Managing business performance : the science and the art

Content: 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: Do   s and don   ts 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 It   s 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 Marr   s 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