•details of secretarial support•provision of specialist storage and/or secure filing arrangements•otherIT support•hardware used•software (including the version) in use for:➢project management➢word processing➢spreadsheets➢presentations•other software tools。

Benchmarking _________________________________________________________________ 2 Benchmarking defined _________________________________________________________ 2 What is a Best Practice? ________________________________________________________ 2 What is Benchmarking? ________________________________________________________ 2 Enterprise Benchmarking _______________________________________________________ 3 Concluding Considerations ______________________________________________________ 4 Ratios ________________________________________________________________________ 4 Financial ratio analysis _________________________________________________________ 4 The limitations of ratio analysis __________________________________________________ 5 Non financial ratios ___________________________________________________________ 6 Key ratios ___________________________________________________________________ 6 Process mapping _______________________________________________________________ 9 Introduction _________________________________________________________________ 9 What Is A Process? ____________________________________________________________ 9 What Is Process Management? ___________________________________________________ 9 Why Are Processes Important? _________________________________________________ 10 Managing Processes To Improve Performance _____________________________________ 10 Process Mapping Techniques ___________________________________________________ 10 Level 1 Map ________________________________________________________________ 13 Level 2 Map ________________________________________________________________ 13 Level 3 Map ________________________________________________________________ 14 Process Analysis _____________________________________________________________ 14 Note On Value-Added Activities ________________________________________________ 15 Processes to be mapped _______________________________________________________ 16•In addition to the general review of a business discussed in the previous sections, application of other business analysis techniques from both within the business under review, and by looking outside, are capable of providing additional, valuable information about the business.•In this section we discuss:➢Benchmarking;➢Ratio analysis;➢Process mapping.BenchmarkingBenchmarking defined•"Benchmarking is a tool to help you improve business processes. Any business process can be benchmarked."•"Benchmarking is the process of identifying, understanding, and adapting outstanding practices from organizations anywhere in the world to help the client organization improve its performance."•"Benchmarking is a highly respected practice in the business world. It is an activity that looks outward to find best practice and high performance and then measures actual business operations against those goals."What is a Best Practice?•To us, "best practices" are documented strategies and tactics employed by highly admired companies. These companies are not "best-in-class" in every area - such a company does not exist.But due to the nature of competition and their drive for excellence, the profiled practices have been implemented and honed to help place their practitioners as the most admired, the most profitable, and the keenest competitors in business.•This information can be gained from a variety of sources. In some cases, this information is based on interviews, surveys, and other mechanisms of "primary" research - information that is simply not available in the public sector.•Other sources are distilled insights from secondary research -- books, magazines, libraries, Internet, and other public-domain resources. This is the more typical source of information for Consultants (particularly the internet).What is Benchmarking?•Benchmarking is a tool for improving performance by learning from best practices and understanding the processes by which they are achieved. Application of benchmarking involves four basic steps:➢Understand in detail your own processes;➢Analyse the processes of others;➢Then, compare your own performance with that of others analysed;➢Finally, implement the steps necessary to close the performance gap.•It follows that benchmarking involves looking outward (outside your own organisation, industry, region or country) to examine how others achieve their performance levels and to understand the processes they use. In this way benchmarking helps explain the processes behind excellent performance.•When the lessons learnt from a benchmarking exercise are applied appropriately, they facilitate improved performance in critical functions within an organisation or in key areas of the business environment.•Benchmarking is above all a practical tool. It is constantly evolving in the light of ever increasing experience, applying it to different organisational and cultural settings.Enterprise Benchmarking•At enterprise level, benchmarking is a tool for supporting management strategies. It is oriented towards continuous improvement through the identification and adaptation of best practice at process, organisation and management level, so leading to increased competitiveness.•It is a tool which can be applied irrespective of company size. Best practice examples are frequently found outside the industry sector in which the company operates. Thus, it is neither necessary nor desirable to confine a benchmarking exercise to competitor companies. The application of benchmarking by a company involves a number of stages, as illustrated below: ➢ A company first applies diagnostic benchmarking to explore the relative performance of different functions in the business. This diagnostic phase is normally a short duration analysis.It is often based on a questionnaire, which asks a manager to rate the company against a set of business criteria.➢The second stage, holistic benchmarking, involves examining the totality of the business. This is used to identify key areas for improvement within the business. It is more in-depth than the diagnostic phase. It examines all areas of the business. It addresses qualitative aspects by looking at systems and processes in the company. It also provides quantitative information based on trends and ratios. This diagnostic-holistic approach provides a relatively simple introduction to benchmarking. It offers structured, cost-effective feedback and requires only a minimum of resources to implement. It enables companies to improve their performance by identifying critical competencies, strengths and weaknesses, and then to use the lessons learnt from best practice in making the necessary improvements.