This point of view gives a comprehensive insight into what an operational performance management system should look like and how digital developments influence the functioning and value of such a management system. Digital developments allow for more efficient and effective operational performance management systems. Besides, organizations also increasingly become more digital in the way they operate their business which generates vast amounts of valuable data. The challenge for organizations is to unlock the value of digital developments and the data their business generates successfully and integrate this into their operational performance management system to drive its top-line growth and bottom-line profit.
The Distinction Between Business Intelligence (BI) and Corporate Performance ...Mika Aho
Corporate Performance Management (CPM) is often referred as the next generation of Business Intelligence (BI). Yet, not much academic research exists in the area,
and especially in its relationships to other interrelated concepts such as performance management (PM), performance measurement, and data warehousing.
The presentation discusses the differences and similarities between BI, PM and CPM, and the new advancements that CPM brings
to BI. It also introduces a pyramid that links the interrelated concepts together.
This is a lecture I have for female managers from third world countries. It is part of a larger course financed by SIDA - the Swedish foreign aid development agency
What is Business Performance Management?Corporater
In this presentation on Business Performance Management, you will learn:
• The essentials of Business Performance Management (BPM)
• How to align strategy and tactics using BPM
• About BPM software
You will also gain insights on how to run your business more efficiently by measuring, managing and driving performance.
The Distinction Between Business Intelligence (BI) and Corporate Performance ...Mika Aho
Corporate Performance Management (CPM) is often referred as the next generation of Business Intelligence (BI). Yet, not much academic research exists in the area,
and especially in its relationships to other interrelated concepts such as performance management (PM), performance measurement, and data warehousing.
The presentation discusses the differences and similarities between BI, PM and CPM, and the new advancements that CPM brings
to BI. It also introduces a pyramid that links the interrelated concepts together.
This is a lecture I have for female managers from third world countries. It is part of a larger course financed by SIDA - the Swedish foreign aid development agency
What is Business Performance Management?Corporater
In this presentation on Business Performance Management, you will learn:
• The essentials of Business Performance Management (BPM)
• How to align strategy and tactics using BPM
• About BPM software
You will also gain insights on how to run your business more efficiently by measuring, managing and driving performance.
The future and trends in corporate performance managementeCraft Referre
The second part of the program series Business Insight was held 17.3.2016. Robert S. Hull, Founder and Chairman of Adaptive Insights, started by sharing his view on the future and trends in corporate performance management.
Control is the last function of management. Success or failure of planning depends on the success or failure of controlling.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
The nature of management control systemsAbu Nahiyan
Control: The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations.
Management: The process of dealing with or controlling things or people.
System: A system is a prescribed way of carrying out any activity or set of activities.
Management Control Systems: The system used by management to control the activities of an organization is called management control systems.
What is Controlling, Importance, Limitations & Features of Controlling, The Basic Control Process, Characteristics of effective control system, Dimensions of Control, What is Benchmarking, Control as a Feedback System, Feedforward Control, Comparison of Simple Feedback and Feedforward Systems, Requirements for Feedforward Control, CONTROL OF OVERALL PERFORMANCE, PROFIT AND LOSS CONTROL, What is Budgeting?, Productivity, Operations Management, and Total Quality Management, Steps in Product and Production Design, Operations Research, Value Engineering, Mass Production Versus Lean Production Managerial Practices
NYGGS provides a simple & intuitive tool to enable HR to build a culture of regular performance conversations. The Performance Management platform trusted by modern small and medium companies in India. It can integrate with other HR Software, such as payroll and attendance, to make your HR department more productive. Let's automatically evaluate and find insights into improving employee performance!
Get more information here: https://nyggs.com/nyggs/blog/performance-management-systems-3-phases-to-implement/
A guide through the performance management process_2.pdfSidra Aslam
A person spends one third of his life at work. All that human life equates to the time required by businesses and corporations to realize their agendas and profits. However, the relationship between the employer and the employee is not one-sided, on the contrary, that relationship should be two-way.
The future and trends in corporate performance managementeCraft Referre
The second part of the program series Business Insight was held 17.3.2016. Robert S. Hull, Founder and Chairman of Adaptive Insights, started by sharing his view on the future and trends in corporate performance management.
Control is the last function of management. Success or failure of planning depends on the success or failure of controlling.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
The nature of management control systemsAbu Nahiyan
Control: The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations.
Management: The process of dealing with or controlling things or people.
System: A system is a prescribed way of carrying out any activity or set of activities.
Management Control Systems: The system used by management to control the activities of an organization is called management control systems.
