Project Work of Kilometer

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    Project work of Kilometer

    Hou Yuhui: [email protected]

    Ye Zi: [email protected]

    Liu Ji: [email protected]

    Li Zijian: [email protected]

    Course: Project course in Management

    Supervisor: Camilla Niss and Katarina Hansson

    Date: Nov 22th 2010

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    Content

    Title page

    Background

    Purpose

    Methodology

    Theoretical Framework

    Description

    Analysis

    Conclusion

    Reference

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    Background

    Kilometer is a Swedish advertisement company founded in Gvle. It has infinite

    imagination and always offers the amazing ideas to its clients. Its purpose is to create

    appropriate advertise for clients to meet and even beyond their needs. It has

    completed many cases in different business areas and gave customers what they wantabsolutely. The customers include some big company like Sandvik as well as some

    regional company such as Gavlegrdenar and Upplandsmjolk.

    First we met one of the owners Taeko in Kilometer Company. We discussed

    mission, overall business process and employee allocation of Kilometer. She took us

    look around the office and introduced their preceding design work for old customers.

    Then, another owner Mats answered some specific questions which we interested

    about Kilometer. Questions include business target, company competitiveness,

    company culture, employee aspects, customer service, and product analysis. We also

    distributed questionnaires to employee and trying to analyze the result.

    Purpose

    According to EFQM model to evaluate Kilometer Company and come up with

    strengths and opportunities for improvements.

    Methodology

    We identify the real company which is Kilometer in the beginning. Through the two

    interviews, we decided to launch our project by using EFQM as our theoreticalframework. So interview can be seen as milestones for our project work. We want to

    know the overall information of business process in a short time. And we would like

    to visit and observe the company within visible image. So we choose interview as our

    method to get information. There are three owners in Kilometer Company and we

    interviewed with two different owners in different time. It seems good that we got

    interviews, because we really knew and collected many resources from the owners.

    And during the interviews, we can discuss the problems with owners. When we got

    confused, it is easily for us to communicate with owners. Moreover, when the owners

    didnt understand the questions, they can directly ask us and get the explanation from

    us. It gave us a good opportunity to get overall information by using interviews and

    this method made our work more efficient.

    We use questionnaires to collect the resources from Kilometer Company. Because we

    research for particular targetKilometer Company, the range of survey is set. And the

    targets of survey are owners and employees in this company; hence, we can control

    and select the information that we want to get directly. By using questionnaire, it is

    intuitionist for us to understand analysis and judge the answers we get. The reversion

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    rate is high and it takes shorter time to get the information that we need.

    Questionnaire is anonymous; in this case, it is authenticity and reliability. At the initial

    preparatory stage, we selected some general questions which are the satisfaction of

    the work environment, expectation of company, improvements of company,

    bottom-neck of the work and the like to get known the current situation of the

    company and acquire some opinions or suggestions about improvement managementof this company. But the results are not as good as we expected. First, we just got

    questionnaires answers back from several employees. Second, even we got the

    answers, the quality of the answers were not good enough. Some People just chose the

    multiple choice question to answer and left the blank to the subjective items. And

    some people didnt answer the questions seriously. So it is not clear for us to

    understand the results. But we found one problem during the process of delivery

    questionnaires. We interviewed with different owners twice, and both of them are very

    active when we met. They would like to discuss the problems they faced in the

    company or the internal business process of Kilometer. As our questionnaires are

    English type, the owner even translated to Swedish for their employees in order to

    make their employees understand all the questions well. The owners supported us to

    implement the questionnaire process well. However, the employees are not so

    interested in it. We think that there would be some problems in the management part

    of this company. Owing to the dynamic company have less authority level, each

    employees feel free and equal with others.

    Due to we work for a real company, we need more literatures to support our work or

    guide us to do the project. So we prefer search the information from the internet. It is

    quite convenient and quick for us to search and acquire the data. We can also store

    and filter the resources by internet. When we used the internet, we got a large amount

    of information which is EFQM application on small or medium company, EFQMapplies in dynamic company and the like.

