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Performance management: finding the missing pieces (to close the intelligence gap)
In the preface of my earlier book, Activity-Based Cost Management: An Executive Guide (John Wiley & Sons, 2001), I stated: ?Sometimes luck beats planning. I have been fortunate in my professional career?a career that began in 1973 as an accountant and continued into operations management and management consulting. Without realizing it?through this series of different jobs and management consulting assignments?I somehow earned a reputation as an internationally recognized expert in activity-based cost management (ABC/M). In truth, I am always learning new things about how to build and use managerial systems. I?m not sure that any expert in ABC/M exists. I?m just fortunate to have been formally working with ABC/M since 1988 when I was introduced to ABC/M.? My training was in industrial engineering and operations research, and I attribute that foundation to letting me think about how organizations work as a set of intermeshed systems?like linked drive gear teeth. In the 1990s my work assignments began to weave in strategy and nonfinancial performance measures. This book reflects my observations from these work experiences and from some exceptional people I have been fortunate to interact with. ORGANIZATIONAL DIRECTION, TRACTION, AND SPEED Direction, traction, and speed. When you are driving a car or riding a bicycle, you directly control all three. You can turn the steering wheel or handle bars to change direction. You can downshift the gears to go up a steep hill to get more traction. You can step on the gas pedal or pump your legs harder to gain more speed. However, senior executives who manage organizations do not have direct control of their organization?s traction, direction, and speed. Why not? Because they can only achieve improvements in these through influencing people?namely, their employees. And employees can sometimes act like children: They don?t always do what they?re told, and sometimes their behavior is just the opposite! This book is about giving managers and employee teams of all levels the capability to improve their organization?s direction, traction, and speed?and most importantly, to move it in the right direction. That direction should be as clear and focused as a laser beam, pointing toward its defined strategy. THE RELENTLESS PRESSURE TO PERFORM There are never-ending obstacles and challenges for managers seeking to line up and leverage an organization?s energies, and these obstacles often surface as questions. In an unforgiving economy, executives from all functions are asking tough questions: Chief executive officers are asking, ?How can we position the company for profitable growth by integrating our strategy with daily operations? How can we foster innovation without losing control? How do we win?? Chief financial officers are asking, ?How can we move beyond the role of the cost-cutting police to be viewed as a strategic partner? How can we report reliable profit and cost data, rather than misleading information flawed with improper arbitrary cost allocations? How can we provide more visibility?? Senior human resource and information technology managers ask, ?How can we appear to be a service provider and establish service level agreements with equitable charge-back reporting to our users? How do we prove our value to the organization?? Sales and marketing executives are asking, ?How do we identify and retain our more profitable customers? How do we profitably add services to our increasingly commoditylike products and base service lines in order to differentiate ourselves from competitors?? Each of these questions arises due, in part, to the complexity of today?s organizations, but the questions are not really new. What is new is the pressure to get the correct answers from increasingly complex and interdependent processes. Furthermore, some problems are made more difficult to solve by information technology systems that were, ironically, implemented as solutions, not problems?such as diverse nonstandard software packages, legacy systems, and incompatible computing platforms. To make matters worse, employees and managers who are tasked by these executives to improve performance are stymied by their own questions: How do I reduce my budget without sacrificing service or quality levels? How efficient do I have to become to support my expected future workload volume or a new program with my current budgeted resources? How do I get out of this pickle? I?m now a process owner and being held accountable?but I have minimal influence and control! Do I need to expand warehouse space to handle my expected volume? Or, alternatively, can I ship direct? Which choice is better? What will be the impact of discontinuing some products? of changing delivery frequency and routes? of changing packaging formats? Who in my supply chain is creating costly waste? Where is there redundant work among us? The managers? dilemma is that they cannot get answers to these questions from their transaction-based operational systems. Their execution systems are adequate for processing and filling an order, but not for showing them where to improve or what to change in order to better align their employees? work with the organization?s strategy. Enterprise resource planning systems (ERP) have become popular as a tool to fill orders and attempt to plan for future orders, but although ERP provides some cross-functional visibility of operations, ERP tools (or the planning and operation control systems) are not designed for producing the analytical intelligence that is central to managing performance. ERP systems deluge employees with data, but not necessarily with business intelligence for decision support.
Call Number | Location | Available |
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Tan 658.4012 Cok p | PSB lt.dasar - Pascasarjana | 2 |
Penerbit | Hobogen John Wiley & Sons., 2004 |
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Edisi | - |
Subjek | Performance measurement Measurement Organizational effectiveness Industrial productivity |
ISBN/ISSN | 9780471576907 |
Klasifikasi | NONE |
Deskripsi Fisik | xx, 284 p. : ill. ; 26 cm. |
Info Detail Spesifik | - |
Other Version/Related | Tidak tersedia versi lain |
Lampiran Berkas | Tidak Ada Data |