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2 Elements
of a
Contemporary Measurement System |
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① Formal,
structured and quantified model of enterprise.
② Process to improve enterprise performance...
More |
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Business Process
Thinking Check List
13 Questions
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Improvement-focused Measurement System |
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has
improvement-oriented measures
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provides no data without a rationale and
purpose
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ensures that people know why things are
being measured
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ensures that people know
what to do about the measures
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Measures Used to Manage the
Performance of a Business2 |
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Strategic
Measures:
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market attractiveness (industry
structure, growth, concentration,
innovation, customer power, logistical
complexity), and
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competitive strength (relative market share, relative
quality,
intellectual property, customer
coverage)
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Organizational
Measures:
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Operational
Measures:
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Successful Measurement System
Provides: |
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Feedback
that tells you whether you are – or aren't – doing the right things,
and doing them well
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Motivation that will spur you on
to improve your performance
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Incentive for you and your team to
'do it better'
But for all this to happen you must make
sure that you measure:
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the right things
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at the right time, and
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in the right place
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The GE Leadership Effectiveness Survey
(LES)
Ranking Scale:
Significant Development Needed
1 2 3 4
5
Outstanding Strength
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25 Lessons from Jack Welch |
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State-of-the-art
Supply Chain |
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● Measured by lead-time on class-A
purchased materials...
More |
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Why Measure Performance?
The basic purpose of any measurement system is
to provide
feedback,
relative to your goals, that increases your chances of
achieving these goals
effectively and
efficiently. Measurement gains true value when used as the
basis for timely decisions.
→
Learning SWOT
Questions
Measurement Is Not an
Essence, but Improvement
The purpose of measuring is not to know how
your business is performing but to enable it to perform
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better. The ultimate
aim of implementing a performance measurement system is to improve the
performance of your organization. If you can get your performance
measurement right, the data you generate will tell you where you are, how
you are doing, and where you are going.
→
9 Signs of a
Losing Organization
→
Continuous Improvement
Firm
18 Leadership Lessons
from Colin Powell
17 Indisputable Laws of Teamwork
29 Obstacles To Innovation
Modern Systems Approach
You must master your
systems thinking skills as
measurement today must be neither and end nor an activity in itself but a
part of an integrated system for
enhancing business performance...
More
Balanced Business System
Transforming the
Traditional Functional Mindset
Traditional functional way of thinking "stands
in the way of executives understanding and improving the flow of
cross-functional activities which
create enduring value for customers and
shareholders. It encourages a
distorted view of performance measurement and executive
rewards, shifting focus away from meaningful measures such as the
timeliness and quality of services provided to customers, and towards less
significant measures around functional departmental performance."...
More
Balanced Scorecard
The Balanced Scorecard is a framework for
designing a set of measures for activities chosen by you as being the key
drivers of your business. By having four distinct perspectives (financial,
customer, internal process and innovation and learning) it promotes a more
holistic view of the business...
More
Results-based Leadership
Case in Point
GE:
Trotter Scorecard
Many
GE
business units employ a tool called the Trotter Matrix to check on their
use of best practices. The scorecard was developed by Lloyd Trotter, who ran
the Electrical Distribution and Controls side at GE. He listed six desirable
attributes for each of his plants and then scored each attribute...
More
Economic Value Added (EVA)
Economic Value Added (EVA), or
economic rent,
is a widely recognized tool that is used to measure the efficiency with
which a company has used its resources. In other words, EVA is the
difference between return achieved on resources invested and the cost of
resources. Higher the EVA, better the level of resource unitization...
More
360-Degree Assessment
The 360-degree assessments are commonly used in
corporations in management and leadership development programs. In
360-degree assessment, the participant completes a self-assessment and also
collects
feedback
from supervisors, peers, subordinates and customers (or sometimes
vendors)...
More
Measuring Cleaner
Production
Measuring cleaner production (CP) is of
critical importance. You must use appropriate indicators, which are
generally applicable, yet specifically measurable, and address both the
productivity and environmental aspects of your system in an integrated
fashion. The indicators should enable not only estimation of the
CP of a product or process and its comparison with other equivalents,
but also improvement of the existing process or product and the development
of new products.
Life
Cycle Assessment (LCA) and Total Cost Assessment (TCA) are two types of
CP indicators that help managers understand the practical implications of GP
and make right decisions...
More
13 Tips for
Transitioning Your Company To a Lean Enterprise
Performance Management...
Effective Performance Measurement System: Key
Features...
Manager's Diagnostic Toolkit...
Measure-Management Companies...
Evaluating Corporate Performance: New Metrics...
Two Questions You Should
Ask Yourself...
Measuring
Productivity...
Six Sigma Tells You...
Measuring
Coach's
Effectiveness...
Benchmarking...
360 Evaluation and Feedback...
Enterprise Performance Management (EPM)...
Process Thinking...
Systems Thinking...
Case in Point
Intel
Corp...
Case in Point
Quality
Measures at General Electric (GE)...
Case in Point
Dell Computer Corporation...
Case in Point
Silicon Valley Firms...
Case in Point
IDEO...
Jokes
Robert Burn's Hog-Weighing Method...
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