LPA is also known as Performance Potential Analysis.1 It is a measurement conducted in an organization, in order to help it reach its goals. This is done through finding the organization's potentials for optimization.
The LPA solution can be used in any scale of business: small, medium and large. Also, LPA can be used for any industry, and for every service the industry offers.
There are three manners by which an organization can achieve optimization:
These three ways are intertwined, and affecting one will affect the others. For example, spending less time and money on different processes being done in the organization can gain more time, that could be spent to develop new services.
Curiously, LPA is a modification of a real-life topic – the sports and fitness world.
If a person wants to run a marathon, he/she can perform a fitness check or a physical diagnosis in advance. The sports doctor will tell the runner what length and in what time he will be able to run in a marathon, with his current setup. But if the runner wants to run the marathon faster, he will have to check all the physical changes he can apply (e.g. lose excess body weight, train smarter instead of doing the same run at the same pace again and again, etc.).
LPA is the same – it is a "fitness check", observing the organization's capabilities. It examines if the organization can reach its goals, and if these goals fit the existing strategy.
Then, LPA collects the activities of every relevant organizational unit, and measures the time and effort invested in each activity being done in the organization. This information is typically collected anonymously through an online board.
The potential changes and suggested optimizations will be derived from the collected information and discussed with the organizational units. Moreover, the savings that will be derived from the changes will be calculated, showing the benefits of the change.
Afterward, a roadmap will be created, in order to manage all the changes and optimization process; and in order to achieve the saving effect as well as the organization's goals.
Fig. 3: The structured four-steps approach of LPA
1 Originally, the abbreviation stands for the German term: „Leistungspotentialanalyse".
Consider this methodology and the significant advantage it will bring to facilities during increasingly competitive times. If you would like to learn more about this approach and the work of Tefen Management Consulting or you are interested in a complimentary 1-hour consultation, please email our Director, Mathias Bauer, at email@example.com