1. Centre for Strategic Manufacturing Measuring and Managing Team Performance Researcher: Kepa Mendibil Telleria Supervisor: Dr Jillian MacBryde DMEM Research Presentation Day 24 January 2002 Measuring and Managing Team Performance

2. Centre for Strategic Manufacturing Research area & background  Research area & background ò Research Objectives ò Framework for TPM ò Case Study ò Contribution Contents Contents

3. Centre for Strategic Manufacturing  Research conducted as part of a EPSRC programme  1st phase: exploratory research - 4 industrial collaborators Research area & background Center for Strategic Manufacturing  2nd phase: Industrial secondment - Highland Spring Research area & background

4. Centre for Strategic Manufacturing  ‘A team concept is central to the development of process- based management and it is one of the few means by which large business processes can be integrated ‘ (Teare et al) ò Over have of the Fortune 1000 are implementing self-directed teams Research area & background £ £SMWG order in product out Cellular manufacturing Business process teams Implications:  Increase empowerment  Increased accountability  Increased emphasise on measuring and managing team performance Research area & background

5. Centre for Strategic Manufacturing FUNCTIONS Manage processes Support processes PROCESSES Operate processes PROBLEMS: Business Process objectives are not aligned with company’s strategy Conflicts between departmental and processes managers Employee performance measurement is not aligned with process performance and organisational objectives Employees have a lack of the company’s vision worsening of employee participation Lack of understanding on how to measure team performance Common Problem

6. Centre for Strategic Manufacturing  ‘Traditional ways of measuring performance, determine compensation, provide training, and even organize facilities are tailored to vertical units, not processes, and to individuals, not teams’ (Hammer & Stanton, 1999) Thus, there is a need to:  Improve the link between company strategy and process/team management  Develop a better understanding of process/team performance measurement  Create a systematic approach to process/team performance management Research area & background

7. Centre for Strategic Manufacturing ò To investigate critical factors affecting the management and measurement of team performance ò To explore the evolution of performance measurement systems, and the application of PMS in the context of teams ò To analyse the validity of current methodologies for designing and implementing PMS in the context of teams ò To develop and discuss the validity of a framework for designing and managing team performance measurement systems ò Assess the socio-economic impact of such an approach in the performance of organisations Research objectives

8. Centre for Strategic Manufacturing  A process/team management process should include:  Strategy deployment process  Critical team success factors  Team processes  Knowledge, Skills and Attitudes (KSA) requirements  Integrated Performance Measurement System  Improvement Action Plan Team management process

9. Centre for Strategic Manufacturing  Integrates four main elements:  Strategy Deployment  Business Process Management  Team Performance Management  Organisational Performance Management  Defines a deployment path including five considerations:  Expectations (company, process and team)  Requirements (process, team, organisation)  As-is analysis (current performance vs. desired)  Improvement Action Plan  Performance Measurement The framework

10. Centre for Strategic Manufacturing The framework Company Strategy Business process InputOutput Process Performance measures autonomy generic specific short term long term Team Performance measures How process Setting the right environment to ensure that the team and the process perform as expected’ ‘ Setting the right environment to ensure that the team and the process perform as expected’ Organisational Performance Measures How process The framework

11. Centre for Strategic Manufacturing The framework - Team Management (1) What do we want the process to do? (2) What does the team need to do? -Team Competencies (Knowledge, Skills, Attitudes) -Team processes (3) What is currently the team doing? How does this affect process performance? How does this affect process performance? (4) Improvement Action plan (5) Team Performance Measures Business process InputOutput Process Performance measures autonomy generic specific short term long term Team Performance Measures How process Team Performance measures Organisational Performance measures Business Process Process performance measures Strategy The framework - Team Management

12. Centre for Strategic Manufacturing (1) How do we want the team to behave? (2) What does organisation need to do? -Give direction, empower -Educate, training -Motivate, Reward (3) What is currently the company doing? How does this affect the team performance? (4) Improvement Action Plan (5) How to measure them Organisational Performance Measures Setting the right environment to ensure that the team and the process perform as expected’ ‘ Setting the right environment to ensure that the team and the process perform as expected’ autonomy generic specific short term long term Team Performance measures How process Team Performance measures Organisational Performance measures Business Process Process performance measures Strategy The framework - Organisational Performance

13. Case Study Objective - ‘To enhance the cross-functional integration of the manufacturing process team through the development and implementation of a team based performance measurement system. Case Study

14. Product Manufacturing Team SUPPLIER Blowmoulding Good Inwards Filling & Packaging Warehouse CUSTOMER EngineeringLaboratory Quality Assurance Material flow Service flow Product Manufacturing Process Look at company and departmental strategy Define objectives and measures for the process Align training to competency requirements Define other organisational issues required to maximise team performance Product Manufacturing Process

15. Outcomes - (1) Lower standard costs; more efficient production from machinery and labour (2) Enhance employee satisfaction by; skill sharing, multiskilling, improving participation and decision taking (3) Embed continuous improvement culture through performance measurement and efficient teamworking (4) Increase capability for strategic thinking at all levels Case Study

16. Centre for Strategic Manufacturing Contribution  Improve the understanding of the implications of BPR into team performance management and measurement  Further develop the understanding of performance measurement in the context of teams by integrating critical factors affecting team performance  Identify the limitations of current methodologies for measuring team performance  Develop a methodology that facilitates organisations to assess and manage their teams in a way that maximises their contribution towards business success Contribution

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