Strategic Performance Management: Achieving Long-term Competitive Advantage through Performance Excellence (Management for Professionals)

Strategic Performance Management
	Acknowledgements
	Contents
	About the Author
	Abbreviations
	1: Performance Management as Part of the Corporate Strategy
		1.1	 Definition of Performance Management
		1.2	 PM Objectives
		1.3	 PM as Part of the Strategy Over the Entire Value Chain
			1.3.1	 Corporate Strategy
			1.3.2	 Business Strategy
			1.3.3	 Functional Strategy
			1.3.4	 Alignment of Strategies
		1.4	 Strategic Triangle
		1.5	 Strategic Analysis
			1.5.1	 Analysing Important Factors
			1.5.2	 Analysing the Environment
			1.5.3	 Analysing the Industry
			1.5.4	 Analysing the Strengths and Weaknesses of the Own Enterprise
			1.5.5	 Analysing the Core Competencies
		1.6	 Strategic Choice
			1.6.1	 Generic Strategies
			1.6.2	 Boston Consulting Group Matrix (BCG Matrix)
			1.6.3	 Ansoff Matrix
				1.6.3.1	 Horizontal Diversification
				1.6.3.2	 Vertical Diversification
				1.6.3.3	 Lateral Diversification
			1.6.4	 Blue and Red Ocean Strategies
		1.7	 Strategic Implementation
			1.7.1	 Assessment of Suitability, Acceptability, and Feasibility
			1.7.2	 Suitability
			1.7.3	 Acceptability
			1.7.4	 Feasibility
		1.8	 Strategic Pyramid
			1.8.1	 Mission and Vision
			1.8.2	 Qualitative and Quantitative Lean Goals and Objectives
			1.8.3	 Core Competencies
			1.8.4	 Strategies
			1.8.5	 Strategic Architecture
			1.8.6	 Control and Execution
		1.9	 Core Values
			1.9.1	 Strategies Must Focus on Value Creation
			1.9.2	 Case Study: Siemens Strategy
		References
	2: Performance in Procurement and Supply Management
		2.1	 Procurement
		2.2	 Supply Side
		2.3	 History of Supply Management and Procurement
		2.4	 Procurement and Supply Management Objectives
		2.5	 Supply Management Process
			2.5.1	 Six Phases in Procurement and Supply Management
			2.5.2	 Supplier Strategy
				2.5.2.1	 Supplier Segmentation
				2.5.2.2	 Commodity Strategies
				2.5.2.3	 Make or Buy Strategies
				2.5.2.4	 ABC-XYZ Analysis
			2.5.3	 ABC Article
				2.5.3.1	 XYZ Item
				2.5.3.2	 Internationalization Strategies
				2.5.3.3	 Sustainability and CSR Strategies
				2.5.3.4	 Digitization Strategies
			2.5.4	 Supplier Selection
				2.5.4.1	 Supplier Selection Criteria
				2.5.4.2	 Supplier Risk Management
			2.5.5	 Supplier Evaluation
				2.5.5.1	 Appropriate Selection of Evaluation Criteria
				2.5.5.2	 Supplier Evaluation as Predictive and Preventive Tool
				2.5.5.3	 Supplier Evaluation as Management Tool
			2.5.6	 Supplier Development
				2.5.6.1	 Strategic Supplier Development
				2.5.6.2	 Preventive Supplier Development
				2.5.6.3	 Reactive Supplier Development
			2.5.7	 Supplier Integration
				2.5.7.1	 Supplier Coaching
				2.5.7.2	 International Purchasing Offices
			2.5.8	 Supplier Controlling
		2.6	 Control via Digital Supplier Dashboards and Cockpits
		2.7	 Case Study: Apple’s Outsourcing Strategy
		References
	3: Performance Management in Operations Management
		3.1	 Performance Management in Operations Management and Production
		3.2	 History of Operations Management
		3.3	 Elements of Operations Management 4.0
			3.3.1	 Virtual Factory
			3.3.2	 Digital Value-Chain Integration
			3.3.3	 Lean Simulations
			3.3.4	 System Integration
			3.3.5	 Internet of Things
			3.3.6	 Cybersecurity
			3.3.7	 Cloud Computing