What is Controlling, Importance, Limitations & Features of Controlling, The Basic Control Process, Characteristics of effective control system, Dimensions of Control, What is Benchmarking, Control as a Feedback System, Feedforward Control, Comparison of Simple Feedback and Feedforward Systems, Requirements for Feedforward Control, CONTROL OF OVERALL PERFORMANCE, PROFIT AND LOSS CONTROL, What is Budgeting?, Productivity, Operations Management, and Total Quality Management, Steps in Product and Production Design, Operations Research, Value Engineering, Mass Production Versus Lean Production Managerial Practices
NYGGS provides a simple & intuitive tool to enable HR to build a culture of regular performance conversations. The Performance Management platform trusted by modern small and medium companies in India. It can integrate with other HR Software, such as payroll and attendance, to make your HR department more productive. Let's automatically evaluate and find insights into improving employee performance!
Get more information here: https://nyggs.com/nyggs/blog/performance-management-systems-3-phases-to-implement/
A guide through the performance management process_2.pdfSidra Aslam
A person spends one third of his life at work. All that human life equates to the time required by businesses and corporations to realize their agendas and profits. However, the relationship between the employer and the employee is not one-sided, on the contrary, that relationship should be two-way.
chapter 7 Rolling Out the Performance Management Sys.docxspoonerneddy
chapter
7
Rolling Out
the Performance
Management System
Good governance with good intentions is the hallmark of our government.
Implementation with integrity is our core passion.
-Narendra Modi
Learning Objedives
By the end of th is chapter, you will be able to do the following:
1. Prepare the rollout and 1mplementat1on of a new or up- and possibly. a manager 1n the role of arbitrator
dated and rev1sed performance management system by and final decision maker.
sett1ng up a commumcat1on plan. appeals process. rater s. Antic1pate unmtent1onal ratmg errors such as s1milar to
tra1mng program. and pilot test me. contrast. halo. pnmacy. recency. negat1v1ty. f1rst lm-
2. Create a commumcahon plan that answers the followmg key pression. stereotype. and attr1but1on.
quest1ons: What IS performance management? How does 6. Design and 1mplement rater errors. frame of reference.
performance management lit 1n the orgamzabon·s strategy7 and behavioral observat1on trammg programs to mmi-
How does everyone benefrt from the system7 How does the mize the impact of umntent1onal ratmg errors.
performance management system work7 What are every- 7. Devise a pilot test of the performance management system
one's responsrb1ht1es7 How IS performance management using a selected group of employees and managers from
related to other key organrzatronal inrt1at1ves7
3. Prepare interventions aimed at dealing with cognitive
biases (i.e .. selective exposure. selective perception.
selective retention) and resistance to change, involve all
employees and understand their needs. provide facts and
consequences of the system. and use multiple channels of
communication and credible communicators.
4. Devise an appeals process to enhance the integrity of the
performance management system that involves the human
resources (HR) department. a panel of managers and peers.
the organization.
8. As soon as the performance management system is in place.
collect various measurements. such as number of individuals
evaluated, quality of performance informat1on gathered.
quality of performance discussion meetings. user satisfac-
tion with the system. overall cosUbenefit ratio. and unrt- and
organization-level performance indicators-all of these will
provide information regarding the system's effectiveness
and the extent to which it is working the way rt should and
whether it is producing the expected results.
197
1518 Part II System Implementation
Chapters 4 and 5 described operational details about how to define and
measure performance. Chapter 6 described operational details about perfor-
mance analytics- the process of collecting and compiling performance data.
This chapter, the last one in Part II, continues to address operational issues in
implementing a performance management system. Specifically, it addresses
the steps needed to roll out the system, such as setting up good communica-
tion and appeals procedures that will gain system .
chapter 7 Rolling Out the Performance Management Sys.docxmccormicknadine86
chapter
7
Rolling Out
the Performance
Management System
Good governance with good intentions is the hallmark of our government.
Implementation with integrity is our core passion.
