1.      What is VSOP?

A Visioning, Strategic planning, Operating planning and Proficiency Assessment Tool — all in one package.

Visioning—what do we want to look like 3-5 years from now?

Strategic Planning—how will we get there?

Operating Planning—short term actions

Proficiency Assessment Tool—what needs to get better—this drives the vision, strategic plan and operating plan

2.      Extract

VSOP for Continuous Improvement in Finance – Extract.  In this example we are looking at the credit control function but there are similar proficiency assessments covering the entire finance function from stock control to payroll.

3.      How it works

• For each element, assess which level most accurately describes how you operate. At the end, add up your score – on average, companies score between 2 and 3 for each element
• Senior Management Team sets 3 year target for total score
• Finance Department identifies which elements to focus on in the next 12 months
• Work groups apply continuous improvement tools to achieve targets
• Department carries out on-going assessments
• Finance Department identifies new elements to improve until 3 year target is achieved

 4.      What are the benefits of the VSOP Tool?

• Drives progress towards world-class performance
• Encourages teams to be self-directed
• Everyone works from the same set of measurements—each level clearly de- fined
• Reduces financial risk
• Improves morale and motivation

5.      What do the levels mean?

1          At risk, reactive, no systems or controls, many issues

2          Some awareness of issues and a few improvements being made

3          Getting the basics right but frequent problems

4          Better than average performance

5          World-class, seamless, automatic