strategy and performance
TRANSCRIPT
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en a s an om n c ug on
IfM Briefing Day, Tuesday 18 May 2010
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Agenda
Overview of the Centre for Strategy and Performance
Performance Measurement
- Performance measurement record sheet
Strategic Analysis- Make vs Buy
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to develop effective research-based
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performance measurement system design
managers and consultants
findings
-community focused on strategy and
performance
to deliver educational and training materials
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Themes
Strategic Decision MakingBuilding structured approaches that support strategy making
ra egy o e ng an sua sa onDeveloping visual approaches to support strategy development
,Studying the way companies create and exploit competences
Designing, developing and implementing performance measurement systems
Developing tools to support servitization
Strate O tions for Start-u sExploring the strategic challenges for start-up companies
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Taking a Process View
Aims to understand how operations management activities arecarried out, with a view to improving them espec a y g eve processes - e.g. s ra egy ormu a on,
performance measurement design
Output Processes and tools which will help managers manage their
operations better
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Typical output - workbooks
Competing through competences Getting the measure of your businessCreating a winning business formula
Make-or-BuyCompetitive Manufacturingnn ng ec s ons - rans a ngbusiness strategy into actionplans
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Performance Measures
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Performance Measurement System designprocess over e as years.
The process is described in detail in
Getting the Measure of your business,Cambridge University Press, 2002ISBN 0-521-75031-8
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measurement problem?
What do we measure?
How do we measure it?
What do we do
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How do we measure it?
Measure it right
Measures must match objectives
Measures must be understandable and robust
easures must r ve requ re e av our
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But choosing the measure might not be straightforward:
Examples:
Baggage handling
Delivery reliability
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Measuring Delivery Reliability
Meeting Customer Delivery Date despatched on agreed/promised delivery date delivered on a reed/ romised deliver date
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Measure Delivery performance
PurposeRelates to
To stimulate improvements in our delivery reliability
Business objectives: delivery on time and minimise overall lead times
Formula
100 * Orders delivered in full on the promised day / Total no. of orders
Who measures?
Source of data
A Smith - production control
Total orders scheduled for delivery in the week from the MPS system
the data?Who acts on
c ua e very a es - y p on ng e cus omers
A.N. Other - manufacturing manager
, . ,manufacturing engineering task force to: (a) investigate why (b) makerecommendation and (c) make appropriate changes.
Notes
a o ey o
Measure places equal weighting on early as well as late delivery
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Purpose
Relates to
Stimulate improvements in our responsiveness to our customers.
Improve sales team performance and time to quote objectives.
TargetFormula
7 calendar days by end 2002.
Date of confirmation of quote receipt by customer - Date of first requestfrom the customer.
Who measures?FrequencyMonthly.
Stuart Taylor, Karen Ash.
the data?
Who acts on
. .
Should be Brian Henry, but is the quote generation process underhis control?
Notes
What do they do? Monitor time to quote and investigate any unexpected results.
There is a need to examine this business process in more detail.
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The Value of the Record Sheet
- communicates why this measure is required- i h l r r h i n f h m r - identifies who is responsible for improvement-
- fully documents measures
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An opportunity to engage in CSP research onPerformance Measurement
Over the summer we will be running a Delphi study in
explore the future of Performance Measurement systems.
We are looking for 20-30 knowledgeable industrial managersto participate.
Involvement - 2 short questionnaires, and attendance at a.
There is no char e for artici ation . For further info please email me, Ken Platts, [email protected].
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Make vs Buy