-Narendra Modi
Learning Objedives
By the end of th is chapter, you will be able to do the following:
1. Prepare the rollout and 1mplementat1on of a new or up- and possibly. a manager 1n the role of arbitrator
dated and rev1sed performance management system by and final decision maker.
sett1ng up a commumcat1on plan. appeals process. rater s. Antic1pate unmtent1onal ratmg errors such as s1milar to
tra1mng program. and pilot test me. contrast. halo. pnmacy. recency. negat1v1ty. f1rst lm-
2. Create a commumcahon plan that answers the followmg key pression. stereotype. and attr1but1on.
quest1ons: What IS performance management? How does 6. Design and 1mplement rater errors. frame of reference.
performance management lit 1n the orgamzabon·s strategy7 and behavioral observat1on trammg programs to mmi-
How does everyone benefrt from the system7 How does the mize the impact of umntent1onal ratmg errors.
performance management system work7 What are every- 7. Devise a pilot test of the performance management system
one's responsrb1ht1es7 How IS performance management using a selected group of employees and managers from
related to other key organrzatronal inrt1at1ves7
3. Prepare interventions aimed at dealing with cognitive
biases (i.e .. selective exposure. selective perception.
selective retention) and resistance to change, involve all
employees and understand their needs. provide facts and
consequences of the system. and use multiple channels of
communication and credible communicators.
4. Devise an appeals process to enhance the integrity of the
performance management system that involves the human
resources (HR) department. a panel of managers and peers.
the organization.
8. As soon as the performance management system is in place.
collect various measurements. such as number of individuals
evaluated, quality of performance informat1on gathered.
quality of performance discussion meetings. user satisfac-
tion with the system. overall cosUbenefit ratio. and unrt- and
organization-level performance indicators-all of these will
provide information regarding the system's effectiveness
and the extent to which it is working the way rt should and
whether it is producing the expected results.
197
1518 Part II System Implementation
Chapters 4 and 5 described operational details about how to define and
measure performance. Chapter 6 described operational details about perfor-
mance analytics- the process of collecting and compiling performance data.
This chapter, the last one in Part II, continues to address operational issues in
implementing a performance management system. Specifically, it addresses
the steps needed to roll out the system, such as setting up good communica-
tion and appeals procedures that will gain system ...
Paying attention to outcomes pays off in big ways. Yet many companies fail to take the time to systematically figure out how to measure performance. As a result, the business doesn't flourish as it should. Instead, it stagnates. This presentation highlights the nine success factors of a balanced performance scorecard.
“All organisations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things.”
Tom Northup
How to create an effective lean daily work management systemglobalsevensteps
With Lean Daily Work Management System at the core of its operations, an organization will be able to quickly identify deviation, start solving problems and make strategy deployment a success.
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Business Process Management (BPM) staat meer dan ooit in de belangstelling. Organisaties beseffen dat bedrijfsdoelstellingen uiteindelijk door processen gerealiseerd worden. In hoeverre aan belangrijke eisen die aan iedere organisatie gesteld worden, wordt voldaan - denk aan flexibiliteit (‘agility’), voorspelbaarheid (bijvoorbeeld vanuit compliance eisen) en kosteneffectiviteit - is een directe resultante van hoe de processen zijn ingericht.
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De focus op het elimineren van verspilling (en dus kosten) sluit naadloos aan bij het streven naar duurzaamheid en een overgang van \’take-make-waste\’ naar cradle-to-cradle, de oneindige cyclus van ge- en hergebruik. Qua methode is de toepassing van het \’duurzame\’ Lean/Kaizen niet anders dan de \’traditionele\’ versie. Alleen wordt de beperkte focus op de economische kant verbreed: de winst voor de eigen organisatie wordt Profit voor mens en planeet.
BPM – Business Process Management - is a discipline that attracts a lot of interest. Probably even more nowadays, because of the economic turmoil... By placing business processes on centre stage, companies can gain the capabilities they need to innovate, reenergize performance and deliver the value today’s markets demand. An enterprise where BPM is really implemented as a management discipline can make agile course corrections, embeds continuous improvement methods and reduces cumulative costs across the value chain. BPM supports the pursuit of today’s strategic initiatives, including mergers, consolidation, alliances, acquisitions, outsourcing and global expansion.
BPM discovers what you do and then manages the lifecycle of improvement and optimisation, in a way that translates directly to daily operation.
In a collaboration of Capgemini Technology and Capgemini Consulting the publication “Trends in BPM” is a collection of state-of-the-art trends Capgemini’s experts see in the BPM discipline. It includes topics like Lean, Human Centric Processes, process design for agility and Business Activity Monitoring.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
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Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
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A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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2. At a large Dutch bank we implemented
the OPM system, supported by crisp and
clear visual dashboards that showed the
same – and far less than before – KPIs at all
levels. By translating and enriching opera-
tional data from a number of sources to
real process data, business end-users got
tailor-made portals and reports: providing
every role with the information required for
that role – no more, no less - and providing
a “single point-of-truth” and “dynamic action
management” to support the right perfor-
mance dialogue: fact based, on actual data.