➢In the third, mature stage, the company graduates to process benchmarking. This focuses on seeking to improve specific processes in order to achieve world-class performance. The first step is to specify a process, or a series of interconnected processes, to be studied. Process benchmarking helps a company find innovative solutions and offers a means of transferring them into the business. When correctly applied, process benchmarking fosters a learning culture in which knowledge is shared and there is a continuous striving for greater understanding. It can also be used to achieve improved performance in back-office functions within the company that are not directly under competitive pressure. Examples of possible results of the use of process benchmarking include:▪new or improved processes with shorter lead times;▪standardisation of activities;▪development of communication skills; and enhanced process orientation and team work. Concluding Considerations•Benchmarking should not be considered a one-off exercise. To be effective, it must become an integral part of an ongoing improvement process with the goal of keeping abreast of ever-improving best practice.•Finally, irrespective of the organisational context of a benchmarking initiative, open and committed high-level support is a prerequisite for success. Those in positions of authority must be prepared to accept criticism of current performance and provide the necessary leadership to bring about sustained improvement.Ratios•Ratio analysis is perhaps the most common technique used in benchmarking activities. Typically this applies to financial ratios, but can also be applied to other areas of a business.Financial ratio analysis•Financial statement ratio analysis involves:➢Comparing the firm’s performance with other firms in the same industry➢Evaluating trends in the firm’s financial position over t ime.•Financial statement ratio analysis can:➢Help management identify deficiencies and then take actions to improve performance;➢Help creditors or management ascertain a company’s ability to pay its debts;➢Evaluate risk and return.•Ratio analysis is based around understanding and interpreting financial statements. It is important to recognise and understand that ratio analysis does not supply definitive answers - it is merely one tool analysing financial and other information.•The methodology for calculating ratios must be applied consistently from period to period, in order for the ratios to make sense and to be able to be compared.•The comparisons that can be made when looking at a company's results include: ➢intra-industry comparisons - comparing one company with another company in the same industry;➢inter-industry - comparing one company with companies in different industries;➢intra-company - comparing one company's ratios across a period of time;➢arbitrary standards - comparing ratios to traditional standards or rules of thumb.•Because ratios are expressed as a percentage or relative measure, we can compare businesses of different sizes.•Ratio analysis is used:➢to identify trends - we need to make sure reasons behind those trends are still valid;➢as a tool to assist in forecasting earnings - examining margins, proportion of expenses to sales, etc.;➢to identify dangers or strengths - current ratio, look at composition of assets, actual cash balances held, etc..➢to aid in the search for under-valued assets, poor management, cash flow problems, etc.The limitations of ratio analysis•These include:➢Complexity of business relationships:▪continuously changing▪acquisition / divestment▪last year's ratios could now be meaningless➢Dangers in numbers:▪mathematics only▪numerator divided by denominator➢Benchmarks:▪Ratio analysis is designed to eliminate size differences across firms and over time, thus allowing for more meaningful comparisons. However, ratios may suffer from lack of anappropriate benchmark to indicate an optimal level.;▪As many large firms operate different divisions in different industries, for such companies it is difficult to develop a meaningful set of industry averages for comparative purposes.Thus ratio analysis is more useful for small, narrowly focused firms than large,multidivisional ones;▪The benchmark may have limited usefulness if the whole industry or major firms in the same industry are doing poorly.➢Timing and Window Dressing:▪Financial information used to compute ratios are available only at specific points in time, primarily when financial statements are issued. For annul reports, these points in timecorrespond to the end of a firm’s financial year / period, and the reported levels of assetsand liabilities may not reflect the firm’s level of normal operations (especially in the caseof seasonal businesses);▪The timing issue leads to another problem. Firms can employ “window dressing”techniques (manipulation of the ratios) to make their financial statements look stronger ormore favorable especially for the year end period.➢Accounting Methods:▪Accounting policies are frequently subjective, as demonstrated by their use of words such as "estimated", "likely", "appropriate", "normal", "foreseeable", "probable" and"expected";▪In practice, companies with an apparently similar accounting policy may adopt different approaches to an item of income or expenditure. These different approaches, oraccounting methods, can result in different effects from company to company;▪The effect of adopting a more aggressive accounting method than other businesses in the industry may be to reduce the reported profits compared with competitors;▪Accounting conventions and choice of accounting methods can greatly affect income and balance sheet accounts. Thus ratios resulting from differing accounting methods will notbe comparable either across firms or overtime (either within the firms or other firmswithin the same industry).•Ratio analysis is useful, but analysts should be aware of these problems and make adjustments as necessary. Ratios are not to be viewed as an end unto themselves but rather as a starting point for further analysis.Non financial ratios•As indicated above, ratios do not have to be restricted to financial items. Non-financial data such as employee ratios of sales per employee or profit per employee are common.•Such ratios will depend on the type of activity carried out by the company. For a road haulage company, for example, a useful ratio might be profit per road mile traveled or, for an airline, profit per passenger mile or costs per passenger mile might be useful.Key ratios•Common financial ratios used in the restructuring of debtors include:Balance Sheet RatiosSolvency related ratios:Current ratio Current assetsCurrent liabilities Measures the liquid and near liquid resources available to pay short term creditorsDebt to total assetsTotal debtTotal Assets Measures ability to covertotal liabilitiesQuick ratio (acid test) Current assets minus stocksCurrent liabilities Measures the more readily realisable or liquid assets available to pay creditorsDebt to equity ratioTotal debtTotal equityMeasure the ratio ofborrowings (debt) toshareholder funds to fund theassets of the companyOther balance sheet ratios:Debtor turnover Sales for the period (inc.VAT)Trade debtors Measures the efficiency of collections by giving the number of times debtors are turned overCreditor turnover Purchases for period (inc.VAT)Trade creditors Gives the number of times that