Handbook of Corporate Performance Management
1. Edition September 2011
280 Pages, Hardcover
Wiley & Sons Ltd
A thorough and comprehensive guide to measuring and managing the performance of businesses, understanding where you are, communicating where you want to be and managing towards your longer term strategic goals. Measuring performance in a way which is linked to strategy and measures the right activities is a process which few organizations undertake, but those which do reap substantial benefits in terms of increased success. Even fewer organizations can maintain and use their measurement system effectively, engaging the workforce in delivering success. This book will show readers how to do just that, using relevant examples from a variety of organizations including:
* Tesco's 'steering wheel'- a means of displaying what is important to the organization from boardroom to store - Terry Leahy has attributed much of Tesco's success to their performance management approach
* EDF Energy's highly innovative approach to cascading their 'success maps' down the organization, winning them a high degree of ownership and commitment to the organizational goals by involving people at all levels in the process
Taking a practical approach, and including details of processes and tools that can be adopted and customized by any organization, the authors also include guiding principles to help readers avoid the pitfalls of inappropriate performance management. The book, uniquely, combines guidance on the practical use of frameworks such as the Balanced Scorecard, with the application of measures to manage performance.
Acknowledgements xiii
Introduction xv
1. Performance and the Role of Measurement 1
1.1 Introduction 1
1.2 What is good performance? 1
1.3 Whose perspective? 1
1.4 Making comparisons 2
1.5 Present success and future sustainability 3
1.6 How is performance delivered? 3
1.7 The roles of a performance measurement system 5
1.8 The focus of measurement 7
1.9 The role of management and leadership 9
1.10 In summary 10
Further reading 10
2. Practical Tools for Measuring Performance 13
2.1 Introduction 13
2.2 Elements of a performance measurement system 13
2.3 The Balanced Scorecard 15
2.4 The Performance Prism 19
2.5 Objectives and success maps 20
2.6 Designing measures 24
2.7 Summary 30
Further reading 31
3. Designing the System 33
3.1 Introduction 33
3.2 A four phase life cycle 33
3.3 Design 34
3.4 How is this done in practice? 34
3.5 The debate 35
3.6 Developing the success map 37
3.7 Developing the measures 39
3.8 The next stage 40
Further reading 40
4. Managing Implementation 41
4.1 Introduction 41
4.2 Phases of implementation 41
4.3 Why does implementation succeed or fail? 41
4.4 Hurdles and blockers 45
4.5 Steps to successful implementation 46
4.6 Conclusion 48
Further reading 48
5. Assessing and Managing Change 51
5.1 Introduction 51
5.2 Change in context 51
5.3 Assessing resistance to change 53
5.4 Return on management 54
5.5 Assessing likelihood of implementation 55
5.6 Conclusion 58
Further reading 58
6. Target Setting 59
6.1 Introduction 59
6.2 Why do you set targets? 59
6.3 Ten common problems 60
6.4 The target setting wheel 62
6.5 Closing remark 65
Further reading 65
7. Linking Rewards to Performance 67
7.1 Introduction 67
7.2 Pitfalls 67
7.3 Linking rewards to performance 71
7.4 Examples 75
7.5 Summary 78
Further reading 78
8. Managing with Measures - Statistical Process Control 81
8.1 Introduction 81
8.2 Variation and our reaction 81
8.3 Statistical process control 83
8.4 Performance and performance improvement 91
Further reading 92
9. Using Measures - Performance Reviews 93
9.1 Introduction 93
9.2 The Performance planning value chain 93
9.3 Performance reviews 99
Further reading 104
10. Using Measures to Manage - Challenging Strategy 105
10.1 Introduction 105
10.2 Company examples 105
10.3 Testing success maps in practice 109
10.4 Testing in theory and practice 113
10.5 Behavioural issues 117
10.6 Conclusion 118
Further reading 118
11. Keeping Your Measurement Process up to Date 119
11.1 Introduction 119
11.2 Keeping the process up to date 119
11.3 When do you update targets? 119
11.4 Revising measures 122
11.5 Reviewing the measures in line with your success map 123
11.6 Reflecting on your strategy 124
11.7 Challenging strategy 125
11.8 Overcoming barriers to updating your system 126
11.9 Summary 133
Further reading 133
12. Measuring Performance of People 135
12.1 Introduction 135
12.2 Essential elements for high performance 135
12.3 Measuring employee satisfaction and engagement 136
12.4 Performance appraisals 141
12.5 HR performance measures 145
12.6 Acting on results 147
Further reading and sources of information 147
13. Measuring Customers 149
13.1 Introduction 149
13.2 What are you measuring? 149
13.3 Using customer feedback 157
13.4 Summary 160
Further reading 161
14. Measuring Process Performance 163
14.1 Introduction 163
14.2 A process framework 163
14.3 Process measurement 164
14.4 Key process measures 165
14.5 Summary 169
Further reading 169
15. Measuring Competence and Resource Development 171
15.1 Introduction 171
15.2 Defi ning terms 171
15.3 Why measure resource and competence development? 172
15.4 A framework for displaying the relationship between resources and competences 176
15.5 Conclusion 183
Further reading 184
16. Measuring Financial Performance 185
16.1 Introduction 185
16.2 A shareholder perspective 186
16.3 Key shareholder ratios 189
16.4 Accounting ratios 191
16.5 Management ratios 194
16.6 Conclusion 196
Further reading 196
17. Measuring Sustainability 197
17.1 Introduction 197
17.2 What are 'sustainability' and 'corporate responsibility'? 197
17.3 What are the benefits? 199
17.4 Building sustainability into your business 201
17.5 Conclusion 206
Further reading and sources of information 206
18. Creating a Culture of High Performance 209
18.1 Introduction 209
18.2 Creating the right environment 209
18.3 Creating the right culture 210
18.4 Recruiting the right people 212
18.5 What motivates? 214
18.6 Dealing with underperformers 215
18.7 Understanding your influence 216
18.8 Direction setting and engagement 217
18.9 Communication 218
18.10 Conclusion 219
Further reading 219
19. Leadership Vignettes 221
19.1 Introduction 221
19.2 Paul Woodward - Chief Executive, Sue Ryder Care 221
19.3 PY Gerbeau - Chief Executive, X-Leisure 223
19.4 Richard Boot OBE - IRC Global Executive Search Partners 225
19.5 David Child 227
19.6 Baroness Sally Greengross 229
19.7 Charles Carter 231
19.8 Nigel Bond - CEO, Domino Printing Sciences 232
19.9 Mark Lever - CEO, National Autistic Society 236
19.10 Mike Ophield 239
19.11 Andy Wood - Chief Executive, Adnams plc 242
20. Bringing It All Together 245
20.1 Introduction 245
20.2 Performance measurement 245
20.3 Performance management 246
20.4 Performance leadership 248
Further reading 251
Index 253
