This is a presentation I created many years back, early in my career. It is quite extensive and designed to be more of a multi-day training program, than a one-stop presentation. Most of the models, processes, materials, etc. I owe to Professors Scott Sink and Harold Kurstedt, Virginia Polytechnic Institute and State University, Industrial and Systems Engineering. Awesome theories and ways of thinking that had a profound influence on my understanding, future learning, and eventual practice.

1. Strategic Management
Gene Lorenzo

2. Agenda
¨ Management Systems engineering
¨ Management Systems
¨ Performance Improvement
¨ Strategic Management Process
¨ Performance Measurement
¨ Management Systems Analysis

3. Acknowledgments
¨ Much of the materials and models in this
presentation were developed by:
• Dr. Scott Sink, Director of the Virginia Quality
and Productivity Center, Virginia Tech.
• Dr. Harold Kurstedt Director of Management
Systems Laboratory, Virginia Tech.

4. Introduction

5. Human
System
Work
System
Reward
System
System-Wide Improvement
Requires:
¨ Us to answer management questions that
include interrelated aspects of
economics, technology, and people
shown here as reward, work, and human
systems.

6. System-Wide Improvement
Requires: (Cont’d)
¨ New techniques and a new philosophy.
¨ Significant improvement in management
tools and their use.
¨ Profound knowledge and a grand
strategy.
¨ That we apply the principles, models, and
techniques of the engineering process to
the management process.

7. Management Systems Engineering
MSE

8. MSE is Both a Technique and a
Philosophy
¨ Unlike traditional problem-solving
techniques, Management Systems
Engineering focuses on the whole
organization as a complex being, a
system with a myriad of interrelated and
interdependent parts.
¨ It is the synthesis of people, processes,
tools, and information.

9. MSE is Both an Art and a Science
¨ In MSE we must recognize the emotional
component of organizational
effectiveness. Culture and motivation are
important for stability and synergy in the
organization.

10. Management Systems Engineering
Management
Process
Engineering Process
Systems Approach

11. The Engineering Process
Engineering Process

12. The Management Process
Management
Process

13. Interventions Organization Performance
Theory
Tools
and
Methods
Skills
Techniques
Organization
Model(s)
(Feedback)
.
.
.
.
.
1.
2.
Criteria
3.
4.
.
.
.
The Management Process can be
Viewed from Two Perspectives

14. The Systems Approach
Systems Approach

15. How do We Apply Engineering to
the Management Process...
¨ And not lose sight of the “system?”
Management
Process
Engineering Process
Systems Approach

16. To Answer, We Must First Understand
Management Systems
¨ A Management system can be
modeled...

17. Who
manages
What is
managed
What is used
to manage
A Management System has Three
Primary Components

18. Who manages
What is
managed
What is used
to manage
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
...And Three Primary Interfaces

19. Who manages
What is
managed
What is used
to manage
Decisions
Actions Measurement
Data
Information
Portrayed
Information
Perceived
Managers and Engineers Have
Different Perspectives
Manager’s Perspective Engineer’s Perspective

20. What are the Components and
Interfaces?
Improvement
interventions
and techniques
Measurement
techniques & systems:
data collection process
Measurement & evaluation
“tools” & techniques: data
“massaging” process
Decisions
Actions Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system

21. Every Organizational System has
Inputs and Outputs
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

22. A Management Team has Other
Audiences to Consider
IMPROVEMENT
INTERVENTIONS &
TECHNIQUES
MEASUREMENT
TECHNIQUES & SYSTEMS:
data collection process
MEASUREMENT & EVALUATION
“TOOLS” & TECHNIQUES: data
“massaging” process
Decisions
Actions Measurement
Data
Information PortrayedInformation Perceived
• MANAGER
• MANAGEMENT TEAM
• EMPLOYEES
MEASUREMENT &
EVALUATION SYSTEMS
output/visibility
ORGANIZATIONAL
SYSTEM
Downstream
systems
Upstream
systems
OTHER AUDIENCES: upper
management, boss,
Headquarters, etc.

