PERFORMANCE & STRATEGIC INFORMATION MANAGEMENT

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© Lansana.sakho@experts-visions.com
June 2013
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

June 2013
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

June 2013
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.

June 2013
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.

June 2013
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

June 2013
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

June 2013
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

June 2013
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.

June 2013
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.

June 2013
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

June 2013
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

June 2013
Human Resource MeasuresHuman Resource Measures
n Employee satisfaction
n Training and development
n Work system performance and
effectiveness
n Safety
n Absenteeism
n Turnover

June 2013
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

June 2013
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

June 2013
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.

June 2013
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

June 2013
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.

June 2013
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

June 2013
Linkages to StrategyLinkages to Strategy
Key business drivers
(key success factors)
Strategies and
action plans
Measures and indicators

June 2013
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.

June 2013
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?

June 2013
Good measures and indicators are
actionable; that is, they provide
the basis for decisions at the level
at which they are applied.

June 2013
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

June 2013
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

June 2013
Organizations need a process for
transforming data, usually in some
integrated fashion, into information
that top management can
understand and work with.

June 2013
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

June 2013
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?

June 2013
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.

June 2013
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.

PERFORMANCE & STRATEGIC INFORMATION MANAGEMENT

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