www.bradford.ac.uk/management

Business Performance

Management

There’s confusion...

– Let’s get some measures!

• Death by a thousand measures; measurement

becomes the core business

– Let’s set some targets!

• Conflict: Cut costs but increase customer

contact; Dysfunction: wrong behaviours are
rewarded

– What we need is discipline; tell everyone what to do!

• Confusion: ―last month all you wanted was

utilisation, now all you want is sales

— what’s

going

on?‖

Good measurement helps you
manage because it tells you...

• What’s going to happen (in advance!)
• What action you need to take
• Whether that action was effective

 Performance management is a process

What do I want to

achieve?

Objectives

How do I propose to

achieve it?

Strategy

What do I have to get

right?

Critical Success Factors

How do I know I succeeded? Who

do I reward

?

Measures and

accountabilities

There needs to be a link from
objectives to accountabilities

Business Performance

Linkages

Wade & Recardo (2001:50)

5

Strategic Planning

Organisational

Performance

Financial

Reporting

Operational

Reporting

Customer
Reporting

HR Practices

Technology

Organisational Alignment Model

Theory of
Business

Strategy

Corporate
Scorecard

Gap
Analysis

Business
Plan

Process
Activity
Measures

Performance
Profile

Compensation

Feedback

Wade & Recardo (2001:47)

6

Measurement links the 3 areas

of Management in any business

How we manage

the work we do

How we manage

people

How we manage

capital investment

GLUE

How we measure

progress

Business Excellence

The European Foundation for Quality Management Framework

8

Leadership

Key

Performance

Results

People

Partnerships

and

Resources

Policy and

strategy

Society

results

Customer

results

People

results

Results

Enablers

Innovation and Learning

Processes

Business Performance

Management in Context

GOALS

• Improving how

managers think and act

• Effective deployment of

resources for results

Decision

Support

Process

Improvement

Problem
Analysis

Performance

Measurement

Implementing

Promoting

Providing

Supporting

9

Organisational Architecture

10

Adapted from Wade & Recardo (2001:62)

Strategy

HR

Practices

Communication

Performance

Measures

Technology

Process

Culture

Levels of Performance

Management

Level/Outcomes

Objectives

Design

Measurement
Perspective

Organisation

• The overarching

strategy

• The value migration
• Organisational

alignment

• The business plan

• Strategy-driven

functions

• EVA or CVA value of

functions

• Permeability of

boundaries

• ABC/ABM-driven

• Financial
• Customer
• Organisational
• Operations
• Growth and

innovation

Process

• Conformance to

customer standards

• Process owner
• Inputs
• Outputs
• Service level

agreements

• Boundary crossings

• Cost
• Cycle time
• Quantity
• Quality
• Conformance to

standards

Job

• Report cards
• Easy access
• Motivation
• selection

• Process maps
• Function charts
• Task analysis

• Activities
• Outcomes
• Target measures
• Data sources

11

The five key components of

Performance Management

12

Understand your model for

success

Identify performance measures

for success

Cascade the performance

measures and their application

Establish performance reporting

for relevant measures

Coach, incentivise and reward

success with a transparent

approach