23. IMPROVEMENT
INTERVENTIONS &
TECHNIQUES
MEASUREMENT
TECHNIQUES & SYSTEMS:
data collection process
MEASUREMENT & EVALUATION
“TOOLS” & TECHNIQUES: data
“massaging” process
Decisions
Actions Measurement
Data
Information PortrayedInformation Perceived
• MANAGER
• MANAGEMENT TEAM
• EMPLOYEES
MEASUREMENT &
EVALUATION SYSTEMS
output/visibility
ORGANIZATIONAL
SYSTEM
Downstream
systems
Upstream
systems
OTHER AUDIENCES: upper
management, boss,
Headquarters, etc.
Putting it all Together, A
Management System Looks Like This

24. This Subsystem of the MSM Focuses
on Planning
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

25. This Subsystem Focuses on Action
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

26. And, This Subsystem Focuses on
Measurement
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

27. The MSM Flows Counterclockwise
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

28. This is the Basic PDSA Cycle
Preached by Deming
Plan
Do
Study
Act
Implementation
planning &
Management
Continuous performance
improvement measurement
Accountability
mechanics
Participatively develop
goals and objectives

29. Strategies Measures
Actions
To Achieve Excellence; Strategies,
Actions, and Measures Must Align

30. Achieving Alignment, Requires that
We:
¨ Understand performance.
¨ Develop a strategic management
process capable of achieving alignment.
¨ Successfully implement the process.

31. Understanding Performance

32. Managers Have at Least Two
Primary Responsibilities
¨ Get the job done, within quality
specifications, with the right amount of
resources.
¨ Continuously improve individual, group,
organizational, and systems
performance.

33. A = Administer the business (get the job
done)
B = Build the business (continuously
improve)
C = Cater to crisis (fight fires)
Managers Spend Their Time Doing
Three Things

34. A C A B
C
A C
B
JIT QAT TQM NWG BPE
Past/Present Present Future
Time
Planning & Measurement Help to
Drive a Wedge Between A & C

35. Performance Improvement
BBuilding the business...

36. Understanding is a Prerequisite to
Improvement
“You can not improve that which you
can not operationally define.”
Edwards W. Deming

37. How Would You Define
Performance...For a Race Car?

38. What About for a Combat Aircraft?

39. How About for an Organization?

40. Or, Better Yet, for an Organizational
System?
•Customers
•Suppliers
•Vendors
•Specs.
•Etc.
•Customers
•Distributors
The
Organization
Inputs Outputs
Upstream
Systems
Downstream
Systems
Value-Adding
Process
Labor
Capital
Energy
Materials
Information
Products
Services

41. Performance is a Function of Seven
Criteria
• Efficiency
• Effectiveness
• Innovation
• Productivity
• Quality of Work Life (QWL)
• Profitability/Budgetability
• Quality

42. •Customers
•Suppliers
•Vendors
•Specs.
•Customers
•Distributors
The
Organization
Inputs OutputsUpstream Systems Downstream SystemsValue-Adding Process
BUDGETABILITY
PRODUCTIVITY
QWLEFFICIENCY
INNOVATION EFFECTIVENESS
QUALITY
Q1 Q2 Q3 Q4 Q5
The Performance Criteria Relate to
the Organizational System

43. Effectiveness
¨ The actual accomplishment of the “right”
things, on time, and within the quality
requirements specified.

44. Efficiency
¨ Resources expected, predicted,
forecasted, or estimated to be
consumed divided by the resources
actually consumed.

45. Innovation
¨ The creative process of changing; what
we’re doing, how we are doing things,
structure, technology, products, services,
methods, procedures, etc. to successfully
respond to internal and external
pressures, opportunities, challenges, and
threats.

46. Productivity
¨ The relationship between what comes out
of an organizational system divided by
what goes in.

47. Quality of Work Life
¨ The effective response or reaction of the
people in the organizational system to
any number of factors, such as pay,
working conditions, culture, leadership,
autonomy, amount of involvement in
planning, problem solving, and decision
making.

48. Budgetability
¨ A measure or set of measures of the
relationship between budgets and
agreed upon goals, deliverables, and
timeliness with actual costs and actual
accomplishments and timeliness.