Why it is relevant
Now, more than ever
Companies typically have a corporate strategy in place that
covers the overall scope and direction of the organization
and the way in which its various business operations work
together to achieve particular goals. However, performance
management on operationalized objectives derived from this
strategy – operational performance management (OPM) – is
often ill-executed, if done at all. At the same time, survey
after survey reveals that most strategy implementations fail.
A 2015 survey of more than 400 global CEO’s1
found that
executional excellence - translating a strategy into results -
was the number one challenge facing corporate leaders. OPM
provides a mechanism that enables organizations to increase
strategic success, not solely by continuous performance
tracking, but by incorporating corrective actions to steer
in case objectives are not met. Special attention is paid to
OPM in the current digital era, as new technologies enable
organizations to execute OPM more effectively and efficiently.
1
Harvard Business Review, “Making Strategy Work”, March 2015
Performance management as we refer to in this document
should not be confused by the commonly used interpretation
of performance management as “the process by which
managers and employees work together to plan, monitor, and
review an employee’s work objectives and overall contribution
to the organization”. The typical manifestation of the latter are
individual key performance indicators (KPIs) that are being
reviewed during a (semi-)annual employee performance
review. OPM as we see it includes all activities which ensure
that organizational goals are consistently being met in an
effective and efficient manner. This implies that OPM is not
only about looking back at the operational performance of an
organization in the past hours, days or weeks, but also about
decision making on how to improve operational performance
and monitoring the progress of such improvements, making
it a closed-loop management system. To emphasize the
focus on operations in the widest sense, we use the name
operational performance management.
Typical motivation for organizations to establish an OPM
system are the desire for successful strategy implementation,
improved productivity, and improved decision making.
However, what we see at various organizations is that
implemented OPM systems hardly work and don’t bring the
expected value. There are numerous barriers that frustrate a
successful OPM system and that can originate from a diversity
of factors, such as:
• There is a lack of performance culture.
• Goals and objectives are not cascaded throughout
the organization.
• Reliable performance information is not available, or not at
the right moment and in the right format.
• An organization’s KPIs are not a good indicator of what
is happening in the business or are not in line with
strategy.
• An organization does not devote attention to gaining insights
from the data and information that comes from OPM
systems to drive improvement (‘just looking back’).
Whatever the reason for a suboptimal or failing OPM
system may be, this should not have to be the case. We will
demonstrate this by not only giving a comprehensive insight
into what an OPM system should look like, but also showing
the road to reaching the OPM summit in this digital era.
3. What does it look like?
What closed-loop OPM systems should look like
In its bare essence a closed-loop OPM system is quite
straightforward: management formulates strategic objectives
based on the organization’s mission statement. Consequently,
a set of KPIs (including target values) is defined for each
organizational level that is completely in-line and directed
towards achieving that set of objectives. To make it a closed
loop, the performance on KPIs against target values is
monitored and corrective actions, including the monitoring
of the effect of these corrective actions, are added in case
targets are not met. Only in very exceptional cases the target
value itself may be adjusted, following strict guidelines.
Such an OPM system implies that all levels report around
the same set of KPIs, resulting in a very straightforward
management information (MI) process; each level higher
consists of an aggregation of the figures of the levels
directly below.
Figure 1 shows the logic of a closed-loop OPM system in
more detail. The upper layer of the pyramid typically is the
place where strategic objectives and directions are formulated:
what is the “True North” for our organization? All efforts in
the organization should be directed towards these objectives
and in order to be in control of the progress towards them
KPIs are formulated that can be linked back to these strategic
objectives. For example, when timeliness is key for customer
retention, then the (same) KPI about timeliness should be
in place at every level, of course with specific target values.
TRUE
N RTH
Top management
Strategy translation Performance Dialogue
Monitoring strategic
steering
Monitoring & tactical
steering
Monitoring & operational
steering
Monitoring & reporting
Senior executives
Digital technologies
PerformanceDialogue
Operational managers
Employees
Mission Strategy
Strategy Objectives
Objectives Goals
Goals Actions
Figure 1: closed-loop operational performance management system
This is shown by the grey downward arrows, which reflect
the translation of strategic objectives to performance
metrics and accompanying target values on successive
organizational levels.
