Category 4
Measurement, Analysis
and Knowledge Management
Linda Bounds
Vice President-Financial Services
Joel Felten
Vice President-Information Systems
Performance Measurement
4.1
• Midway’s Performance Measurement System
 Selects
information
 Supports organizational planning
 Achieves deployment and integration
• Goal of Performance Measurement System
 Achieve
key results and strategic objectives
 Anticipate organizational or external changes
Stakeholder Key Requirements
4.1a
Company Goals
Customer Satisfaction
Employee Satisfaction
Vendor Satisfaction
Shareholder Satisfaction
Modern Management Practices
Key Requirements
1.
2.
3.
4.
4.
5.
1.
6.
7.
2.
8.
6.
1.
3.
9.
2.
4.
10.
7.
3.
1.
8.
2.
3.
9.
10.
Good salary pricing
Competitive
and benefits
Product
Job
security
availability
Accurate,
The
right tools
intactand
shipments
support to do
Friendly,
my
job courteous, respectful,
ethical service opportunities
Advancement
Product
Opportunities
to utilize
my
Friendly,selection
courteous,
respectful,
Easy
knowledge,
do business
skills andwith
abilities in
ethicaltorelationship
Fast
my
job
delivery
Easy
to do business with
Knowledge
Clear
Financial
Performanceof goals,
Timelycommunication
payment
Timely,
expectations
andcommunication
quality,
direction
marketing
by
Support
the NRA
and
Second
Candid relevant,
two-way
communication
management
Amendment
Meaningful,
support
satisfying job
Industry
Support
assignment(s)
Receive the Baldrige Award
Decision
making authority in my
ISO Registration
job
Six Sigma Green Belt Certification
Friendly, courteous, respectful,
ethical environment
Honest, constructive feedback on
my work
Performance Measurements
4.1b
Company
Goals
Company
Requirements
Department
Scorecard
Individual
Scorecard
Product
Availability
In-stock Rate
• In-stock rate
by product line
Customer
Satisfaction
Accurate,
Intact
Shipments
Easy to do
business with
Shipping
package quality
• Package
quality rate
Fast Delivery
• Picking error
rate
Abandoned
Calls
• Ship QC
invoices per
hour
Company Key Measures
4.1b
2009 YTD
Actual
2009 YTD
Goal
December
/Q4
Customer Satisfaction - Overall1
93.0%
92.0%
93.0%
93.0%
Employee Satisfaction and
Engagement
79.5%
82%
N/A
N/A
Vendor Satisfaction
91.5%
90%
94.1%
90%
$xxxxxx
$xxxxxx
$xxxxxx
$xxxxxx
Net Income % of Net Sales
12.5%
10.0%
4.3%
11.7%
Earnings Distribution
100.0%
100%
100.0%
100%
Timely Payment of Earnings
42.0%
100%
100%
100%
9.2
10.0
9.8
11
Baldrige Score
100%
100%
100%
100%
Strategic Plan Execution
92.0%
95%
N/A
NA
% of Customer Orders with NRA
Round-Up
59.8%
62.5%
58.5%
Company Key Measures
Gross Sales - Overall
Inventory Turns (Paid)
December/
1 2 3 4 5 6 7 8 9 10 11 12
Q4 Goal
62.5%
na na na na na na na na
A
na na na na
na na
A
na na na
Process Measurement
4.1b
Logistics Process Scorecard
Area Process
Stocking
Receiving
Shipping
Warehouse
Process
Management
Section Process Measures
2009
2010 YTD
January/Q1
Actual
Goal
Actual
Goal
Cost per Invoice - Stocking
Cost per Line - Stocking
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
Cost per Invoice - Receiving
Receiving Same Day
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
99.4%
98.4%
95.0%
98.4%
95.0%
Same Day Shipping
Shipping Package Quality
Shipping Accuracy
Cost per Invoice - Shipping
98.9%
99.6%
99.0%
99.6%
99.0%
99.7%
99.9%
99.8%
99.9%
99.8%
97.3%
97.7%
97.0%
97.7%
97.0%
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
Cost per Invoice - Warehouse
Cost per Line - Warehouse
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
$X.XX
ISO Corrective Action
100.0%
100%
100%
100%
100%
Strategic Objective Goals
4.1b
2009 Strategic Objectives Year End Results
1. Grow the business
Goal: Grow sales by 20%
2. Improve website performance, Customer interface and overall value
Goal: Improve CS Survey Question "Ease of finding what you are looking for" to
89%
3. Improve Customer satisfaction and loyalty
Goal: Improve Overall Customer Satisfaction Survey Results to 93%
4. Improve efficiency in key areas
Goal: Reduce Operations Cost per Order from $X.XX to $Y.YY
5. Improve availability of data and information
Goal: Expand Deployment of Vendor Satisfaction Survey and Achieve Vendor
Satisfaction of 90%
6. Improve quality in key areas
Goal: Receive Baldrige Award
26.5%
85%
93%
Y.YY
91%
Received
Deployment
4.1a(3), 4.1b
Detailed Area
Performance
Measure
Supervisor
Daily Review
Area Key
Process
Measures
Monthly DLT
Review
Department
Scorecard
Company
Scorecard
Monthly
Review with
President
Monthly SLT
Review
Integration
4.1 a(3), 4.1 c
Key Area
Process Process
Measure
Same day
shipping
Logistics Shipping Shipping
accuracy
Package
quality
Total Cost
per invoice
Value
Customer
Value
Customer
Value
Customer
Value
Key Requirement
Fast delivery (7)
Accurate, intact
shipments (3)
Accurate, intact
shipments (3)
Financial
Profitability
Performance
Stakeholder
Customer
Customer
Customer
Shareholder
Measurement Linkage to
Leadership System
Measure Results
How do we gauge performance and
Improvement?
• Company Key Measures
• Key Process Balanced Scorecard
• Company Goals Results
Presentation
• Department Scorecards
• Individual Performance Measures
It’s all about the business!
4.2
• Management of Information
• Management of Knowledge
• Management of Technology
Management of Information
4.2a(1), a(2)
• In House Software Development
 ISO 7.3 Design Control System
 Integration
 Accessibility to information
 Future information needs
Management of Information
4.2a(1), a(2)
• Business Intelligence – Standardized Reports
 Real time reporting of key processes
• Customer Complaint Management
• Vendor Resource Center
Management of Knowledge
4.2a(3)
• MidwayUSA Intranet (SharePoint)
 ISO, process summaries and work instructions
 University of MidwayUSA for training
 New employee training process
 Exit employee process
 Knowledge Center
Management of Technology
4.2b(1)
•
•
•
•
Reliable, Secure, and User-friendly Systems
Monitoring Systems and Applications
Change Management System
Information Systems Measures
Management of Technology
4.2b(1)
• Integrated Contingency Plan
 Redundancy, backups, etc.
• Meeting the needs of a changing business
 Training, conferences, reading, networking
 Strategic planning
• With each process area
• Review hardware and software product road maps
How can you get started?
4.1, 4.2
• First 30 days:
 4.1 Create a listing of your performance measures
 4.2 Assess your information & knowledge
management
• At 90 days:
 4.1 Determine which measures provide actionable
information
 4.2 Prioritize the opportunities for improvement and
address the quick fixes
• At 1 year:
 4.1 & 4.2 Integrate with strategic planning process to
achieve company support
Questions?
Thank you!
Our best wishes to you in your
pursuit of performance excellence!
For more information:
www.AmericaNeedsBaldrige.com
qms@midwayusa.com