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Symptoms = How Breakdowns in
Organizational Performance Might Show-Up
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I/S |
Finance |
H/R |
Customer Service |
Ops |
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Customer Satisfaction The
Degree to which the goods and services provided to Customers meet their needs
(goals) |
Insufficient
data for field or HQ decision-making. Usability
of System Impact:
Slow or inaccurate response to customers |
Slow
to market for new products, Slow inv. turnover, and High customer turnover.
(Rev. per customer over time) poor responding to customers (new products,
orders, etc.) |
Breakdowns
in the skills assessment and inventory process. Employee turnover – new
people don’t know customers, problems, or fixes. |
Slow
response to orders, questions or complaints. Impact:
customers are transferred to others, no centralized answer (cumulative
learning) |
No Methodology for getting customer info into Decision process. Slow
changes to practices despite customer desires, new technology, or competitive
challenges |
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Customer Service Breakdowns
in the speed and proficiency with which goods and services are delivered to
Customers |
Usability
of System Poorly
organized information, no structure for accessing company knowledge Errors in
customer and or employee input of data, |
Costs
associated with lost customers not Business
process cycle times are not challenged which leads to over staffing of
support functions (un automated departments provide poorer customer service) |
Customer
service measurement not included in pay-for-performance considerations. Cross-functional Team not in place to
identify customer solutions. |
Not
able to answer 95% of customer questions with readily available info. High level of complaints, long time
required to respond to complaints or questions. |
Too
much involvement in responding to customer questions, information not
routinely shared with customer service.
Slow inventory turnover, losses & write-offs |
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Financial
Objectives The
extent to which ROI and other investor expectations aren’t met (compliance
with Ownership directives) |
Un-realized
benefits of technology. Slow adaptation
of new technology. Cost of not having accurate requirements. Poor analysis of post project
performance (ROI follow-up) |
Measures
don’t reflect concern with poor performance. Costs associated with defects and breakdowns treated as
business as usual (no focus on prevention- returns, rework, etc,) |
Cost
of Employee turnover over time Cost
of not training managers and employees on technical and non technical (OSHA,
lawsuits, rework, accidents, compliance, etc) |
Cost
associated with poor customer service (Revenue / profit per customer over time) Cost
of lost customer – cost 5x to get new vs. keep existing) No business case for
good customer service |
Budgets
are established and un-challenged for the funding of poor performance results
(rework, returns, field repairs, lost market share) Cost of doing nothing not
factored in business cases. |
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Employee
Satisfaction Breakdowns
in the creation of an environment in which managers and employees can perform
optimally |
Employees
and Customers are not involved in the requirements process. I/S
requirements are gathered without the overall business process change
requirements |
Cost
of Employee and management turnover over time is not factored into business cases
involving training and other employee development proposals |
Low
awareness of People Values- what exists, level of support, or plans to
improve. Surveys of Employees not used to identify problems and improve
management. |
Employees
not given access to information needed to meet customer expectations. Employees not empowered to address
some basic customer requirements |
Operational
Processes not focused on support of People values. Employee input on problem
solving not sought or used. People
values not in place or measured.
Managers not supported by employee input. |
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Quality 1.
Functional Functional excellence and competence – Individual and process level 2.
Defects The identification, correction, and prevention of
defects. |
Information Systems do not support collection of
performance data, internal and external requirements. Breakdowns in the requirements gathering process |
Business Controls focus on financial matters Vs
operational excellence. Cycle time, defects, and satisfaction measures not
monitored across all functions |
Recruiting, training and the reward systems not
based business process needs (Current, future & trend data) Breakdowns in
the skill assessment and inventory process. |
Customer service function not benchmarked against
current best practices. Business Units not responsible for supporting
customers. Complaints not tracked to closure |
Not enough objective sources of performance
evaluation. Customer, employee or bench marking not used to assess quality.
No focus on defects outside of manufacturing. Cross functional teams not involved in resolving
quality problems |
The Indicators = How Breakdowns
in Organizational Performance
might be Measured
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I/S |
Finance |
H/R |
Customer Service |
Ops |
|
Customer Satisfaction The Degree to which the goods and services
provided to Customers meet their needs (goals) |
Management Sat. with Functionality External Sat with Usability of customer interface IT Performance Benchmarks |
Management Sat with Functionality of Financial
services Employee sat with usability of forms and processes Satisfactory Audits (Financial, Gov’t, etc) |
Management Sat with Functionality of Human
Resources services
Employee (including
mgrs.) sat with usability of forms
and processes Business unit sat with employee Skill development |
Business unit sat with functionality External Customer sat with Company services |
Market Share External Ratings of Quality and Customer Service % of Revenue from new products (indicates
closeness to market) Product Returns |
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Customer Service Breakdowns in the speed and proficiency with which
goods and services are delivered to Customers |
Cycle time on technology implementations. Cycle time on problems % of problems re-occurring % of problems handled by front line help desk Business Case results achieved |
Cycle time on functional operations (accounting, treasury,
reports, compliance items) Cycle time on analysis projects. % of problems handled by front line staff |
Cycle time to close skill gaps Cycle time to staff positions Cycle time to make employee records changes % of
problems and questions answered on 1st call |
% Of Customer questions answered by front line
personnel. Cycle time on complaints or inquiries % of problems and questions answered on 1st
call |
Cycle time on new products Cycle time on production Decrease in # of call refereed % of
problems and questions answered on 1st call |
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Financial Objectives The extent to which ROI and other investor
expectations aren’t met (compliance with Ownership directives) |
Cost Overruns Engineering Changes Budget vs Actual Plan vs Actual Cost of Defects and Corrections |
ROI, EVA, etc. Budget vs Actual Plan vs Actual % of Plan attainment Business Case results reported(ROI follow-up) |
Cumulative Cost of lost Employees Annual Cost
of training defects -
OSHA, lawsuits, rework, accidents, compliance, etc |
Profit per customer Revenue per customer Budget vs Actual Plan vs Actual |
$ & # of Returns $ & # or Reworks Budget vs Actual Plan vs Actual |
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Employee Satisfaction Breakdowns in the creation of an environment in which
managers and employees can perform optimally |
I/T Employee Sat with Involvement,
Management, and Processes I/T Employee Sat with usability Employees with Involvement Manager Sat with Response to changes |
Finance Employee Sat with Involvement, Management, and Processes management turnover over time is not factored into
business cases involving training and other employee development proposals |
H/R Employee Sat with Involvement,
Management, and Processes Employee Sat w/Training Management Sat w/usability of processes, forms,
and systems Overall Employee Sat |
Customer Service Employee Sat with Involvement, Management, and Processes Employees sat w/access to information Employees sat w/level of empowerment |
Operational Employee Sat with Involvement,
Management, and Processes Employee Sat with organizations support of people
values |
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Quality 1.
Functional Functional excellence and competence – Individual and process level 2.
Defects The identification, correction, and prevention of defects. |
External
Measures (quality awards, prizes, etc.) #
of Benchmarks and best practices studies planned and completed Trends
in Defects (all functions) |
External
Measures (quality awards, prizes, etc.) #
of Benchmarks and best practices studies planned and completed Trends
in Defects (all functions) |
External
Measures (Fortune most admired, workplace awards etc) # of Benchmarks and
best practices studies planned
and completed Trends
in Defects (all functions) |
External
Measures – Customer Service rankings, awards Benchmark
& Best practices studies planned and conducted Trends
in complaints |
External
Measures (quality awards, prizes, patents awarded, etc.) #
of Benchmarks and best practices studies planned and completed Trends
in Defects (all functions) |
Quality Management -
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Knowledge Management &
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