Strategic PM
Scope
Definition: At strategic level, performance management deals with the achievement of the overall organisational objectives.
Practitioners refer to it as corporate, business or enterprise performance management, this being the highest and most complete level of usage of performance management principles in organisations.
Key driver: strategic management
Key processes: strategy formulation, strategy execution, strategic measurement and reporting
Frameworks
Some of the frameworks used to guide the achievement of organisational goals at strategic level are:
Strategy execution tools/frameworks
- Balanced Scorecard (US) - a tool that translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. Its main components are the Destination Statement, the Strategy Map and the list of KPIs structured in 4 perspectives: Financial, Customer, Internal Processes, People, Innovation and Learning.
- Performance Prism (UK) - a stakeholder focused performance measurement and management framework that addresses the reciprocal needs and wants of the organisation and its stakeholders and then addresses the strategies, processes and the capabilities that are needed in order to satisfy them. A set of performance measures are identified and mapped in a 5 sides prism: stakeholders contribution, stakeholders satisfaction, strategies, processes and capabilities.
- Tableau de Bord (France) - a management tool that is comprised of both a set of indicators that are related (not by deterministic algebraic operations) by causal relationships/links and the process of selection, documentation and interpretation of these indicators. It is based on a representation (or model) of the organization as a system and of the relations of that system with its surrounding environment. It provides each manager with indicators not only about how they have discharged their responsibility, but also about how the "condition" of the firm within its environment will allow him or her to fulfil this responsibility in the future.
- Value Based Management/Economic Value Added TM (EVA TM ) - a comprehensive financial management measurement system that can be used to tie together capital budgeting, financial planning, goal setting, performance measurement, shareholder communication and incentive compensation. The objective of EVA is to develop a performance measure that properly accounts for all ways in which corporate value could be added or lost. Building accountability into a measurement system, EVA encourages managers to take each and every decision following the overarching principle of maximising shareholder value.
Self-assessment business excellence models/frameworks
- Australian Business Excellence Framework (ABEF) - an integrated leadership and management system that describes elements essential to sustainable organizational excellence. It can be used to assess and improve any aspect of an organization, including leadership, strategy and planning, people, information and knowledge, safety, service delivery, product quality and bottom-line results.
- European Foundation for Quality Management (EFQM) Excellence Model - a non-prescriptive framework based on the premise that excellent results with respect to Performance, Customers, People and Society are achieved through Leadership driving Policy and Strategy, that is delivered through People, Partnerships and Resources, and Processes.
- Baldrige Criteria / Baldrige National Quality Program (US) - The Baldrige Award is given by the President of the United States to businesses-manufacturing and service, small and large-and to education, health care and non-profit organizations that apply and are judged to be outstanding in seven areas: leadership; strategic planning, customer/market focus, measurement/analysis /knowledge management, human resource focus, process management and business results.
Services
At strategic level we offer a wide range of customized solutions from implementations, to advisory services and training.
Consulting services
- Facilitation of strategic and business planning
- KPI identification and documentation
- Development of initiative / project selection tools
- Audit and reviews of existing performance management systems
- Performance management information design - performance visualisation enhancements
- Support in the selection and implementation of Performance Management / Business Intelligence Software.
Solutions
- Development and implementation of strategic performance management systems, such as the Balanced Scorecard, the Performance Prism and other customised solutions
- Support in the implementation of self-assessment business excellence models/frameworks
- Post implementation maintenance of performance management systems
Training
Delivery of performance management training in-house, via public courses and conference presentations on topics such as:
- Performance, Performance Management and Measurement
- Identifying and using Key Performance Indicators / Performance Measures
- Implementing the Balanced Scorecard
- Enhancing performance visualisation (Dashboards and Scorecards)
Key tools
Some of the key tools used in strategic performance management are:
- Balanced Scorecard
- Performance Prism
- Total Performance Scorecard
- Tableau du bord
- Value based management