Dear friends,
We are struggling to measure the performance of so called white elephants of the company.One of the method suggested is Balance score card.Is there any other way we can measure their performance apart from regular annual report.Since now we want to link their performance to their productivity as we think they have already reached their peak some years back and now getting hike every year simply because they are with us.How long can this continue and moreover we have a set of people every year waiting to fall into this group.
Can anyone suggest a good website to learn all about Balance score card or some good method to measure their productivity. I belong to Data conversion industry.
Thanks
Bhavana
From India, Madras
We are struggling to measure the performance of so called white elephants of the company.One of the method suggested is Balance score card.Is there any other way we can measure their performance apart from regular annual report.Since now we want to link their performance to their productivity as we think they have already reached their peak some years back and now getting hike every year simply because they are with us.How long can this continue and moreover we have a set of people every year waiting to fall into this group.
Can anyone suggest a good website to learn all about Balance score card or some good method to measure their productivity. I belong to Data conversion industry.
Thanks
Bhavana
From India, Madras
Hi Bhavna,
Our organisation is in the process of implementing balance score card program and has implemented the same of senior management personnel from Apr 05 onwards.
I am giving below a part of an article and the link on the subject. You can get enormous info from this site.
http://balancedscorecard.org <link updated to site home>
Quote:::
What is the Balanced Scorecard?
A new approach to strategic management was developed in the early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Norton. They named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."
The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:
The Learning and Growth Perspective
The Business Process Perspective
The Customer Perspective
The Financial Perspective
--------------------------------------------------------------------------------
The Balanced Scorecard and Measurement-Based Management
The balanced scorecard methodology builds on some key concepts of previous management ideas such as Total Quality Management (TQM), including customer-defined quality, continuous improvement, employee empowerment, and -- primarily -- measurement-based management and feedback.
Double-Loop Feedback
In traditional industrial activity, "quality control" and "zero defects" were the watchwords. In order to shield the customer from receiving poor quality products, aggressive efforts were focused on inspection and testing at the end of the production line. The problem with this approach -- as pointed out by Deming -- is that the true causes of defects could never be identified, and there would always be inefficiencies due to the rejection of defects. What Deming saw was that variation is created at every step in a production process, and the causes of variation need to be identified and fixed. If this can be done, then there is a way to reduce the defects and improve product quality indefinitely. To establish such a process, Deming emphasized that all business processes should be part of a system with feedback loops. The feedback data should be examined by managers to determine the causes of variation, what are the processes with significant problems, and then they can focus attention on fixing that subset of processes.
The balanced scorecard incorporates feedback around internal business process outputs, as in TQM, but also adds a feedback loop around the outcomesof business strategies. This creates a "double-loop feedback" process in the balanced scorecard.
Outcome Metrics
You can't improve what you can't measure. So metrics must be developed based on the priorities of the strategic plan, which provides the key business drivers and criteria for metrics that managers most desire to watch. Processes are then designed to collect information relevant to these metrics and reduce it to numerical form for storage, display, and analysis. Decision makers examine the outcomes of various measured processes and strategies and track the results to guide the company and provide feedback.
So the value of metrics is in their ability to provide a factual basis for defining:
Strategic feedback to show the present status of the organization from many perspectives for decision makers
Diagnostic feedback into various processes to guide improvements on a continuous basis
Trends in performance over time as the metrics are tracked
Feedback around the measurement methods themselves, and which metrics should be tracked
Quantitative inputs to forecasting methods and models for decision support systems
Management by Fact
The goal of making measurements is to permit managers to see their company more clearly -- from many perspectives -- and hence to make wiser long-term decisions. The Baldrige Criteria (1997) booklet reiterates this concept of fact-based management:
"Modern businesses depend upon measurement and analysis of performance. Measurements must derive from the company's strategy and provide critical data and information about key processes, outputs and results. Data and information needed for performance measurement and improvement are of many types, including: customer, product and service performance, operations, market, competitive comparisons, supplier, employee-related, and cost and financial. Analysis entails using data to determine trends, projections, and cause and effect -- that might not be evident without analysis. Data and analysis support a variety of company purposes, such as planning, reviewing company performance, improving operations, and comparing company performance with competitors' or with 'best practices' benchmarks."
"A major consideration in performance improvement involves the creation and use of performance measures or indicators. Performance measures or indicators are measurable characteristics of products, services, processes, and operations the company uses to track and improve performance. The measures or indicators should be selected to best represent the factors that lead to improved customer, operational, and financial performance. A comprehensive set of measures or indicators tied to customer and/or company performance requirements represents a clear basis for aligning all activities with the company's goals. Through the analysis of data from the tracking processes, the measures or indicators themselves may be evaluated and changed to better support such goals
Unquote::::::
Will try and send you more info sometime later.
Thanks and Best Regards
Bala
From India, Madras
20Our organisation is in the process of implementing balance score card program and has implemented the same of senior management personnel from Apr 05 onwards.
I am giving below a part of an article and the link on the subject. You can get enormous info from this site.
http://balancedscorecard.org <link updated to site home>
Quote:::
What is the Balanced Scorecard?