49. Quality
¨ Quality is pervasive; it is operationally
defined at five points in the organization’s
value-adding chain.

50. TQM Means Managing Quality at
Five Key Points
• Q1: Selection and management of upstream
systems, including: design and development
of products and services, communication of
specifications and requirements, and
selection of vendors and suppliers.
• Q2: Confirmation that your organizational
system is receiving from the upstream
systems what it needs, wants, expects, and
deserves.
• Q3: Building quality into the product or
service.

51. TQM Means Managing Quality at
Five Key Points (Cont’d)
• Q4: Assurance that what is coming out of the
organizational system meets the
specification, requirements, and
expectations established.
• Q5: The proactive, detailed understanding of
what your customers want, need, expect,
and demand, as well as how they are
reacting to the delivery of the goods and
services you are providing.

52. •Customers
•Suppliers
•Vendors
•Specs.
•Customers
•Distributors
The
Organization
Inputs OutputsUpstream Systems Downstream SystemsValue-Adding Process
BUDGETABILITY
PRODUCTIVITY
QWLEFFICIENCY
INNOVATION EFFECTIVENESS
QUALITY
Q1 Q2 Q3 Q4 Q5
The Performance Criteria Relate to
the Organizational System

53. Efficient
Quality
Effective
Productive
QWL and
Innovation
Profitable or
Budgetable
Excellence
If the organizational
system is
It will very
likely be
And if it manages
It will very
likely be
To achieveAnd if it manages
Left-to-Right Drive
Right-to-Left Drive
ACHIEVING BALANCE
We Can Look at Their Relationship
as a System

54. Developing a Process Capable of
Achieving Alignment

55. The Strategic Management Process
1
Organizational
Systems Analysis
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits2
3

56. ¨ The process by which you plan is as
important as the plan itself.
¨ Those who must implement the plan must
be involved in its development.
¨ We are more likely to act our way into a
new way of thinking than to think our way
into a new way of acting.
¨ Top management support and
involvement is a precondition for success.
Guiding Principles

57. ¨ Generation of ownership for the plan.
¨ Integration of improvement activities.
¨ Timely completion and distribution.
¨ Effective improvement.
¨ Improved collective understanding.
¨ Development of management’s ability to
take a strategic view of the business.
Desired Outcomes

58. ¨ Be a group-oriented process, allowing us
to tap the wisdom of the entire “team.”
¨ Efficiently use the team’s time, requiring
less than five days per year.
¨ Be structured but not overly formal.
¨ Begin with a vision of the future, but lead
to actions that can be initiated “Monday
morning.”
Design Specs.

59. Step 1: Organizational Systems
Analysis
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

60. Purpose
¨ To prepare the management team for
planning.
¨ To improve the collective understanding
of the organization.
¨ To open the minds of the management
team.

61. ¨ Mission
¨ Vision
¨ Input/output analysis
¨ Guiding principles
¨ Roadblocks
There are a Number of Things a
Management Team can do in OSA

62. ¨ Current performance levels
¨ Internal and external strategic analysis
(SWOT)
¨ Strategic assumptions
Things the Management Team can
do in OSA (Cont’d)

63. Step 2: Strategic Objectives
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

64. Purpose
¨ To define what the management team
wishes to have accomplished in the next
7 years.

65. Components
¨ A prioritized list of strategic objectives.
¨ An expanded definition for each top-
ranked strategic objective.
¨ A strategy statement for each top-ranked
strategic objective.
¨ An audit of the strategic objective
against the organization’s mission, vision,
and desired outcomes.

66. Step 3: Tactical Objectives
1
Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

67. Purpose
¨ To identify where devoting resources (the
next 0 to 2 years) would lead toward the
accomplishment of the strategic
objectives.

68. Components
¨ A prioritized list of tactical objectives.

69. Step 4: Implementation Planning
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

70. Purpose
¨ To determine how to proceed with
implementation of the tactical objectives.
They should be assigned as an:
• Individual’s job, functional lead, or action
team.
¨ Who will:
• Proceed with ongoing activity, table,
proceed with implementation plan, or
monitor and maintain.

