Corporate Performance Management
“The Bottom Line”
Chris Hakes
www.bqc-network.com
Achieving World Class
EXCELLENCE
EXCELLENCE
© BQC Performance Management Ltd, 2000
What are you trying to do?
BUSINESS
EXCELLENCE
CURRENT
STATUS
© BQC Performance Management Ltd, 2000
Objectives
 Accelerate improvements across the
organisation
 Establish a common framework for
performance evaluation
 En-grain a standard process to manage
change
 Deliver superior results and improve
faster than the rest
The EFQM Excellence Model
Enablers
Results
People
Results
People
Leadership
Policy &
Strategy
Processes
Partnerships
& Resources
Innovation and Learning
® The EFQM Excellence Model is a registered Trademark
Customer
Results
Society
Results
Key
Performance
Results
RADAR Scoring
Elements
• (R)esults
•
•
•
•
Scope
(A)pproach
(D)eployment
(A)ssessment
(R)eview
© BQC Performance Management Ltd, 2000
Attributes
Trends, Targets,
Comparisons, Causes,
Sound & Integrated
Implemented & Systematic
&
Measurement, Learning,
Improvement
2. Policy & Strategy
2a Present/Future
Stakeholders’
Needs
2d Deploy through
Key Processes
2c Develop,
Review and
Update
2b Performance &
Benchmarking
Inputs
2e Communicate
& Implement
Policy
Development
© BQC Performance Management Ltd, 2000
Policy Deployment
The Bottom Line
(….Why use an Organisational Performance Model?)
DIRECT
PROOF?
PROCESS
BENEFITS?
© BQC Performance Management Ltd, 2000
£’s
EMPIRICAL
CORRELATION?
Achievements
- Bottom Line Examples
TNT UK Ltd
Revenue Growth £248m to £410m at the point of winning
Profit Growth £18m to £33.4m
ST Microelectronics (ex. SGS Thomson)
Estimated 46% bottom line reduction through use of the Model.
BRISA
63% increase in export revenues
Texas Instruments Europe
Revenue across product range 35%-70% increase
Admin costs cut by a third
© BQC Performance Management Ltd, 2000
Direct Proof?
DIRECT
PROOF
?
PROCESS
BENEFITS?
£’s
• Useful
anecdotes
• Not proof
EMPIRICAL • Cannot correlate
CORRELATION? / compare at a
company level
© BQC Performance Management Ltd, 2000
Empirical Correlation?
DIRECT
PROOF?
PROCESS
BENEFITS?
£’s
EMPIRICAL
CORRELATION?
© BQC Performance Management Ltd, 2000
• USA data is
best
• GAO, S&P 500,
study
• www.nist.gov
Process Benefits?
DIRECT
PROOF
?
PROCESS
BENEFITS
?
£’s
• Shareholder
value
management
• Strategic Agility,
EMPIRICAL
Acuity &
CORRELATION?
Alignment
• Organisational
Alignment
© BQC Performance Management Ltd, 2000
Operational Alignment in the Successful
Vision
Outcome
Strategy
Vision

Culture

Structure
 Resources
=
?

Culture

Structure
 Resources
= Confusion
Vision

?
 Structure  Resources
= Resistance
Vision

Culture

=
Vision

Culture
 Structure 
© BQC Performance Management Ltd, 2000
?
 Resources
?
Results
Anxiety
= Frustration
Shareholder/Stakeholder value
• Management of short-term shareholder value
depends on measurement and management of the
appropriate financial criteria
• Long-term shareholder value enhancement requires a
different approach:
– Developing a responsive organisation
– Building resistance to business cycles
– Developing social responsibility
– Creating competitive advantage
– Influencing industry structure
• Long-term shareholder value requires a new set of
tools!
© BQC Performance Management Ltd, 2000
Strategic Organisational Capabilities
© BQC Performance Management Ltd, 2000
How the Model Fits
AGILITY
ACUITY
© BQC Performance Management Ltd, 2000
Why use this Model?
• Renewable focus for performance review
• Balances enablers and results aiding deduction
of “Measures that Matter”
• Builds long term shareholder value - Users Stock
shown to significantly outperform US S&P 500
indices
• Its “free”!
© BQC Performance Management Ltd, 2000
Remember
All Models are flawed, some
Models are useful
www.bqc-network.com
password = eee3
chris@bqc-network.com
© BQC Performance Management Ltd, 2000