Outputs

 Examine how enterprise is performing before

ME

 Are you hitting your sales targets? Are you

profiting? Are you beating your competitors?

 Usual data to analyze are historical sales, net

income, market share…the overall growth of the
business
 Outcomes

 Outputs are what you produce. Outcomes are

reveal how customers think of your products or
services

 Aside from sales, metrics on outcomes include

percentage of repeat customers, increase in
customer inquires and referrals, etc.
 Enterprise Outputs Outcomes

Construction Houses, condos, schools, offices, etc. Satisfaction of project

company proponents.

Metrics: a) number of projects, b) Metrics: a) projects

sales/revenues, c) net incomes, d) completed on-time, b)
cost targets, etc. % reworks/defects, c)
cost overruns, etc.
Hotel Rooms, dining services, hotel Guest satisfaction
facilities/amenities

Metrics: a) number of guests who a) Room occupancy

stayed over time, b) sales, c) number rates, b) customer
of events facilitated, etc. Compare satisfaction ratings,
with industry service awards
 Assess how enterprise is able to implement
its existing strategies, programs, activities,
and tasks
 Strategies are normally done by top
management. In your business, the top
management is usually you and your partners
 Programs are normally done by your
managers
 Activities and Tasks are normally done by
junior managers, rank and file
 Profitability. Are you really earning money?
 Liquidity. Examine how your enterprise
manages your cash resources. Do you have
enough cash to sustain operations? Are you
generating cash savings/surplus?
 Efficiency and productivity. Are your funds
being maximized?
 Effectiveness. Are you getting the benefits from
what you invested?
Profitability  Gross margins = gross profit/sales
 Net profit margins = net profit/sales
 Return on assets = net profit/total assets
 Return on equity = net profit/total equity

Liquidity  Current ratio = current assets/ current

liabilities
 Quick ratio = cash/ current liabilities

Efficiency and productivity  Asset turnover = sales/total assets

 Inventory turnover = COGS/average
inventory
 AR turnover = credit sales/average AR

Effectiveness  Cost benefit analysis

 ROI/Payback period
 Are your planning and budgeting processes
effective?
 Is your enterprise organized and staffed well?
 Are you able to monitor and evaluate your
enterprise and personnel effectively?
 Do you think you are able to lead and
orchestrate your enterprise effectively?
 Is there smooth coordination in your enterprise?
 Are your personnel being rewarded and
compensated well
 Positioning – What image do you want to project to your
customer?
 Products/services - do these match your customers
expectations?
 Price – does it conform to the customer? Is your price
adequate to cover costs and earn profit?
 Place – are you able to reach your customers? Are you
accessible?
 Promotions – are you gaining visibility? Are you attracting
customers? Are you recouping your promotional expenses
with sales?
 People – Do they know your products well? Are they selling
well?
Positioning “High end restaurant with food to die for”

Products/Services Exquisite fine dining experience; food of

the freshest quality and superb taste
Price Premium pricing

Place Situated in high-end leisure,

entertainment clusters
Promotions  Well designed website
 Places ads in high-end lifestyle
magazines
 Invites the most reputable food
bloggers; celebrities; rich and famous
People Owners and resto manager very
articulate, well-versed with the cuisine
 Quality Delivery Price
What are your How fast do Does your
customer’s your customers customer
requirements? want the subscribe to
product or your
Are you service? price/value?
satisfying them
better than How fast are
your you compared
competitors? to your
competitors?
 Type of Enterprise Quality Expectations
Garments manufacturer • Clothing size, cut, and fit
• Cloth texture and feel
• Adherence to design specifications
Hospital • Accuracy of diagnosis
• Efficacy of medical/surgical
procedures
• Efficacy and potency of medicines
Rice trader • Color and odor of rice
• Freshness and taste
• Correct variety of rice
 Type of Enterprise Delivery Expectations
Garments • Delivery times to warehouses of
Manufacturer garments traders and clothing
stores
Hospital • Speed in treating emergency
patients
• In-patient servicing time
• Duration of laboratory diagnostic
results
Rice Trader • Delivery lead times to wholesalers,
dealers, and retailers
 Inputs Throughput Output Outcomes
 Money  Are your funds being spent  Customer
 Materials well/maximized? outcomes –
 Manpower  How are you handling your Did you satisfy
 Machines materials? QDP
 Methods  Are you employing good requirements?
 Management people?  Products and  Market
 How are you managing your services outcomes –
manpower, equipment, and are you sales
assets well? rising? Are
 Are you using the right you increasing
methods, processes, workflows, market share?
office production lay-out? Are your
 Are you using technology to products/servi
improve your operations? ces
 How do you ensure and monitor expanding?
quality?  Financial
outcomes –
Are your
earning?
Recruitment  Are you selecting and hiring the right people?

