©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.PerformanceMeasurementOverview©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.WhyAreWeDiscussingPerformanceMeasurement?•ToputQPMincontext•Becauseit’ssomethingourclientsaretalkingabout•Bringeveryoneheretoacommonlevelofunderstanding80%oflargeAmericancompaniessurveyedsaytheywanttooverhaultheirperformancemanagementsystem!©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.PerformanceMeasuresHaveBeenChangingBusiness,ingeneralFinancialMeasuresFinancialandNon-FinancialMeasuresCommunicationsIndustryRegulatoryDrivenMeasuresCustomerDrivenMeasures©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.WhatYouMeasureisWhatYouGetRobertS.KaplanandDavidP.Norton“TheBalancedScorecard-MeasuresthatDrivePerformance”HBR,January-February,1992WhyUsePerformanceMeasures?©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.WhyUsePerformanceMeasures?•Focusefforts/providedirection•Monitorprogress•Benchmarkagainstothers•Catalyzechange©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.EffectivePerformanceMeasures•Simpletounderstandanduse•Closetooperations•Alignedwithcorporatestrategies•Cross-functional•Promotecontinuousimprovement•Balanceshortandlongtermneeds©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.TheBalancedScorecardRobertKaplanandDavidNorton,HBRArticles1992:TheBalancedScorecard:MeasuresthatDrivePerformance1993:PuttingtheBalancedScorecardtoWork1996:UsingtheBalancedScorecardasaStrategicManagementSystem?©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.WhatistheBalancedScorecard?FINANCIALPERSPECTIVEGoalsMeasuresINTERNALBUS.PROCESSGoalsMeasuresCUSTOMERPERSPECTIVEGoalsMeasuresLEARNING&GROWTHGoalsMeasuresVISIONANDSTRATEGYGoalsMeasuresCopyrightofHBR©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.CustomerObjectivesInitiativesCustomerMeasuresTargetsTimeQualityPerformanceandServiceCostToachieveourvision,howshouldweappeartoourcustomers?©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.SampleMeasures....Copylastslideandsimplifytojusthavethefourcategoriesofmeasures....fillintheexampleprogressivelythroughthenext3slidesThatis,Financial:havecost<#2000/personetcThePersonalScorecard❒TohavethePracticeembraceQPM.❒ForQPMtogeneraterevenueforthepractice❒TohelpourclientsbemoresuccessfulthroughQPMimplementation❒TohavemoreconsultantstrainedtodeliverQPMengagementsScorecardMeasuresInitiativesHoldQPMTrainingSeminarCustomerAchieveSatisfactionRatingsforQPMTrainingof“Good”or“Excellent”©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.LearningandGrowthTargetsforsuccesskeepchanging...ObjectivesInitiativesLearningandGrowthMeasuresTargetsProductInnovationProcessInnovationToachieveourvision,howwillwesustainourabilitytochangeandimprove?©1996ArthurAndersen,AndersenWorldwide.Allrightsreserved.Copylastslideandsimplifytojusthavethefourcategoriesofmeasures....fillintheexampleprogressivelythroughthenext3slidesThatis,Financial:havecost<#2000/personetcThePersonalScorecard❒TohavethePracticeembraceQPM.❒ForQPMtogeneraterevenueforthepractice❒TohelpourclientsbemoresuccessfulthroughQPMimplementation❒TohavemoreconsultantstrainedtodeliverQPMengagementsScorecardMeasuresInitiativesHoldQPMTrainingSeminarCustomerSampleMeasures....AchieveSatisfactionRatingsforQPMTrainingof“Good”or“Excellent”Learn...