the trade creditors are turned overStock turnover Cost of sales for the periodStock at the end of the period Gives the number of times that the stock has been turned over in the periodDebtor days (count back basis) Month end trade debtorsSales (incl. VAT) in prior1, 2, 3 or 4 monthsWhen calculated over anumber of month ends givesan indication of the averagetime taken to collectoutstanding debtsCreditor days (count back basis) Month end trade creditorsPurchases (incl. VAT) inprior1, 2, 3 or 4 monthsWhen calculated over anumber of month ends givesan indication of the averagetime taken to pay outstandingtrade liabilitiesStock turnover period (days) Stock at the period end x 365Cost of sales for the period Gives the average period that items have been held in stockSales and profits related ratiosReturn on equity ("ROE") %Profit after interest beforetax and extraordinary itemsAverage shareholders’fundsMeasures the efficiency inearning profits for ordinaryshareholdersEarnings per share ("EPS") Profit after int. & tax beforeext. itemsWeighted average numberof ordinary shares on issue Measures the return per share available to the ordinary shareholdersPrice-earnings ratio ("PE ratio") Market price per shareEarnings per shareReflects the Stock Market'sexpectations of futureearningsAsset turnover Total salesAverage net total assets Measures the performance of the company in generating sales from the assets at its disposalCash Flow related ratiosCash return on capital employed %Net cash inflow fromoperationsAverage capital employedMeasures the cash returngenerated by the capitalemployed in the business(cash equivalent of ROCE)Cash interest cover Net cash inflow fromtradingInterest paid Measures the sufficiency of cash from trading for the payment of interestProcess mappingIntroduction•Understanding and managing processes at work became an important objective for many organisations around five years ago. It was realised that process improvement was a key way of achieving greater effectiveness, since well designed processes could result in:Improved relationships with suppliersImproved responsiveness to clients and end-users of servicesImproved quality of serviceHigher productivity from individuals and teamsLower costsMaximum benefits from new technologiesImproved levels of employee skills and satisfaction•Before we look at the concepts and techniques involved in managing through processes it might be useful to start with a couple of definitions.What Is A Process?•Processes define the ways in which resources are used in an organisation to allow it to achieve its goals. The features of a process are definable inputs, a logical sequence of activities representing work done with the inputs and a quantified outcome or result. At an individual level we have all developed processes to help us get things done, for example making a cup of tea or going on holiday with the family.What Is Process Management?•Process management is a structured approach to analysing and improving fundamental activities in an organisation, typically in terms of quality, cost or timeliness of service provision.•It has close links to the quality management concept of continuous improvement. It can be applied across a whole organisation, to a specific department or unit or even to the activities of an individual. It is:A technique for visually analysing what is done and how it is doneA problem-solving aidA communication vehicle and a means of empowering staff•Process management can be described as best practice for the routine operation of an organisation.It has two particularly important features:A strong focus on customers – rather than defining work in terms of responsibilities, process management starts with defining customer requirements and then focuses on the processes needed to deliver services and products to meet these requirementsThe concept of process ownership – in other words an individual is made responsible for ensuring that the process delivers effective results and for finding ways of improving the process so that it can become even more effective.Why Are Processes Important?•Processes define how the organisation uses its resources, and any organisation has a responsibility to use its resources as wisely as possible. Many organisational processes may not have been designed carefully and as a result they can contain bottlenecks or disconnects which cost time, money or reputation. Common sense tells us we should keep processes under review and try to fix any problems that we find in them.Managing Processes To Improve Performance•There are three fundamental steps:Documentation and analysis of existing processes (usually called Process Mapping)Design of processes which will allow better levels of performance to be achievedImplementation and evaluation of these new processesProcess Mapping Techniques•Process mapping is a technique for identifying pictorially the steps taken to achieve a desired end result. It is primarily a thinking aid and problem-solving/decision-making tool and is generally used to involve a group of people in looking at the way something is done and coming up with ideas for doing it more effectively.•It can be applied in a number of ways:As is - identifying how things actually are done in practiceShould be - clarifying how things should be done according to established proceduresCould be - suggesting optional ways of doing things in futureTo be - specifying how things will be done in future•As well as a means of identifying desirable changes in an organisation, Process Mapping can be used as a communications or training tool, for example to promote better understanding between departments of how things are done or to give a member of staff an overview of how their job contributes to the big picture.•To start to flesh out the definition above, we can think of a process as a sequence of activities which converts inputs into outputs.INPUTS ⇒⇒ OUTPUTS• Inputs can be information (reports, computer print-outs, correspondence etc.), knowledge,materials, equipment or facilities.• Activities are whatever is done to or with the inputs to deliver the end result. Typically theyinvolve applying policies, procedures, techniques or methodologies. They may involve the use of tools or machinery.• Outputs are the deliverables or end results of the process which are used by a client or end user,either internal or external.