The pyramid also shows an upward “performance dialogue”
arrow. This arrow represents the management information
flow towards (higher) management levels. Starting at the
operational level, for instance a single shift, employees and
their team-lead typically discuss the last shift’s performance
in a so-called daily stand-up meeting: what did we achieve,
did we reach our target for our KPIs, what issues did we come
across and what is the progress of ongoing improvement
initiatives? For issues that can be influenced it is decided to
solve the issue and an owner is assigned who is responsible
for solving it. If possible issues are assigned at the team
level, only when an issue is “too big/complex” (e.g. cross-
departmental) is it taken to the next level performance meeting
where the same logic is applied. The higher the level where
the action is assigned, the more complex and impactful the
solution will be. For improvements that are limited in time and
impact (“mini-projects”), A3 management2
is used to monitor
progress and results, larger projects will require a more
sophisticated form of project management.
The closed-loop aspect is completed by the yellow
downwards dashed arrows (see figure 1). This refers to the
implementation of corrective actions and the monitoring of the
progress on such corrective actions. Setting up such an OPM
system is a highly structured and visible process promoting
visibility, buy-in, alignment, and team-work.
2
A3 management is a problem solving approach to structure and “discipline”
the improvement process. The one-page format forces concise thinking (get
to the point!). A3 thinking embeds continuous improvement in “business as
usual”.
4. The bigger picture
The OPM system as described should be an integral part of
the bigger (performance) management system cycle that is
widely known as Planning, Budgeting, and Forecasting (PBF).
PBF should serve to support the business in understanding
how its ongoing activities contribute to delivering its future
longer term strategy. It is a method for allocating scarce
resources in-line with the strategic intent of the business
and for planning actions to help it meet its strategic goals in
response to changing circumstances.
As shown before, having a suitable meeting structure is part
of the OPM system. The PBF high-level plans and forecasts
in particular, are important inputs for the OPM system that
translates these to manageable units. At the operational level
monthly forecasts are made in routine meetings. The resulting
monthly forecast typically is converted in weekly plans during
a highly structured weekly operating meeting (WOM): the
last week is reviewed and plans are made for the next week,
taking reviews of previous periods into account. The previously
mentioned daily stand-up meeting is the place where short
interval control happens for maximum effect.
This process fits perfectly with the OPM process described
above and depicted in figure 1. Having problem-solving
loops in place at every reporting point together with the KPI-
setting process and connected information flows, creates the
closed-loop OPM system. As the scope of this document is
the operational performance management, we will not further
zoom in on the separate elements of the bigger picture.
How to realize it?
It all starts with a “True North”
It may seem so obvious that each organization has a mission
statement with a related “True North”, but in our experience
it isn’t that obvious at all. An organization’s mission, in our
view, is the reason for existence - your purpose of being as an
organization. By examining customer value (the “Voice of the
Customer” notion within operational excellence) and the value
stakeholders expect from you, you begin to understand what
you should be doing. True North is an unchanging, invisible
landmark where lines of longitude converge at the “top of the
world”. In a business context it is a means of quantifying the
mission to some extent, breaking it down into manageable
pieces synergistic with business fundamentals versus
business functions. The True North is a decision-making tool
that the management team can use to choose their path
forward and should literally be giving direction to the whole
OPM system.
A few mission statements that we think are strong as they
are clear, memorable, concise and at the same time open
regarding the “how”:
• “To make the world’s information universally accessible and
useful” (Google);
• “To experience the joy of advancing and applying
technology for the benefit of the public” (Sony);
• “To spread the power of optimism” (Life is Good);
• “To make everyday life better for our customers” (Ikea).
5. Translating direction into action
In order to create the closed-loop OPM system, high-level
notions like the mission statement and True North have
to be translated to operational goals with accompanying
metrics. Therefore, organizations need to cascade down their
organization strategic plan. This can be done by a process
that often is referred to as “catch ball”. Catch ball drives the
strategic planning process into every level of the organization
and every employee and provides them the opportunity to
define how they will contribute to that success. Applying this
method creates a comprehensive communication system
between all levels of employees, keeping everyone focused
on meeting the organization’s goals. It achieves this by
aligning the goals of the company (Strategy) with the plans
of middle management (Tactics) and the work performed by
all employees (Operations). The “catch ball” environment is
created, where goals, strategies and action items are tossed
back and forth between management and employees. By
initiating this dialogue between the various organizational
levels, organizations are able to refine their strategic goals so
that they drive progress and action at every level within an
organization. This will form the basis for achieving success.
Result:
• Organizational objectives are clear and performance
measures are in place in order to link goals to targets from
corporate to individual levels.
• Information to support the understanding of performance is
readily available and used to add value in decision-making.
• Systems and processes regarding performance
management are consistent, simple and competent.
• People have suitable skills and feel accountable for their
own, their team’s, and organizational performance.
• At every step, leaders are identified and engaged. There
is a clear governance structure in which stakeholders are
identified and engaged.
