What is an AVA?

advertisement

Added Value Analysis

TOOL USED IN SALES AND MARKETING

PRODUCTIVITY PROJECTS

1 Sales and Marketing Productivity Team

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

Sales and Marketing Productivity Team

SOFTWARE

2

Overview

What is Added Value Analysis?

Who is involved?

Why is AVA effective?

How is it performed?

Sales and Marketing Productivity Team 3

What is an AVA?

An Added Value Analysis (AVA) is a systematic observation with the aim of:

• focusing everyone's energy on essential activities

• improving effectiveness of all activities by streamlining decision making and improving accountability

• achieving lasting improvements by eliminating nonessential tasks

• building commitment to ongoing improvement by involving staff in the process

4 Sales and Marketing Productivity Team

What an AVA is NOT ...

The AVA study is not:

An attempt to get people to work harder

A way of getting the same workload done with fewer people

An attempt to reduce the quality of the work to the detriment of the business

5 Sales and Marketing Productivity Team

Who is involved?

All relevant Marketing, Sales and Supply Chain functions, i.e.

Marketing manager

Product / Brand manager

Key Account Manager (KAM)

Supply chain managers

Any type of supporting function related to

Marketing and Sales

6 Sales and Marketing Productivity Team

Why is an AVA effective?

The participants generate the improvement idea in conjunction with the team

It involves all areas in innovative thinking and idea analysis

The management approval process ensures a fit with long term strategy

It improves managers' cost awareness of the tasks performed

It streamlines activities, tailoring the organisation to its workload

7 Sales and Marketing Productivity Team

Why carry out this survey?

Do we know which activities we spend our time on?

(This Survey)

30%

Knowledge ?

(Prior to Survey)

Sales and Marketing Productivity Team

Better Decisions can be made

8

100%

Knowledge

(A full Time &

Motion study)

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

Sales and Marketing Productivity Team

SOFTWARE

9

How is it performed?

Overview in 4 steps

Preparation with the unit heads

Analysis of activities

Idea generation

Action plan

10 Sales and Marketing Productivity Team

Preparation with the unit heads

- Meet with the Unit / Department Heads

- Explain how the study is carried out

- Explain the role of the organization and the expected benefits

- Explain timetable and key dates

- Show examples of results from previous projects

- Show example of documents to be used (ie: AVA form)

11 Sales and Marketing Productivity Team

Analysis of activities

Preparation phase

- Define the areas of the Company to analyse and the names of people that are going to receive the AVA

- Define the AVA form(s), adapted for the market

- Make the computer ready to input the data once the

AVAs are received

- Prepare a cover letter and a sheet with instructions on how to fill out the AVA

12 Sales and Marketing Productivity Team

Analysis of activities

AVA collection phase

- Send in a close envelope AVAs to participants

- Once AVAs are received verify their correctness

- contact authors to solve compilation errors, if any

AVA collection phase (2nd option)

- Gather participants in group sessions

- Explain the AVA during the meeting

- Ask them to compile the AVA during the same meeting

13 Sales and Marketing Productivity Team

Analysis of activities

Process AVAs with the computer application

- Input AVAs as soon as they are received and validated

- Extract reports from the system to analyse results

14 Sales and Marketing Productivity Team

Idea generation

Perform Brainstorming sessions to:

- Analyse results of AVA

- Generate ideas to improve productivity and eliminate activities with no value added

- Evaluate cost, benefits, and feasibility of ideas proposed

- Integrate ideas with other proposals coming from the project

Present ideas to management to obtain approval

15 Sales and Marketing Productivity Team

Action Plan

- Define timetable for implementation considering also pilot initiatives

- Define resources needed

- Start implementation

16 Sales and Marketing Productivity Team

Tips ...

Don't underestimate the time needed

Test the forms before sending them out by someone from the local Market

Inform people that no names will be disclosed and that results will be analysed in aggregated form

17 Sales and Marketing Productivity Team

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

Sales and Marketing Productivity Team

SOFTWARE

18

100

80

60

40

20

Market X: Breakdown of main Brand

Management activities

8.6

15

14.5

8.7

11

7

7.2

28

OTHERS

CONSUMER

RELATED

ACTIVITIES

NPD

STRATEGY

SALES

SUPPLY

CHAIN

MARKET

VISITS

MEETINGS

A third of brand management's time is spent in meetings (28%) and market visits (7%)

Of the remaining 65%, consumer related activities, new products and sales are the three key activities of Brand

Management

0

19 Sales and Marketing Productivity Team

100

80

60

40

20

Market X:

Consumer related activities

8.6

15

14.5

8.7

11

7

7.2

Involves major activities of planning and implementing communication programs and promotions

Brand Management spends only 15% of total time on this - hence time spent on each task is low

COMMUNI-

CATION

3.2%

28

PROMO-

TIONS

4.2%

PR &

SPONSOR-

SHIP

1.3%

0 AGENCY-

MEETINGS

6.3%

20 Sales and Marketing Productivity Team

100

80

60

40

20

Market X:

New product development

8.6

15

• New product development involves

14.5% of brand management time

• However time spent on each specific activity is low

14.5

8.7

11

7

7.2

RESEARCH

0.9%

MKT ANALYSIS

1.7%

INT.

LAUNCH

1.9%

LAUNCH

FOLLOW-UP

1.9% PLANNING &

COORD.

6.5%

28

0

LAUNCH PREPA-

RATION

0.9% TASTING

0.7%

21 Sales and Marketing Productivity Team

The Composition Of The Presentation

INTRODUCTION

CHECKLIST

EXAMPLES

Sales and Marketing Productivity Team

SOFTWARE

22

Added Value Analysis

TOOL USED IN SALES AND MARKETING

PRODUCTIVITY PROJECTS

26 Sales and Marketing Productivity Team

Download