Topic 4A Performance Management Flashcards
DEFINITION of Performance Management
The ongoing ASSESSMENT and IMPROVEMENT of key business processes in order to drive SUPERIOR results.
GOAL of Performance mgmt
To improve FASTER and BETTER than competition
How does Performance Mgmt work?
Focuses on capabilities/processes
ELEMENTS of Performance Mgmt(3)
A. Process Mgmt
B. Business assessment/ measurement
C. Business Improvement
Performance Mgmt is not sufficient. Successful firms also need?(7)
Develop effective STRATEGIES Design and build effective ORGANIZATIONS Continue to LEARN and INNOVATION Have sufficient RESOURCES Build defensible POSITIONS Consistently outperform COMPETITORS Anticipate and outmaneuver disruptive TECHNOLOGIES
Elements of PROCESS Mgmt – DEFINE
Use flow charts to identify customers, suppliers, and those who perform key steps in the process (SIPOC Model)
Elements of PROCESS Mgmt – MEASURE
Create OUTCOME measures and PREDICTIVE measures that allow complete understanding of process performance
Elements of PROCESS Mgmt – ANALYZE
Use the measures and process maps to understand the performance of the process vs. goals and benchmarks
Elements of PROCESS Mgmt – IMPROVE/ INNOVATE
Make improvement a routine activity using basic/ advanced tools & methods.
Elements of PROCESS Mgmt – CONTROL
Make sure the process and improvements continue to provide CONSISTENT, PREDICTABLE performance
Role of Process Mapping(6)
Describe the process visually
Clarifies the STEPS/sequence in the process
Clarifies WHO performs
Identifies HOW the work flows through the organization
Identifies WHERE the KEY LINKAGES are with other parts of the org
Helps to identify areas for IMPROVEMENT
Business Assessment
Comprehensive evaluation of business performance and business process management against a core set of fundamental business excellence CRITERIA
Business excellence CRITERIA categories(6)
Key role of LEADERSHIP CUSTOMER focus Process Mgmt/ High performance Environment Fact-based Mgmt & Evaluation Improvement & Innovation Continuous Assessment & Renewal
Key roles of leaderships
Create and communicate a clear VISION and DIRECTION for the business and full align the organization in support. Build CAPABILITIES for future success while delivering CURRENT RESULT by effectively balancing long term and short term PRIORITIES
Customer Focus
Design, develop and deliver products and services based on an accurate understanding of, and a commitment to, creating true VALUE for the customer that is superior to COMPETITIVE options.
Process Mgmt/ High performance Environment
Use a process-based view of work that integrates MULTIPLE FUNCTIONS working in collaboration to create a high performance environment.
Fact-Based Mgmt & Evaluation
Use a system of balanced measures that are aligned with the business goals and strategy. Include outcome and driver metrics that are both leading and lagging indicators of performance. Benchmark against standards of excellence as well as competitors.
Improvement & Innovation
Use proven improvement methodologies to address strategic needs and performance gaps. Use highly competent improvement experts who rely on a common language and toolset and who are skilled in collaboration and project leadership. Seek to find new, innovative ways to create value for customers and the organization.
Continuous Assessment & renewal
Use comprehensive criteria to routinely assess the business and validate findings through and independent review. Develop clear strategies to sustain and enhance business results in the future. Align plans, policies and practices to support these strategies.
The Well-dressed Measure
CLEAR DESCRIPTION of the outcome being measured with link to strategic objective
All axes and data are clearly labeled
Provides comparisons to: prior periods, goals, and benchmarks (including competitors, if available)
Identifies the owner of the measure (person responsible for preparing/updating)
Indicates the date of the last update
Indicates any current improvement initiatives specifically directed at improving this result and projected timing and impact
Clearly states the current performance status and provides comments on the results shown in this measure
