Performance Assessment - general introduction

This page last updated 2015 May 11

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WHAT

What do we mean by Performance Assessment?   Managers that are engaged in Planning, Directing, Organizing and Controlling are in a sense, doing things to make changes to the Strategies and Tactics by which the corporate plans are carried out, so the Objectives can be achieved. To make proper changes to the company's Business and Marketing Strategies and Tactics you need to measure your performance. Essentially, Performance Assessment is what companies do to find out What is the result of their activities ? Why did those results happen ? Results affected and effected by things we control Product Price Promotion Place Results affected and effected by things we cannot control Economic Environment changes Political Environment changes Social/cultural  Environment changes Technological  Environment changes Geographic (weather)  Environment changes Competitive  Environment changes While these results continue ? What are we going to do about it ?" with info from Alastair Shaw, http://www.fpm.com/journal/mattison.htm

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WHY

Why is Performance Assessment important?   Most companies have a corporate Goal,  - and some also list a "Mission Statement" - there is also Vision Statements, Mantras etc. There are measurable Objectives to achieve that Goal Most "intro to management" courses describe the functions of Management as PDOC Planning, Directing, Organizing and Controlling In order to assess if the company resources are being used effectively and efficiently you need some measure of the results of using those resources - the intense competitive environment means companies cannot afford to make mistakes - the more accurate you are in assessing successful performance, the more efficiently you can apply resources - meaning only pay for resources you need, and use those "to the max" with out waste

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WHY

Why is Performance Assessment important? Cause if you don't..... If you don’t measure Performance How can you tell if your "measurable objectives" have been achieved How do you know where to improve? How do you know if your resources (people, money, materials, IT) where used appropriately in the right location of sufficient quantity available at the right time How well are you doing compared to the competition? How do you know whether you are improving or declining? How do you know which parts of your operation are getting the best results? which location is best which group of people has the best results which product is the most attractive to customers

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WHAT

What is a Performance Measure? Performance Measures can be found in many places in business and government and industry associations. The screen capture below contains examples of terms and definitions as outlined in the intro to the Performance Measure Guide of the State of Washington Office of Financial Management   with info from the State of Washington Office of Financial Management  http://www.ofm.wa.gov/budget/instructions/other/2009performancemeasureguide.pdf

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HOW	What are the different types of Performance measures (BSC)

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HOW

How do we write a Performance Measure Performance measure titles should be concise and easy for someone not educated in your profession to understand Since performance measures are numeric descriptions of work, start each measure by clarifying the unit of measure, for instance: The number of ... The percentage of ... The ratio of ... Next, tell the reader what is being measured. This is usually an attribute of work performance identified in an activity description, expected results statement, or logic model: The number of days to fill a job vacancy . . . The percentage of trainees finding a job . . . The ratio of wetland acres cleaned of invasive species . . . Finally, when possible, use the word “per” to clarify the reporting cycle: Average number of days it takes to fill a posted job vacancy per quarter. Percent age of trainees finding a job within 30 days of training per quarter. The ratio of wetland acres cleaned of invasive species per year. from  http://www.ofm.wa.gov/budget/instructions/other/2009performancemeasureguide.pdf

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PROBLEMS

What are some of the problems with Performance Measurement Too much emphasis on summary data that focuses on the "average" and does not give much attention to facts that are outside the main margin Reliance on historical patterns ... which is hard in the digital business world were history can be as short as 6 months... not enough time has passed to truly know Hesistance to accept new structural changes that will result in different results "Heavy reliance on gross aggregates that tend to understate or ignore distributional contributions and consequences." "Heavy reliance on static, e.g., equilibrium, analysis and slight attention to time-based and growth ones, such as value-added measures"

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The Environment

What are some of the issues that differentiate between traditional enterprises and digital enterprises? (comments provided by students in CCT224 Sept 2011) . Traditional Enterprises do... Digital Entreprises do ... - first in / last out - networking - bounded by space and time - in order to reach globally, need to set up operations overseas - customer service face2face - employment hierarchy     . - ebusiness - Just in Time - social networking - cheaper set-up costs (no real-estate) - global reach - work virtually - interactions are more abstract .. Traditional Enterprises need... Digital Entreprises need ... - physical space for operations - repeat sales - less dependence on technology - management of real estate, assests, inventory       . - servers - network system - technicians - more knowledge for workers - strong marketing - less number of employees .. hint, for having a "frame of reference" to answer these points, use the military phrase "command, control, communications"  http://www.jcs.mil/page.aspx?id=21   http://c4i.gmu.edu/   http://www.globalsecurity.org/military/systems/ground/c3.htm

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