Improving SMEs competitiveness, capacity for innovations, investments, trade, exports, access to markets
Management of Sustainable Change
Training and Capacity Building Programmes for Small- and Medium-size Enterprises, business consultants and policy makers
(overview)
Summary
The capacity building and upgrading programs "Management of Change" combine UNIDO methodology and Pharos enterprise benchmarking software providing entrepreneurs and business consultants with powerful, practical yet simple and effective solutions for systematic improvement of business results
The common programme performance improvements are within 100% estimated by benchmarking reports at each participating enterprise
The measurable, documented and validated results can be achieved within the time span of 9-18 months
The service package is delivered to each industrial enterprise and includes training workshops, complete UNIDO Pharos enterprise software and follow -up assistance by local national consultants trained by UNIDO international consultants
The cost of the complete annual service package may vary between 9,000 - 2,500 Euro per participating enterprise depending on the total number of enterprises in the Programme and salaries of national consultants providing on-site assistance to enterprises
The improved business culture, systematic planning and monitoring of performance results, introduction of best continuous improvement practices, elimination of inefficiencies, knowledge capital gains are the major programme results beside other quantitative improvements
The participated enterprises are better prepared to managing of investments and innovations, trade and exports, have improved productivity, quality, overall sustainability and compliance to ISO 9000 and WTO requirements
The benchmarking reports are easily available by each participating enterprise providing for assessment of business results over time, its comparison to other enterprises as well as unique real-time platform for policy-making support by national and international agencies
The service package supports effective yet economically attractive implementation of enterprise performance audit resulting in improved business transparency for management
The service package is delivered to each enterprise including those which had not yet used information tools in their business, has highly practical content, can be customized for particular modernization programmes in multi-cultural environment
The programme presents unique instrument for sustainable recovery from the economic crises focusing on mitigation and adaptation services, upgrading and improving the sustainable performance of industrial sectors in regions and countries,
The programmes provides effective instrument for stable of supplier services to large national or multinational corporations, operating in complex and unstable regions,
It results in improved evidence basis for policy making support by major stakeholders at the regional, national and international levels.
Introduction
The content of capacity building and upgrading programs "Management of Change with UNIDO Pharos software" is based on introducing basic methodology and information tools for strategic, financial, production planning, establishing of business targets, relevant performance monitoring and development of best continuous improvement practices to entrepreneurs of small and medium enterprises. Its implementation is supported by using simple and powerful information technology tools such as Pharos Enterprise Benchmarking software for measuring and benchmarking of business performance which allows effective presentation of actual business results based on bare minimum of raw data by each enterprise. The capacity for systematic and corrective actions in right time by enterprise management and specialists is developed during the programme. The relevant service package had been developed and successfully applied within several UNIDO and EC Programmes implemented in different countries since 1999.
The Programme objectives
Introducing basic knowledge, methodology and tools for enterprise strategic, financial and production planning,
Improving capacity for trade, exports, investments, access to markets, preparation to and implementation of ISO 9000,
Providing organisations with Pharos enterprise benchmarking information technology tools along with relevant training of entrepreneurs andmanagement in its applications for business performance management, measurement, benchmarking as well as implementation of lean manufacturing,
Developing best practices, knowledge capital and applications facilitating easy setting up of business targets, monitoring of business results and continuous improvement,
Assisting entrepreneurs on-site in enterprise benchmarking diagnostics, managing innovations and investments,
Obtaining diagnostics and benchmarking results by each participating enterprise providing evidence for post - programme results evaluation,
Certifying of enterprises and entrepreneur in actual performance achievements based on Pharos benchmarking results evaluation and audit,
Upgrading capacity of local consultants providing business assistance services to enterprises.
Upgrading capacity of administrative and investments specialists and policy makers in preparing and evaluation of evidence based policies for SME industries
The Product
Comprehensive practice-oriented package of training and consulting services for industrial enterprises and national consultants integrating methodology, exercises, training materials and UNIDO Pharos software package as well as on-site implementation support. It includes as follows:
Training and certification of national consultants to enable them supporting the programme implementation on-sites
Capacity building by training of entrepreneurs, managers and key staff in regions
Comprehensive set of reference materials supporting methodology and implementation of best practices
Follow-up support in software implementation and development of best continuous improvement practices by consultants at the enterprise sites (for 9-18 months depending on Programme budget)
Pre- and post-programme benchmarking of companies to measure actual performance improvements and facilitate national and international investments
Enterprise and its staff certification based on actual benchmarking results.
Establishing benchmarking database and tools facilitating evidence database supporting policy making by stakeholders at the regional or national level
The Programmes may be further upgraded to include evidence policy making support and monitoring of performance of industrial sectors, clusters, industrial zones, regions in real time.