Retooling  Are you training and developing your people

well?
Routing  Are you assigning the right people for the right
jobs?
Retaining  Are you able to maintain happy, productive
people? Do they stay?
Reviewing  Do you evaluate your people well based on
clear parameters/criteria?
Rewarding  Do you compensate and recognize your
people?
Recycling  Ability to transfer or rotate people to
meaningful jobs back to the outside world?
Resonating  Are you able to convey your VMO to your
people?
Funding  How does the company finance its strategies?
Is it through long-term or short-term loans or
equity (other investments)?

Investing  Are you investments in line with your VMO?

Negotiating  Do you secure the best deals and financial
arrangements for your company?
Administering  What kind of control measures do you have for
your accounting, planning, budgeting,
purchasing, and property keeping activities?
Numbers Crunching  Are you able to create financial documents
useful for performance review and strategies?
Cash Management  Are you able to manage your funds/cash
resources well?
Evaluating  Do you review your financial status well and
consistently?
Are your personnel working well
with one another? Do they work
well as a team?

Are they productive and effective?

 Do you think your business has sufficient facilities?
 Are your facilities well maintained?
 What facilities do you need or lack?
 Do your set-up and layout help you operate efficiently?
 Do you have good working conditions?
 Does your enterprise have good ties with external partners?
 Suppliers, business/trade associations, local government units,
third-party contractors, agents/marketing intermediaries, and
other groups and institutions?
 How are you as a leader? Are you leading your
enterprise well?
 How about the Board? Are they resonating the
VMO well? Are they strategizing well for the
organization?
 Does the leadership have the ability to establish
adequate operating and control systems with the
attendant checks and balances
 Can top management plan, organize, coordinate,
execute, monitor, control, and reward?
 Tenth Level of Assessment:
Evaluating Strategic Fit or VSOP consistency
Management
Processes

STRATEGY ORGANIZATION

PLANNING
PROGRAMS DECISION-
STRUCTURE
ACTIVITIES MAKING
IMPLEMENTING SYSTEMS
TASKS RESOURCES
VISION
MISSION
OBJECTIVES

MOTIVATING
LEADING
EVALUATING
CONTROLING STAFFING
REWARDING RELATING
SUPPORTING

Management CAPABILITIES Management

Processes Processes
ATTITUDES

PEOPLE
 Revert to your VMO.

 Is your organization’s structure, systems, and

resources adequate to implement its strategies in
line with the VMO?

 Are your people capable of implementing the

existing strategies well in line with the VMO?

 Is the organization able to motivate, evaluate, and

reward the people so they can implement strategies
well in line with the VMO?
 Levels Strengths Weaknesses
1) Evaluating Outputs and Outcomes

2) Evaluating existing strategies,

programs, activities, and tasks
3) Evaluating utilization of resources

4) Evaluating management processes

5) Evaluating management functions

6) Evaluating teams and individuals

7) Evaluating Physical assets, facilities,

and work conditions
8) Evaluating linkages and alliances

9) Evaluating the leadership

10) Evaluating strategic fit