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PERFORMANCE & STRATEGIC INFORMATION MANAGEMENT
1.
Mai 2013 http//www.experts-visions.com Lansana.sakho@experts-visions.com The company
to -go for providing added value to your business Performance Measurement and Strategic Information Management
2.
2© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management A supply of consistent, accurate, and timely data across all functional areas of business provides real-time information for the evaluation, control, and improvement of processes, products, and services to meet both business objectives and rapidly changing customer needs. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
3.
3© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Information ManagementInformation Management n If you don’t measure results, you can’t tell success from failure n If you can’t see success, you can’t reward it – and if you can’t reward success, you are probably rewarding failure n If you can’t recognize failure, you can’t correct it
4.
4© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Customer Requirements Measurements Processes Results Design Control Prediction Validation Use of Information and AnalysisUse of Information and Analysis Measurement supports executive performance review and daily operations and decision making.
5.
5© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Measurement-managed companies are more likely to be in the top third of their industry financially, complete organizational changes more successfully, reach clear agreement on strategy among senior managers, enjoy favorable levels of cooperation and teamwork among management, undertake greater self-monitoring of performance by employees, and have a greater willingness by employees to take risks. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
6.
6© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Benefits of Information Management n Understand customers and customer satisfaction n Provide feedback to workers n Establish a basis for reward/recognition n Assess progress and the need for corrective action n Reduce costs through better planning
7.
7© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Leading Practices (1 of 2)Leading Practices (1 of 2) n Develop a set of performance indicators that reflect customer requirements and key business drivers n Use comparative information and data to improve overall performance and competitive position n Continually refine information sources and their uses within the organization n Use sound analytical methods to conduct analyses and use the results to support strategic planning and daily decision making
8.
8© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Leading Practices (2 of 2)Leading Practices (2 of 2) n Involve everyone in measurement activities and ensure that information is widely visible n Ensure that data are accurate, reliable, timely, secure, and confidential n Ensure that hardware and software systems are reliable and user-friendly n Systematically manage organizational knowledge and identify and share best practices
9.
9© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management To make decisions that further the overall organizational goals of meeting, or exceeding, customer expectations and making productive use of limited resources, companies need good data and information about customers and markets, human resource effectiveness, supplier performance, product and service quality, and other key factors, in addition to traditional financial performance and accounting measures. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
10.
10© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management A good balanced scorecard contains both leading and lagging measures and indicators. Lagging measures (outcomes) tell what has happened; leading measures (performance drivers) predict what will happen. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
11.
11© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Customer MeasuresCustomer Measures n Customer satisfaction and dis- satisfaction n Customer retention n Gains and losses of customers and customer accounts n Customer complaints and war- ranty claims. n Perceived value, loyalty, positive referral, and customer relation- ship building
12.
12© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Product and Service MeasuresProduct and Service Measures n Internal quality measurements n Field performance of products n Defect levels n Response times n Data collected from customers or third parties on ease of use or other attributes n Customer surveys on product and service performance
13.
13© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Human Resource MeasuresHuman Resource Measures n Employee satisfaction n Training and development n Work system performance and effectiveness n Safety n Absenteeism n Turnover
14.
14© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Organizational EffectivenessOrganizational Effectiveness n Cycle times n Production flexibility n Lead times and setup times n Time to market n Product/process yields n Delivery performance n Cost efficiency n Productivity
15.
15© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Social Responsibility MeasuresSocial Responsibility Measures n Organizational accountability n Stakeholder trust n Ethical behavior n Regulatory/legal compliance n Financial and ethics review results n Community service n Management stock purchase activity
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16© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Organizations need comparative data, such as industry averages, best competitor performance, and world- class benchmarks to gain an accurate assessment of performance and know where they stand relative to competitors and best practices. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
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17© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Purposes of PMS n Providing direction and support for continuous improvement n Identifying trends and progress n Facilitating understanding of cause-and-effect relationships n Allowing performance comparison to benchmarks n Providing a perspective of the past, present, and future Performance Management System
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18© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management In designing a performance mea- surement system, organizations must consider how the measures will support senior executive perfor- mance review and organizational planning to address the overall health of the organization, and how the measures will support daily operations and decision making. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
19.
19© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Practical GuidelinesPractical Guidelines n Fewer is better. n Link to the key business drivers. n Include a mix of past, present, and future n Address the needs of all stakeholders. n Start at the top and flow down to all levels of employees n Combine multiple indexes into a single index n Change as the environment and strategy changes n Have research-based targets or goals
20.
20© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Linkages to StrategyLinkages to Strategy Key business drivers (key success factors) Strategies and action plans Measures and indicators
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21© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management The things an organization needs to do well to accomplish its vision are often called key business drivers or key success factors. They represent things that separate an organization from its competition and define strengths to exploit or weaknesses to correct. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
22.
22© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Process-Level MeasurementsProcess-Level Measurements n Does the measurement support our mission? n Will the measurement be used to manage change? n Is it important to our customers? n Is it effective in measuring performance? n Is it effective in forecasting results? n Is it easy to understand and simple?
23.
23© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Good measures and indicators are actionable; that is, they provide the basis for decisions at the level at which they are applied. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
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24© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Creating Effective Performance Measures n Identify all customers and their requirements and expectations n Define work processes n Define value-adding activities and process outputs n Develop measures for each key process n Evaluate measures for their usefulness
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25© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Analyzing and Using Data n Analysis – an examination of facts and data to provide a basis for effective decisions. n Examples ¨ Examining trends and changes in key performance indicators ¨ Making comparisons relative to other business units, competitor performance, or best-in-class benchmarks ¨ Calculating means, standard deviations, and other statistical measures ¨ Seeking to understand relationships among different performance indicators using sophisticated statistical tools such as correlation and regression analysis
26.
26© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Organizations need a process for transforming data, usually in some integrated fashion, into information that top management can understand and work with. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
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27© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Interlinking n Quantitative modeling of cause- and-effect relationships between external and internal performance measures n Facilitated by data mining – the process of of searching large databases to find hidden patterns in data, using analytical approaches and technologies such as cluster analysis, neural networks, and fuzzy logic
28.
28© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Managing Data and Information n Validity – Does the indicator measure what it says it does? n Reliability – How well does an indicator consistently measure the “true value” of the characteristic? n Accessibility – Do the right people have access to the data?
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29© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management In many companies, business information is only accessible to top managers and others on a need-to-know basis. In Total Quality -focused compa- nies, business information is accessible to everyone. KEY IDEAKEY IDEAKEY IDEAKEY IDEA
30.
30© Lansana.sakho@experts-visions.com June 2013 Performance
Measurement and Strategic Information Management Knowledge Management n The process of identifying, capturing, organizing, and using knowledge assets to create and sustain competitive advantage ¨Explicit knowledge includes information stored in documents or other forms of media. ¨Tacit knowledge is information that is formed around intangible factors resulting from an individual’s experience, and is personal and content-specific.
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