The LPA Solution - Business, Sports and Training for Success
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.
LPA is a unique Tefen development and offering.
What types of Organizations and Industries Can Utilize LPA?
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.
The Three Aspects of Optimization
There are three manners by which an organization can achieve optimization:
- Reduction of Input – This includes cost reduction, and reduction of resources and effort
- Increase Output – Increasing the performance and capabilities of the
- Increase Efficiency – Alternative usage of resources, such as time and people – in a more efficient manner
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.
How does LPA work?
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
LPA Success Stories
- Tefen saved 3.5 FTEs (hours worked by a single employee) in the sales workflow of a target customer group through the alternative usage of resources in a SME in Southern Germany
- Tefen saved 1.3€ mil. of cost (workforce and material cost) in the administrative center of a regional city and country bus company
- Tefen identified 4.8€ mil. of efficiency potential and 3,000 tons of CO2 savings, for a Medium sized textile company
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 m.bauer@tefen-mc.de
