The effective performance management system characteristics are described in the article ″Stop Playing Games with The Numbers! How to Create a Process Driven Organization″ by Forrest Breyfogle. A PDF copy of this writing is available through the link below.
A vision statement can provide the direction for what should be done to transition the organization to where it wants to be, through the execution and enhancement of processes. Where, processes provide the means through which a mission statement is executed with organizational movement toward achievement of its vision.
The output of a process, or Y, is a function of the inputs to the process and the process itself. This relationship can be expressed as Y=f(x). If the Y response of the process is not desirable, inputs to the process or the process itself need to be improved.
Organizations benefit when they view their situation as a system of interconnected processes that need orchestration which is consistent with both their mission and vision. When this is done, focus will be given to determine what can be done throughout the organization to better orchestrate the X’s of the businesses so that Y’s of processes integrate and the enterprise as a whole achieves optimum success. Enterprises benefit much when their leaders and managers create a process driven organizational culture, which is in alignment to the organization’s vision.
There are many benefits of having a process driven organization. A Business Management System (BPM) system can be created to form this culture through the operational excellence system Integrated Enterprise Excellence (IEE).
Effective Performance Management System Characteristics: The Benefits
Benefits from an effective process driven organization (i.e., IEE) include:
- Less variation in the output of processes since process execution will consistently follow standard operating procedures.
- Less defects since there will be established systems for minimizing the likeliness of defect occurrence in new designs and resolving the underlying root cause of defects that occur in established designs so that the likelihood of reoccurrences is minimized.
- Workflows that give focus to minimizing waste from defects, overproduction, transportation, waiting, inventory, motion, and processing.
- Systematic voice of the customer (VOC) integration into the development and execution of processes.
- Less firefighting the “problems of the day” and more fire prevention efforts will be undertaken to the refinement of processes so that previous discovered issues don’t reoccur.
- New people can be brought up to speed quicker through the documentation and training of standardized processes; i.e., avoidance of the last person trains the next.
- Business risks will objectively be addressed and minimized in a systematic manner.
- Organizational constraints can be quickly determined and resolved so that the enterprise as a whole benefits.
- If growth is desired, there will be better knowledge of where to grow; i.e., no guessing.
- If there are acquisitions, it will be easier to integrate organizational cultures.
Effective Performance Management System Characteristics: The Metrics Reporting
An IEE system with its 30,000-foot-level metrics provide a means to create scorecards that are predictive. If what is projected for the future is not desirable, change is needed to one or more process.
For more information on what are the characteristics of an effective performance management system, download the article titled ″Stop Playing Games with The Numbers! How to Create a Process Driven Organization″ written by Forrest Breyfogle.