www.bradford.ac.uk/management

Where Next for Performance

Management?

Performance Management Fundamentals

Lecture 12

The Transformation Process

The Transformation Process, Slack, (2007:9)

2

The

Transformation

Process

Transformed

resources…

• Materials
• Information
• Customers

Transforming
resources

• Facilities
• Staff

Input

Resources

Output

products and

services

Customers

Performance Management

Customer needs and the organisation’s performance might both
change over time………

3

Cost

Flexibility

Dependability

Speed

Quality

Quality

Cost

Speed

Dependability

Speed

Adapted from Slack, (2007:583)

The 5 Laws of Operations

1. The law of variability

2. The law of bottlenecks

3. The law of scientific methods

4. The law of quality

5. The law of factory focus

4

R.W. Schmenner, M.L. Swink, Journal of Operations Management 17(1998)97

–113

The Ideal Performance

Measurement System

In a perfect world, managers would be able to
design an optimum PMS that would have:
• Few measures
• Non-financials that would predict financial

performance

• The same measures throughout the whole

organisation

• Clear connections to people performance, for

compensation purposes

• Stability

5

Enterprise Performance

Management

• Why is this a “good thing”?
• Why do organisations implement an Enterprise

Performance Management system?

6

“Providing real-time access to critical business

performance indicators to improve the performance &

effectiveness of the

business”

•

Real time visibility & control of business processes,

transactions, and IT operations across applications

and systems

•

Proactively detecting and acting upon business

threats & opportunities

SMV Data

App Performance Data

Process Data

KPI Data

Real time Data Collection

Real time visibility

IT Operations

Application Support

Process Manager

Business Analyst

Executive

What BAM can do

“Organizations can achieve significant benefits by

increasing

the accessibility, consistency and timeliness of delivery of
information

to key business consumers. Successful deployment

of data integration and business activity monitoring technologies
is critical in achieving that goal.”

“Operationally focused business intelligence applications provide
a

real-time information environment

that

— when linked with

historical context

— can help decision makers

improve daily

business operations

.”

Project Management

Reporting Features
• Immediacy
• Specificity
• Discrete

10

Structure Features
• Fluid
• Complex
• Proactive

A Project is………..

“… the allocation of resources directed

toward a specific objective following a
planned, organised approach.”

Project Management is……
“ concerned with planning, scheduling and

controlling project activities to achieve
timely project completion within budget
and meeting performance expectations.”

11

Fitzsimmons and Fitzsimmons, 2008:364)

Project Characteristics

• Purpose
• Life Cycle
• Interdependencies
• Uniqueness
• Conflict

12

Fitzsimmons and Fitzsimmons, 2008:364)

Sporting Analogies

• Competitiveness
• Openness
• Challenging and innovative
• Outcome not process based

13

Adcroft and Teckman, 2008

The 21

st

Century Organisation

• Top-down direction to motivate self-

directed, thinking-intensive professionals
to work with one another horizontally
across the company

14

Conclusion

• The important test of any Performance

Measurement System is its ability to
discriminate good from bad performance

• To be a balanced Performance

Measurement System it must combine
financial and non-financial measures into
an overall appraisal and compensation
system

15

Meyer, 2002:79