A Performance Management Framework for Managing Sustainable Collaborative Enterprise Networks

Part 15: Performance Management Frameworks

Planeamento estratégico através da implementação da metodologia Balanced Scorecard numa empresa de construção

Atualmente, existe uma constante necessidade de inovação tecnológica e organizacional das empresas, face às exigências do mercado e ao aumento constante da competitividade. No contexto da economia atual, e para contrariar a falta de investimento dos últimos anos, as empresas concentram-se no desenvolvimento de negócios bem estruturados e organizados, que satisfaçam as exigências de cada cliente. Revela-se, assim, muito importante a avaliação de desempenho para o alcance do seu sucesso, permitindo alinhar as atividades operacionais com a visão organizacional, fomentar a comunicação da estratégia e gerir o seu desempenho. É neste contexto que ganha importância o Balanced Scorecard, um instrumento que permite avaliar o desempenho organizacional, funcionando também como uma ferramenta de gestão. Tem, portanto, como principais objetivos definir claramente uma estratégia, definir objetivos, indicadores e medidas estratégicas, planear e estabelecer metas e melhorar continuamente os resultados obtidos. Esta ferramenta analisa a organização em quatro diferentes perspetivas: financeira, clientes, processos internos e apendizagem e crescimento. Cada uma delas deve estrututrar os seus próprios objetivos, indicadores, metas e iniciativas de forma a contribuir para o desenvolvimento da estratégia da organização e avaliar o seu desempenho. O desafio deste relatório é adaptar esta metodologia durante a realização de um estágio curricular na empresa Bysteel, que tem por base a implementação de um processo de gestão estratégica nas suas empreitadas, através do Balanced Scorecard. Este planemamento surge como um dos principais requisitos para uma gestão eficaz de custos e de tempo planeados para cada empreitada da Bysteel. Este processo torna-se bastante complexo dado que cada obra apresenta diferentes particularidades. A implementação desta metodologia numa empresa desta dimensão é um fator muito motivador, tornando-se ainda mais interessante pelo facto de se tratar de uma implementação numa nova vertente.

Strateginen suorituskyvyn mittaaminen ja -johtaminen muutostilanteessa - Case: Rahoitusyhtiö, keskijohdon näkökulma

Tapaustutkimus strategisen suorituskyvyn mittaamisesta ja -johtamisesta rahoitusyhtiössä.

Factores para la implementación eficiente de un sistema de control de gestión en las organizaciones

La implementación del MCS es una necesidad que demandan las organizaciones en la medida en que incrementan de tamaño, pero la experiencia muestra que esta metodología tiene casos de éxito como de fracaso, por lo que es importante identificar y contemplar los factores que influyen en la implementación para que el sistema sea efectivo. Este proyecto pretende analizar las variables y herramientas para la implementación de un MCS en una organización. Para este análisis se hizo una amplia revisión literaria teórica y práctica. Finalmente el resultado que se obtuvo fue definir cuáles son los factores determinantes para la implementación de un MCS efectivo en una empresa.

Introduction to data envelopment analysis and its applications

This chapter provides the theoretical foundation and background on Data Envelopment Analysis (DEA) method and some variants of basic DEA models and applications to various sectors. Some illustrative examples, helpful resources on DEA, including DEA software package, are also presented in this chapter. DEA is useful for measuring relative efficiency for variety of institutions and has its own merits and limitations. This chapter concludes that DEA results should be interpreted with much caution to avoid giving wrong signals and providing inappropriate recommendations.

Performance measurement model for projects from a strategic management perspective

This research studied the project performance measurement from the perspective of strategic management. The objective was to find a generic model for project performance measurement that emphasizes strategy and decision making. Research followed the guidelines of a constructive research methodology. As a result, the study suggests a model that measures projects with multiple meters during and after projects. Measurement after the project is suggested to be linked to the strategic performance measures of a company. The measurement should be conducted with centralized project portfolio management e.g. using the project management office in the organization. Metrics, after the project, measure the project’s actual benefit realization. During the project, the metrics are universal and they measure the accomplished objectives relation to costs, schedule and internal resource usage. Outcomes of these measures should be forecasted by using qualitative or stochastic methods. Solid theoretical background for the model was found from the literature that covers the subjects of performance measurement, projects and uncertainty. The study states that the model can be implemented in companies. This statement is supported by empirical evidence from a single case study. The gathering of empiric evidence about the actual usefulness of the model in companies is left to be done by the evaluative research in the future.

