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