• Applying this to an everyday example like making a cup of tea would give us: • Showing a process in this way gives us an idea about what is happening, but a much clearerpicture can be developed by drawing a map. Like any other map, we need some symbols:•outputHere are examples to show the use of these symbols.Level 1 Map• This is a high level map giving an overall view of the organisational functions involved inproducing an output. Each box in the map represents a major process chain, a group of processes which are linked together.Level 2 Map• A Level 2 Map takes a major process chain and identifies the individual processes in that chain.External customer InvoiceLevel 3 Map•This takes a Level 2 process and breaks it down into the tasks that are completed and the outputs produced. This is the level that is usually analysed when we are looking for improvement opportunities in a process. We can follow through on our example by detailing the activities in the Sales Process.Process Analysis•Once we understand the process and have it mapped we can look for improvement opportunities.One way of doing this is to classify each of the tasks in the process using a framework like this: Value-added V A task required to produce the service or product that the customerwantsPreparation P Getting ready to perform a taskQueue/wait Q An idle state when no work is being doneMove/transport M Moving people, information or other things from one location toanotherInspect/check I Ensuring a task was performed correctlyRedundant R Unnecessary or duplicate performance of a task•The reason for doing this analysis is to try to find ways of cutting out non value-adding tasks froma process. If the reason for doing a a task is anything other than “the customer needs it”, then weshould try to eliminate or change the task so that it uses less time and resources.•Good questions to ask when you are reviewing a process include:Guidelines For Process RedesignIs there a reason for this activity?Is the activity at the right location?Is the activity undertaken in an effective way?Is the activity completed at the appropriate time?Is the activity completed by the appropriate person?Note On Value-Added Activities•Ideally, we want to ensure that all tasks in a process are value-added, in other words directly associated with producing the output that the customer is expecting. There are two types of value-added tasks:Customer Value-Added – work done which directly contributes to the required output, for example a consultant preparing a set of recommendations for a client.Value Enabling Tasks – work done to allow a value-added task to be completed, for example the consultant referring to market research material to allow a recommendation to be developed.•By the time we have mapped a process and analysed it, we probably have some ideas about what we want to change. To make sure we have considered all the possibilities, here are some best practice guidelines:Eliminate redundant and non value-adding activities (as discussed above)Focus attention on parts of the process which:▪Take a long time to complete▪Incur significant costs▪Have significant impact on the quality of the outputOrganise around outputs that the customer wants. For example:▪Locate people and facilities needed to produce the outcome close to each other▪Give one person complete responsibility for all the tasks needed to produce the outcome▪Ensure that someone is responsible for checking customer satisfaction with the outcomeBuild in quality at the source to eliminate the need for inspection. For example:▪Ensure that the initial input to the process is of the right quality▪Ensure that everyone who works on the process understands the quality standards for the work that they do▪Use standardised best practice procedures but continue to look for improvements on current best practice•Ensure th at there is a “process owner” – an individual who is responsible for the effectiveness and quality of the process and who is also responsible for monitoring results and continuing to look for possible improvements.Processes to be mapped•Below is the suggested list of areas to be focused on for process mapping & business analysis.This list has been taken from the indicative deliverables in the standard TOE. Please note that this list is not exhaustive.➢Financial : Financial and Cost Management:▪Current budgeting process▪Management Accounting System (processes), including Costing▪Management Reporting system (processes)▪Key Performance Indicator (KPI) reporting processes➢Financial : Cost and Cash Flow Management:▪Cost management process▪Inventory management process▪Purchasing management process▪Customer credit management process▪Accounts receivable management process▪Internal documentation control process▪Internal Information crisis control system (process)➢Marketing and Sales Management:▪Marketing and Sales Management Process▪Marketing information (system) process▪Marketing Mix (Plan) process▪Sales forecasting process▪Other business analysis to support TOE deliverables as required.➢Human Resource Management (HRM):▪Client’s human resource manageme nt processes▪Staff recruitment process➢Health, Safety and Environment Protection Management:▪Production process mapping▪Input / Output balanceRelevant Toolkit Practice Aid。

IntroductionUnderstanding and managing processes at work became an important objective for many organisations around five years ago. It was realised that process improvement was a key way of achieving greater effectiveness, since well designed processes could result in:•Improved relationships with suppliers•Improved responsiveness to clients and end-users of services•Improved quality of service•Higher productivity from individuals and teams•Lower costs•Maximum benefits from new technologies•Improved levels of employee skills and satisfactionBefore we look at the concepts and techniques involved in managing through processes it might be useful to start with a couple of definitions.What Is A Process?Processes define the ways in which resources are used in an organisation to allow it to achieve its goals. The features of a process are definable inputs, a logical sequence of activities representing work done with the inputs and a quantified outcome or result. At an individual level we have all developed processes to help us get things done, for example making a cup of tea or going on holiday with the family.What Is Process Management?Process management is a structured approach to analysing and improving fundamental activities in an organisation, typically in terms of quality, cost or timeliness of service provision. It has close links to the quality management concept of continuous improvement. It can be applied across a whole organisation, to a specific department or unit or even to the activities of an individual. It is:• A technique for visually analysing what is done and how it is done• A problem-solving aid• A communication vehicle and a means of empowering staffProcess management can be described as best practice for the routine operation of an organisation. It has two particularly important features:• A strong focus on customers – rather than defining work in terms of responsibilities, process management starts with defining customer requirements and then focuses on the processes needed to deliver services and products to meet these requirements•The concept of process ownership – in other words an individual is made responsible for ensuring that the process delivers effective results and for finding ways of improving the process so that it can become even more effective.Why Are Processes Important?Processes define how the organisation uses its resources, and any organisation has a responsibility to use its resources as wisely as possible. Many organisational processes may not have been designed carefully and as a result they can contain bottlenecks or disconnects which cost time, money