			3.3.8	 Additive Manufacturing
			3.3.9	 Augmented Reality
			3.3.10	 Big Data
		3.4	 Principles of Operations Management 4.0
			3.4.1	 Digital Synchronization of Networks
			3.4.2	 7R Principle
			3.4.3	 Gemba, Gembutsu, and Genchi: Right Place of Happening
			3.4.4	 Muda, Muri, Mura
			3.4.5	 Heijunka
			3.4.6	 Poka-Yoke
			3.4.7	 Jidoka
			3.4.8	 Chaku Chaku Line
		3.5	 Case Study: Mazda Operations Management Strategy
		References
	4: Strategic Management Tools and Excellence Models
		4.1	 Balanced Scorecard (BSC)
			4.1.1	 Better Strategic Planning
			4.1.2	 Improved Strategy Communication and Execution
			4.1.3	 Better Alignment of Projects and Initiatives
			4.1.4	 Better Management Information
			4.1.5	 Improved Performance Reporting
			4.1.6	 Better Organizational Alignment
			4.1.7	 Better Process Alignment
		4.2	 European Foundation of Quality Management (EFQM)
			4.2.1	 Concept of the EFQM Excellence Model
			4.2.2	 Continuous Process
			4.2.3	 Self-Assessment
			4.2.4	 Application of the EFQM Excellence Model
		4.3	 Baldrige Excellence Model
		4.4	 Business PM Improvement Resource Planning (BPIR)
		4.5	 Performance Management to Excellence Model (P2ME)
		4.6	 Case Study: EFQM Model at BMW
		References
	5: Strategic Management Objectives, KPI, and OKR
		5.1	 The Performance Management Cycle
		5.2	 Performance Excellence
		5.3	 Key Performance Indicators (KPIs)
		5.4	 Objective Key Results (OKRs)
		5.5	 Case Study: Microsoft’s Strategy and Objectives
		References
	6: Problem-Solving and Performance Management Tools
		6.1	 Introduction to Problem-Solving
		6.2	 A3 Method
		6.3	 8D Process
		6.4	 Kepner-Tregoe
		6.5	 TRIZ
		6.6	 Plan-Do-Check-Act (PDCA)
		6.7	 Six Sigma
		6.8	 Value Stream Mapping (VSM)
		6.9	 RPR Method
		6.10	 Brainstorming
		6.11	 Mind Mapping
		6.12	 Design Thinking
			6.12.1	 The Concept of Design Thinking
			6.12.2	 Understanding
			6.12.3	 Observing
			6.12.4	 Defining a Point of View
			6.12.5	 Finding Ideas
			6.12.6	 Prototyping
			6.12.7	 Testing
		6.13	 Case Study: Problem-Solving with Kepner-Tregoe at Bayer AG
		References
	7: Performance Management in Sales
		7.1	 Definition of Sales Management
		7.2	 Sales Management Process
			7.2.1	 Introduction to the Sales Management Process
		7.3	 Sales Strategy
		7.4	 Sales Operations
		7.5	 Sales Organization
		7.6	 Sales Technology
		7.7	 Sales Incentives
		7.8	 Sales Performance
		7.9	 Benefits of Structured Sales Management
		7.10	 Sales Funnel
			7.10.1	 Purpose of the Sales Funnel
			7.10.2	 Awareness
			7.10.3	 Interest
			7.10.4	 Consideration
			7.10.5	 Intent
			7.10.6	 Evaluation
			7.10.7	 Purchase
		7.11	 Case Study: Marketing and Sales Strategy in Porsche
			7.11.1	 Introduction of Porsche
			7.11.2	 Porsche Marketing Mix
			7.11.3	 Porsche Marketing Strategy
				7.11.3.1	 Targeting Strategy of Porsche
				7.11.3.2	 Porsche Digital Marketing Strategy
				7.11.3.3	 Porsche Advertising Campaign
				7.11.3.4	 “The Power of Balance” Campaign
		References
	8: Economic Pricing, 3C Pricing, and Cost Estimation Concepts
		8.1	 Economic Pricing Model
			8.1.1	 Introduction: Supply and Demand
			8.1.2	 Understanding Supply and Demand
			8.1.3	 Demand
			8.1.4	 Supply
			8.1.5	 Supply and Demand Curves
			8.1.6	 Shifts Versus Movements
			8.1.7	 Equilibrium Price
			8.1.8	 Impacts on Supply and Demand
		8.2	 3C Pricing Model
