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Performance Measurement

Transcript: Performance measurement is the process by which businesses, governments and other organizations establish criteria for determining the quality of their activities, based on organizational goals. WHEN Thank you for your attention By Giovanetti Marta Milano Fabio Xodo Morena Zanon Rachele Performance Measurement It is useful to achieve specific managerial pourposes, managers can use performance measure to evaluate, control, budget, motivate, promote and improve the overall management strategy There are many tools(like EVA,ROE,ROI,etc.) that give managers and shareholders an outstanding view on how the company is performing WHAT HOW WHY In our opinion, it should be used frequently in order to asses and monitor the ongoing company business. It shouldn't be considered as a final evaluation but as a starting point for a new planning development

Performance measurement

Transcript: FEWA; Federal Electricity and Water Authority’s Performance Measurement Strategies and practices Performance Measurement HRMT-311—2110-201602 Dr Rommel Sergio Done by Alaa Gamal University ID 200003406 “To be effective and yield results for your business, performance management must be a year round process with no end.” — Peter Drucker Performance measurement and leadership The Top-Down Appraisals Communication Performance measurement and leadership The Top-Down Appraisals Communication Conclusion and Recommendations FEWA has been the main operator to provider electricity and water to the northern emirates and the eastern side of the UAE since 1999 under the accreditation of the ministry of electricity and water with persuasive aims in delivering their services in a high level of quality, balancing production and distribution costs with consolidating existing strategies of variable prices and promoting revenue collection processes It’s often that the implications of measurement systems fail over time and become less valuable, because those systems succeed, managers tend to have a shortage in the skills that needs to be analyzed. The procedure then becomes complex, they then start to add new measures without omitting obsolete measures. Every interlinked, interpreted affecting factor to the process in the organization must be regularly updated to meet the needs of the market demand. 60% of the jobs formation of the authority are hazardous jobs, the concentration on safety measures in the strategic performance measurement plan is fundamental to insure the most accurate performance measurement without any obstacles. Before starting work, after work completion, workplace requirements, , intensity of light, ergonomics, personal protective equipment, before, during, and after excavations, working at heights, and the use of lifting and crane equipment. Solutions implemented to rectify the issue/problem Current performance measurement strategies and practices The current adopted key performance indicators are the balance scorecards. Each KPIs set differs by the differentiation of each departmental performance needs. Those were set in collaboration and agreement between the line manager of each department, the human resource managers, and the director general of FEWA, setting a strategic framework that measures financial and non-financial measures, defining action plans, objectives, prospected results and incentives, all described by cause and effect relationships. Current performance measurement strategies and practices Challenges the company has been facing Introduction

Performance Measurement

Transcript: Performance Measurement Why Performance Measurement? Performance Measurement is a strategy. It is supported by measurement and performance metrics with evidence-based methodologies and processes. It is used by an organization to direct resources to achieve a common set of goals and objectives. Performance Measurement What is it? Realizing TOH vision through PM Performance Measurement Team Overview Organizational Structure & Function Highlights of major projects Information request process Case costing: how & why? Team 2011 2010 2009 Agenda What is Performance Measurement? 2013 Timeline What gets measured gets done. Without measuring results, you can’t tell success from failure. If you can’t see success, you can’t reward it; If you can’t reward success, you may be rewarding failure; If you can’t see success you can’t learn from it; and If you can’t recognize failure, you can’t correct it. With measurable results, you win public/stakeholder support. (Osbounre & Gambler, Reinventing Government) 2012 Performance Measurement Performance Measurement (PM) Scientific Director Dr. Alan Forster Engagement Manager Laurie Strano Innovation Manager Deanna Rothwell Clinical Measures Manager Chantal Backman Clinical Cost Data Manager Ginette Bisson Departmental Structure 0 + - = 9 8 7 1 2 3 4 5 6 c

Performance Measurement

Transcript: Performance Measurement The process and systems of selection, development and on-going use of performance measures to guide decision-making.

Performance Measurement

Transcript: Performance Measurement The process and systems of selection, development and on-going use of performance measures to guide decision-making.