71. Components
¨ An accountability matrix.
¨ For selected tactical objectives, an
action plan/scoping proposal may be
developed.
¨ For each top-ranked tactical objective,
implementation indicators are
developed.

72. “How to Move Forward?”
Tactical Objective
How Should it be
Assigned?
1. Ongoing activity
1. Individuals job
2. Functional lead
3. Action team
2. Defer
3. Implementation plan
#
How Should We Move Forward?
4. Monitor and Maintain
Rank

73. Scoping Proposals
Tactical Objective No._______ 12/15/93
TELCOMMS 94
Goals
1.
2.
Individual/Function/Team:__________________________
Milestones:
Item No. Date Description
Critical Success Factors:
1.
2.
3.

74. Step 5: Implementation
Management
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

75. Purpose
¨ To manage implementation of assigned
tactical objectives. This is the doing step.

76. Components
¨ Planning
¨ Organizing
¨ Executing
¨ Measuring
¨ Evaluating

77. Strategy
¨ Those assigned responsibility for
tactical objectives are expected to
self-manage implementation.
¨ They should seek help or approval as
needed.
¨ They can bring others into the project,
but must themselves remain involved.

78. Strategy (Cont’d)
¨ Complete delegation in developing the
tactical objectives is often ineffective.
¨ Implementation management continues
as a part on of the implementation,
review, and evaluation process of step 7.

79. Step 6: Performance Measurement
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

80. Purpose
¨ To develop a system that will tell the
management team how the
organizational system is performing, if it is
improving, and/or “in control.”

81. Components
¨ A review of the organization’s existing
measurement system.
¨ A review of key decisions the
management team must make.
¨ Identification of data leading to pieces of
information that will enhance the
management team’s decision making
abilities.
¨ A prioritized list of measures.

82. Components (Cont’d)
¨ An audit of the top ranked measures
against the 7 performance criteria,
organizational components, and key
decisions.
¨ Data collection and “massaging.
¨ Portrayal and evaluation of the
information.

83. Step 7: Implementation, Review,
and Evaluation
1 Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

84. Purpose
¨ Share information, review and evaluate
process, and promote effective
implementation.

85. Components
¨ 1st quarterly review:
• Process the process
• Review progress
¨ Mid-year review:
• Process the process (mid-course corrections)
• Review progress
• Revisit selected step(s) of the process

86. Components (Cont’d)
¨ 3rd quarterly review:
• Process the process (focus on the next cycle)
• Review progress, examine output from
visibility system
¨ Annual recycle:
• Review progress to date
• Update/enhance the strategic plan
• Process the process

87. Questions!

88. Measurement
LT Gene Lorenzo

89. Force Field Analysis
FORCES FOR FORCES AGAINST
• Fear of exposing poor performance.
• Fear of exposing good performance.
• Perception of more time, effort, &
paperwork.
• Fear of loss of autonomy.
• Information overload (data rich
information poor).
• Previous misuse & abuse of
measurement.
• Fear of failure.
• Lack of skill & measurement masters.
• Fear of unknown outcomes &
consequences of measurement.
• Paradigms regarding measurement.
• Incompatible reward systems - no
incentive.
• Know if you are improving.
• Better information leading to better
decisions.
• Actions aligned with strategies.
• Better ability to spotlight good
performance.
• Improves our ability to compete for
resources.
• Necessary to achieve excellence.
• Helps us to know if our vision is
achievable.
• Helps us focus on what's important.
• Helps to manage culture.
• Necessary to detect and maintain
control.
• Improved attention to detail.
• Making the best use of our scarce
resources.

