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Q & Q quiz 6 Preperation
Terms in this set (27)
Business Performance Management (BPM)
Entails reviewing the overall business performance and determining how the business can better reach its goals.
Performance Management Process
1) Planning and setting goals
2) Collecting data and analyzing results
3) Using data for decision-making
4) Communication results
Ongoing monitoring and reporting of program accomplishments, particularly progress towards pre-established goals.
Tools used in performance measurment
1) Balance Scorecard
2) strategy maps
3) time-driven activity based costing
Balance Scorecard (BSC)
Created bt Kaplan/Norton
1) Financial (How do we look to shareholders?)
2) Customer (How the customers see us?)
3) Internal Business Process (What must we excel at?)
4) Learning and Growth (How can we continue to improve and create value?)
How to apply Balance Scorecard
1) Translate strategy to operational terms
2) Align organization to strategy
3) Make strategy everyone's day job
4) Make strategy continual process
5) Mobilize change through leadership
Framework that describes how an organization creates value by connecting strategic objectives in explicit cause and effect relationships with each other in the four BSC objectives.
Closed Loop Management System
1) Develop the strategy
2) Translate the Strategy
3) Align the Organization
4) Plan Operations
5) Monitor and learn
6) Test & Adapt
To measure performance companies have been using a these combinations of factors
1) Critical Success Factors
2) Results Indicators
3) Performance Indicators
4) Time Indicators
Critical Success Factors (CSFs)
A limited number (usually 3-8) of characteristics, conditions, or variables that have a direct and serious impact on the effectiveness, efficiency, and viability of an organization.
Ex: Retention of key research, reducing supply chain costs.
Results Indicators (RI) or Key Results Indicators (KRI)
Limited number (usually up to 10) measures the result of many actions, are usually covering long periods of time and are reviewed monthly or quarterly.
EX: Customer satisfaction, Employee satisfaction, profitability.
Thomas Davenport 4 steps to focus on decision making and be a good manager
1) List and prioritize the decisions that must be made
2) Assess the factors that go into each, such as who plays what role, how often the decision must be made, and what information is available to support
3) Design the roles, processes, systems, and behaviors your organization needs
4) Institutionalize decision tools and assistance
The New Landscape of Decision Making
Focuses on strengths and weaknesses in the following areas
1) Small-group process
5) Behavioral Economics
7) Wisdom of crowds
The four capability balances of leaders
Good leaders find individuals who compliment their strengths and offset their weaknesses.
1) Engage in Sense-making
2) Build relationships
3) Create a vision
4) Cultivate inventiveness
Engaging in Sensemaking
1) Get data from multiple sources: Customers, suppliers, employees etc.
2) Include others in your sense making: Say what you see, check others perspectives
3) Use early observations to shape small experiments to test conclusions
4) Do not simply apply existing frameworks but instead be open to new possibilities. Do not stereotype no good guys bad guys etc.
1) Spend time trying to understand others perspectives
2) Encourage others to voice their opinions.
3) Before expressing your ideas, try to anticipate how others will react to them and how you might explain them.
4) When expressing ideas don't just give bottom line explain reasoning
5) Assess the strengths of your current connections
Create a vision
1) Practice creating a vision in many areas. (home life, and work life)
2) Develop a vision about something that inspires you. This will motivate you and inspire others around you.
3) Expect that not all people will share your passion.
4) Don't worry if you don't know how to accomplish the vision. If it is a good vision people around you will help make it real.
5) Use images, metaphors, and stories to convey complex situations that will enable others to act.
1) Don't assume that the way things have always been done is the best way to do them.
2) When a new task or change effort emerges, encourage creative ways of getting it done.
3) Experiment with different ways of organizing work. Find alternative methods for grouping and linking people.
4) When working to understand your current environment, ask yourself what other options are possible.
Signs of weak sensemaking
1) You fill strongly that you are usually right and others are wrong.
2) You fill your views describe reality correctly, but others views do not.
3) You find you are often blindsided by changes in your organization or industry.
4) When things change you typically feel resentful.
Signs of weak relating
1) You blame others for failed projects.
2) You find that many of your interactions at work are unpleasant, frustrating, or argumentative.
3) You find many people you work with untrustworthy
Signs of weak visioning
1) You feel your work involves managing endless series of crises.
2) You feel like you are bouncing from pillar to post with no sense of larger purpose.
3) You often wonder why are we doing this? Does this really matter?
4) You can't remember the last time you talked to your family or a your friend with excitement about work.
Signs of weak inventing
1) Your organizations vision seems abstract to you
2) You have difficulty relating your company's visions to what you are doing today
3) You notice dysfunctional gaps between your organizations aspirations and the way work is organized
4) You find things tend to revert to business as usual
Behavioral Economics in decision making implementation
1) Ask yourself
2) Ask the recommenders
3) Ask about the proposal
4) Improving decisions throughout the organization
Behavioral: Ask yourself
1) Check for self-interested biases- is there any reason to suspect the team making recomendation is motivated by self interest?
2) Check for the affect heuristic- Has the team just fallen in love with the proposal?
3) Check group-think-Where there dissenting opinions within the team? Were they explored adequately?
Behavioral: Ask the reccomenders
1) Check for sailency bias- Influence by an analogy of a memorable success?
2) Check for confirmation bias- Are credible alternatives included with the recommendations?
3) Check for availability bias- if you had to make this decision again in a years time, what information would you want, and can you get more of it now?
4) Checking for anchoring bias- Do you know where the numbers came from?
5) Check for the halo effect- Is the team assuming that a person, organization, or approach that is successful in one area will be just as successful as another?
6) Check for sunk-cost fallacy, endowment effect--are the recommendations overly attached to history of past decisions?
Behavioral: Ask about the proposal
1) Check for overconfidence, planning fallacy, optimistic bias, and competitor neglect-is the base case overly optimistic?
2) Check for disaster neglect- is the worst case bad enough?
3) Check for loss aversion- is the recommending team overly cautious?
Behavioral: Improving decisions throughout the organization
1) Organizations adopt the right mind-set- goal is to stimulate discussion and debate. Must tolerate and even encourage disagreements (must be based on facts not personal)
2) Organizations rotate the people in charge, rather than rely on one executive quality police.
3) Organizations inject diversity of views and a mix of skills into the process.
This set is often in folders with...
Managing Business Process Flows Quiz 1
Managing Business Process Flows Quiz 2
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