or reputation. Common sense tells us we should keep processes under review and try to fix any problems that we find in them.Managing Processes To Improve PerformanceThere are three fundamental steps:•Documentation and analysis of existing processes (usually called Process Mapping) •Design of processes which will allow better levels of performance to be achieved •Implementation and evaluation of these new processesProcess Mapping TechniquesProcess mapping is a technique for identifying pictorially the steps taken to achieve a desired end result. It is primarily a thinking aid and problem-solving/decision-making tool and is generally used to involve a group of people in looking at the way something is done and coming up with ideas for doing it more effectively.It can be applied in a number of ways:•As is - identifying how things actually are done in practice•Should be - clarifying how things should be done according to established procedures•Could be - suggesting optional ways of doing things in future•To be - specifying how things will be done in futureAs well as a means of identifying desirable changes in an organisation, Process Mapping can be used as a communications or training tool, for example to promote better understanding between departments of how things are done or to give a member of staff an overview of how their job contributes to the big picture.To start to flesh out the definition above, we can think of a process as a sequence of activities which converts inputs into outputs.ACTIVITIESINPUTS ⇒⇒OUTPUTSInputs can be information (reports, computer print-outs, correspondence etc.), knowledge, materials, equipment or facilities.Activities are whatever is done to or with the inputs to deliver the end result. Typically they involve applying policies, procedures, techniques or methodologies. They may involve the use of tools or machinery.Outputs are the deliverables or end results of the process which are used by a client or end user, either internal or external.Applying this to an everyday example like making a cup of tea would give us:Showing a process in this way gives us an idea about what is happening, but a much clearer picture can be developed by drawing a map. Like any other map, we need some symbols:Here are examples to show the use of these symbols.Level 1 MapThis is a high level map giving an overall view of the organisational functions involved in producing an output. Each box in the map represents a major process chain, a group of processes which are linked together.InvoiceLevel 2 MapA Level 2 Map takes a major process chain and i dentifies the individual processes in that chain. Let’sLevel 3 MapThis takes a Level 2 process and breaks it down into the tasks that are completed and the outputs produced. This is the level that is usually analysed when we are looking for improvement opportunities in a process. We can follow through on our example by detailing the activities in the Sales Process.Process AnalysisOnce we understand the process and have it mapped we can look for improvement opportunities. One way of doing this is to classify each of the tasks in the process using a framework like this:Value-added V A task required to produce the service or product that the customer wants Preparation P Getting ready to perform a taskQueue/wait Q An idle state when no work is being doneMove/transport M Moving people, information or other things from one location to another Inspect/check I Ensuring a task was performed correctlyRedundant R Unnecessary or duplicate performance of a taskThe reason for doing this analysis is to try to find ways of cutting out non value-adding tasks from a process. If the reason for doing a a task is anything other tha n “the customer needs it”, then we should try to eliminate or change the task so that it uses less time and resources.Good questions to ask when you are reviewing a process include:•Is there a reason for this activity?•Is the activity at the right location?•Is the activity undertaken in an effective way?•Is the activity completed at the appropriate time?•Is the activity completed by the appropriate person?Note On Value-Added ActivitiesIdeally, we want to ensure that all tasks in a process are value-added, in other words directly associated with producing the output that the customer is expecting. There are two types of value-added tasks: •Customer Value-Added– work done which directly contributes to the required output, for example a consultant preparing a set of recommendations for a client.•Value Enabling Tasks– work done to allow a value-added task to be completed, for example the consultant referring to market research material to allow a recommendation to be developed.Guidelines For Process RedesignBy the time we have mapped a process and analysed it, we probably have some ideas about what we want to change. To make sure we have considered all the possibilities, here are some best practice guidelines:•Eliminate redundant and non value-adding activities (as discussed above)•Focus attention on parts of the process which:⇒Take a long time to complete⇒Incur significant costs⇒Have significant impact on the quality of the output•Organise around outputs that the customer wants. For example:⇒Locate people and facilities needed to produce the outcome close to each other⇒Give one person complete responsibility for all the tasks needed to produce the outcome ⇒Ensure that someone is responsible for checking customer satisfaction with the outcome•Build in quality at the source to eliminate the need for inspection. For example: ⇒Ensure that the initial input to the process is of the right quality⇒Ensure that everyone who works on the process understands the quality standards for the work that they do⇒Use standardised best practice procedures but continue to look for improvements on current best practiceEnsure that there is a “process owner” – an individual who is responsible for the effectiveness and quality of the process and who is also responsible for monitoring results and continuing to look for possible improvements.。

The outline structure of the manuals in respect of the three different SOERED modules appears in the following formats:The Credit Guarantee Fund (“CGF”) ManualThere is one CGF Manual that cover s both the “theory and practice” – i.e. replication and methodology - of establishing and operating a CGF.The structure of the CGF Manual is organised in the following manner:Advice Centres (“AC”) ManualThere is one AC Manual that covers both the steps necessary to set up the AC and the methodology used to provide advice.The structure of the AC Manual is organised in the following manner:Restructuring Agency (“RA”) ManualsThere are two separate manuals in respect of the RAs - one that covers the setting up and development (“replication manual”) of the RA and the other covers the consultancy methodologies (“methodology manual”) used to deliver consultancy to clients.The structure of the RA Replication Manual has been organised in the following manner:Each chapter summarises the actions necessary and also contains a reference to the toolkit.The structure of the RA Methodology Manual has been organised in the following manner:Each section will usually consist of the following four chapters:Chapter 1 Overview – the section overview and objectivesChapter 2 Route Map – the outline consultancy process stepsChapter 3 Methodology – detailed explanation of each consultancy stepChapter 4 Toolkit – contains a summary of the materials that may be used to support the consultancy process – for example checklists, briefing papers, workshop slides and presentation slides.Please note that within the toolkits, for each power point presentation there is usually a Chinese version as well as the English version.。

