The Performance Organiser Integrating Techniques.

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The Performance Organiser Integrating Techniques.

  1. 1. The Performance Organiser Integrating Techniques……….
  2. 2. Copyright JIT Software Limited Y2K Designing and Building a Performance Management System <ul><li>Concepts (1)….. </li></ul><ul><li>There are no mandated and internationally agreed methods for designing and writing “strategy” </li></ul><ul><li>A strategy should be based on an organisations core capabilities and values. </li></ul><ul><li>A strategy should have clear and unambiguous objectives that define where the organisation wants to go. </li></ul><ul><li>Objectives should be grouped into, short term “tactical” and long term “strategic” </li></ul><ul><li>The steps that need to be taken to reach objectives by default are processes </li></ul><ul><li>Each and every process will have a “measurable transaction” of one form or another </li></ul>
  3. 3. Designing and Building a Performance Management System <ul><li>Concepts (2) ….. </li></ul><ul><li>Strategy will cascade (higher level objectives, will affect lower level action and in turn generate lower level objectives and processes). </li></ul><ul><li>It should be possible for each and every organisation member to identify his or her place in the scheme of things </li></ul><ul><li>Mission and Vision statements are not advertising slogans </li></ul>Copyright JIT Software Limited Y2K
  4. 4. Designing and Building a Performance Management System <ul><li>Concepts (3) ….. </li></ul><ul><li>Performance Measurement should be designed from the outset to support strategy </li></ul><ul><li>Performance Measurement is about continuous improvement of a “ system ” </li></ul><ul><li>To design a PM system, it is fundamental that there is a structured coherent business planning system in place </li></ul><ul><li>There are no mandated and agreed standards in this field, there is no route map… </li></ul><ul><li>Therefore, adopt and adapt accepted best practice… </li></ul>Copyright JIT Software Limited Y2K
  5. 5. <ul><li>Concepts (4)….. </li></ul><ul><li>When writing strategy, one of the key aims must be to get the best value out of all available resources to achieve your aim. </li></ul><ul><li>When writing strategy, “cause and effect” should be born in mind </li></ul><ul><li>Performance measurement must provide the means to show the interrelationship of “cause and effect” </li></ul><ul><li>Performance measurement should prompt investigation, not blame…. </li></ul><ul><li>Performance measurement is a “systems” tool. </li></ul><ul><li>Performance measurement is about identifying best practice as well as systemic failure </li></ul>Copyright JIT Software Limited Y2K
  6. 6. If you cannot measure it you cannot manage it and you cannot do either without the passage of information The Problem Copyright JIT Software Limited Y2K Money Assets People
  7. 7. <ul><li>Concepts (5)….. </li></ul><ul><li>Many organisations do not have a coherent planning mechanism in place </li></ul><ul><li>Where mechanisms do exist, they are often based on techniques like ISO 9000 or the EFQM </li></ul><ul><li>ISO 9000 and the EFQM are often applied in isolation </li></ul><ul><li>There is often duplication of effort, EFQM people doing similar tasks to ISO 9000 people </li></ul><ul><li>Apply some joined up thinking………. </li></ul>Copyright JIT Software Limited Y2K
  8. 8. UK Government “Quality” Initiatives <ul><li>ISO 9000 </li></ul><ul><li>Investors in People </li></ul><ul><li>The European Foundation for Quality Management Model </li></ul><ul><li>The Balanced Scorecard </li></ul>Actively Sponsored and Promoted by the Cabinet Office Performance and Innovation Unit Copyright JIT Software Limited Y2K
  9. 9. ISO 9000 Process Based, guiding principle is: Say what you do and how you do it. Strong on procedures, supported by external and internal audit. ISO 9000 concentrates on what is and not on what could be Copyright JIT Software Limited Y2K
  10. 10. Investors In People People based The guiding principle is the proper management of human resources Concentrates on personnel issues Lacks a cohesive analysis approach. Copyright JIT Software Limited Y2K
  11. 11. EFQM General purpose analysis technique built around the principle of “ Review to Improve” Forces an holistic approach to examining the way a business works and its effect on society Once you have done the analysis, what do you do with the results? How do you monitor improvement? Copyright JIT Software Limited Y2K
  12. 12. The Balanced Score Card A very powerful reporting mechanism based on key performance measures . Strong on the use of “hard” information No standards, KPI definition is difficult. Copyright JIT Software Limited Y2K Economic (Accounting Measures) Efficient (Benchmarking etc.,) Evolution ( Legislation, Modification Programmes ) Effective (Customer Satisfaction )
  13. 13. Planning Framework…………………………………... Copyright JIT Software Limited Y2K Charter Mission Objectives Process Resource Vision
  14. 14. The EFQM provides a structured analysis method based on the concept of “review to improve”. The main advantage is that it forces a “whole view” approach to be taken of the way an organisation works. One of the Key Products of the application of the EFQM is a set of objectives , that should in principle be built around the concept of improving on the current situation…. Copyright JIT Software Limited Y2K
