1 Internal Process & Learning and growth perspective For Professor Dr. Ahmed Fahmy Galal By Mohamed Abdel Wahab DBA-4

Table of contents Internal Business process perspective What does business process means Components of a business process How to achieving the business process operational excellence Learning and growth perspective Learning and growth measurement groups

Internal business process perspective Identify the processes that are most critical for achieving customer and shareholder objectives. Traditional performance management system focus on controlling and improving existing responsibility center and departments Balanced Score cards objectives and measures are derived from strategies(Like customer focus)

4 What does a business process means A set of related tasks that is done in a sequential form with a clear identified role

Components of the process - Example Objective: To cover the Purchasing activities Scope: covering only the industrial department purchases Roles: Who will do what Start and end points: Starts from the request, ends with the item in the inventory

Components of the process – Cont. Risks: late payment which will impact the supplier loyalty Flow Chart KPI’s: Order lead time, Payment duration to supplier Reports and forms: supplier delivery reports by date

7 How to achieve the business process operational excellence Understand the business Define the key business processes Assign a process owner to monitor the process KPI’s

8 Learning and growth perspective The main objective is to provide an infrastructure for the other three perspectives(People) Develop a measures to drive organizational learning and growth A positive relationship between employee satisfaction and financial performance Shift in the management philosophy is that people come to work to contribute.

9 Learning and growth perspective measurement groups Employee Employee Measurement group Employee satisfaction(Morale recognition) By Annual Surveys Recognition, involvement in decisions, support Employee retention: retain employees whom the organization has long term interest Measured by Key staff turnover Employee productivity: relating the output to employee Revenue per employee, production units per employee

10 Learning and growth perspective measurement groups Information system capabilities If employees to be effective they need excellent information about customers, internal processes, financial consequences Front line employees needs accurate and timely information Excellent information system is required for employees to improve processes or for processes redesign or processes reengineering

Learning and growth perspective measurement groups Motivation, Empowerment and Alignment motivation and empowerment measures: Suggestions per employee to measure the ongoing participation Alignment processes, by cascading down 1. Business unit objectives 2. Department head(Top management objectives) 3. Middle Management objectives 4. Staff objectives How much of personal objectives aligned with the business unit objectives

12 Thank You