    Theoretical framework

    EFQM Introduction

    The European Foundation for Quality Management (EFQM) is a membership based

    on not for profit organization, created 1988.i

    It provides a unique platform for

    organizations to learn from each other and improve performance; it also outlines how

    organization can use the Model and the process of Self-Assessment to improve

    performanceii. EFQM is the custodian of the EFQM Excellence Model, a proven

    framework for success that is helping organizations around the globe to strive for

    Sustainable Excellence. The EFQM Model is at the heart of the organization and their

    networkiii. The figure shows EFQM Model:

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    Our choice

    The EFQM Excellence M eli flexi le and can be applied t organi ation large and

    small as well as the pri ate sector.i

    That is reason we chose EFQM Model

    Kilometeris a small and dynamic company, and we assessed that other management

    system models are not suitable for this company. We use EFQM model assess

    all around for Kilometer, we based on the nine models criteria: Leadershi p, People,

    Policy & Strategy, Partnershi ps & Resources, Processes, People Results, Society

    Results, and Key Performance Results. But via our communication and practice, we

    picked up several criterions that we are interested in and the company concerned

    aboutto analysis. Let us introducing criterions brief which are we choice

    1. Leadership: excellent leaders develop organi ational values and systems requiredfor sustainable success and implement these via actions and behaviors. Also

    achievement ofthe mission and vision.

    3. People: people in company care their feeling, as well develop and release peoplepotential skill, communication and build good relationships.

    4. Partnershi ps and Resources: external partnershi ps management, such supplier,builds good relationship;internal resources support effective operation of process.

    5. Processes: company mange and improve processes in order to dully satisfy, andgenerate increasing value increasing value

    Customer result: company measure and achieve outstanding results with respect to

    their customer.

    First we worked outthe questionnaire2 based on criteria ofthe EFQMModel, which

    was used to assess and measure the company performance in the selected process. We

    consider difference position between owner and staff, so prepare two type of

    questionnaire aim at owner and staff. The scale in the questionnaire was: from 0 point

    (not started) 10 point (fully achieved) defining the degree of fulfillmentthrough the

    enterprise the concrete criterion in the process. In the end, we calculate ofthe results

    ofthe questionnaire (points) combine the weights of each criterion in the EFQM

    Modelto achieve score awarded. Leadership 10%

    People 9%

    Policy & Strategy 8%

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    Partnership &Resource 9%

    Processes 14%

    People Result 9%

    Customer Result 20%

    Society & Result 6%

    Key Performance Resource 9%v

    Our questions are not containing 32 criterions, we pick most appropriate and

    important part to make question and set degree for staff self-assessment.

    Results

    Business process

    Kilometer is a small sized advertisement company founded by three owners. Its

    mission is to create the right advertising for their customers to succeed in selling. The

    forms of advertising include magazine and newspaper ads, television commercials

    and internet advertising. Before they start design advertising, the owners will

    communicate with customer in order to capture the characteristic of customers

    company and create a general impression of appropriate forms of advertising. Then

    owners will have a meeting with all the staff in company to gather ideas for the ads.

    Then they will meet the customer again to elaborate several best ideas which got from

    staff and listen to customers thoughts. When both sides reached consensus of certain

    form of advertising and the rough idea of the ads, Kilometer will start process of

    advertise design and making. Kilometer also takes overall campaign in customers

    organization culture corresponding to specific ads they demand. For instance, when

    they made advertising for X-trafik, they did not only design timetable brochure for

    X-trafik, but also took campaign for whole company. They try to raise brand imageand achieve total quality management by giving some training program for all the

    staff. Through developing customer service and construct good organization culture,

    X-trafik would improve overall business process. After the completion of design work,

    they will show customer the outcome and ask for some feedback in order to revising

    before release it to the corresponding media. Then, they contact the selected media

    and discuss the release time and length of period for the new advertisement. Yet, they

    have to wait and prepare for amending the released work anytime if they got claim

    from customer and public for any parts of the advertisement. They close up case until

    the advertisement expires time and they got feedback from customer. They will

    document the case and start with the next one.