90. Crafting a Measurement Process
2.0 Prepare to
Measure
3.0 Design a
Process
4.0 Develop
the Process
3.2 Discover
Needs
3.3 Craft
Measures
4.1 Operation-
alize Measures
4.2 Operation-
alize Process
2.1 Conduct
Planning
2.4 Review
Planning
3.1 Delimit the
Process
2.2 Lay a
Foundation
2.3 Build an
Infrastructure
1.0 Decide to
Measure
1.1 To
Control
1.2 To
Improve
1.3 To Facilitate
Change
1.4 To Validate
and Support
Craft a Measurement
Process
5.0 Implement
the Process
6.0 Enhance
the Process
5.1 Establish
Measurement
5.2 Evaluate the
Information
6.1 Cycle
the Process
6.2 Contin-
uously Improve
6.3 Institution-
alize Process
5.3 Link to
Improvement
4.3 Conduct
Training

91. Why Do Organizations Measure?
1.2 To
Improve
1.3 Facilitate
Change
1.4 Validate
& Support
1.1 To
Control
Determine Need
to Improve
Learn from
Interventions
Ascertain Pro-
gress & Effect
Monitor and
Set Standards
Change
Behavior
Change
Culture
1.0 Decide to
Measure

92. Why Do Organizations Measure?
1.2 To
Improve
1.3 Facilitate
Change
1.4 Validate
& Support
1.1 To
Control
Determine Need
to Improve
Learn from
Interventions
Ascertain Pro-
gress & Effect
Monitor and
Set Standards
Change
Behavior
Change
Culture
1.0 Decide to
Measure

93. Preparing the Organization to
Measure
2.1 Conduct
Planning
2.2 Lay a
Foundation
2.3 Build an
Infrastructure
2.4 Review
Planning
Involve & get
Buy-in
Hire a Team
of Consultants
Identify/Train
Masters
Form Develop-
ment Teams
2.0 Prepare to
Measure
Long-Range
Plans
Tactical
Plans
Interventions
Understand
Resistance
Organizational
Analysis
Review Plans
Review
Interventions
Review Org.
Analysis

94. Designing a Measurement Process
3.2 Discover
Needs
3.1 Delimit
Domain
3.0 Design a
Process
Expectations &
Requirements
Specific
Problems
Define the
Scope
Identify the
Customer
Decisions to
Support
3.3 Craft
Measures
Decide What
to Measure
Review the
Measures
Determine Info
Requirements
Translate

95. Developing a Measurement Process
4.1 Operation-
alize Measures
4.3 Conduct
Training
Decide How to
Collect Data
Decide How to
Store Data
4.0 Develop
the Process
Decide How to
Process,
Convey, and
Portray Data
4.2 Operation-
alize Process
Document the
Process
Develop
Training

96. Implementing a Measurement
Process
5.2 Evaluate
the Information
5.3 Link to
Improvement
Provide input to
Planning
Problems
Make Decisions
and take Action
5.1 Establish
Measurement
Measure
Work Through
the Process
Make Minor
Adjustments
Work Through
the Process
Make Minor
Adjustments
5.0 Implement
the Process

97. Enhancing a Measurement Process
Continuously
Improve
Institutionalize
the Process
Cycle Through
the Process
6.0 Enhance
the Process

98. Management Systems
Analysis!
We Can Look at the Process From
the Perspective of the MSM

99. Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
If You Recall, the Management
Systems Model Looks Like This

100. Management Systems Analysis is...
¨ A process of systematically walking
through the MSM and answering key
questions focused at developing a
measurement system.

101. MSA Flows Clockwise
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems

102. MSA has Five Steps
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
1
2 4
3 5

103. Step 1 is Understanding the
Organizational System
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
1

104. MSA Step 1: Organizational Systems
Analysis
¨ Define target system.
¨ Discuss purpose of measurement.
¨ Conduct audience analysis.
¨ Review of upline strategic plans.
¨ Review of target system strategic plans.

105. Organizational Systems Analysis
(Cont’d)
¨ Define, operationally, performance for
the target system.
¨ Conduct an existing measurement
system audit.
¨ Confirm accepted guiding principles for
measurement.
¨ Conduct force-field analysis and design
communications plan

106. Step 2 Identifies Performance
Improvement Interventions
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
2

107. MSA Step 2
¨ From the Strategic Performance
Improvement Plan, identify, and revisit
the strategies developed for performance
improvement for the target system and
upline systems.
• Review ongoing improvement interventions.
• Review improvement techniques in use.
• Review action plans and scoping proposals.

