Measuring Business Excellence

A decomposition and hierarchical approach for business performance measurement and management : Table of Contents

Paolo Taticchi, Flavio Tonelli, Luca Cagnazzo — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – Performance measurement and management (PMM) is a key practice to drive modern businesses. The literature available in this field highlights a certain maturity regarding performance measurement systems, while few frameworks have been proposed for PMM, which is today's target. Hence this paper aims to focus on the development of a new framework for providing direction and guidance to an organization in measuring and managing its performance. Design/methodology/approach – The proposed framework is developed based on the strengths of the axiomatic design (AD) and the analytical hierarchy process (AHP) techniques. Findings – The framework proposed, namely “Business System Design Decomposition” (BSDD), offers a holistic approach to PMM, identifies cause-effect relationships in business processes, measures performance versus stakeholders, and offers interlinking between performance indicators. The result is a deep understanding of the business environment and a real step forward for PMM. Research limitations/implications – The proposed framework for PMM needs to be validated through an empirical approach or by a clinical approach utilizing a case study. Practical implications – The paper offers to academics, managers and practitioners a framework to understand, measure and manage business performance. Moreover, the application of the framework represents a learning process for the people involved in the project. Originality/value – Little research is available regarding holistic performance measurement and management systems and the understanding of quantitative relations between performance indicators. By combining two existing methodologies, the framework proposed adds value to the existing body of knowledge and offers good insights for addressing future research.

Case study: A fresh approach of the Balanced Scorecard in the Heathrow Terminal 5 project : Table of Contents

Ron Basu, Chris Little, Chris Millard — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to present a case study of the Heathrow Terminal 5 project and to illustrate a customised application of the Balanced Scorecard in a major infrastructure project with multiple stakeholders. Design/methodology/approach – The research methodology applied in this work was based on the case study methodology. The focus was on “how” questions and exploratory analysis of primary and secondary data supported in-depth interviews with members from both the project team and suppliers. Findings – The application of the concept of the Balanced Scorecard by Kaplan and Norton in project management is less frequent in comparison with operations management. The study has established a proven application of the Balanced Scorecard in managing quality in a major infrastructure project. Practical implications – For practitioners of major projects the paper gives implications for implementing the theoretical and customising requirements of the Balanced Scorecard involving key stakeholders. Originality/value – The paper illustrates that metrics can be customised for major projects within the framework of the Kaplan and Norton Balanced Scorecard and that suppliers should be empowered to own the monitoring and improvement process using their performance data.

Branding paradigm for the bottom of the pyramid markets : Table of Contents

Rajagopal — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – This paper aims to deliver new models of brand management in bottom-of-the-pyramid (BoP) markets, considering the personality traits, image, technology and reputation of firms associated with the brands. Design/methodology/approach – Reviewing the previous research studies, the paper advocates new strategies for enhancing the performance of global brands in BoP market segments, improving brand-positioning approaches, measuring brand performance and consumer value, evaluating brand attributes, and underlining brand dynamics in the competitive marketplace. Findings – The study argues that the performance of global brands in low-profile consumer market segments is constrained by high transaction costs and coordination problems along the brand promotions, consumption and consumer value chain. Hence, firms looking towards managing brands in BoP market segments need to reduce brand costs by increasing the volume of sales and augmenting consumer value. Brands of BoP market segments are socially and culturally embedded. They are co-created by consumers and firms, and positioned with the influence of brand equity of the premium market. Unlike traditional brands, BoP brands may be sufficiently malleable to support brand interpretations in the rural and suburban consumer segments. Research limitations/implications – Acquired brands need to be merged into the existing structure, especially where these brands occupy market positions similar to those of existing brands. A balance needs to be maintained between the brand name and its equity. Managers should keep themselves better informed about consumer needs, market changes and company initiatives, thereby enabling staff to help consumers to improve service quality, which in turn can improve market positioning. Practical implications – In today's rapidly changing product markets, a firm needs to focus on a limited number of strategic brands in international markets in order to consolidate and strengthen its position and enhance brand power. The paper offers new business strategies to managers on brand positioning and targeting in suburban and rural markets with convenience packaging, pricing and psychodynamics. Originality/value – New initiatives to manage global brands in BoP markets comprising suburban and rural markets that need to be implemented in the existing organizational culture are discussed.

