WHAT is the Activity Analysis
and how does it help?
Over time, highly complex organizations tend to produce various organizational anomalies such as redundant functions or functional fragmentation. Such organizational anomalies lead to inefficient resource allocation and activities that generate additional costs (direct headcount costs and indirect costs). Consequently, these anomalies need to be identified and potentially eliminated.
goetzpartners has developed an activity analysis to do exactly that: provide transparency by generating a clear overview of FTE allocations and their respective activities in terms of business functions. Using this proven approach, we help clients systematically identify areas for organizational and operational improvement as well as potential for personnel cost savings. After completing the activity analysis, our clients can answer with certainty the question of who does what to which extent and for whom in their organizations.
KEY BENEFITS
The proven Activity Analysis approach and tool ensure an easy and successful execution of the analysis to gain insightful and robust implications for optimizing organizational resource allocations. In a nutshell, this goetzpartners product combines the following key benefits:
- Structured procedure to create FTE transparency along key activities and across functions
- Chance to generate FTE efficiency KPIs for internal comparison and external benchmarking
- Results as a data-driven basis to redesign and refocus resources for an efficient organization
Functionalities
The automated web-based activity analysis is an easy-to-use, customizable online tool that facilitates:
- Systematically setting up an activity tree with aligned relevant tasks for each function
- Efficiently transmitting an activity survey to the relevant participants
- Easily inputting FTE data for the defined activity tree using self-explanatory web interfaces
- Visualizing the main results using automatically generated charts for each function
- Creating deep-dive analyses by preparing downloadable Excel exports of the consolidated FTE data
USE CASES
The goetzpartners activity analysis supports clients with a need for coordinated, efficient allocation of resources to activities in their organization. Such clients typically find themselves in a situation characterized by
- A lack of clarity in FTE allocation in business functions
- No structured internal procedures to create FTE transparency
- A need to redesign and refocus work packages and activities
- An intention to create comparability in FTE efficiency among organizational units to allow internal benchmarking
- A need to identify resource efficiency and cost-saving potential, often in the context of a holistic transformation or operational efficiency project
The client, a tier-two supplier for the automotive and aerospace industry, was confronted with severe decline in revenues due to structural industry change and Covid-19. To tackle this challenge and major personnel overcapacities, the goetzpartners team conducted a scenario analysis on the likely future demand for each of the client’s product categories. In parallel, the advisors performed an activity analysis to assess the activities and the respective product categories serviced for all > 3,000 employees across multiple sites. Combining the results of the two analyses helped to determine in which functions overcapacities exist and which areas to focus on. The outcome created transparency for the client to elaborate sophisticated personnel reduction measures on a per site and function basis.