  15. 15. Planning Framework Including The EFQM Process Resource Copyright JIT Software Limited Y2K Charter Mission Objectives Vision
  16. 16. EFQM derived objectives can then be broken down into individual steps to achieve a business aim . Each objective step is a process. ISO 9000 provides the standards framework on which to base process monitoring Copyright JIT Software Limited Y2K
  17. 17. Planning Framework Including ISO 9000 Process Resource Copyright JIT Software Limited Y2K Charter Mission Objectives Vision
  18. 18. IIP fills a similar function to ISO 9000. Where ISO 9000 concentrates on process, IIP concentrates on Human Resources (HR). IIP provides the framework on which to manage and document HR issues. Copyright JIT Software Limited Y2K
  19. 19. Planning Framework Including IIP Process Resource Copyright JIT Software Limited Y2K Charter Mission Objectives Vision
  20. 20. The EFQM, ISO 9000 and IIP are not in themselves reporting mechanisms Copyright JIT Software Limited Y2K
  21. 21. The Balanced Score Card The Business Balanced Scorecard provides a reporting approach that can be cascaded through an organisation, providing the “face” of a business based information strategy Copyright JIT Software Limited Y2K Economic (Accounting Measures) Efficient (Benchmarking etc.,) Evolution ( Legislation, Modification Programmes ) Effective (Customer Satisfaction )
  22. 22. Planning Framework Data Collection and Delivery Process Resource Copyright JIT Software Limited Y2K Charter Mission Objectives Vision KPI’s
  23. 23. <ul><li>Balanced scorecards are based on the principle of measuring “What you need to know” through the medium of Performance Measures or Indicators </li></ul><ul><li>Using the planning structure described Performance Measures can be defined as </li></ul><ul><ul><li>“ The point at which a measurable transaction can be identified in a business process that is deemed critical to the achievement of an objective ” </li></ul></ul><ul><li>A Performance Measure should be an achievable mean but with tolerances set in such a way as to identify success or failure. </li></ul>Performance Measurement Copyright JIT Software Limited Y2K
  24. 24. <ul><li>As an integral part of the definition of a Performance Indicator you should describe: </li></ul><ul><ul><li>The primary data sources </li></ul></ul><ul><ul><li>The measurement technique (Activity Based Costing, Shareholder Value etc) </li></ul></ul><ul><ul><li>Any “Bad Behaviour” that meeting targets set for the indicator may cause. </li></ul></ul><ul><ul><li>The frequency with which measurements should be taken </li></ul></ul>Performance Measurement Copyright JIT Software Limited Y2K
  25. 25. <ul><li>Performance Measures can be used for </li></ul><ul><ul><li>Processes (data collection) </li></ul></ul><ul><ul><li>Resources (performance reporting) </li></ul></ul><ul><ul><li>Organisation Elements (meeting objectives) </li></ul></ul><ul><li>Performance Measures should be applied both internally and externally to assist in the definition and monitoring of:- </li></ul><ul><ul><li>Agreed Levels of Service Delivery(SLA) </li></ul></ul><ul><ul><li>Output Quality (Fitness for purpose) </li></ul></ul>Performance Measurement Copyright JIT Software Limited Y2K
  26. 26. Top Down Analysis, Bottom Up Reporting Copyright JIT Software Limited Y2K Board Senior Management Middle Management Shop Floor Strategy Action
  27. 27. Suggested Information System architecture after structured business analysis using the EFQM with IIP and ISO 9000, built around Balanced Scorecards (Please note paper based and electronic systems are equally of value and should be included ) Resulting Information System Structure Copyright JIT Software Limited Y2K Data Acquisition Feeder systems ( Data Collection ) Decision Support Business intelligence systems ( Cross Quadrant Links ) Management Information Day to Day Management Information ( Data Delivery ) Drill Down Drill Down
  28. 28. Summary Copyright JIT Software Limited Y2K Use the ISO 9000 and IIP to provide the method and standards against which to define indicators and their application Use the EFQM as an analysis technique Use the Balanced Scorecard to define the reporting mechanism apply the appropriate measurement technique
  29. 29. Copyright JIT Software Limited Y2K <ul><li>Containing as it does the ability to model </li></ul><ul><li>Organisation Structure </li></ul><ul><li>Objectives </li></ul><ul><li>Processes (including resource, supplier and customer interfaces) </li></ul><ul><li>Scorecards (data collection at process, data delivery at organisation element) </li></ul><ul><li>The “ Performance Organiser ” is one of the most cost effective tools of its type capable of supporting the principles outlined in this slide show </li></ul>
  30. 30. <ul><li>Useful URLs </li></ul><ul><li>www.jit-software.com for The Performance Organiser </li></ul><ul><li>http://www.jit-software.com/porg/porgsgle.exe for a Performance Organiser evaluation license </li></ul><ul><li>www.balancedscorecard.org , US Government sponsored site dedicated to performance management in the public sector </li></ul><ul><li>www.cranfield.ac.uk/som/cbp Cranfield University Centre for Business Performance sponsors and manages the Performance Management Forum. </li></ul>Finally Copyright JIT Software Limited Y2K

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