The dilemma of performance appraisal : Table of Contents

Peter Prowse, Julie Prowse — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – This paper aims to evaluate the aims and methods of appraisal, and the difficulties encountered in the appraisal process. Design/methodology/approach – The paper uses a review of the literature to evaluate the development of appraisals and argues that the critical area of line management development that was identified as a critical success factor in appraisals has been ignored in the later literature evaluating the effectiveness of performance appraisals. Findings – The review identifies the lack of theoretical development in appraisal and argues the psychological approach of analysis and a more critical realisation of appraisal, re-evaluating the challenge to remove subjectivity and bias in judgement of appraisal. Research limitations/implications – Further evaluation of key interpersonal skills is required for appraisal systems to develop performance. Practical implications – The use and design of performance pay in public and private services linked to appraisal have not always improved organisational performance and can contribute to reduced motivation. Originality/value – Little research has evaluated the current increases in using appraisals and the changes in focus from appraisal to performance management. The paper adds value to the existing body of knowledge and offers insights for practitioners and researchers.

Managerial characteristics, strategy and performance in local government : Table of Contents

Ali Ahmed Sebaa, James Wallace, Nelarine Cornelius — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – This paper aims to investigate strategy at the functional level, in Dubai local government. Using Miles and Snow's strategy typology, it seeks to concentrate on the relationship between the alignment of managerial characteristics with strategy type and performance. Design/methodology/approach – Senior executive managers were interviewed and a questionnaire developed, based on the extant literature and issues arising from the interviews. This was distributed to functional managers within Dubai local government, and sought information regarding their personal characteristics, perceptions of requirements for implementing strategic initiatives and actual implementation approaches used. All alignments with the strategy adopted, the strategy required, and managerial characteristics and independent assessments of performance were then analysed statistically to assess the extent of alignment and congruency with performance. Findings – Prospector managers have, on average, higher educational status than that of defender managers, with alignment of several demographic characteristics with strategic orientation leading to enhanced performance. Whilst alignments of educational attainment and organisation and job tenure with strategy are desirable, age has no effect. Practical implications – By understanding the alignment relationships, more appropriate allocation of personnel will lead to increased strategic performance. Originality/value – Previous studies have looked at the alignment of managerial characteristics with strategic type and aspects of performance. In all cases, the focus has been on corporate strategy, and predominantly in private-sector organisations. The study combines these objectives and investigates the alignment between characteristics, strategy and perceived performance. It focuses on management at the functional level in a local government setting and demonstrates that classical upper-echelon theory is also relevant at the functional level of management.

A management model and factors driving performance in public organizations : Table of Contents

Francesco Sole — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – This paper seeks to analyse the characteristics of performance measurement and management systems in public organizations and to highlight the main factors driving performance in this sector. Design/methodology/approach – A literature review is carried out in order to outline the main issues related to the adoption and implementation of performance measurement and management systems in public organizations. Findings – The paper provides better information on the performance measurement and management systems in public organizations, by analyzing the performance dimensions, the use of performance measures and the factors influencing the implementation of the performance management process. Research limitations/implications – The paper presents a model for driving the implementation of a performance measurement system within public organizations and identifies the main factors influencing this process. The paper is conceptual in its nature and will be further developed through an empirical research investigating the role played by the identified factors. Originality/value – The paper identifies the factors driving the performance management process in public organizations.

Comparative study of core values of excellence models vis-à-vis human values : Table of Contents

Balvir Talwar — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – This paper sets out to present a comparative study of the core values of 16 excellence models vis-à-vis human values enshrined in ancient religious philosophies and identified by social scientists as a spiritual way of working. Design/methodology/approach – Contemporary excellence models (EMs) are considered as role models to attain success, and thus it is appropriate to review the effectiveness of their core values. The core values of 16 EMs are identified through a literature review and are studied comparatively. Further, common human values enshrined in various religious philosophies and also advocated by research as success strategies are identified for the comparative study. Findings – The paper identifies and compares the core values of 16 contemporary excellence models. By and large, the focus of core values in EMs is similar. However, the Deming Prize has a uniqueness and different focus in comparison with other models. Some of the common values are customer focus, continuous learning, innovation and improvement, employee involvement and development, partnership development, systems, process-based management, agility, and social responsibility. Human values emphasise the purity of the means and their adoption enhances stakeholders' loyalty. Core values will become more effective if they emanate from human values. Research limitations/implications – The comparative study provides a new perspective for the integration of business values of EMs with human values. It may be useful for the custodians, the GEM council, researchers and practitioners to enhance their understanding of values and their impact in enhancing sustainable growth and prosperity. Practical implications – The study is expected to help in a review of national business excellence strategies worldwide. The integration of excellence models with human values by model custodians and corporate leadership will lead to an exponential growth in business and prosperity for all stakeholders. Originality/value – The study is a part of original research work at the Indian Institute of Technology, Roorkee, India by the author after long experience in the implementation of excellence initiatives in industry. The paper is one of the few comprehensive studies of excellence models and focuses on the integration of learning to attain sustainable growth and prosperity in a competitive environment.