Section 8Social ResponsibilityChapter 1 Overview (2)Chapter 2 Route Map (4)Chapter 3 Methodology (5)Assessment Framework and Process (5)Chapter 1 OverviewThe over-riding objective of the restructuring of State-Owned Enterprises (SOEs) is to strengthen all aspects of operations so that they are able to compete in the market place and achieve sustained profitability. The SOERED project recognised that this move towards commercial viability should be made within certain guidelines designed to limit the possible negative aspects of restructuring on individuals and communities and to encourage sound corporate management.This is in line with the concept of Social Responsibility that has been gaining ground among business leaders and professional groups in Western economies and it is appropriate to seek ways of embedding this concept in any approach to restructuring.Several components of Social Responsibility are within the typical scope of the Human Resources (HR) function. Accordingly, work on Social Responsibility should be taken forward by HR specialists in enterprises assisted by appropriate experts from advisory agencies.Definition and scope of the Social Responsibility component of a restructuring project The following definition of Social Responsibility was developed between DFID and PwC during the SOERED Project:" Social Responsibility (SR) recognises the importance of establishing the economic viability of an enterprise, but realises that restructuring is most effective when it takes human and social factors into consideration as well. SR emphasises the benefits to organisational development from frequent and open internal communications. It stresses the positive effects of addressing the social impacts of restructuring and looks for ways of dealing with any negative impacts of restructuring (such as redundancy). SR involves the active participation of all stakeholders, perceives human resources as the primary assets of an enterprise, and looks to each enterprise to build or develop a sense of corporate social responsibility. "For the purposes of advising an enterprise this can be translated as follows:•Social Responsibility means taking account of human and social factors during restructuring and subsequent change•Consultants need to be sensitive to the impacts of restructuring and change on individuals and groups in organisations and on the social environment in which the organisation operates•Based on the earlier assessment of social factors conducted by SOERED, Social Responsibility has these four key components in the current Chinese environment: ➢Divestment of social assets➢Application of good employment practices➢Contributing properly to social security funds➢Dealing with redundancy in a supportive wayAdditional components which deal with environmental issues and Health and Safety issues are covered elsewhere in the methodology manual.Chapter 2 Route MapScope of the Social Responsibility componentObjectives for the Social Responsibility component•Based on this view of the scope, the objectives for this area of work are: ➢To implement a framework and process for assessing the degree of Social Responsibility currently evidenced by an SOE➢To determine good practice Social Responsibility guidelines for SOEs and present these as a target environment towards which they can migrate over a period of time ➢Based on a comparison between items 1 and 2, to recommend short and long-term actions for implementation by the SOE➢Based on experience during items 1, 2 and 3, to report results so that practical messages on Socially Responsible restructuring can be disseminated and can inform future restructuring initiatives.Chapter 3 MethodologyAssessment Framework and ProcessAssessments of SOEs will be conducted by consultants or other advisers working with appropriate enterprise staff, typically the GM and HR specialists We have therefore developed a checklist for use by consultants and have incorporated a simple rating scale that seeks to minimise the need for subjective judgements. The checklist is based the SOERED Phase 1 Social Assessment Report and on work done by the Sichuan Provincial Social Science Institute to determine the body of legislation and regulation which applies to employment policies and practice, social security contributions and redundancy arrangements. Additional items are included to allow assessment of any issues of asset divestment and issues arising from redundancy. In addition to this largely legislative checklist we have included some items from frameworks generated by other organisations which are concerned with Social Responsibility –ILO; OECD; BSR (USA); CBSR (Canada); CSR (Europe).In all of this we need to be concerned about realism and practicality from the point of view of an SOE which is trying to adopt a socially responsible approach. SOERED experience from Phase 1 suggested that a typical SOE would fall considerably short of Western expectations. Our view is that if we set stringent assessment criteria then all SOEs will be assessed as failing badly. This is unlikely to be motivational for them and unlikely to generate real commitment to improve. Our preference at this stage is to establish a baseline of minimum acceptability (standards of performance that any SOE with stated commitment to Social Responsibility should be able to demonstrate in the short term). Movement from the baseline to the established good practice standards will be the subject of a transition plan for individual SOEs.Applying this rationale led to development of the checklist included in Chapter 4 - Toolkit.Of a total of 62 pieces of applicable law we have selected what we see as 23 essential items. In addition we have included some non-legislative items which we believe should be within the grasp of a well-managed SOE. These are the items that consultants should focus on during the diagnostic stage of the assignments using a combination of one to one interviews, documentation reviews and focus groups. Where information on any other items is readily accessible that should be incorporated into the assessment.Chapter 4 also includes a view of an appropriate ‘target environment’ for Social Responsibility in SOEs. Again we have drawn on the work of the organisations referred to earlier and acknowledge them as the originators of much of the material. The items in the target environment are in addition to the items in the baseline and will represent a ‘stretch’ objective for SOEs.The assessment process that we propose for use is straightforward and relies on traditional data collection techniques. Documentary searches of policies and procedures should be conducted to look for written evidence of compliance. One-to-one and group meetings to check whether the policies and procedures are actually being applied should supplement these techniques. We expect that one-to-one meetings will include in-house HR specialists,finance specialists, line managers, Trade Union representatives and the Chief Executive. Focus Groups will include representatives of potentially disadvantaged categories of employees, for example female staff, temporary workers and workers on short-term contracts. If local Labour Bureaux are prepared to cooperate we will also meet with them to examine the results of any checks they have conducted on the organisation.。

