Managing Business Performance

UMIT S. BITITCI is the Professor of Business Performance at Heriot Watt University, Edinburgh, Scotland. Previously he was the Director of Strathclyde Institute for Operations Management and the Professor of Technology and Enterprise Management at the University of Strathclyde in Glasgow. He is also a member of the Scottish Manufacturing Advisory Board.

• Preface xiiiAcknowledgements xvAbout the Author xixPart One IntroductionChapter 1 Prologue 31.1 Background to this book 41.2 Motivation and principles 101.3 Who is this book for? 111.4 Structure of the book 12References 13Chapter 2 A Short History of Performance Measurement and Management 152.1 Beginnings 162.2 Performance measurement revolution 192.3 Performance measurement from different perspectives 242.4 Performance management 262.5 Balancing the science with the art 272.6 Future challenges 29References 33Part Two The ScienceChapter 3 What Are We Managing? 373.1 Everyone has a different view 383.2 How do companies compete? 423.3 Value streams – focused business units that create value 463.4 Business processes – the universal building blocks 533.5 Managerial processes – thinking about the future 573.6 Support processes – serving to create value 583.7 Anatomy of an organisation – the universal competitive structure 593.8 Summary 60References 62Chapter 4 Understanding and Managing Business Processes 634.1 Purpose and flow 644.2 What flows through the process? 664.3 Anatomy of a process 674.4 Understanding what affects flow 684.5 Measuring process performance 724.6 Summary 76Reference 78Chapter 5 Measuring Performance 795.1 Do we need measures? 805.2 Developing a performance measurement system 825.3 Communicating with measures 825.4 Scorecards, cockpits, dashboards and war-rooms 915.5 Creating effective visual performance measurement and management systems 1015.6 Reviewing performance 1085.7 Summary 110Reference 112Chapter 6 Summary: The Science of Managing Business Performance 113Part Three The ArtChapter 7 Drivers of Performance 1197.1 Measures of business performance 1207.2 Managing performance for the short-term (up to 2 years) 1217.3 Managing performance for the medium-term (2 to 5 years) 1247.4 Managing performance for the long-term (5+ years) 1297.5 Summary 131References 131Chapter 8 Capabilities, Culture and Performance 1338.1 Understanding organisational capabilities 1358.2 How do organisational capabilities develop? 1378.3 Learning to learn 1398.4 Managing organisational capabilities and culture 1458.5 Summary 149Reference 150Chapter 9 The People Component 1519.1 What kind of organisation would you like to work in? 1539.2 The people component 1559.3 What motivates people? 1569.4 What needs to change? 1609.5 Summary 166References 166Chapter 10 Balancing Organisational Controls 16910.1 What is the right balance? 17010.2 What happens when we get the balance wrong? 17210.3 Understanding the interplay between performance measurement and performance management 18010.4 Balancing organisational controls: Do’s and don’ts 18610.5 Summary 190References 190Chapter 11 Summary: The Art of Managing Business Performance 191Part Four Effective InterventionsChapter 12 Designing Effective Interventions 19712.1 A systems approach 19812.2 The organisation as a system 20012.3 Who will decide what needs to change and how? 20312.4 Technical vs. social intervention 20512.5 What to change? 20912.6 Finding the trim-tab 21312.7 Summary 218References 220Chapter 13 Delivering Effective Interventions 22113.1 Balancing short-term results with drivers of long-term sustainable performance 22213.2 Planning and monitoring interventions 22713.3 Joined-up thinking 23013.4 Milestones: One big step at a time 23213.5 Making improvement part of the day job 23213.6 Summary 235References 236Chapter 14 Epilogue 23714.1 It’s all about balance and harmony 23814.2 Learning the right balance 23914.3 Where do we start? 240Reference 240Chapter 15 The Book in a Nutshell 24115.1 Part One – Introduction 24215.2 Part Two – The Science 24215.3 Part Three – The Art 24415.4 Part Four – Effective Interventions 24615.5 Conclusions 249AppendicesAppendix A Overview of Popular Performance Measurement Models and Frameworks 253A.1 DuPont model 254A.2 The Performance Measurement Matrix (PMM) 254A.3 The Performance Measurement Questionnaire (PMQ) 255A.4 The Results and Determinants Framework 255A.5 The Strategic Measurement Analysis and Reporting Technique (SMART) 256A.6 The Cambridge Performance Measurement Design Process 257A.7 The Pyramid of Organisational Development 258A.8 Integrated Performance Measurement System (IPMS) reference model 258A.9 The Business Excellence model of the European Foundation for Quality Management (EFQM) 259A.10 The Performance Prism 261References 262Appendix B Common Performance Measures 263B.1 Financially focused measures 264B.2 Customer-focused measures 264B.3 Internal process-focused measures 265B.4 Learning and growth-focused measures 267B.5 Advanced Performance Institute and Bernard Marr’s 25 measures that every manager should know 268B.6 Oliver Wight International and the ABCD checklist for business excellence 269B.7 Supply Chain Operations Reference (SCOR) model 270References 271Index 273