Case description
At a leading European automotive firm,
around 10,000 cylinder heads are produced
per day in a complex production process.
The production line generated data but the
firm struggled to use the data effectively,
failing to identify what quality parameters
affected the quality of its cylinder heads and
caused delays. We assisted the company in
implementing a data-mining and analytics
solution with the clear and strategic aim
of maximizing the number of flawlessly
produced cylinder heads. This resulted in:
• a 25% increase in productivity
• a 50% reduction in the time taken to ramp
up the process to target levels
• the capability to monitor the process in near
real-time and make agile adjustments
6. So far, so good. But what is new?
Going Digital
So why is it that digital makes OPM of renewed importance
today? As we all know organizations increasingly become
more digital in the way they operate: digitisation of processes,
automation of activities, use of digital tooling. All these
changes result in the availability of more data than ever
before and from a broader set of sources. In order to build
a successful OPM system, organizations should focus
on leveraging these sources of information. Digital tooling
significantly impacts the way organizations are able to collect,
visualize, analyse, and draw conclusions from data, impacting
various aspects of the OPM model depicted in figure 1. These
developments provide significant opportunities for OPM
systems to become a more effective and efficient mechanism
to govern operational performance. Organizations that are
able to successfully unlock this potential and integrate these
developments into their OPM systems are able to understand
their operations to a greater extent in a shorter time frame,
make the right fact-based decisions and focus their corrective
actions on the biggest value drivers.
How Digital affects Operational Performance
Management
In this paragraph we describe a number of digital developments
that impact OPM to varying degrees. We don’t have the
illusion to be complete, but we will address some of the major
disturbers or, positively stated, opportunities we see in relation
to the closed-loop system we depicted in figure 1.
Digital technologies generate vast amounts of data
A key driver that impacts the way operational performance
management systems functions, and which provides the
basis for below paragraphs, is the availability of data within
organizations due to digital technologies employed in such
organizations. While previously organizations had to dedicate
significant effort and resources towards finding data that
could function as relevant input to understand its operations,
nowadays organizations generate data “on the fly”. The often
mentioned fourth industrial revolution with the Internet of
Things at its core will without a doubt significantly impact the
amount of data generated and the ability of organizations
to obtain real-time insight in operational performance. This
results in completely new data being available regarding
operational performance through, for instance, embedding
sensors in production assets. This even goes as far as being
able to predict when certain assets will break down so that a
maintenance employee can be send over. This availability of
data through the use of digital technologies in contemporary
operations impact how data is collected, communicated,
analysed and even what and when corrective actions are to
be implemented.
7. Digital technologies enable real-time data collection
Digital technologies considerably impacts the way in which
organizations collect data. Previously, organizations put
significant effort in collecting data about, for instance, process
performance through interviews and process mapping work-
shops or on sales performance by combining individual order
books from various sales representatives. As this data is now
readily and centrally available in many systems, less effort has
to be dedicated towards data collection activities. Besides
that, organizations that aim to increase their knowledge on
operational performance are able to equip employees with
mobile devices to collect data on many relevant aspects.
Sales employees nowadays can enter, or automatically
generate, relevant customer (visit) data while at customer
sites. Engineers can download equipment performance
data straight from machines, automatically linking this to the
type and time of the visit and the actual service performed.
By collecting such data in real-time with minimal human
interaction, OPM systems become significantly more valuable
as they incorporate voluminous amounts of data from various
sources. In short, digital technologies allow for efficient data
collection at lower costs, with richer sets of data, obtained
(near) real-time, enabling fact-based analysis of operational
performance.
While there are many opportunities in the way data is
collected, there are also several noteworthy challenges.
First of all, it is key that organizations understand which data
is relevant to measure their operational performance. A deep
understanding of the operational system and its underlying
performance drivers is crucial so that the right data can be
collected. Secondly, we experience that even when collecting
Case description
At a global air cargo company a number of
dashboards were used, created from data
available in the operations-supporting ICT
applications. This enabled them to focus
performance discussions around kilos and
numbers of output, instead of other less
meaningful units of measure. By combin-
ing and enriching the data already used with
data available in a number of log files as well
as in the SAP HR system, we were able to
give insight in actual process performance at
activity level and efficiency on division, unit,
shift and employee level. Not unwelcome in
this time of shrinking margins and fierce price
competition…
data through digital systems, data quality and consistency
remain a challenge. In order to be able to draw valuable
insights from large amounts of data, organizations and
their employees need to be disciplined in how they design
and implement digital systems so that they collect data
consistently amongst various user-profiles that use the system.