Detailed Activity PlanningWe need to develop the high level Milestone Plan into a detailed Activity Plan which shows who does what when - and how much resource is needed to reach the milestones.Planning is best undertaken as a team activity as it allows all members to develop a sound understanding of what is going to happen and since commitment to delivery will be enhanced through involvement in the thinking and problem solving processes in this stage.During the planning and organising stage we will need to ensure that systems and approaches are put in place to enable subsequent project implementation in line with the SEVEN KEYS.Activity PlanningOverviewThis level of planning effectively provides a set of instructions to team members about what has to be done and when it has to be ready, as well as providing a basis for assessing progress towards the deliverables.Planning is not a foolproof process so we need an approach which is as robust as possible without being too complex or time consuming.Here are some essential ground rules for the planning process:•Plan and organise activities after the milestone plan and project responsibilities are defined•Commit those who are to do the work by involving them in the planning and organising process•Develop a spirit of co-operation and unity within the project team by applying appropriate team leadership•Use the 'rolling wave' approach; don't plan in detail too far ahead as circumstances will overtake you. Planning is an iterative process.Define and Plan Project ActivitiesThis major activity includes the following components:•Identification of the activities•Allocating responsibilities and assigning team members•Estimating the effort and cost•Managing assumptions•Identification of dependencies•Schedule the project plan•Critical path analysis•Consideration of contingency.These components all contribute to the development of a greater level of detail in the project plan. It is not always practical to define the detailed activities for the full lifetime of the project.In practice a plan will only be accurate for 2-4 weeks. It has to constantly revised and adjusted - we call this the 'rolling wave' approach. Mastery of this technique, this mindset, is at the heart of successful project management. Project planning is not a one-off exercise. The plan needs to be developed to an appropriate level of detail based on where in the life cycle the planning is being done. Typically the plan should be developed at a detailed level for the first stage of the project and the remaining stages should be planned at a higher level to be considered in more detail as the project progresses.Identification of the ActivitiesIt is important to remember that each milestone can be achieved in more than one way. Generating initial ideas on how the project should be approached requires experience and a consultative approach. Sufficient time must be given to ensuring that a complete set of activities is identified.The project planning approach breaks down the milestones in order to identify the deliverables to be produced. Each milestone needs to be broken down into the discrete tasks and activities needed for its achievement. This is known as the work breakdown structure (WBS).A range of techniques may be employed to determine the work breakdown structure for achieving the key milestones. Creative problem solving techniques may be applicable. Using each milestone as the end target, it is possible to break down the milestone into the activities required to achieve it.In addition to the activities associated with delivering the product or service, the project plan also needs to include all the defined transition management activities. This ensures that a co-ordinated plan is developed which details explicitly the TMAs. These activities can significantly increase the total man-hours required on the project and are often under-estimated.Developing a plan of the detailed activities is a team activity. It cannot be over-stressed that involving the people who will personally take responsibility for executing the plan is a crucial element of effective planning. Doing so provides the following benefits:•gives individuals ownership of the tasks to be performed;•encourages commitment to the project team and, therefore, to the project goals; •helps all members appreciate the concerns and constraints faced by others; •enables the project manager to assess the contribution each member makes and identify potential conflicts or pitfalls before they can impact the project; •uncovers issues at the earliest possible stage.The level of participation of team members in planning will vary according to the stage of the project. Often it is not possible to involve all key team members in the development of the project plan during the early stages. In such cases it is important to ensure that participation and buy-in to the plans is achieved during the planning tasks performed during the start-up period of the project stage. Don't forget, of course, the three 'Cs' of project management - communicate, communicate, communicate! The physical form of the activity level planning is determined by the planning and estimating tools to be used. However, a format that shows start and end dates, effort involved, and resources allocated is required for detailed activity planning - Gantt charts are a favourite. Microsoft Project is a frequently used tool for this process.Allocating Responsibilities and Assigning Team MembersThis concerns identifying which individuals in the project team need to be involved in each task. Again, a broad definition of involvement needs to be considered which is not restricted to considering just who performs the work.Allocating responsibilities for the activities aims to achieve the same objective as the earlier step that assigned responsibilities for milestones. The difference is that this is now being performed at the more detailed activity level and it focuses on identifying the actualidentified activities. It is important to remember that effort does not equate to duration. For example, a task may take one day of effort but require a duration, or elapsed time, of two days if one person is available only part-time.The cost of the project is always a key consideration. It needs to be calculated based on the approach, effort estimates, and project