Managing Business Performance – the Science and the Art

<p>Preface xiii</p>
<p>Acknowledgements xv</p>
<p>About the Author xix</p>
<p>PART ONE Introduction</p>
<p>CHAPTER 1 Prologue 3</p>
<p>1.1 Background to this book 4</p>
<p>1.2 Motivation and principles 10</p>
<p>1.3 Who is this book for? 11</p>
<p>1.4 Structure of the book 12</p>
<p>References 13</p>
<p>CHAPTER 2 A Short History of Performance Measurement and Management 15</p>
<p>2.1 Beginnings 16</p>
<p>2.2 Performance measurement revolution 19</p>
<p>2.3 Performance measurement from different perspectives 24</p>
<p>2.4 Performance management 26</p>
<p>2.5 Balancing the science with the art 27</p>
<p>2.6 Future challenges 29</p>
<p>References 33</p>
<p>PART TWO The Science</p>
<p>CHAPTER 3 What Are We Managing? 37</p>
<p>3.1 Everyone has a different view 38</p>
<p>3.2 How do companies compete? 42</p>
<p>3.3 Value streams focused business units that create value 46</p>
<p>3.4 Business processes the universal building blocks 53</p>
<p>3.5 Managerial processes thinking about the future 57</p>
<p>3.6 Support processes serving to create value 58</p>
<p>3.7 Anatomy of an organisation the universal competitive structure 59</p>
<p>3.8 Summary 60</p>
<p>References 62</p>
<p>CHAPTER 4 Understanding and Managing Business Processes 63</p>
<p>4.1 Purpose and flow 64</p>
<p>4.2 What flows through the process? 66</p>
<p>4.3 Anatomy of a process 67</p>
<p>4.4 Understanding what affects flow 68</p>
<p>4.5 Measuring process performance 72</p>
<p>4.6 Summary 76</p>
<p>Reference 78</p>
<p>CHAPTER 5 Measuring Performance 79</p>
<p>5.1 Do we need measures? 80</p>
<p>5.2 Developing a performance measurement system 82</p>
<p>5.3 Communicating with measures 82</p>
<p>5.4 Scorecards, cockpits, dashboards and war–rooms 91</p>
<p>5.5 Creating effective visual performance measurement and management systems 101</p>
<p>5.6 Reviewing performance 108</p>
<p>5.7 Summary 110</p>
<p>Reference 112</p>
<p>CHAPTER 6 Summary: The Science of Managing Business Performance 113</p>
<p>PART THREE The Art</p>
<p>CHAPTER 7 Drivers of Performance 119</p>
<p>7.1 Measures of business performance 120</p>
<p>7.2 Managing performance for the short–term (up to 2 years) 121</p>
<p>7.3 Managing performance for the medium–term (2 to 5 years) 124</p>
<p>7.4 Managing performance for the long–term (5+ years) 129</p>
<p>7.5 Summary 131</p>
<p>References 131</p>
<p>CHAPTER 8 Capabilities, Culture and Performance 133</p>
<p>8.1 Understanding organisational capabilities 135</p>
<p>8.2 How do organisational capabilities develop? 137</p>
<p>8.3 Learning to learn 139</p>
<p>8.4 Managing organisational capabilities and culture 145</p>
<p>8.5 Summary 149</p>
<p>Reference 150</p>
<p>CHAPTER 9 The People Component 151</p>
<p>9.1 What kind of organisation would you like to work in? 153</p>
<p>9.2 The people component 155</p>
<p>9.3 What motivates people? 156</p>
<p>9.4 What needs to change? 160</p>
<p>9.5 Summary 166</p>
<p>References 166</p>
<p>CHAPTER 10 Balancing Organisational Controls 169</p>
<p>10.1 What is the right balance? 170</p>
<p>10.2 What happens when we get the balance wrong? 172</p>
<p>10.3 Understanding the interplay between performance measurement and performance management 180</p>
<p>10.4 Balancing organisational controls: Do s and don ts 186</p>
<p>10.5 Summary 190</p>
<p>References 190</p>
<p>CHAPTER 11 Summary: The Art of Managing Business Performance 191</p>
<p>PART FOUR Effective Interventions</p>
<p>CHAPTER 12 Designing Effective Interventions 197</p>
<p>12.1 A systems approach 198</p>
<p>12.2 The organisation as a system 200</p>
<p>12.3 Who will decide what needs to change and how? 203</p>
<p>12.4 Technical vs. social intervention 205</p>
<p>12.5 What to change? 209</p>
<p>12.6 Finding the trim–tab 213</p>
<p>12.7 Summary 218</p>
<p>References 220</p>
<p>CHAPTER 13 Delivering Effective Interventions 221</p>
<p>13.1 Balancing short–term results with drivers of long–term sustainable performance 222</p>
<p>13.2 Planning and monitoring interventions 227</p>
<p>13.3 Joined–up thinking 230</p>
<p>13.4 Milestones: One big step at a time 232</p>
<p>13.5 Making improvement part of the day job 232</p>
<p>13.6 Summary 235</p>
<p>References 236</p>
<p>CHAPTER 14 Epilogue 237</p>
<p>14.1 It s all about balance and harmony 238</p>
<p>14.2 Learning the right balance 239</p>
<p>14.3 Where do we start? 240</p>
<p>Reference 240</p>
<p>CHAPTER 15 The Book in a Nutshell 241</p>
<p>15.1 Part One Introduction 242</p>
<p>15.2 Part Two The Science 242</p>
<p>15.3 Part Three The Art 244</p>
<p>15.4 Part Four Effective Interventions 246</p>
<p>15.5 Conclusions 249</p>
<p>APPENDICES</p>
<p>APPENDIX A Overview of Popular Performance Measurement Models and Frameworks 253</p>
<p>A.1 DuPont model 254</p>
<p>A.2 The Performance Measurement Matrix (PMM) 254</p>
<p>A.3 The Performance Measurement Questionnaire (PMQ) 255</p>
<p>A.4 The Results and Determinants Framework 255</p>
<p>A.5 The Strategic Measurement Analysis and Reporting Technique (SMART) 256</p>
<p>A.6 The Cambridge Performance Measurement Design Process 257</p>
<p>A.7 The Pyramid of Organisational Development 258</p>
<p>A.8 Integrated Performance Measurement System (IPMS) reference model 258</p>
<p>A.9 The Business Excellence model of the European Foundation for Quality Management (EFQM) 259</p>
<p>A.10 The Performance Prism 261</p>
<p>References 262</p>
<p>APPENDIX B Common Performance Measures 263</p>
<p>B.1 Financially focused measures 264</p>
<p>B.2 Customer–focused measures 264</p>
<p>B.3 Internal process–focused measures 265</p>
<p>B.4 Learning and growth–focused measures 267</p>
<p>B.5 Advanced Performance Institute and Bernard Marr s 25 measures that every manager should know 268</p>
<p>B.6 Oliver Wight International and the ABCD checklist for business excellence 269</p>
<p>B.7 Supply Chain Operations Reference (SCOR) model 270</p>
<p>References 271</p>
<p>Index 273</p>