Performance Measurement

Transcript: Definition The process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. Performance Management ≠ Performance Measurement 1. Planning 2. Performance measurement 3. Corrective action (+/- feedback, professional improvement) 4. Completing the loop Outline Performance Measurement Purposes of PM 1. David N. Ammons, “Performance Measures in Local Government,” in F. Lane (1999), pp. 293-307.Ian Greener, “Performance management,” Chapter 8 in Greener (2009), pp. 131-148. 2. David N. Ammons, “Determining the Purpose of the Performance Measurement System: An Important First Step,” Government Finance Review, October 2010, pp. 63-65. 3. Michael J. Mucha, “Fighting Fears About Performance Measurement,” Government Finance Review, August, 2008. 4. Anna Spray Kinney and John Ruggini, “Measuring for a Purpose: Trends in Public-Sector Performance Measurement and Management Practices,” Government Finance Review, August, 2008. 5. National Performance Management Advisory Commission, “National Performance Management Advisory Commission Releases Framework for State and Local Governments,” Government Finance Review, June 2010, pp. 47-49. Case: Restoration of the Aral Sea Performance Measurement What is performance measurement (PM) Purposes of PM Pitfalls of PM Case 1: Restoration of the Aral Sea Case: Restoration of the Aral Sea References 1.Public relations 2. Accountability 3. Improvement of quality of services (more efficiency and effectiveness) 4. Program Evaluation 5. Planning/Budgeting 6. Reallocation of resources 7. Contract monitoring Pitfalls of PM 1. Measurement 2. Target focus 3. Performance gaming: - salaries based on performance results - several areas of services - lack of incentives of managers - when numbers are more important than the actual performance Maja Bratic Aijamal Duishebaeva

PERFORMANCE MEASUREMENT

Transcript: PERFORMANCE MEASUREMENT Differentiate between norm-referenced measurement and criterion-referenced measurement Identify examples of norm-referencing and criterion-referencing LEARNING OUTCOMES LEARNING OUTCOMES Relative measurement Students compared to others within a defined group Scores compared to others within a defined group or benchmark NORM-REFERENCING NORM-REFERENCING ADMISSION EXAMS OBJECTIVE BENCHMARK SCORING SUBJECTIVE BENCHMARK SCORING GRADING ON BELL CURVE EXAMPLES Absolute measurement Students evaluated on set competencies or standards of performance Scores based on a defined grading scale with set criteria CRITERION-REFERENCING CRITERION-REFERENCING STANDARD TESTING FORMATS FIXED GRADING SCALE CLINICAL COMPETENCIES CERTIFICATION EXAMS EXAMPLES

Performance Measurement

Transcript: New Franchise GLADIATORS Performance Measurement Performance Measurement Performance measurement deals specifically with performance measures. These are the quantitative indicators you put in place to track the progress against your strategy. Typically good performance measures cover a wide variety of criteria. Performance Measurement Key Performance Indicators KPIs are the critical (key) indicators of progress toward an intended result. KPIs provides a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Managing with the use of KPIs includes setting targets (the desired level of performance) and tracking progress against that target. Managing with KPIs often means working to improve leading indicators that will later drive lagging benefits. Leading indicators are precursors of future success; lagging indicators show how successful the organization was at achieving results in the past. Key Performance Indicators "What gets measured gets done." - Peter Drucker Balanced Scorecard The balanced scorecard (BSC) is a strategic planning and management method that connects the dots between big picture (our purpose, what we aspire for, what we believe in), and the more operational elements such as KPIs, targets (our desired level of performance), and initiatives (projects that help you reach your targets). The BSC is looks at performance from 4 perspectives. THE PAST FINANCIAL $ JAN FEB MAR #1 #2 #3 2018 I call "the past" the financial perspective of BSC. All financial performance indicators are focused on the past: they show the current results of your past actions. THE OUTSIDE WORLD CUSTOMER & STAKEHOLDERS This perspective views organizational performance from the point of view the customer or other key stakeholders that the organization is designed to serve. I call it "the outside world". THE PRESENT INTERNAL PROCESSES This perspective views organizational performance through the lenses of the quality and efficiency related to our product or services or other key business processes. It is focused on what we are doing now and how well we are doing it. I call it "The Present". THE FUTURE #1 #2 #3 LEARNING & GROWTH Maybe the less obvious to understand, the learning & growth perspective views organizational performance through the lenses of human capital, infrastructure, technology, culture and other capacities that are key to breakthrough performance. I call it "the future" as it is focused on understanding if we are creating the conditions (what we need to learn) to growth our businesses. OS Centers Performance Using the BSC framework as a foundation, we can develop a set of KPIs that will allow us to understand: Financial performance: the results of our marketing efforts and decisions; Customer / OS Corporate satisfaction levels; Our internal efficiency; How well we are building the foundation for future growth; FINANCIAL FINANCIAL Revenue Streams Average Ticket Expenses Margin Cashflow Workign Capital Cycle ROI Marketing Cost per Member Total Cost per Member Potential financial KPIs for an OS Center CUSTOMER & STAKEHOLDER CUSTOMER & STAKEHOLDERS Here we should look for KPIs that shows how our customers and stakeholders (OS Corporate, Investors, Business Partners) are perceiving our Centers Membership acquisition Net Promoter Score Growth Rate Customer satisfaction Customer retention Member Usage Aditional Services per Member INTERNAL PROCESSES INTERNAL PROCESSES What we are doing now and how well we are doing it? Number of Leads Conversion Rate 1st appointment time LEARNING & GROWTH LEARNING & GROWTH What do we need to learn to allow our Centers to growth? Employee capabilities System capabilities Strategy awareness and motivation Conversion Rate Improvement

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