Moreover, if data is still entered manually, standardisation of
the input (what, how, when) is key.
8. Digital technologies enable tailor-made cockpits
Increased utilization of digital dashboards and mobile
devices unlock opportunities to communicate and visualize
OPM information in an interactive and (near) real-time way,
irrespective of the geographical location in which employees
reside. Well designed digital performance cockpits encourage
real-time engagement, empowerment, and self-management.
The ability to measure performance as it is occurring is a
major step forwards in the professionalism of OPM: starting
with fact-based insights, the organization can have its
performance dialogue and choose the right interventions
in order to achieve and measure the desired impact. Data
visualization is about displaying data and information to
convey ideas and conclusions effectively, both in terms of
aesthetic form and functionality, thereby reducing perceptions
and opinions about different individual’s interpretations about
the end result.
Operational Excellence adepts used to preach about being
present at the work floor as a crucial instrument to improve
communication and therefore performance. Daily stand-up
meetings, where a team’s performance was reviewed, took
place on the actual work floor. Paper charts showed how
well the team did on a number of KPIs and necessary actions
to improve were initiated. Nowadays however, technology
advancements make physical get-togethers less needed,
since it is residing within our fingertips; for many (service)
organizations the work floor is everywhere, 24/7, in our hands
or certainly within reach of some mobile device. In addition,
“new way of working”-concepts that allow employees to
work anywhere, anytime, have replaced the traditional
work floor, making the daily physical stand-up meeting a
kind of relic. In short, digital technologies allow for data
visualization at lower costs, fed by richer sets of data in
(near) real-time, that enables fact-based communication of
operational performance.
Organizations should keep in mind that it requires techno-
logical and analytical capabilities to build and continuously
feed interactive dashboards with data relevant for operational
employees and managers. Having the right capabilities
in-house ensures valuable insights can be communicated;
lacking such capabilities will significantly impact the value
of the operational performance management system. Also,
it should be noted that through digital communication the
power of persuasion may decrease because the receiving
side may read and interpret the data differently from how it is
originally intended.
Digital technologies accelerate (root cause) analysis
Tooling to analyse the data organizations produce are
increasingly more versatile and provide ever increasing
opportunities to understand the root causes of deviations from
expected performance and to support decision making on
corrective actions. All this while spending a fraction of the time
required for the same understanding before. Connecting data
Case description
Oil and gas companies are faced with intense
pressure to deal with low oil prices. A big
leading E&P (exploration and production)
company found it difficult to compete in
this downturn because of inconsistent data
quality that resulted in deficient decision
making throughout the organization.
Examples included fragmented and outdated
spreadsheets from numerous reporting
systems and the inability for all personnel
to view and analyze the same data. Without
all divisions of the workforce having near
real-time data access, they were unable
to communicate and collaborate to make
fast, actionable data driven decisions that
focused on production trends and downtime
to improve operational effectiveness. By
analyzing downtime data across multiple
dimensions, we were able to visualize the
most significant downtime reasons and
implement different operation methods and
design. We have reduced downtime by
50%. Used the company to be at about 5%
companywide downtime, we have cut it in
half in terms of % of production loss.
9. sources boosts analytics by making it possible to discover
completely new causal relations. Making analytics an essential
part of the decision making process in operations enables
companies to make a more informed choice – increasing the
chances of success.
Analytics in operations is increasingly seen as a strategic
priority for organizations. Over 80% of respondents in a recent
survey3
agreed that analytics in operations plays a pivotal
role in driving profits or creating competitive advantage. With
business analytics, organizations are able to analyse process
performance in (near) real-time and make the right evidence-
based adjustments. Digital enablers and creative transaction
stream analytics make it possible to detect modern wastes4
that often do not have physical characteristics. Using the
voluminous amounts of structured, semi-structured and
unstructured data collected by organizations for analytic
purposes brings new opportunities: data-driven operational
excellence as the modern and improved variant of traditional
operational excellence. In short, digital technologies facilitate
data analysis of larger datasets at lower costs enabling fact-
based insights on operational performance.
These huge amounts of data make it seemingly more
straightforward to understand what is going on in your
business. However, root cause analysis also becomes
increasingly complex when there are many sources of
data. The challenge is in finding relevant correlations that
drive or hamper operational performance. Besides, when
using analytical tooling, for instance process mining tooling,
specialist knowledge is required to be able to provide a
comprehensive understanding of the operational performance
of an organizations or specific process within an organization.
Case description
For a large governmental department,
process analyst were busy for months to
map their processes and to get agreement
about these mappings at all stakeholders.
