Managing business performance : the science and the art

302 Pages·2015·9.323 MB·English

by  Umit S. Bititci

Where there is balance and harmony there is performance
Managing Business Performance
The Science and the Art
Umit S. Bititci
This edition first published 2015
© 2015 John Wiley & Sons, Ltd
Registered office
John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom
For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse
the copyright material in this book please see our website at www.wiley.com.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs
and Patents Act 1988, without the prior permission of the publisher.
Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print
versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD
that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more
information about Wiley products, visit www.wiley.com.
Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product
names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The
publisher is not associated with any product or vendor mentioned in this book.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they
make no representations or warranties with respect to the accuracy or completeness of the contents of this book and
specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding
that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for
damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional
should be sought.
Library of Congress Cataloging-in-Publication Data
Bititci, Umit S.
Managing business performance : the science and the art / Umit S. Bititci.
pages cm
Includes bibliographical references and index.
ISBN 978-1-119-02567-2 (cloth)
1. Performance technology. 2. Performance. 3. Organizational effectiveness.
4. Management. I. Title.
HF5549.5.P37.B57 2015
658.4'013—dc23
2015018007
A catalogue record for this book is available from the British Library.
ISBN 978-1-119-02567-2 (hardback) ISBN 978-1-119-02568-9 (ebk)
ISBN 978-1-119-02569-6 (ebk) ISBN 978-1-119-16654-2 (obk)
Cover design: Wiley
Cover image: © Irur/Shutterstock
“Not everything that can be counted
counts....and not everything that counts
can be counted”
Albert Einstien
Contents
Preface
Acknowledgements
About the Author
PART ONE Introduction
1 Prologue
1.1 Background to this book
1.2 Motivation and principles
1.3 Who is this book for?
1.4 Structure of the book
References
Notes
2 A Short History of Performance Measurement and Management
2.1 Beginnings
2.2 Performance measurement revolution
2.3 Performance measurement from different perspectives
2.4 Performance management
2.5 Balancing the SCIENCE with the ART
2.6 Future challenges
References
Notes
PART TWO The Science
3 What Are We Managing?
3.1 Everyone has a different view
3.2 How do companies compete?
3.3 Value streams – focused business units that create value
3.4 Business processes – the universal building blocks
3.5 Managerial processes – thinking about the future
3.6 Support processes – serving to create value
3.7 Anatomy of an organisation – the universal competitive structure
3.8 Summary
References
Notes
4 Understanding and Managing Business Processes
4.1 Purpose and flow
4.2 What flows through the process?
4.3 Anatomy of a process
4.4 Understanding what affects flow
4.5 Measuring process performance
4.6 Summary
Reference
5 Measuring Performance
5.1 Do we need measures?
5.2 Developing a performance measurement system
5.3 Communicating with measures
5.4 Scorecards, cockpits, dashboards and war-rooms
5.5 Creating effective visual performance measurement and management systems
5.6 Reviewing performance
5.7 Summary
Reference
Notes
CHAPTER 6 Summary: The Science of Managing Business Performance
PART THREE The Art
7 Drivers of Performance
7.1 Measures of business performance
7.2 Managing performance for the short-term (up to 2 years)
7.3 Managing performance for the medium-term (2 to 5 years)
7.4 Managing performance for the long-term (5+ years)
7.5 Summary
References
Notes
8 Capabilities, Culture and Performance
8.1 UNDERSTANDING ORGANISATIONAL CAPABILITIES
8.2 HOW DO ORGANISATIONAL CAPABILITIES DEVELOP?
8.3 LEARNING TO LEARN
8.4 MANAGING ORGANISATIONAL CAPABILITIES AND CULTURE
8.5 SUMMARY
REFERENCE
9 The People Component
9.1 What kind of organisation would you like to work in?
9.2 The people component
9.3 What motivates people?
9.4 What needs to change?
9.5 Summary
References
Notes
10 Balancing Organisational Controls
10.1 What is the right balance?
10.2 What happens when we get the balance wrong?
10.3 Understanding the interplay between performance measurement and
performance management
10.4 Balancing organisational controls: Do's and don'ts
10.5 Summary
References
Notes
11 Summary: The Art of Managing Business Performance
PART FOUR Effective Interventions
12 Designing Effective Interventions
12.1 A systems approach
12.2 The organisation as a system
12.3 Who will decide what needs to change and how?
12.4 Technical vs. social intervention
12.5 What to change?
12.6 Finding the trim-tab
12.7 Summary
References
Notes
13 Delivering Effective Interventions
13.1 Balancing short-term results with drivers of long-term sustainable
performance
13.2 Planning and monitoring interventions
13.3 Joined-up thinking
13.4 Milestones: One big step at a time
13.5 Making improvement part of the day job
13.6 Summary
References
Notes
14 Epilogue
14.1 It's all about balance and harmony
14.2 Learning the right balance
14.3 Where do we start?
Reference
15 The Book in a Nutshell
15.1 Part One – Introduction
15.2 Part Two – The Science
15.3 Part Three – The Art
15.4 Part Four – Effective Interventions
15.5 Conclusions
Appendices
A Overview of Popular Performance Measurement Models and Frameworks
A.1 DuPont Model
A.2 The Performance Measurement Matrix (PMM)
A.3 The Performance Measurement Questionnaire (PMQ)
A.4 The Results and Determinants Framework
A.5 The Strategic Measurement Analysis and Reporting Technique (SMART)
A.6 The Cambridge Performance Measurement Design Process
A.7 The Pyramid of Organisational Development
A.8 Integrated Performance Measurement System (IPMS) reference model
A.9 The Business Excellence model of the European Foundation for Quality
Management (EFQM)
A.10 The Performance Prism
References
Notes
B Common Performance Measures
B.1 Financially focused measures
B.2 Customer-focused measures
B.3 Internal process-focused measures
B.4 Learning and growth-focused measures
B.5 Advanced Performance Institute and Bernard Marr's 25 measures that every
manager should know
B.6 Oliver Wight International and the ABCD checklist for business excellence
B.7 Supply Chain Operations Reference (SCOR) model
References
Index
EULA
List of Tables
Chapter 4
Table 4.1
Table 4.2
Chapter 9
Table 9.1
Chapter 10
Table 10.1
Appendix B
Table B.1
List of Illustrations
Chapter 1
FIGURE 1.1 The universal structure that underpins performance in all organisations
FIGURE 1.2 Organisational controls – where there is balance and harmony there is
performance
Chapter 2
FIGURE 2.1 Performance: the efficiency and effectiveness of an action
FIGURE 2.2 Feedback and feedforward – the dual-control role of performance
measurement