plan. For simplicity, project costs can be split between those arising from staff time and those directly incurred by a project.Managing AssumptionsWe don’t always have every piece of concrete information we would like before we take a decision. Sometimes we have to operate partly on the basis of assumptions that we believe we can reasonably make, based on experience and/or extrapolation of the available facts. This is fine, as long as we remember to distinguish between facts and assumptions and as long as we keep the assumptions under review and update them as new information emerges.Identification of DependenciesGaining an understanding of the relationship and sequencing of activities is important for scheduling purposes. Without this information, the project plan is little more than a detailed activity list and the critical path cannot be identified or managed.Dependencies can be either internal or external to the project. They can drive the scheduling of the project. A dependency is a logical relationship between two project activities. The possible types of dependencies are described below using activity A and B:•Finish- to-start: activity B cannot start until activity A has finished;•Finish-to-finish: activity B cannot finish until activity A has finished;•Start-to-start: activity B cannot start until activity A has started;•Start-to-finish: activity B cannot finish until activity A has started.Any external dependencies (e.g. from another project) should also be documented in the project plan since they may significantly impact the plan and place a constraint on the scheduling.A group approach to identifying dependencies is a powerful way of ensuring that all of the variables have been identified. It also helps to develop understanding within the project teams of the pressures facing other members and of the interdependent nature of project work.Initially, a sharing of information between the projects or sub-projects in terms of who is doing what to whom and when. A straightforward approach consists of blowing up the relevant project plans to A1 or A0 size and literally sticking them on a wall so that the involved parties can browse, assimilate, question or challenge as necessary and then agree essential adjustments which may allow some dependencies to be eliminated.Schedule the Project PlanScheduling the project plan involves determining the start and end date of each activity. It effectively applies a calendar to the identified activities. The schedule development process must often be iterated with the processes that provide inputs, such as estimating effort and allocating resources, before determining the final project schedule.Project management planning software is widely used to assist in scheduling the activities and is recommended for all projects other than simple ones. These products (such as Microsoft Project) automate the scheduling and resource levelling, and thus help produce the integrated project plan more rapidly.Level of DetailPlanning is an essential component of the project management effort and is undertaken at varying levels of detail throughout project life cycle. However, the overall level of detail cannot be prescribed.Factors that typically influence the degree of detail in the integrated project plan are: •Level of certainty and amount of information available about the project; •Purpose of the planning;•Level of control required from the planning;•Complexity of the project.The level of planning must be practical and appropriate to the project at that time. Generally, the more detailed the planning, the shorter the planning horizon. There is no point in planning to a great level of detail when insufficient information is available. When a high level of control is required, then a more detailed level of planning is needed because it is not possible to exert control to a level beyond that to which the project has been planned.Smoothing or Levelling the Project PlanSmoothing or levelling the project plan ensures that resource utilisation is evenly spread throughout the duration of the plan and that the number of people on the project does not fluctuate widely. It is undesirable to have the total number of people assigned to the project increase dramatically for a short period of time or to have some team members idle while others are over burdened. Smoothing the plan aims to reduce the peaks and troughs of resource utilisation and may involve re-assigning tasks to different members of the team and re-sequencing activities.Levelling a schedule to remove all peaks can be time-consuming. Judgement should be exercised in dealing with the resource peaks so that those that are truly unachievable are removed.Critical Path AnalysisThe critical path is the series of tasks that must be completed on time to avoid a delay in the overall project schedule. A delay to any activity on the critical path will directly impact the project completion date.Critical path analysis identifies the following:•Areas of high task dependency and, hence, high risk in the project plan;•Teams and individuals that are critical to completing the project on schedule; •Impact on the end dates and overall effort that delays to the critical path activities will have (i.e. the sensitivity of the project plan).The critical path should be identified since it represents the component of the schedule that requires particular management attention and highlights whether a target completion date is feasible. Awareness of the critical path is also important when evaluating risks contained within the project plan. The importance of this technique will vary dependingon project circumstances. When the project is resource constrained, critical path analysis may be of limited value.Consideration of ContingencyIt is important that sufficient contingency is included to reflect the degree of risk within the project plan. Contingency is intended to provide planning and financial cover for unexpected events. It should not be used to avoid putting effort into proper task identification and estimating.Contingency protects against the impact of any significant risk (identified in the risk assessment) being realised. Examples of specific risks that may require contingency are given below:•the estimating basis is inaccurate and more effort is required than expected; •activities have been overlooked and the scope is greater than anticipated; •realisation of a risk can impact the effort, cost, and time scales for the project.Contingency should be developed for all three of these dimensions.Contingency allowances need to be quantified and reviewed throughout the project. The amount of contingency reflects the level of uncertainty (risk) and, therefore, it is inevitably highest in the early stage of the project life cycle. Contingency in large capital intensive projects is often up to 25%. This reinforces the view that project management is as much about art as it is about science.Contingency needs to be estimated, recorded, and managed separately from the other estimates produced. Each contingency factor should be documented and with the owner of that contingency identified.。