9. Business Performance Management

Question 0

According to Letts, Ryan and Grossman, organisational effectiveness requires what four capacities?

Answer 0

Management capacity
Adaptive capacity
Leadership capacity
Technical capacity

MALT

Question 1

To what seven areas may business performance management be applied?

Answer 1

Organisation as a whole
Individual employees
Departments, divisions and functions
Processes and systems
Programmes, projects and initiatives
Products and services
Teams

Question 2

— capacity is the ability to adjust in response to changes in the external environment and meet the needs of customers

Answer 2

Adaptive

Question 3

— capacity is the ability to set direction for the organisation through setting strategic goals, vision and mission

Answer 3

Leadership

Question 4

— capacity is the ability to use resources efficiently and effectively

Answer 4

Management

Question 5

— capacity is the ability to implement processes that lead to customer satisfaction

Answer 5

Technical capacity

Question 6

Improvements in what four areas identified by Blumenthal may achieve organisational effectiveness?

Answer 6

Programme quality
Organisational stability
Organisational growth
Financial stability

POOF

Question 7

Performance management should be fully — into normal routines and processes.

Answer 7

Integrated

Question 8

Briefly describe the stages for introducing and implementing performance management

Answer 8

Review strategic priorities
Devise SMART performance indicators
Draft detailed implementation plan
Performance review or audit
Rewards/remedial action where appropriate

Question 9

What fives steps for performance management did the Office of Government Commerce set out?

Answer 9

Identify current level of maturity
Identify priority areas for performance management
Decide how to resolve mismatch between first two steps
Frame overall vision placing BPM at heart of processes and culture
Use information gathered from monitoring to improve performance

Question 10

What six critical success factors for performance management were identified by the Office for Government Commerce?

Answer 10

Focus on outcomes not outputs
Whole organisation approach
Regular review and updating
Combine short and long term measures
Measure both effectiveness and efficiency
Link rewards and bonuses to performance

Question 11

When choosing metrics for performance management, care should be taken over what two points?

Answer 11

Metric should reflect intended goal

Information can be readily collected

Question 12

The Office for Government Commerce advised that metrics should be what three things?

Answer 12

Directional - move you in the right direction
Quantitative - can see what achieved and required
Worthwhile - tell you something worth knowing

Question 13

The thinking behind Total Quality Management (TQM) is that anything less than quality in — — is wasteful in terms of resources.

Answer 13

All processes

Question 14

What does TQM stand for?

Answer 14

Total Quality Management

Question 15

What does EFQM stand for?

Answer 15

European Foundation for Quality Management

Question 16

What five ‘enablers’ within an organisation does EFQM model use to produce excellence in performance?

Answer 16

Leadership
People
Partnership
Resource
Processes

Question 17

What are the eight core concepts of EFQM?

Answer 17

Focus on results
Focus on customers
Consistent leadership from top
Embedding excellence
Investing in development of people
Continuous improvement and innovation
Developing and sustaining partnerships
Strong corporate social responsibility

Question 18

Who developed the six sigma method of performance management?

Answer 18

Motorola

Question 19

The — — method of performance management is used to identify and eliminate defects in production and processes that may cause a failure of customer satisfaction.

Answer 19

Six sigma

Question 20

In six sigma projects, there is an emphasis on — outcomes from projects

Answer 20

Financial

Question 21

In six sigma projects, there is an emphasis on the use of — and — data rather than assumptions and guesswork.

Answer 21

Measurable

Verifiable

Question 22

What is the six sigma target for defects?

Answer 22

3.4 in a million

Question 23

Into what four quadrants is the balanced scorecard divided?

Answer 23

Customer
Learning and growth
Internal processes
Finance

Question 24

How does the balanced scorecard method work?

Answer 24

Managers arrange their high level strategic aims under the four broad headings, and develop SMART targets that are then reported on a regular basis.

Question 25

To be effective, the balanced scorecard needs to be limited to a relatively — — of the most important indicators.

Answer 25

Small selection

Question 26

— of customers and products should feature among the metrics with the Customer quadrant of the balanced scorecard to avoid placing emphasis on any one group.

Answer 26

Segmentation

Question 27

A mix of — — and — processes should be included in the internal processes quadrant of the balanced scorecard.

Answer 27

Mission-focused

Support

Question 28

What measures are likely to feature in the financial quadrant of the balanced scorecard?

Answer 28

Income
Expenditure
Profitability
Return on capital
Reserves
Share value

Question 29

The balanced scorecard gives a picture of both — and —.

Answer 29

Operations and strategy