    Customer service

    Establishing good relationships with customers is the companys core competitiveness.

    They provide high-service level; fulfill the requirements of customers in any time. For

    example: The owner never shut off their cell phone even in midnight or on vacation.

    They would take the case no matter small or big, easy or hard. They always try to

    delight the customer which could keep strong customer loyalty and made effort to its

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    reputation. Although Kilometer is a local advertising firm, it also has some customers

    out of region of Gvleborg such as Stockholm and Gteborg. They successfully

    provided services and products by only communicate through internet and phone

    without meeting face to face. When they go through a case, they keep contact with

    customer in order to get quick feedback in different period of design work. In

    advertising industry of Sweden, there is an unwritten rule that advertising company prefer not to advertise themselves, otherwise it imply that you dont have enough

    customer or in a poor business. For kilometer, it is in same situation, they dont

    advertise themselves even they have strong willing to do it. So we were curious about

    how they attract their customer and how to build their brand awareness. The owner

    Mats told us that they hold strong relationship with old customers which trust them

    and prefer to choose them all along. When they satisfied a customer with a beautiful

    ending of case, they hope that the customer will introduce other cooperation firm to

    Kilometer and spread its fame to other industries. Some customers did as his wish that

    introduced some new customer to the Kilometer and help them establish new

    customer relationship. They also tried to make self-introduction through the way of

    telemarketing which refer to calling the target customer directly and introduce concept

    of Kilometer Company. But up to now, this way didnt lead any customer to real

    business process.

    Leadership and people involvement

    The company size is not large but the owners want to keep it small in order to keep it

    more organic and flexible which enable good communication within organization.

    Besides taking care of different loyal customer group which relate to their personal

    reason, the three owners also take in charge of different business aspects in company.

    Ralph is responsible for talking business with different customer especially Industrial

    companies. Mats is more like a human resource manager who handle problems fromemployees. Taeko puts most of the time in designing work that is her favorite part.

    Even they dont have a real principle of working arrangement in company, theyve

    already constructed strong cohesion in these years. There was role conflict which

    leads to certain employee unsatisfied before due to the unclear work allocation

    combining other reasons. But they discussed with different person in company

    seriously and fixed the problem in most positive way they could take instead of

    ignoring it. In some advertising or designing case, they would have some conflict

    between employees but only in level of ideas and thoughts. Owners are involved

    actively in each activity and encourage employee to participate social activity and see

    different exhibition in order to absorb some fresh information.

    External aspects

    They dont have a fixed (no contract) supplier, but they have alternative and they

    build good partnership with each other. The suppliers for Kilometer Company include

    human resource supplier, equipment supplier, technology supplier and channel

    supplier. Kilometer Company has several photographers to choose for the cases that

    they get. They have worked together for long time; in this case, Kilometer Company

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    is familiar with the characteristics of the photographers. According to different cases,

    they would contact the suitable photographer. The print house supports Kilometer to

    print a large number of designed finished goods, such as business card. Kilometer

    Company has a close relationship with the print house that can have the quick

    response due to customers of Kilometer decide to have some changes in the orders.

    Kilometer always needs the technology maintenance for guarantee their worksmoothly and efficiently. And Kilometer has sister company for 3D technology to

    support their work as well. For example, Kilometer serves for the Gavlegrdarna to

    promote the new apartment for renting. Kilometer uses 3D technology for designing

    the interior decoration to show customers. Based on the needs of customers, they

    require different kinds of media platform such as TV, radio, newspaper, magazine,

    light box advertising, brochure and the like. Kilometer Company is good at

    communicating with the channel suppliers and getting the excellent effects.

    Analysis

    EFQM Model for Kilometer

    Strengths and Areas of improvement

    +: strength, -: improvements

    Criterion: 1. leadership

    Criterion part: 1a. Leaders develop the mission, vision, values and ethics and are

    role models of a culture of Excellence & 1b. Leaders are personally involved in

    ensuring the organisations management system is developed, implemented andcontinuously improved & 1c. Leaders interact with customers, partners and

    representatives of society & 1d. Leaders reinforce a culture of Excellence with the

    organisations people & 1e. Leaders identify and champion organisational change.