The content of enterprise service package
Training workshop for senior managers / specialists, 5 working days, 7 hours per day, total 35 hours
Complete sets of training and reference materials covering strategic planning, financial and production performance management issues
UNIDO Pharos enterprise benchmarking software, up to 10 user licenses per enterprise
Enterprise on-site guidance and consulting for the period of Programme implementation introducing best practices by certified national consultants
Benchmarking and measuring of initial and post-programme enterprise performance results by each participating enterprise
Certification in "Enterprise Business Performance Excellence" based on actual measured improvements achieved within the Programme implementation period
Certification of key enterprise staff
Final conference of participants, reporting of programme results, summary and statistics related to implementation. recommendations and exchange of views
The Programme content:
Identification of participating stakeholder groups, funding sources, programme executive body and steering committee
Approval of the budget and programme executive body by stakeholders
Awareness seminars for entrepreneurs
Selection of enterprises for the programme from the pool of applicants and formal contracting
Selection of national consultants
Training and certification of national consultants
Training workshops for enterprise executives and senior management in regions
Supply of the UNIDO Pharos software for each participating enterprise and national consultants
Local support and on-site assistance for each enterprise by national consultants including
Pharos software package installation
backlog data preparation and entry
diagnostics, overview of past business results
formulation of strategies and setting of strategic targets
development of improvement options
simulation optional business decisions including risks and uncertainties
selections of "best decision", its planning and implementation
monitoring of process and results, introduction of corrective actions
Development of applications and best business practices for continuous improvement
Pre & post programme enterprise diagnostics and benchmarking, manufacturing cost measuring, production efficiency analysis based on actual Pharos and Produce Plus enterprise databases (costs, products, added values, quality, competitiveness, suppliers, non-conformances, planning procedures, production resources' utilization, etc)
Certification based on assessment of benchmarking results, measurement of improvements and audit by national and international consultants
Training of entrepreneurs in presenting the enterprise performance improvement results to investment and credit institutions, compliance to BASEL II standard.
Evidence policy making support: options and methods, enterprise groups' performance monitoring and measurements, evaluation of trends and optional policies
The typical structure of the industrial modernization programme is presented in the following picture:
The budget is defined by the stakeholders and sponsors accordingly to the programme content and scale. The participating enterprises shall cover the part the overall package costs (15% - 50%) with the rest of funds contributed by the national and international sources. The typical budget includes salaries of national consultants assisting enterprises on-site during the implementation period (typically 12 months).
The stakeholders
Governmental agencies supporting economic development and SMEs in countries, regions, states and provinces
Associations of Industries and Entrepreneurs, Chambers of Commerce, consulting and other organizations assisting and coordinating SME support programs in countries, regions, states and provinces
National and international financial institutions sponsoring programmes for economic and industrial development, trade and export facilitation, modernization, entrepreneurship and knowledge based management
National quality, productivity and entrepreneurship centers
Consulting, Vocational Training, Quality and Productivity and Entrepreneurship centers
Expected Results
The improvement of major key performance indicators by enterprises is within the range of 25% - 300%
Enterprises completing the programme may expect to become World Class players with significantly improved performance and value added
The entrepreneurs and key enterprise specialists receive valuable knowledge capital, improve their business culture and capacity for systematic and effective management of change
The intervention results in introduction of effective yet simple enterprises information technology tools for business performance monitoring and benchmarking facilitating best continuous improvement practices
The reference benchmarking basis is formulated for the enterprise comparison, audit and certification facilitating the selection process for investment and modernization programs (within the sector, cluster, region)
The evidence basis can be established for setting up national benchmarks for excellence in business performance in different industrial sectors
Stakeholders will see significantly increased contribution, improved competitiveness and sustainability of the SMEs
Both individual SMEs, Governments and International Development Agencies will see
- Improved sustainability of SME developments and industrial sectors as a whole,
- Decreased SME mortality in regions, stable investments climate and taxation outcomes,
- Improved capacity for trade, exports, access to markets, competitiveness, productivity and quality,
- Improvements in business transparency, its audit, entrepreneurs' ability to manage investments and innovations,
- More effective implementation of ISO 9000 and WTO requirements,
- Pre - and Post - Programme benchmarking reports by each participating enterprise which can be used by industrialists for enterprise development traceability as well as information source for industrial sector performance statistics supporting policy making at the regional and national levels
- Background documents for the preparation and presentation of business results to investors in accordance with established international practice.
The enterprise audit and performance certification are facilitated by simplified uniform procedures, decreased costs and time of implementation.
Organizational framework
Stakeholders: formulation of programme objectives, priorities and budget
National Programme Executive Committee: programme setup, implementation and supervision
National Programme Steering Committee: programme guidance, implementation feedback, local priorities and advice by stakeholders
GOLEM IMS GMBH and ASIDEES: training of trainers, providing training materials, quality monitoring, certification, support of national consultants, implementation of policy making support tools, supply of UNIDO Pharos software package and its major upgrades,
Enterprises: implementation, benchmarking, evaluation of results
After the end of the Programme, a responsible national institution receives rights for further use of developed infrastructure, knowledge, content and software in a country. It may include possible perpetual training, UNIDO software, information service focal points for stakeholdersand certification of enterprises.
The conclusion
The industrial modernization Programmes "Management of Change" provide unique, effective and cost-balanced instrument for improving performance of enterprises and industrial sectors at the regional and national levels
The programmes were successfully applied for improving business culture, competitiveness, productivity, quality, capacity for investments, innovations, trade and exports in different countries
The strong improvement results can be achieved within the programme implementation period
The evidence policy making support instruments become available for stakeholders
The Programme ensures introduction of innovative business intelligence information technology tools to large number of national enterprises under minimum costs