108. Step 3 Focuses on Decisions and
Supporting Measures
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
3

109. MSA Step 3
¨ Decide what to measure.
¨ Identify information the management
team needs to confirm that the target
system is performing & improving.
• Develop consensus measures for
performance using the NGT.
• Apply AIM to those measures.
• “Operationalize” the measures.

110. Deciding What to Measure
¨ Measure what's important!
¨ Keep it simple!
¨ Develop families of measures!

111. The Performance Pyramid
Market Financial
Vision
Customer
Satisfaction Flexibility Productivity
Quality Delivery
Cycle
Time Waste
Operations
Objectives
Measures
External
Effectiveness
Internal
Efficiency

112. The Performance Pyramid & the 7
Performance Criteria
Market Financial
Vision
Customer
Satisfaction Flexibility
Productivity
Quality Delivery
Cycle
Time Waste
Operations
Effectiveness Efficiency
Innovation Budgetability
QWL

113. NGT
¨ The Nominal Group Technique (NGT) is a
participative data collection and
consensus forming tool.
• Useful where individual ideas need to be
tapped but group consensus is essential.
• Involves an individual round-robin feedback
process, followed by clarification of ideas,
consolidation, ranking, and sorting.
• Result is a prioritized list of the ten or so most
important items, in this case measures.

114. The Audit to Improve Measurement
(AIM) Technique
Measures
Audit
Factors
5 - 7 Measures
Program Objectives
Performance Criteria
•
•
•
•
•
•
Organizational System
Other CSF
X
X
X
X
X X
X
X

115. Operationalizing the Measures
¨ Construct the measures.
¨ Develop operational definitions.
¨ Decide how to collect, store, and retrieve
the data.
¨ Decide how to convert the data into
information and portray it.
¨ Decide how the information will be used.

116. Step 4 Focuses on the Data
Collection, Storage & Retrieval
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
4

117. MSA Step 4
¨ Identify data required, sources, and
collection devices.

118. Step 5 Focuses on Data Conversion
Info Portrayal
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
5

119. MSA Step 5
¨ Identify how to convert the data into the
needed information
¨ Address the storage, retrieval, processing
and portrayal questions.
¨ Select approaches, methods, tools, and
techniques for processing data.

120. MSA Steps 3, 4, and 5 Focus on
Measurement
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
3
4
5

121. Step 6 is Implementing and
Managing the Process
¨ Finalize and document your
measurement system development plan
¨ Develop and maintain the visibility system
and recycle the design and development
process as an integral part of the SMP
step 7.
¨ Constantly and continually improve
measurement systems.

122. Conclusion

123. Performance Management
Improvement
interventions and
techniques
Measurement techniques
and systems: data
collection process
Measurement and evaluation
“tools” and techniques: data
“massaging” process
Decisions
Actions
Measurement
Data
Information
Portrayed
Information
Perceived
• Manager
• Management team
• Employees
Measurement and
evaluation systems
output/visibility
Organizational
system
Downstream
systems
Upstream
systems
1
2 4
3 5
1
Organizational
Systems Analysis
2
3
4
5 6
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators
Continual
Improvement
Expanded Definitions,
Strategies, & Audits

124. Interrelationship Between MSA and
the SMP
2
3
4
5
Strategic
Objectives
Tactical
Objectives
Implementation
Planning
Implementation
Management
1
Organizational
Systems Analysis
6
Performance
Measurement
7
Implementation
Review & Eval.
Implementation
Indicators

125. Planning is a Prelude to
Measurement
?
¨ Measures not linked to strategies
are like hammers looking
for nails to pound!

126. Measuring A While Hoping for B
A
“I hope
B”

127. Management by Information and
Data
¨ Management without information and
data is like throwing darts . . .In the dark!

128. What is the Difference Between
Process and Program Measures?
¨ Unit of analysis
¨ Definition of success/performance criteria
¨ Focus
¨ Emphasis
¨ Scope

129. Questions!
LT Gene Lorenzo
Telephone: 267-1252
E-Mail: LT G Lorenzo/G-T