By importing already available data, including
time stamps, from their data warehouse
into a process mining tool we were able to
show the actual process flow (including all
variations) in a timeframe of several hours.
And what’s more, we could also show
outliers, undesirable process deviations,
loops in the process and all kinds of
exceptions like activities for cases that were
already closed for a long time. All of this
before actually starting with our own analysis;
these insights that pointed out potential
improvement areas were just being thrown
out to us by the tool.
3
Going Big: Why Companies Need to Focus on Operational Analytics,
Capgemini Consulting, 2016.
4
Waste or ‘Muda’ in Japanese: meaning “Anything that uses resources but
doesn’t create value”. Eight types of common waste are waiting, overproduc-
tion, repair, motion, over-processing, inventory, transport and the waste of
human capital.
10. Case description
For an international consumer products
organization we analysed the successful-
ness of its customer loyalty initiative based
on a large dataset of user data. Initially there
were many hypothesis of the loyalty program
performance but the organization lacked the
ability to draw fact based conclusions based
on actual customer behaviour. By collecting
data from various sources and putting this
together in a model, we were able to quickly
map actual customer behaviour in the first
100 days after they created a loyalty program
account. By exactly understanding what was
happening based on data, namely that 40%
of the customers did not show any activity
anymore after day 1, we were able to initi-
ate corrective actions to solve this issue. We
introduced a targeted marketing campaign
directly after customers subscribed, to stimu-
late user activity in this period.
Digital technologies enable fact-based
corrective actions
By combining different (digital) data sources, organizations
are more than ever able to dive into root-causes of operational
performance issues and determine corrective actions. By
linking operational performance data with other data sources
one can grasp a more complete picture of the factors that
influence performance; e.g. how sales performance is affected
by weather influences or societal demographics. The insights
derived by combining data from several sources increases an
organization’s ability to influence its operational performance
successfully and with more impact. The use of advanced
data analytics and algorithms even allows organizations to
predict how their operational systems will behave and enable
pro-active implementation of corrective actions even before
an issue, like a machine’s breakdown, occurs. In short, digital
technologies enable organizations to implement corrective
actions through fact-based insight that enables to improve,
and in some cases even predict, operational performance
more effectively than before.
It is inevitable that digital more and more will impact the choice
for, and implementation of, corrective actions. At the same
time organizations will have to prepare for this development,
as success will not come automatically. They have to equip
themselves in order to be able to draw conclusions from data
based analysis and to quickly act on conclusions made.
A large part of our customers currently doesn’t have that
agility in their DNA. And although it may seem obvious to
many, it will require a major shift in mind-set and decision-
making culture throughout all levels of the organization to reap
the benefits of more advanced developments as predictive
modelling. Organizations need to dedicate a significant
amount of resources to keep pace with the never ending
stream of new possibilities and to be able to translate these
developments to a use in which they bring value towards
both the organization as its customers, also known as
two-sided solutions.
11. Conclusion
OPM systems have had their place for some time now,
and while there is ample room for improvement at many
organizations regarding conventional OPM systems,
digital developments are able to contribute significantly to
more effective and efficient OPM systems. This provides
an indispensable opportunity for those that aim to more
successfully put strategic goals into operational action and
track on progress towards success.
By leveraging digital technologies to collect, communicate,
and analyse data organizations are able to significantly
increase the efficiency of their OPM systems. Previously,
data collection was a cumbersome process that required
significant ongoing resource investment. With digital
technologies such as operational intelligence software and
sophisticated analytics tooling, we can now automatically
extract data from various systems, and visually deliver
insights to employees, irrespective of geographical location;
providing a rich intelligence about an organizations operational
performance that enables better decision-making. While
significant investment is often required to put such automated
connections in place, the benefits it can provide within a well
set-up OPM system by far exceed the investment required.
Rolf Sleddens and Hans Toebak are consultants within the Operational Excellence team of Capgemini Consulting.
Authors:
Digital technologies also strongly impact the effectiveness
of OPM systems, as it impacts the degree to which organi-
zations are able to collect voluminous amounts of data,
visually communicate it, determine the root causes of lower
operational performance, and determine which corrective
actions to implement. Fact-based operational and process
data analysis, such as process mining, gives organizations the
opportunity to focus on improvement initiatives that fight root
causes instead of “fire-fighting” at the wrong place, something
that is all too present in many organizations.
Therefore, OPM systems that leverage current digital opportu-
nities to increase its effectiveness and efficiency are potentially
the most suitable mechanism to build an “operational excel-
lent” organization in line with the strategic direction of your
organization in the current digital age.