An analytic approach to distribution logistics strategic management

Logistics management is increasingly being recognised by many companies to be of critical concern. The logistics function includes directly or indirectly many of the new areas for achieving or maintaining competitive advantage that companies have been forced to develop due to increasing competitive pressures. The key to achieving a competitive advantage is to manage the logistics function strategically which involves determining the most cost effective method of providing the necessary customer service levels from the many combinations of operating procedures in the areas of transportation, warehousing, order processing and information systems, production, and inventory management. In this thesis, a comprehensive distribution logistics strategic management process is formed by integrating the periodic strategic planning process with a continuous strategic issues management process. Strategic planning is used for defining the basic objectives for a company and assuring co operation and synergy between the different functions of a company while strategic issues management is used on a continuous basis in order to deal with environmental and internal turbulence. The strategic planning subprocess consists of the following main phases: (1) situational analyses, (2) defining the vision and strategic goals for the logistics function, (3) determining objectives and strategies, (4) drawing up tactical action plans, and (5) evaluating the implementation of the plans and making the needed adjustments. The aim of the strategic issues management subprocess is to continuously scan the environment and the organisation for early identification of the issues having a significant impact on the logistics function using the following steps: (1) the identification of trends, (2) assessing the impact and urgency of the identified trends, (3) assigning priorities to the issues, and (4) planning responses to the, issues. The Analytic Hierarchy Process (AHP) is a systematic procedure for structuring any problem. AHP is based on the following three principles: decomposition, comparative judgements, and synthesis of priorities. AHP starts by decomposing a complex, multicriteria problem into a hierarchy where each level consists of a few manageable elements which are then decomposed into another set of elements. The second step is to use a measurement methodology to establish priorities among the elements within each level of the hierarchy. The third step in using AHP is to synthesise the priorities of the elements to establish the overall priorities for the decision alternatives. In this thesis, decision support systems are developed for different areas of distribution logistics strategic management by applying the Analytic Hierarchy Process. The areas covered are: (1) logistics strategic issues management, (2) planning of logistic structure, (3) warehouse site selection, (4) inventory forecasting, (5) defining logistic action and development plans, (6) choosing a distribution logistics strategy, (7) analysing and selecting transport service providers, (8) defining the logistic vision and strategic goals, (9) benchmarking logistic performance, and (10) logistic service management. The thesis demonstrates the potential of AHP as a systematic and analytic approach to distribution logistics strategic management.

Financial performance drivers and strategic control: The case of cancer treatment centers

Strategic control is defined as the use of qualitative and quantitative tools for the evaluation of strategic organizational performance. Most research in strategic planning has focused on strategy formulation and implementation, but little work has been done on strategic performance evaluation particularly in the area of cancer research. The objective of this study was to identify strategic control approaches and financial performance metrics used by major cancer centers in the country as an initial step in expanding the theory and practice behind strategic organizational performance. Focusing on hospitals which share similar mandate and resource constraints was expected to improve measurement precision. The results indicate that most cancer centers use a wide selection of evaluation tools, but sophisticated analytical approaches were less common. In addition, there was evidence that high-performing centers tend to invest a larger degree of resources in the area of strategic performance analysis than centers showing lower financial results. The conclusions point to the need for incorporating higher degree of analytical power in order to improve the tracking of strategic performance. This study is one of the first to concentrate in the area of strategic control.^