    1a - They are not developing and role modelling values that support

    the culture (role allocation is unclear and lack of leader authority)

    1a + The leaders are involved actively in each activity. (Owners are

    involved actively in each activity and encourage employee to

    participate social activity and see different exhibition in order toabsorb some fresh information.)

    1a + The leaders absolutely stimulate and encourage collaboration

    within the organisation. (Even they dont have a real principle of

    working arrangement in company, theyve already constructed

    strong cohesion in these years.)

    1b + The company establishes clear ownership of processes. (Ralph is

    responsible for talking business with different customer

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    especially Industrial companies. Mats is more like a human

    resource manager who handle problems from employees. Taeko

    puts most of the time in designing work that is her favorite part.)

    1b + The leaders are able to ensure for the improvement of key results

    is developed.(When they go through a case, they keep contact

    with customer in order to get quick feedback in different periodof design work.)

    1c + The leaders will try their best to understand what their employees

    want and expect. (But they discussed with different person in

    company seriously and fixed the problem in most positive way

    they could take instead of ignoring it.)

    1d + Leaders motivate and enable their employees to participate in

    improvement activities. (Owners are involved actively in each

    activity and encourage employee to participate social activity and

    see different exhibition in order to absorb some fresh

    information.)

    1d + The leaders are willing to listen inspiring and responding to

    people. (The company size is not large but the owners want to

    keep it small in order to keep it more organic and flexible which

    enable good communication within organization..)

    1e - They dont want change within the organisation and in its

    external relationships. (For kilometer, it is in same situation, they

    dont advertise themselves even they have strong willing to do it.)

    Criterion: 3. people

    Criterion part: 3a.People resources are planned, managed and improved & 3b.

    Peoples knowledge and competencies are identified, developed and sustained & 3c.

    People are involved and empowered & 3d. People and the organisation have a

    dialogue & 3e. People are rewarded, recognised and cared for.3a - People resources are planned, managed and improved (There is

    lack of evaluation system for human resource, so it is a weak

    point in management system and without clear improve object.)

    3a - Promoting and ensuring fairness in all terms of employment

    including equal opportunities, strategies and plans. (There wasrole conflict which leads to certain employee unsatisfied before

    due to the unclear work allocation combining other reasons.)

    3a - Using people surveys and others forms of employee feedback to

    improve human resource policies, strategies and plans. (As it is

    only 14, 15 employees in company, there is no HR department

    and owners will not take survey regularly until employee has real

    complain and talk with owner forwardly.)

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    3b + The owner encourages employees to develop their skills. (Owners

    are involved actively in each activity and encourage employee to

    participate social activity and see different exhibition in order to

    absorb some fresh information.)

    3c + Encourage people to work together in teams. (The company size

    is not large but the owners want to keep it small in order to keepit more organic and flexible which enable good communication

    within organization.)

    3d + All people could share ideas of each other or practice well

    because. (Then owners will have a meeting with all the staff in

    company to gather ideas for the ads.)

    Criterion: 4. partnerships and resources

    Criterion part: 4a. External partnerships are managed & 4b. Finances are

    managed.

    4a + The company builds good partnership with its suppliers to create

    value together. (They dont have a fixed (no contract) supplier,

    but they have alternative and they build good partnership with

    different kinds of suppliers).

    4a + They can offer great value to their customers under the help with

    their supply chain. (Company has a close relationship with the

    print house that can have the quick response due to customers of

    Kilometer decide to have some changes in the orders.)

    4a + The company create synergy when working with its supplier to

    improve process and add value to the customers. (Kilometer

    Company is good at communicating with the channel suppliers

    and getting the excellent effects.)

    4b - The company does not have any financial strategies. (Kilometre

    Company doesnt have a financial goal, they are a little bit

    pessimistic, in order to survive and develop better in the market,

    they should set financial strategies.)

