Courses & workshops

Measures today. A strategic management tool

 Measures and key indicators

Traditional methods of measuring performance have been based on purely financial or productivity.
Today and since the late twentieth century, such indicators have failed to provide adequate information to take decisions and the health of an organization.
Following the development in the early 90’s, the “Balanced Scorecard” (BS) of R. Kaplan and D. Norton, what began as a new system of performance indicators, was transformed into what its authors describe today as “a strategic tool.”
This has facilitated the way towards a change of scenery in the performance measures.
The concept is to measure processes and show how it is measured with virtually all areas of a company, business or unit. It also provides a common framework for defining indicators.
On the other hand, learn not to measure the unnecessary or improper, thus avoiding the “bad measures” that lead to confusion and inappropriate behavior. Too many measures also are creating confusion.

Objectives

Measure is not optional but a necessity to improve, motivate, innovate and deploy strategy to day to day. This leads to creating a system to:

  1. Measure what is necessary. Define the scope of each measure and its relation to objectives
  2. Design the measurement system and its hierarchy
  3. Establish indicators to performance.
  4. Select a minimum number of core measures and key indicators that are vital
  5. Assign responsibilities
  6. Achieve target of all efforts towards the strategy

Appropriate measures:

  • Measurement is key to the company.
  • It’s not an option but a necessity:
    • To improve
    • To innovate
    • to motivate
    • to advance on strategic deployment
  • There are good and bad measures
  • What we measure affects behavior and organizational culture

Performance improvement. Agility

  • Measure to make sure that processes are simpler and more agile.
  • Measure and improve to exit reinforced from the turbulence by implementing a vision “post-crisis.”
  • Improve processes and reduce costs is to innovate, liberate working capital and dramatically increase productivity.
  • Motivate to make a significant leap in the level of performance

Program

  • Introduction. Problems and solutions with the measures today.
  • Principles. A framework for current measurements. Good and bad measures. A system of indicators: core and key.
  • The core measures. Selecting hierarchy of measures. Responsibilities
  • Binding measures and indicators with the organization. Measures as a strategic tool
  • Models of excellence. Link measures to intangible assets and financial results.
  • Implementation. The compensation schemes and incentives based on a new system of measures. Sustaining the improvements gained. Conclusions.

 

Author

Francesc Guell is the owner of this site. He was CEO and director of international companies in specialty chemicals and pharmaceuticals. The last 12 years was associated with international consulting groups, providing advice and support to businesses on topics such as innovation and agile innovation processes, operational excellence, knowledge management, change management, strategy and integrated business management. Currently creates and presents courses and workshops on these topics. He graduated as a chemical engineer, postgraduate from ESADE Business School in Business Administration and Master in Knowledge Management. He participated in numerous programs, seminars and ESADE, IESE, EADA, APD and MCE (Management Centre Europe). He is author of articles, presentations and courses on innovation in strategic management, integrated business models, knowledge management, performance measurement, change management and excellence in business processes. See more in: Professional Profile