13 th ICIT. Malaysia 24-26 March, 2008
Performance Measurement.
Integration of Information for
Process Improvement and
Innovation
Palmira López-Fresno
President. Quality Service Committee
Spanish Association for Quality
correo@palmiralopezfresno.com
I. Introduction
Process Management as a mechanism for
achieving competitive advantage through
performance improvement:
 As a way to manage the business
(holistic perspective).
 Being able to tie the deployment from
the strategic level to the task level with
better effectiveness.
I. Introduction
Each process crosses various inter or intra
departmental units.
PROCESSES
FUNCTIONS
The overall process performance depends on the
performance of each phase of the process. The
concept and role of internal customer is crucial
for overall effectiveness.
II. Process performance monitoring and evaluation
Business Process Management involves the use
of a measurement system.
One of the first pre-requisites for quality of
information is to incorporate information from all
the actors (stakeholders) from a global holistic
perspective.
Regarding employees (internal customers),
nobody better than the person who perform the
tasks knows how the process is performing and
which aspects should be improved.
II. Process performance monitoring and evaluation
CUSTOMERS
(External perspective)
(Customer based
indicators)
Measurem.
of orientation
to customers
Budget
Policies
Competency
Cost-effect. analysis
EXPECTED
QUALITY
Measurem.
of customer
satisfaction
Profitability
ORGANISATION
(Internal perspective)
(Process based
indicators)
OBJECTIVE
QUALITY
Improvements
Obtained
PERCEIVED
QUALITY
Use/knowledge
Communication
Customer Service
Measurem.
of impact on
customers
PRODUCED
QUALITY
Measurem.
of efficacy
II. Process performance monitoring and evaluation
CUSTOMERS
(External perspective)
(Customer based
indicators)
Measurem.
of orientation
to customers
Budget
Policies
Competency
Cost-effect. analysis
EXPECTED
QUALITY
Measurem.
of customer
satisfaction
Profitability
ORGANISATION
(Internal perspective)
(Process based
indicators)
OBJECTIVE
QUALITY
Improvements
Obtained
PERCEIVED
QUALITY
Use/knowledge
Communication
Customer Service
Measurem.
of impact on
customers
PRODUCED
QUALITY
Measurem.
of efficacy
II. Process performance monitoring and evaluation
This cycle can be applied to external or internal
customers and also to other stakeholders.
For each process the organisation will have
indicators related to produced quality (efficiency,
cost, time, resources, etc.) and information
related to perceived quality (quantitative and
qualitative).
II. Process performance monitoring and evaluation
Purpose:
 To know the perception the persons involved
in the execution of the processes (internal
supply chain) have about their performance
level, in order to identify the processes, subprocesses or phases that need to be improved.
 Also it can contribute to communicate and
implement Process Management and to
increase commitment and participation.
The focus is on processes, not in departments
and on process performance rather than on
internal customer satisfaction.
II. Process performance monitoring and evaluation
Purpose:
 To know the perception the persons involved
in the execution of the processes (internal
supply chain) have about their performance
level, in order to identify the processes, subprocesses or phases that need to be improved.
 Also it can contribute to communicate and
implement Process Management and to
increase commitment and participation.
The focus is on processes, not in departments
and on process performance rather than on
internal customer satisfaction.
EXPECTED
PERFORMANCE
PERCEIVED
PERFORMANCE
The incorporation of
the internal customer
voice to the
performance
measurement system
A case experience
III. Internal customers perceived quality evaluation
Company: RACC
Set up: In 1897, private capital.
Location: Barcelona - Spain
Activity: Service organisation. The biggest and
most important automobile club in Spain,
providing medical, mechanical and
personal assistance, travels, insurance,
etc. to more than one million members.
Employees: 1650
III. Internal customers perceived quality evaluation
Culture:
 Traditionally strongly customer oriented (efficacy
even more important than efficiency). In 2001 a
new “business” perspective was introduced.
Process focus gained relevance as a mechanism
for increasing competitiveness.
 The new perspective challenged accepted ways
of thinking and focusing the activity.
III. Internal customers perceived quality evaluation
Continuous
improvement
and innovation
DISSENY AND
METHODOLOGY
IDENTIFICATION AND
QUALIFICATION OF
PROCESSES
PERIODICAL
EVALUATION OF
PROCESSES
Inventory
Internal and external customer
voice
Indicators
system
Results from analysis of
indicators
Benchmarking
PROCESS MONITORING
Main element for
process
effectiveness
monitoring
Process Performance Monitoring
Scorecards
Maps
Flow charts
Process
Management
Manual
III. Internal customers perceived quality evaluation
The process performance monitoring system
was initially mainly integrated by objective
indicators (internal perspective). External
customer satisfaction was also monthly
monitored (data treated separately).
An internal customer perceived process
performance was implemented, in order to
complement the information the organisation
had for decision making.
III. Internal customers perceived quality evaluation
Objectives:
 To identify areas/ aspects of poor
performance.
 To identify causes of negative performance
results.
 To anticipate negative performance results.
 To increase employees awareness with
regard to process management and its
advantages.
The final aim was to periodically identify the
processes, sub-processes or phases that
need to be improved.
III. Internal customers perceived quality evaluation
Methodology:
 Evaluation performed quarterly, via intranet, by
the Corporate Quality Direction. In 2007 data
collection was subcontracted.