    Criterion: 5. Processes

    Criterion part: 5a. Process are systematically designed and managed & 5b.processes

    are improved, as needed using innovation in order to fully satisfy and generate

    increasing value for customer and other stakeholders & 5c. Products and services are

    designed and developed based on customer needs and expectations & 5d. Products

    and services are produced, delivered and serviced & 5e. Customer relationships are

    managed and enhanced.

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    5a + The company designs the organizations process to meet customer

    needs. (Before they start design advertising, the owners will

    communicate with customer in order to capture the characteristic

    of customers company and create a general impression of

    appropriate forms of advertising.)

    5a - Applying systems standards covering, for example, qualitymanagement systems, occupational health and safety systems in

    process management.

    5b + Communicating process changes to all appropriate stakeholders.

    (When they go through a case, they keep contact with customer in

    order to get quick feedback in different period of design work.)

    5c + Designing and developing new products and services together with

    customers and partners that add value for the customers. (Before

    they start design advertising, the owners will communicate with

    customer in order to capture the characteristic of customers

    company and create a general impression of appropriate forms of

    advertising. Then owners will have a meeting with all the staff in

    company to gather ideas for the ads.)

    5c + The company uses innovation and core competencies of both

    internal and external human resource to design and produce

    products and services.

    5d - Marketing, communicating the value proposition, and selling

    products and services to existing and potential customers. (They

    dont advertise themselves even they have strong willing to do it.

    When they satisfied a customer with a beautiful ending of case,

    they hope that the customer will introduce other cooperation firm

    to Kilometer and spread its fame to other industries.

    5d + Delivering products and services to customers. (After the

    completion of design work, they will show customer the outcome

    and ask for some feedback in order to revising before release it to

    the corresponding media.)

    5e + They will contact their customer actively to understand their

    requirements correctly. (Establishing good relationships with

    customers is the companys core competitiveness. They provide

    high-service level; fulfill the requirements of customers in any

    time.)

    5e - Using regular surveys, other forms of structured data gathering anddata gathered during day to day customer contacts in order to

    determine and enhance customer relationship satisfaction levels.

    (They have many old customers but without any regular survey to

    gathering or storing data. They deal with case by experience.)

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    Criterion: 6.Customer results

    Criterion part: 6a. Perception Measures & 6b.performance indicators

    6a + Good products and services including quality, value, reliability,design innovation, delivery. (Establishing good relationships with

    customers is the companys core competitiveness. They provide

    high-service level; fulfill the requirements of customers in any

    time.)

    6a+

    The Image of company is accessibility, communication,

    flexibility, responsiveness. (Due to the size of company, they are

    enough flexible and accessibility. According to customer oriented

    strategy, they are doing well in communication and

    responsiveness.)

    6a

    +Sales and after sales support (Yet, they have to wait and prepare

    for amending the released work anytime if they got claim from

    customer and public for any parts of the advertisement.)

    6a+

    Willingness of customer to recommend the company (Some

    customers did as his wish that introduced some new customer to

    the Kilometer and help them establish new customer

    relationship.)

    6b+

    Products and services competitiveness and innovation in design

    (The companys competitiveness is that they create different

    wonderful ideas for their customers and less complaints.)

    6b

    -

    Loyalty of new customer (They also tried to make

    self-introduction through the way of telemarketing which refer tocalling the target customer directly and introduce concept of

    Kilometer Company. But up to now, this way didnt lead any

    customer to real business process.)

    Conclusions

    Reference

    1. EFQMExcellence Model (1999-2003) ,P22. EFQMExcellence Model (1999-2003) , P43. EFQM home page, about EFQM, last enter time 2010-11-19

    http://www.efqm.org/en/tabid/108/default.asp x

    4. EFQMExcellence Model (1999-2003) , P45. EFQMExcellence Model (1999-2003), 4.3 model criteria.

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    6. EFQMExcellence Model (1999-2003) , scoring summary sheet.7. Kilometer rekrambyr. http://www.kilometer.se/

    Appendix

    Title:

    Improve management system in Kilometer

    Mission statement

    Show the unlimited creativity of Kilometer.

