The key to unleashing the full value of performance management is first of all to understand that your company is confronted to an issue that includes hard factors (data, information systems, statutory financial reporting, regulatory environment etc.) as well as softer factors (strategy execution, leadership, social environment, company culture, change management, employee skills and remuneration). Synchrotech Group with Bridgent, its CPM Division acquired at early 2008, strives to provide quality Business consultancy including Business requirements definition (KPIs etc.), OPM Strategy definition (Road map, Blueprint etc.), Methodologies including Gap Analysis, Frameworks & Diagnosis). We always keep best interests of client in mind, ensures that time spent is adding real tangible value to our customer, gives honest, unbiased and straightforward advice, transfers knowledge and helps develop client resources to their maximum potential.



The Value of a CPM Framework PDF Print E-mail
Organization Performance Management
Wednesday, 03 December 2008 15:04

The Corporate Performance Management PyramidOrganizations’ biggest struggle is often with how to implement performance management. The vast majority of companies has a company strategy and has defined operational and tactical plans on how to execute strategy. Similarly companies have streamlined their processes, automating wherever possible and outsourcing non-core manual processes to cheaper locations. Much fat has been removed from the supply chain and customer relationship management has been reduced wherever possible to an intelligent web interface. Despite all these improvements in efficiency, efficacy and productivity companies still do, on balance, a poor job on measuring and managing performance despite the widespread availability of management tools such as the Balanced Scorecard and IT tools such as OLAP, Data Warehousing and Multidimensional Data Bases. Why?

There are powerful cultural, organizational, financial, data and technological reasons for the lack of successful adoption of performance management which we can discuss in another article in more detail.

The key to unleashing the full value of performance management is first of all to understand that your company is confronted to an issue that includes hard factors (data, information systems, statutory financial reporting, regulatory environment etc.) as well as softer factors (strategy execution, leadership, social environment, company culture, change management, employee skills and remuneration). The second important realization is that you cannot let either IT/IS or its Business partners implement performance management, but that it must be a joint effort. The third realization is that the Finance Department is the natural partner to spearhead the Performance Management effort given Finance’s experience with Financial planning, budgeting and reporting and numerical analysis. However, finance must be willing to take on a broader non-financial measurement mandate to be successful in its CPM venture. So the take home messages are as follows:

  • Performance management includes soft and hard factors
  • Performance management is a joint venture between Business and IT/IS
  • Finance is the natural leader of a CPM venture
 
Performance Management: Are you ready? PDF Print E-mail
Organization Performance Management
Tuesday, 02 December 2008 17:36

A full Organization Performance Management Framework With a strong team and strong processes, you can be ready for market changes, innovation and the struggle for attracting and retaining talent. Synchrotech Group provides integrated services that manage, deploy and optimize talent, learning and knowledge to achieve business results. Pursuing its clear strategy within the field of corporate performance, we offer perspectives to our clients, in terms of enterprise governance and high level management consulting services. Synchrotech uses frameworks and methods for competency, knowledge, learning and financial management, improving the strategies, people, processes and technologies that impact business performance. We provide, among others, OPM Strategy definition (Road map, Blueprint etc.), methodologies that include OPM Gap Analysis, Frameworks & Diagnosis and finally business requirements definition (Key Performance Indicators, Key Business Reports, etc.).

 
Step by Step to Customized Performance Management PDF Print E-mail
Tailored OPM Services
Tuesday, 02 December 2008 17:36

Step by Step towards a real Performance Management

Performance management must be an integrated part of the business lifecycle that helps an organization to mature through evolving and changing performance measures, from their definition through to monitoring and review. In addition, by including the IS/IT component throughout this lifecycle, rather than just considering it as a 'downstream' cost of measurement provision, there will be enhanced benefits from an increased and more effective contribution from investments made in IS/IT.

In order for this to happen, organizations must have adopted sound practices in commissioning and acquiring IS/IT services to achieve performance improvement. Performance management identifies opportunities for maximizing improvements in managing service delivery. Performance management helps you to make decisions about investment routes, affordability and setting investment priorities in the face of competing demands for resources.

 

Managing for results

Managing for results requires the organization to focus on the outputs of the processes and activities undertaken by the organization at varying levels. Together these outputs will contribute to the achievement of the outcomes desired by the organization..

Levels of performance management

The effective performance of your organization depends on the contribution of activities at all levels - from top management policy development through to efficiently run operations. There are three or four levels of performance management in the model framework below, some organizations may combine the strategic level with the organization’s priorities level.

Organization’s priorities: at the highest level performance management is rooted in the organization’s long term business strategy.

  1. Measures at this level are of impact, resource utilization and service/product improvement.
  2. Strategic level performance management: at this level the management concern is from an "outside in" as well as an internal perspective. Measures are of outcome, such as volume and value of service/prodcut up-take, upward trends for inclusion, staff and users' satisfaction.
  3. Tactical or operational service level performance management: here the management focus is concerned with service delivery and outputs, using conventional service level agreement approaches and related measures of aspects such as volumes and quality.

Although performance measures and indicators may be different at each level, they will need to be:

  • quantitative and relative- to show what has been achieved and how much more is to be done and to enable benchmarking
  • worthwhile - adding more value to the business than they cost to collect and use.

Value for money

You must be able to demonstrate that you have achieved value for money in your operations. Value for money is taken to cover three measures of performance:

  • efficiency - the relationship between outputs, in terms of goods, services or other results and the resources used to produce them
  • effectiveness - the extent to which objectives have been achieved, and the relationship between the intended impacts and actual impacts of an activity.
  • economy - minimizing the cost of resources used for an activity, having regard to appropriate quality

Measures and metrics

You should use these evaluation criteria for measures and metrics:

  • are you measuring the right thing?
  • do you have the right measures?
  • are the measures used in the right ways?
  • do you determine the quality of a particular performance metric using the SMART test (Specific, Measurable, Attainable, Relevant, Timely)?

The procedures and measures used in performance management will depend, among other factors, on the type of business process which is being measured. A business process is assumed to be made up of a number of activities which transform inputs into outputs and contribute to the realization of outcomes. The customers for a process may be external (for example, members of the public) or internal, within the same organization or elsewhere in the public sector.

Business processes can be distinguished by:

  • the extent to which the activities involved are people-oriented as opposed to automated
  • whether the activities are primarily 'front-office' or 'back-office' - that is, the amount of direct contact which the staff have with the customers or recipients of the process
  • whether the process itself is the important feature of the activity - for example, in delivering consultancy - or whether the activities are concerned primarily with the generation of defined outputs
  • the extent to which the activity is customized or tailored to the needs of each customer, as opposed to being routine and procedural
  • the amount of discretion which needs to be exercised in the activities the duration of the contact with the customer.
 


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