			8.2.1	 Introduction to the 3C Pricing Model
			8.2.2	 Customer
			8.2.3	 Competitors
			8.2.4	 Costs
		8.3	 Cost-Plus Pricing
		8.4	 Cost Estimation
		8.5	 Case Study: Product Strategy and Premium Pricing of Mercedes
			8.5.1	 Mercedes as Luxury Car Maker
			8.5.2	 Premium Pricing of Mercedes
		References
	9: Audits and Quality Management Systems (QMS)
		9.1	 Quality Management System (QMS)
		9.2	 Audits
			9.2.1	 Audit Types
			9.2.2	 Quality Management Systems (QMS)
		9.3	 Case Study: 5S Audits in Berliner-Kindl-Schultheiss Brewery
		References
	10: Business Transformation and Project Management
		10.1	 Transformation and Adaptability of Strategies and Tools
		10.2	 Business Transformation Strategies
		10.3	 Project Management Strategies
		10.4	 Project Management Criteria
			10.4.1	 Project Management Success Factors
			10.4.2	 Integration Management
			10.4.3	 Performance Management
			10.4.4	 Time Management
			10.4.5	 Cost Management
			10.4.6	 Quality Management
			10.4.7	 People and Human Management
			10.4.8	 Communication Management
			10.4.9	 Risk Prevention Management
			10.4.10 Procurement Management
		10.5	 Recommendations for Executing Project Management
		10.6	 Case Study: CRRC Project Management in the United States
		References
	11: Performance in Finance Management
		11.1	 Financial Crisis Prevention and Crisis Symptoms
		11.2	 Restructuring and Financial Restructuring
			11.2.1	 Definition of Restructuring
			11.2.2	 Strategic Restructuring
			11.2.3	 Structural of Restructuring
		11.3	 Financial Stability Assessment Tools
			11.3.1	 Creditreform
			11.3.2	 Creditsafe
			11.3.3	 VDA Rating
			11.3.4	 Dun & Bradstreet (D&B)
			11.3.5	 RapidRatings
		11.4	 Case Study: Insolvency of SolarWorld AG
		References
	12: Performance Through Kaizen
		12.1	 Definition of Kaizen
		12.2	 Kaizen Versus Innovation
		12.3	 Visualization Management
		12.4	 Case Study: Mercedes’ Lean Management System
		References
	13: Performance Management to Focus on Value-Added Activities
		13.1	 Value-Added and Waste
		13.2	 Waste Identification Through Ishikawa Diagram
		13.3	 Advantages and Disadvantages
		13.4	 5S Management Concept
		13.5	 Seven Types of Waste in Manufacturing: TIMWOOD
			13.5.1	 Transportation
			13.5.2	 Inventory
			13.5.3	 Motion
			13.5.4	 Waiting
			13.5.5	 Overproduction
			13.5.6	 Overprocessing
			13.5.7	 Defects
			13.5.8	 Case Study: Alstom in China
		References
	14: Performance Management Excellence Through Change
		14.1	 Definition of Change Management
		14.2	 External and Internal Reasons for Change
		14.3	 Change Management Concepts
			14.3.1	 Change Management Concept of Kurt Lewin
			14.3.2	 Change Management Curve of Elisabeth Kübler-Ross
				14.3.2.1	 Open Resistance
				14.3.2.2	 Hidden Resistance
				14.3.2.3	 Handling Resistance
			14.3.3	 Change Management Phase Model of Kotter
			14.3.4	 ADKAR Change Management Model
			14.3.5	 McKinsey 7S Model
		14.4	 Case Study: Change Management in Nissan
		References
	15: Innovations as Part of Performance Management
		15.1	 Introduction to Innovation Management
		15.2	 Technical Relevance and Attractivity
		15.3	 Strategic Relevance of Innovation Management
		15.4	 Resource Intensity
		15.5	 Future Potential of Innovations
		15.6	 Fields and Tasks of Innovation Management
		15.7	 Case Study: Digital Innovation in a Bakery in Tokyo
		References