Performance Measurement Implementation and Performance Measurement

Strategy Development Involves (moving to implementation) * developing an appropriate goal system for the organization * creating a mission statement in relation to the above * setting strategies within the context of the goal system * establishing a series of action program's related to the strategies and representing an action package * agreeing upon a set of actions to support the action programs * developing a strategic control/delivery system (SDSS) involving review of strategic performance

Action Tracking Schema Development of action programmes and actions showing: dates and names, colour coding Coding Status Colour Type Size Sample Attention Red 14 point Attention Begin Blue 12 point Begin Doing Cyan 10 point Doing Finish Silver 8 point Done Responsibilities and Reporting [Initials Quarter/Year/Status Expected Eg [RC 4Q5p] p = progressing, c = completed Making Strategy: The Journey of Strategic Management - Eden and Ackermann, 1998

A possible Performance Measurement System! TI - Tracking Indicators Mission/Vision Goals PI - performance Indicators Strategies Actions Colour coded progress Operational tasks Subtasks Making Strategy: The Journey of Strategic Management - Eden and Ackermann, 1998

Building an integrated Performance Measurement System Provides a single platform rather than having many sources Promotes synergy across departments/projects and enables leverage to be gained Tests strategic/operational fit - where are the gaps? Incorporates benchmarking “benchmarking forces executives to justify why a proposal deviates from the standards and thereby helps executives develop a shared understanding of the strategy’s potential implications” Feigner 1997 Identifies responsibilities and timeframes use of SDSS model as DSS - to monitor progress equality promulgation refresh/act as organizational memory Initiating new members of staff promote learning (individually and organizationally)

240 Develop a highly skilled, appropriate & flexible workforce PERFORMANCE INDICATORS 0% 100% Increase number of completed training programs (3 boxes) Increase the number of people into places Increase number of qualifications (GI generated) achieved by workforce live in Govan TRACKING INDICATORS yes no Govan becomes a net contributor to Glasgow’s movement towards National Training targets yes work in Govan Increase school leavers entering Further or Higher Education no Making Strategy: The Journey of Strategic Management - Eden and Ackermann, 1998

Promulgation - Next Steps Determine audience for strategy document multiple audiences match aspirations with practical considerations Language positive link to performance indicators Performance Indicators vehicle for strategic review published as part of the strategy qualitative and quantitative, avoid measuring on output Form of publication mix of maps and text

Strategic Review * Executives regularly put aside time to review progress of one goal and its strategies - horizontal and vertical reviews * Carry out review (1 day) after 6/12 months - include senior executive group + relevant members - review strategy in relation to performance indicators - review strategy in relation to degree of commitment to the strategy in the organization - keeps ownership and encourages reflection - establish a degree of consensus * Build strategy review into senior management performance review * Ensure all resource requests are made in relation to strategy * Executives annually reviews ‘core assumptions’ of direction * Use the model as an organizational memory

Reviewing Strategy - one form Implementation Strategic Issues show signs of success BUT not related to the strategy 100% Strategic Issues are performing well have a good level of understanding see good level of implementation Dissemination 100% 0% Strategic Issues are not understood not attained Strategic Issues are being promulgated BUT not implemented sucessfully 0% Making Strategy: The Journey of Strategic Management - Eden and Ackermann, 1998

"There is nothing more difficult than to achieve a new order of things, with no support from those who will not benefit from the new order, and only lukewarm support from those who will" Machiavelli - The Prince (1514)