Workshop on Analytics for Leaders - Performance Measurement for Enterprises

A workshop entitled "Analytics for Leaders: Performance Measurement for Enterprises" was organized by the Department of System Engineering and Engineering Management (SEEM), CityU and supported by CMA Industrial Development Foundation, Hong Kong Society for Quality (HKSQ) and The Institution of Engineering and Technology (IET) on 12th December 2013. I had attended the morning part and summarized it for sharing.

In the beginning, Prof. Kwok Leung TSUI (Head and Chair Professor of Industrial Engineering, SEEM, CityU) gave a welcome speech. Prof. Tsui introduced this interactive workshop which aimed to introduce the key issues in relation to Performance Measurement that helped to improve the value delivered to customers and other stakeholders.

Prof. N I Fisher (University of Sydney & ValueMetrics Australia) was our guest speaker who performed this workshop and shared his experience on Performance Measurement for Enterprises. Prof. Fisher mentioned two purposes of a Performance Measurement System (PMS) as follows:
1. To provide the Board and senior leadership with regular quantitative reports that enable them to be duly diligent in leading the enterprise
2. To provide people at all levels with the quantitative information they need to do their jobs well.

Then Prof. Fisher introduced three critical elements of PMS below.
1. Concise overview of health of enterprise
2. Quantitative basis for selecting priorities
3. Alignment (of Strategic, Tactical, Operational Measures, People's Work)
After that he introduced principles of Performance Measurement Framework (PMF) included "Alignment", "Process Thinking" and "Practicability".

We had a group exercise to identify the area of Accountability and Responsibility in our organization. (where Responsibility is sub-set of Accountability)
Accountability - what's been delegated to them (by the Board, or by their boss) to get done
Responsibility - What they actually do themselves (i.e. What won't get done if they don't come to work)

Dr. Zoie Wong presented their team's discussion.

After the exercise, Prof. Fisher introduced the structure of Performance Measures which separated into three zones that were from Operational Level to Tactical Level and finally to Strategic Level. Moreover, it measured the success in different areas included Community, Customers, Owners, People and Partners.

Prof. Fisher analyzed the missing from Balanced Scorecard approach and comparing it with PMF using McKinsey 7S model as shown in following table.

Before the lunch, Prof. Fisher explained the Customer Value Management in four steps.

In addition, he identified value drivers for overall satisfaction using Customer Value Tree.

He concluded the approach of performance measurement based on Stakeholder Value which led logically to the generic content of Board and leadership reports which were more comprehensive, captured current performance and predicted likely future performance.

Reference:
Prof. Nick Fisher's book named "Analytics for Leaders. A Performance Measurement System for Business Success" which published by Cambridge University Press in October 2013.

SEEM, CityU - http://www.cityu.edu.hk/seem/
CMATCL - http://www.cmatcl.com/
HKSQ - www.hksq.org
IET(HK) - http://mycommunity.theiet.org/communities/home/246