Showing papers in "International Journal of Business Performance Management in 1998"

Three modes of measurement: theory and practice

Abstract: Today's conventional wisdom appears to assert that a balanced approach is the one best way of measuring business performance. The aim of this paper is to challenge this wisdom. It is argued that performance measures can be used in three distinct ways: as a means of control versus critical performance parameters; as a means of checking health; and as a means of challenging the assumptions that underpin the strategy of the business. It is also argued that each of these modes of measurement is appropriate for all organisations; that each requires different performance review processes to be established; and that all organisations should therefore consider operating three distinct performance review processes. One which allows the critical performance parameters to be controlled. A second which enables the health of the business to be checked. And a third which encourages the assumptions underpinning the organisation's strategy to be challenged. The paper draws on both academic literature and organisational practice to support these arguments. The three modes of measurement – control, check and challenge – are defined and their application demonstrated. In closing a framework is presented, which encapsulates the arguments put forth in the paper and summarises the implications for the theory and practice of business performance measurement.

Business performance – a stakeholder approach

Abstract: The integration of business and stakeholder values with performance measurement and management is explored. The state of the art of business performance is investigated and subsequently related to the stakeholder theory. Strengths and weaknesses of such a philosophy are analysed and discussed. The concept of Value to the Business is focused upon by formulating a related index that is based on the organisation's major stakeholder satisfaction metrics. It is argued that the future sustainable organisation would need to be inclusive in its approach and practice, galvanizing both the economic and moral aspects in its pursuit of business excellence.

Generic trade-offs and responses: an operations strategy analysis

Abstract: Trade-off analysis is presented as a useful approach not only to conceptualising the process of operations performance improvement, but also to explain why certain trade-offs are chosen by companies. Two case studies are presented and subjected to similar analyses. The purpose of the paper is to identify three "generic" types of trade-off which need to be addressed by operations managers. Managers can then focus on the actions required to overcome these three types of trade-off over time. Furthermore, it will frame these improvement activities in terms of enhancing various aspects of operational flexibility. This is not a new idea. Previous studies have put forward flexibility as a key aspect of the "pivot" of any trade-off. Finally, the paper will discuss how organisations choose which trade-offs to tackle by examining the nature of the trade-offs themselves

Comparative operational performance of UK and German manufacturing plants

Abstract: A comparison of UK and German manufacturing plant performance for the Engineering and Electronics industries is presented, based on data collected as part of the Best Factory Award process in each country. In the Engineering sector, significant differences in performance were found in four areas: component procurement and customer lead times in the German plants were double those found in the UK plants, while employee turnover and scrap rates in the UK plants were double those of the German plants. In Electronics, the German plants outperformed the UK plants on six factors: procurement and customer lead times, employee service and staff turnover, on-the-job training for new employees and first time pass rate. The UK electronics plants outperformed the German plants on stockturn, employee absenteeism and on-the-job training for existing employees.

Business alliances: how to find a good partner

Abstract: The rapid emergence of strategic collaborations is evident everywhere. A look at the top companies around the world illustrates the increasing importance of the collaborative mind-set. Companies are expanding and deepening existing relationships and entering into new, more entrepreneurial alliances. Choosing the right partner remains a vital ingredient of successful alliances. No legal document can provide a framework for success without trust and understanding between the partners. According to a survey of 455 CEOs, the most important factor in designing a strategic alliance is the selection of the right partner (chosen by 75% of the CEOs). This paper should help the reader with this process and offers opinions, experiences, structures and evidence in pursuit of a solution to this issue.

Manufacturing strategies and next century enterprises

Abstract: The findings of two different approaches to predicting the future of manufacturing industries are reviewed to identify general design guides for future companies. One of these approaches deployed a "scenario planning" technique to define an "envelope" within which we might expect all manufacturing enterprises to operate during the next decade. The second approach identified possible attributes of future manufacturing companies by placing present day enterprises within distinctive groupings and extrapolating their properties based on an analysis of current trends. The findings of the two approaches are contrasted and compared. This has led to the specification of design guides for manufacturing enterprises. The purpose here has been to enable manufacturing companies to position themselves relative to their competitors by using these guides. The guides also serve to illustrate aspects of contemporary manufacturing strategies and to highlight possible trends with respect to their development and future use.

Organisational performance and information technology infrastructure: a resource based perspective

Abstract: The value of IT infrastructure is examined from the perspective of the resource-based view of the firm. We identify three types of IT infrastructure assets: physical, human and organisational and hypothesise that high performing firms will have greater levels of human and organisational IT infrastructure assets than low performing firms but that there will be no differences in their levels of physical IT resources. The hypotheses are tested using matched pair survey data from CEOs and CIOs. The findings support the hypotheses. In particular, high and low performing firms differ significantly in terms of context-specific human and organisational infrastructure components. This has implications for management decision making in the areas of IT investment and the components of IT infrastructure that should be outsourced.