    Objective

    We try to use EFQM in Kilometer to see if there is any improvement in this

    company.

    List of stakeholders

    Project team, teacher, company (Kilometer Reklambyr AB)

    List of deliverables

    Report, Presentation, Questionnaire, Power Point.

    List of resources

    Computer, website, traffic, communication, course book, staff of company and

    project team.

    Risk assessmentLanguage problem: communication with company staff and information of company

    home webpage search. Swedish is hard to project team.

    In forming stage, project team is unclean about whole project work, such as, goal of

    project undefined, team members roles undefined, no experience do project work,

    difficult to make project plan, team members ideas conflict.

    Project team need interview, but what questions we want to ask must prepare before

    interview. The question prepare is not considerate is one risk. And the anther risk is

    time problem, no free time for our interview.

    Project team must find problem of company and improve or solves it. We worry about

    deliverables for company is not satisfaction, and confidence weak.

    Different culture cause the thought conflict, Swedish and Chineses culture are so

    different.

    Language problem

    Interview problem

    Output of deliverables

    Confidence weak

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    Project work process problem

    Culture conflict.

    WBS and Gantt chart

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    Questionnaire 1

    1. What is the mission of your company?

    2. Do you have any business strategy and what is it?

    3Do you satisfy the current situation of operation and scope?

    Yes no

    4. Do you want to expand the scope of company and business range? Yes no

    Why

    5. One day, if the reputation and image of the company is promoted, plenty of works occur,which solution would you like to choose.

    Recruit new employee

    Take the case selectively

    Welcome all the cases, but extend process time

    Put extra time in work

    Something you want to add:

    6. Could you describe the bottleneck or problem in your work?

    7. For you, is there any more potential waiting to play?

    8. Is there any training program launched in company for employee? If there is, what is it? Ifthere isnt what kind of program are you interested in.

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    9. What is your expectation for company? Is there any suggestion for improvement of company

    business?

    10. Have you heard about BSC (Balanced Scorecard) or quality management? How much youknow about it?

    I never hear about it I have hear it before, but no idea I know it little bit I know it very much

    Questionnaire 2

    For Staff, please give point for each questions, 0 (not started) points to 10 point

    (fully achieved), simplify speaking, higher point mean done it more perfect.

    1.Your leaders management has effective on company development. ( )2. Your leaders are helping and supporting you to achieve your plan or objectives.( )3. You develop, and release your knowledge and full potential in your company. ( )4. Everyone has equal opportunities and fairness in your work.( )5. Communication for other staff are share best practice and knowledge. ( )6. Using technology to support improvement. ( )7. Your work process designs and improves, (dose it to fully satisfy and increasing

    value for customers and other stakeholders.) ( )

    8. Your company has achieved outstanding results and customers respect. ( )9. You feel pride of your company and respect it ( )10. Your company has achieve respect to society. ( )11. Finally, please assess allover operational results of your company(concluding

    contribution, products or service, profit, market share, performance ) ( )

    For owners, please give point for each questions, 0 (not started) points to 10

    point (fully achieved), simplify speaking, higher point mean done it more perfect.

    1. You have good communicate with you about your company mission, vision,objective and culture. ( )

    2. You make policy and strategy for your company based on customer andstakeholders expectations. ( )

    3. You have develop and release your knowledge and full potential in your company,also support your staff ( )

    4. Everyone has equal opportunities and fairness in your work. ( )5. Communication for other staff and other owners are share best practice andknowledge; ( )

    6. Plan and manage external partnerships and suppliers for effective operation of processes and add values. ( )

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    7. Using new technology to support improvement. ( )8. Your work process designs and improves, (dose it to fully satisfy and increasingvalue for customers and other stakeholders.) ( )

    9. Your company has achieved outstanding results and customers respect. ( )10. You feel pride of your staff and company ( )11. Your company has achieve respect to society ( )12. Finally, please assess allover operational results of your company(concludingcontribution, products or service, profit, market share, performance ) ( )