A new approach to strategic management was developed in the early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Norton. They named this system the 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.
The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise.
Kaplan and Norton describe the innovation of the balanced scorecard as follows:
"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."
The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:
The Learning and Growth Perspective
The Business Process Perspective
The Customer Perspective
The Financial Perspective
--------------------------------------------------------------------------------
The Balanced Scorecard and Measurement-Based Management
The balanced scorecard methodology builds on some key concepts of previous management ideas such as Total Quality Management (TQM), including customer-defined quality, continuous improvement, employee empowerment, and -- primarily -- measurement-based management and feedback.
Double-Loop Feedback
In traditional industrial activity, "quality control" and "zero defects" were the watchwords. In order to shield the customer from receiving poor quality products, aggressive efforts were focused on inspection and testing at the end of the production line. The problem with this approach -- as pointed out by Deming -- is that the true causes of defects could never be identified, and there would always be inefficiencies due to the rejection of defects. What Deming saw was that variation is created at every step in a production process, and the causes of variation need to be identified and fixed. If this can be done, then there is a way to reduce the defects and improve product quality indefinitely. To establish such a process, Deming emphasized that all business processes should be part of a system with feedback loops. The feedback data should be examined by managers to determine the causes of variation, what are the processes with significant problems, and then they can focus attention on fixing that subset of processes.
The balanced scorecard incorporates feedback around internal business process outputs, as in TQM, but also adds a feedback loop around the outcomesof business strategies. This creates a "double-loop feedback" process in the balanced scorecard.
Outcome Metrics
You can't improve what you can't measure. So metrics must be developed based on the priorities of the strategic plan, which provides the key business drivers and criteria for metrics that managers most desire to watch. Processes are then designed to collect information relevant to these metrics and reduce it to numerical form for storage, display, and analysis. Decision makers examine the outcomes of various measured processes and strategies and track the results to guide the company and provide feedback.
So the value of metrics is in their ability to provide a factual basis for defining:
Strategic feedback to show the present status of the organization from many perspectives for decision makers
Diagnostic feedback into various processes to guide improvements on a continuous basis
Trends in performance over time as the metrics are tracked
Feedback around the measurement methods themselves, and which metrics should be tracked
Quantitative inputs to forecasting methods and models for decision support systems
Management by Fact
The goal of making measurements is to permit managers to see their company more clearly -- from many perspectives -- and hence to make wiser long-term decisions. The Baldrige Criteria (1997) booklet reiterates this concept of fact-based management:
"Modern businesses depend upon measurement and analysis of performance. Measurements must derive from the company's strategy and provide critical data and information about key processes, outputs and results. Data and information needed for performance measurement and improvement are of many types, including: customer, product and service performance, operations, market, competitive comparisons, supplier, employee-related, and cost and financial. Analysis entails using data to determine trends, projections, and cause and effect -- that might not be evident without analysis. Data and analysis support a variety of company purposes, such as planning, reviewing company performance, improving operations, and comparing company performance with competitors' or with 'best practices' benchmarks."
"A major consideration in performance improvement involves the creation and use of performance measures or indicators. Performance measures or indicators are measurable characteristics of products, services, processes, and operations the company uses to track and improve performance. The measures or indicators should be selected to best represent the factors that lead to improved customer, operational, and financial performance. A comprehensive set of measures or indicators tied to customer and/or company performance requirements represents a clear basis for aligning all activities with the company's goals. Through the analysis of data from the tracking processes, the measures or indicators themselves may be evaluated and changed to better support such goals
Unquote::::::
Will try and send you more info sometime later.
Thanks and Best Regards
Bala
From India, Madras
Hi Bhavana,
Besides Balanced scorecard..which is a long drawn exercise..as detailed by my colleague..
White elephant- as i understand you want to get rid of them itself as you have identified as well..on what parameters have u judged them?..
Getting rid of them so called segment as you have identified encompasses the following steps-
* Skip them in important meetings..
* Give better projects to other relatively new comers..
* Give better wages to new comers whom you have identified than the white elephants...
Would not recommend balanced scorecard at this stage as such instead quantify their output by each of them & increase the targets!! incase if you find it difficult in quantifying the outputs..shall help you out..
Hope this helps..
Cheers,
Rajat
From India, Pune
Besides Balanced scorecard..which is a long drawn exercise..as detailed by my colleague..
White elephant- as i understand you want to get rid of them itself as you have identified as well..on what parameters have u judged them?..
Getting rid of them so called segment as you have identified encompasses the following steps-
* Skip them in important meetings..
* Give better projects to other relatively new comers..
* Give better wages to new comers whom you have identified than the white elephants...
Would not recommend balanced scorecard at this stage as such instead quantify their output by each of them & increase the targets!! incase if you find it difficult in quantifying the outputs..shall help you out..
Hope this helps..
Cheers,
Rajat
From India, Pune
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SIMPLEST AND UNIQUE WAY TO MEASURE STRESS!.doc