 Addressed yearly to all employees. A sample
of 25 % each quarter. Anonymous answering.
 Evaluation of 13 main macro processes.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Gestión global de Siniestros
Gestión del producto Seguros
Gestión global de Tramitaciones
Gestión de Viajes: apoyo operativo, apoyo administrativo, venta
Gestión de los productos Afiliación, RACC Master y Servicios Complementarios – y otros comentarios
sobre unidades de negocio en general
Asistencia / Universal
Gestión global de los Recursos de Multas
Los servicios de Marketing y Comunicación Corporativa
Los servicios de RRHH
La logística de materiales, aprovisionamiento y material específico para la venta y Servicios
Generales
Soporte Informático
Resto de Relaciones Internas: el apoyo interno y los Clientes Internos de los procesos de apoyo
Otros: relaciones interpersonales, grado de información, calidad del lugar de trabajo, observaciones y
sugerencias relacionadas con estos temas
III. Internal customers perceived quality evaluation
Methodology:
 A questionnaire designed for each process.
Includes questions related to friendliness/
courtesy, responsiveness, quality of
answer/solution, for each phase of the
process, specific questions for some products,
and a question related to global performance
of the process.
III. Internal customers perceived quality evaluation
Methodology:
 Numeric scale, with 10 grades, except some
questions related to frequency of use. An open
question to specify the 3 main improvement
aspects in the process according to the
perception of the person who evaluates.
0
Pésimo
1
2
Muy Insatisfactorio
3
4
Insatisfactorio
Área de Insatisfacción
5
6
Aceptable
7
8
Satisfactorio
9
Muy
Satisfactoria
10
Excelente
Área de Satisfacción
 Each person evaluates the processes in which
he/is is mainly involved, from a perspective of
internal supplier-customer.
III. Internal customers perceived quality evaluation
Results:
 By key attributes, at a corporate level (linked to
compliance of values):
 By process (horizontal view):
Parámetro
06
N
Media 06
Trato / amabilidad
1061
7.40
5.4%
7.81
Errores
1027
6.93
9.1%
7.10
Solución de problemas
1059
6.76
11.0%
7.11
6.76
Satisfacción General con
el servicio recibido
1061
6.75
10.7%
7.16
6.75
Cumplimiento compromisos
1025
6.67
10.4%
7.04
6.67
Agilidad / rapidez
1057
6.51
14.3%
6.83
 By unit /department (vertical view):
%insat. Media 05
7.40
6.93
6.51
SIG
SIG
SIG
SIG
SIG
SIG
III. Internal customers perceived quality evaluation
Results:
 Quantitative
 Qualitative
 Priorisation of aspects to be improved for each
process, using the Importance-Performance
Map, and globally, identifying key processes by
linking processes to strategic lines.
Máxima eficiencia
EXCELLENT/
AREA TO BE
MANTEINED
Trato / amabilidad
Innovación en
productos y servicios
+
SURPLUS AREA/
IRRELEVANT
Calidad de Servicio
Results:
Expansión
geográfica sostenida
III. Internal customers perceived quality evaluation
Gestión global de Siniestros
Gestión de Seguros
PERFORMANCE
Gestión de Tramitaciones
Gestión de Viajes
Gestión pdtos Afiliación
Errores
Gestión Asistencia
Gestión Multas
Solución de
problemas
Gestión Mkt y Comunicación Corporativa
Gestión RRHH
Cumplimiento
compromisos
Gestión logística
Gestión Soporte Informático
-
CARE-FREE
AREA/ TO BE
REDUCED
Agilidad / rapidez
TO BE IMPROVED AREA
Importancia Satisfacción
PUNTOS FUERTES
ACCIONES PRIORITARIAS
ESFUERZOS SUFICIENTES
PRIORIDAD SECUNDARIA
Otros
+
-
IMPORTANCE
Gestión Apoyo Interno
Coef.
%Peso
acum.
Tramo de
importancia
Solución de problemas
1.7534
21.84%
ALTA
Agilidad / rapidez
1.7115
43.17%
ALTA
Cumplimiento compromisos
1.6034
63.14%
MEDIA
Errores
1.5446
82.38%
MEDIA
Trato / amabilidad
1.4140
100.0%
BAJA
III. Internal customers perceived quality evaluation
Distribution of results:
 Detailed results distributed to top and middle
management, and main indicators included in
the process performance measurement system.
 A summary is distributed to all employees, via
intranet.
III. Internal customers perceived quality evaluation
Results:
 The process performance measurement
system was improved, incorporating perceived
performance indicators.
III. Internal customers perceived quality evaluation
Global results obtained from the methodology:
 Increased employees awareness and motivation
with regard to process management. They
perceive their opinions are valued.
 It allows better identification of causes of negative
tendencies (ex. Mechanical Assistance) and
therefore better identification of improvements and
innovation in processes and products.
 It allows better allocation of resources.
 It can allow to anticipate negative performance
results.
IV. Conclusions
 Two perspectives should be taken into account
when defining a measurement system: internal or
process based indicators (produced quality), and
external or customer based indicators (perceived
quality). Both perspectives should be integrated to
provide information for better decision making.
 Internal customers provide very useful information
on how processes are performing and which areas
should be improved or innovated. A methodology to
periodically and systematically evaluate process
perceived performance should be implemented and
results integrated with other internal indicators.
 Tools to prioritise improvement should be applied.
Thank you
Terima Kasih