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WHAT PERFORMANCE MANAGEMENT? Probably one of the worst evils that have undermined the Balanced Scorecard (BSC) framework, along its entire history, is the word "performance". Why? Because as soon as people hear "Balanced Scorecard" and "performance" within the same sentence or phrase, they usually say "Yeah, I know what this is all about ... It's about how well do we perform, as organization, unit or individual...". Well, that's not it. You can use KPI scorecards as much as you like (or the OKR dud, for that matter) to manage how well people do their jobs, at individual, unit or organization level. Just don't call them "Balanced Scorecard"! Why? Because, since its early days, the BSC framework has something called Strategy Map, indicating without any ambiguity that it is all about EXECUTING THE STRATEGY. So, what kind of "performance" can be associated with the Balanced Scorecard? Only one. The performance in changing what we considered necessary for bringing the organization to a new position, called Strategic Destination. What happens when/if we reach it? In principle, nothing else than what happens today, but at another level, or in a different configuration, where the same kind of OPERATIONAL PERFORMANCE is managed, as it always is. I hope that you've got the idea.
this posting makes a great contribution. one should, however, take care in not classifying performance I one strata.....operations. in principle, performance is meeting requirements consistently. those requirements can be along the critical path of a strategic initiative or an employee's individual function or a product's ability to meet customer requirements.
Awesome infographics
The Human element and the Quality of leadership is key....
Mihai, I have taken liberty, using your slide, and super-imposing the point made by Dr Joseph Juran's Trilogy regarding normative COQ management (15-20%+ of sales) and Strategic COQ Management (+/5% of sales). In essence his view is/was that NO "Breakthrough Strategic" Quality ls possible without and equal "Strategic Quality Plan“.
Hi?Mihai Ionescu,?thank you for sharing your definition of performance with us and let me give you the best definition of performance I know of. What is Performance? Performance is the definition and progressive achievement of tangible, specific, measurable, worthwhile, and personally meaningful goals. (Darryl D. Enos, 2007) A few key points will help clarify the meaning and benefits of this definition: 1. Many organizations, teams, and individuals, both at work and personally, do not have well-defined, specific, or measurable goals. 2. Setting specific and measurable goals forces us to decide what we are really trying to achieve, and how to know if we get there. 3. The fact that goals should be “personally meaningful” is probably the most critical point in the above definition of performance. What do you think?
Dave Nabi
6 年
Agree 100%. 25 years ago Government of Ontario's Management Board Secretariat wanted to focus our strategy on becoming a learning organization as was the fashion back then. So i used BSC to link everything we did to one of Senge's 5 learning disciplines. Can't recall the early BSC software we used but it was simple. This made it clear for every employee and the Chair was pleased he could demonstrate specifically how we claimed to be a Learning Organizaion. Still remains one of my most satisfying projects. And it made me fanatical about always linking operations to strategy. Why would you do anything that didn't directly achieve strategic goals?!
Cristian B.
6 年
The graph remember me of Deming perspective about the process improvement. As a first step, we need stable performances and well located. The graph tools is control chart(The Red lines are the Control limits) and Looks like the first part of your graph, Mihai. Once you get a good and stable process, Your performances are challanged by the competitors or by the investors. So, you have to do a breakthrough improvement, by bring to action a strategic plan. This might bring a large improvement, which ?n theory should look like the second part of your graph. Actually your stability ?s gone and you should stabilise it again, this time at this higher performance level.
Manager Quality Management at Botswana International University of Science & Technology
10 个月Makes sense!