Motivate, engage, and achieve lasting success with more effective performance management Managing Business Performance offers a unique blueprint for achieving organisational excellence through improved productivity, efficiency, engagement, and morale. With a unique approach that acknowledges the human aspect of performance management, this book combines technical and social know-how to give you a solid framework for designing, configuring, and managing performance improvement initiatives with sustainable results. You'll find practical models, techniques, and tools that take you beyond management theory into advice that you can use, with clear explanations that steer you toward the customisations that would best suit your organisation. International case studies illustrate these ideas in action, providing an intimate look at how cultural differences impact management strategies, and insight into how they can be managed. Organisational performance tools and techniques are well established, but many organisations will never realise their full benefit.
This book helps you get more out of your performance strategy by showing you how the organisation's complex social nature impacts real-world outcomes, and how it can be used to drive better performance. * Blend technical and social management strategies * Keep people motivated and engaged * See better results with more staying power * Get the very best from your organisation Performance management strategies that fail to take people into account are counterproductive. There's no better way to de-motivate, demoralise, and disengage the people upon whom the organisation depends. Sustainable success requires a blended approach that utilizes the most effective science within the art of people management, and Managing Business Performance gives you a solid foundation for better business performance strategy.
UMIT S. BITITCI is the Professor of Business Performance at Heriot Watt University, Edinburgh, Scotland. Previously he was the Director of Strathclyde Institute for Operations Management and the Professor of Technology and Enterprise Management at the University of Strathclyde in Glasgow. He is also a member of the Scottish Manufacturing Advisory Board.
Preface xiii Acknowledgements xv About the Author xix PART ONE Introduction CHAPTER 1 Prologue 3 1.1 Background to this book 4 1.2 Motivation and principles 10 1.3 Who is this book for? 11 1.4 Structure of the book 12 References 13 CHAPTER 2 A Short History of Performance Measurement and Management 15 2.1 Beginnings 16 2.2 Performance measurement revolution 19 2.3 Performance measurement from different perspectives 24 2.4 Performance management 26 2.5 Balancing the science with the art 27 2.6 Future challenges 29 References 33 PART TWO The Science CHAPTER 3 What Are We Managing? 37 3.1 Everyone has a different view 38 3.2 How do companies compete? 42 3.3 Value streams focused business units that create value 46 3.4 Business processes the universal building blocks 53 3.5 Managerial processes thinking about the future 57 3.6 Support processes serving to create value 58 3.7 Anatomy of an organisation the universal competitive structure 59 3.8 Summary 60 References 62 CHAPTER 4 Understanding and Managing Business Processes 63 4.1 Purpose and flow 64 4.2 What flows through the process? 66 4.3 Anatomy of a process 67 4.4 Understanding what affects flow 68 4.5 Measuring process performance 72 4.6 Summary 76 Reference 78 CHAPTER 5 Measuring Performance 79 5.1 Do we need measures? 80 5.2 Developing a performance measurement system 82 5.3 Communicating with measures 82 5.4 Scorecards, cockpits, dashboards and war-rooms 91 5.5 Creating effective visual performance measurement and management systems 101 5.6 Reviewing performance 108 5.7 Summary 110 Reference 112 CHAPTER 6 Summary: The Science of Managing Business Performance 113 PART THREE The Art CHAPTER 7 Drivers of Performance 119 7.1 Measures of business performance 120 7.2 Managing performance for the short-term (up to 2 years) 121 7.3 Managing performance for the medium-term (2 to 5 years) 124 7.4 Managing performance for the long-term (5+ years) 129 7.5 Summary 131 References 131 CHAPTER 8 Capabilities, Culture and Performance 133 8.1 Understanding organisational capabilities 135 8.2 How do organisational capabilities develop? 137 8.3 Learning to learn 139 8.4 Managing organisational capabilities and culture 145 8.5 Summary 149 Reference 150 CHAPTER 9 The People Component 151 9.1 What kind of organisation would you like to work in? 153 9.2 The people component 155 9.3 What motivates people? 156 9.4 What needs to change? 160 9.5 Summary 166 References 166 CHAPTER 10 Balancing Organisational Controls 169 10.1 What is the right balance? 170 10.2 What happens when we get the balance wrong? 172 10.3 Understanding the interplay between performance measurement and performance management 180 10.4 Balancing organisational controls: Do s and don ts 186 10.5 Summary 190 References 190 CHAPTER 11 Summary: The Art of Managing Business Performance 191 PART FOUR Effective Interventions CHAPTER 12 Designing Effective Interventions 197 12.1 A systems approach 198 12.2 The organisation as a system 200 12.3 Who will decide what needs to change and how? 203 12.4 Technical vs. social intervention 205 12.5 What to change? 209 12.6 Finding the trim-tab 213 12.7 Summary 218 References 220 CHAPTER 13 Delivering Effective Interventions 221 13.1 Balancing short-term results with drivers of long-term sustainable performance 222 13.2 Planning and monitoring interventions 227 13.3 Joined-up thinking 230 13.4 Milestones: One big step at a time 232 13.5 Making improvement part of the day job 232 13.6 Summary 235 References 236 CHAPTER 14 Epilogue 237 14.1 It s all about balance and harmony 238 14.2 Learning the right balance 239 14.3 Where do we start? 240 Reference 240 CHAPTER 15 The Book in a Nutshell 241 15.1 Part One Introduction 242 15.2 Part Two The Science 242 15.3 Part Three The Art 244 15.4 Part Four Effective Interventions 246 15.5 Conclusions 249 APPENDICES APPENDIX A Overview of Popular Performance Measurement Models and Frameworks 253 A.1 DuPont model 254 A.2 The Performance Measurement Matrix (PMM) 254 A.3 The Performance Measurement Questionnaire (PMQ) 255 A.4 The Results and Determinants Framework 255 A.5 The Strategic Measurement Analysis and Reporting Technique (SMART) 256 A.6 The Cambridge Performance Measurement Design Process 257 A.7 The Pyramid of Organisational Development 258 A.8 Integrated Performance Measurement System (IPMS) reference model 258 A.9 The Business Excellence model of the European Foundation for Quality Management (EFQM) 259 A.10 The Performance Prism 261 References 262 APPENDIX B Common Performance Measures 263 B.1 Financially focused measures 264 B.2 Customer-focused measures 264 B.3 Internal process-focused measures 265 B.4 Learning and growth-focused measures 267 B.5 Advanced Performance Institute and Bernard Marr s 25 measures that every manager should know 268 B.6 Oliver Wight International and the ABCD checklist for business excellence 269 B.7 Supply Chain Operations Reference (SCOR) model 270 References 271 Index 273