The impact of performance measurement in strategic planning

Purpose – To investigate the impact of performance measurement in strategic planning process. Design/methodology/approach – A large scale survey was conducted online with Warwick Business School alumni. The questionnaire was based on the Strategic Development Process model by Dyson. The questionnaire was designed to map the current practice of strategic planning and to determine its most influential factors on the effectiveness of the process. All questions were close ended and a seven-point Likert scale used. The independent variables were grouped into four meaningful factors by factor analysis (Varimax, coefficient of rotation 0.4). The factors produced were used to build regression models (stepwise) for the five assessments of strategic planning process. Regression models were developed for the totality of the responses, comparing SMEs and large organizations and comparing organizations operating in slowly and rapidly changing environments. Findings – The results indicate that performance measurement stands as one of the four main factors characterising the current practice of strategic planning. This research has determined that complexity coming from organizational size and rate of change in the sector creates variation in the impact of performance measurement in strategic planning. Large organizations and organizations operating in rapidly changing environments make greater use of performance measurement. Research limitations/implications – This research is based on subjective data, therefore the conclusions do not concern the impact of strategic planning process' elements on the organizational performance achievements, but on the success/effectiveness of the strategic planning process itself. Practical implications – This research raises a series of questions about the use and potential impact of performance measurement, especially in the categories of organizations that are not significantly influenced by its utilisation. It contributes to the field of performance measurement impact. Originality/value – This research fills in the gap literature concerning the lack of large scale surveys on strategic development processes and performance measurement. It also contributes in the literature of this field by providing empirical evidences on the impact of performance measurement upon the strategic planning process.

Linking risk management to strategic controls:a case study of Tesco plc

Definitions and perceptions of the role and styles of risk management, and performance management/strategic control systems have evolved over time, but it can be argued that risk management is primarily concerned with ensuring the achievement of strategic objectives. This paper shows the extent of overlap between a broad-based view of risk management, namely Enterprise Risk Management (ERM), and the balanced scorecard, which is a widely used strategic control system. A case study of one of the UK's largest retailers, Tesco plc, is used to show how ERM can be introduced as part of an existing strategic control system. The case demonstrates that, despite some differences in lines of communications, the strategic controls and risk controls can be used to achieve a common objective. Adoption of such an integrated approach, however, has implications for the profile of risk and the overall risk culture within an organisation.

State-of-the-Art and Future Directions for Green Human Resource Management: Introduction to the Special Issue

The topic of environmental sustainability is generating increased concern among business executives, governments, consumers, and management scholars. As these stakeholders struggle with the challenges and opportunities presented by an array of environmental issues, HRM scholars and practitioners alike have been relatively slow to engage in the ongoing discussions and debates. Through this special issue on Green FIRM, we seek to stimulate the field of HRM to expand its role in the pursuit of environmentally sustainable business. In this introduction to the special issue, we first provide an overview of the articles that appear in the special issue. Next we present a detailed discussion of research questions that arise from a consideration of several functional HRM practices, including performance management; training, development, and learning; compensation and rewards; and organizational culture. We conclude by describing opportunities for research at the intersection of strategic HRM and environmental management. If pursued with vigor, research addressing this extensive agenda could begin to establish a healthy field of Green FIRM scholarship.

Measuring sustained superior performance at the firm level

This paper proposes a two-dimensional Strategic Performance Measure (SPM) to evaluate the achievement of sustained superior performance. This proposal builds primarily on the fact that, under the strategic management perspective, a firm's prevalent objective is the pursuit of sustained superior performance. Three basic conceptual dimensions stem from this objective: relativity, sign dependence, and dynamism. These are the foundations of the SPM, which carries out a separate evaluation of the attained superior performance and of its sustainability over time. In contrast to existing measures of performance, the SPM provides: (i) a dynamic approach by considering the progress or regress in performance over time, and (ii) a cardinal measurement of performance differences and its changes over time. The paper also proposes an axiomatic framework that a measure of strategic performance should comply with to be theoretically and managerially sound. Finally, an empirical illustration of the Spanish banking sector during 1987-1999 is herein provided by discussing some relevant cases.

Measuring sustained superior performance at the firm level

This paper proposes a two-dimensional Strategic Performance Measure (SPM) to evaluate the achievement of sustained superior performance. This proposal builds primarily on the fact that, under the strategic management perspective, a firm's prevalent objective is the pursuit of sustained superior performance. Three basicconceptual dimensions stem from this objective: relativity, sign dependence, and dynamism. These are the foundations of the SPM, which carries out a separate evaluation of the attained superior performance and of its sustainability over time. In contrast to existing measures of performance, the SPM provides: (i) a dynamic approach by considering the progress or regress in performance over time, and (ii) a cardinal measurement of performance differences and its changes over time. The paper also proposes an axiomatic framework that ameasure of strategic performance should comply with to be theoretically and managerially sound. Finally, anempirical illustration of the Spanish banking sector during 1987-1999 is herein provided by discussing some relevant case