Table of Contents
Title Page
Copyright Page
Dedication
Foreword
Foreword
Preface
IMPROVING PERFORMANCE IS CENTRAL TO SUCCESS
ORGANIZATIONAL CHALLENGES
COMPETITIVE ADVANTAGE
WHY WE WROTE THIS BOOK: A UNIQUE APPROACH
THE SIX STAGES OF PERFORMANCE MANAGEMENT VALUE
THE THREE CAPABILITIES: MONITOR, ANALYZE, AND PLAN
ABOUT THE READER
HOW THIS BOOK IS ORGANIZED
Acknowledgements
Chapter 1 - The Six Stages of Performance Management
WHY MANAGE PERFORMANCE?
HOW PERFORMANCE MANAGEMENT CREATES VALUE
CONCLUSION
1 - Appendix
Chapter 2 - Managing Performance
IN THIS CHAPTER
STRATEGIC, OPERATIONAL, AND TACTICAL DECISIONS
THE FOUNDATION FOR DECISIONS
THE THREE CORE CAPABILITIES TO MANAGE PERFORMANCE: MONITOR, ANALYZE, AND PLAN
CONCLUSION
Chapter 3 - Monitor
THE EXPEDIA STORY
IN THIS CHAPTER
CONSISTENCY
ACCOUNTABILITY
ALIGNMENT
CONCLUSION
Chapter 4 - Analyze
THE U.S. DEPARTMENT OF VETERANS AFFAIRS STORY
IN THIS CHAPTER
AGILITY
RELEVANCY
EFFICIENCY
CONCLUSION
HOW TO KNOW IF YOU HAVE THE ABILITY TO ANALYZE
Chapter 5 - Plan
THE ENERGIZER STORY
IN THIS CHAPTER
ALIGNMENT
AGILITY
ACCOUNTABILITY AND EMPOWERMENT
CONCLUSION
Chapter 6 - Pull it All Together
IN THIS CHAPTER
HOW THE THREE CAPABILITIES DELIVER THE SIX STAGES OF PERFORMANCE MANAGEMENT VALUE
UNDERSTANDING THE CULTURE OF PERFORMANCE MODEL
WHAT ARE YOUR COMPANY’S SCORES?
WHAT SCENARIO DESCRIBES YOUR ORGANIZATION?
CONCLUSION
Index
This book is printed on acid-free paper.
Copyright © 2008 by Bruno Aziza and Joey Fitts. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Aziza, Bruno, 1975-
Drive business performance: enabling a culture of intelligent execution/Bruno Aziza,
Joey Fitts.
p. cm.—(Microsoft executive leadership series)
Includes index.
ISBN 978-0-470-25955-9 (cloth)
1. Management. 2. Performance. 3. Organizational effectiveness. 4. Industrial efficiency. I. Fitts, Joey, 1972- II. Title.
HD31.A984 2008
658.4'013—dc22
2008001411
This book is dedicated to our families, without whose support, dedication and love we would have never been able to write it.
Juliana and Sophia, “Eu amo vocês do fundo do meu coração. Obrigado pela paciência e pelo carinho, vocês não imaginam como isso é importante para mim.” - Joey
Jenny, “Je n’y serais jamais arrivé sans ta patience et ton soutien - à travers les longues nuits passées sur ce livre—merci.” Sophie and Sam, “Je vous dis souvent que je suis très fier de vous - j’espère, qu’un jour, lorsque vous lirez ce livre, vous serez fier de moi aussi - je vous aime tous les trois très très fort.” - Bruno
Microsoft Executive Leadership Series: Series Foreword
The Microsoft Executive Leadership Series provides leaders with inspiration and examples to consider when forming business strategies to stand the test of time. As the pace of change quickens and the influence of social demographics, the impact of educational reform, and the impetus of national interests evolve, organizations that understand and embrace these underlying forces can build strategy on solid ground. Increasingly, information technology is bridging social, educational, and international distances, and empowering people to perform at their fullest potential. Organizations that succeed in the enlightened use of technology will increasingly differentiate themselves in the marketplace for talent, raw materials, and customers.
I talk nearly every day to executives and policy makers grappling with issues like globalization, workforce evolution, and the impact of technology on people and processes. The idea for this series came from those conversations—we see it as a way to distill what we’ve learned as a company into actionable intelligence. The authors bring independent perspectives, expertise, and experience. We hope their insights will spark dialogues within organizations, among communities, and between partners about the critical relationship between people and technology in the workplace of the future.
I hope you enjoy this title in the Microsoft Executive Leadership Series and find it useful as you plan for the expected and unexpected developments ahead for your organization. It’s our privilege and our commitment to be part of that conversation.
Daniel W. Rasmus
General Editor, Microsoft Executive Leadership Series
Titles in the Executive Leadership Series:
Drive Business Performance by Bruno Aziza & Joey Fitts, 2008.
Rules to Break and Laws to Follow by Don Peppers & Martha Rogers, 2008.
Generation Blend by Rob Salkowitz, 2008.
Uniting the Virtual Workforce by Karen Sobel Lojeski & Richard Reilly, 2008.
Foreword
by Robert Kaplan and David P. Norton
“The key reason people care about performance management is because they want to execute their strategies. Strategy execution and results are the primary benefit of managing performance.” With these words, Aziza and Fitts define their common ground with our (Kaplan-Norton) strategy management work. They and we recognize that strategic decisions must be translated into tactical decisions that, in turn, become operational decisions. To successfully execute strategy, companies must link strategy to operations so that the thousands of decisions made by front-line employees align well with the strategy that has been formulated at the top. But accomplishing this alignment is truly where the devil is in the details. Aziza and Fitts have articulated a feasible and proven path to achieve this alignment.
One of our key strategy management principles is to “make strategy everyone’s job.” This requires that the work force understands the strategy and, further, understands how their local, everyday decisions can contribute to successful strategy implementation. Aziza and Fitts take this idea a step further by introducing a “Culture of Performance.” They show how organizations like Energizer, the U.S. Department of Veteran’s Affairs, and Fortis engage more employees in strategy execution by giving them the information, tools, and processes they need to support their decision making. Engaging informed and empowered employees creates successful results and sustainable competitive advantage.
The authors present a pragmatic methodology that builds capabilities around three key processes: monitor, analyze, and plan. They understand that a monolithic “cookie-cutter” approach can not succeed. The authors introduce a six stage framework to help organizations tailor an approach to their unique needs.
We appreciate the contribution Aziza and Fitts have made to build upon existing tested and proven approaches, like the Balanced Scorecard, to move the field of performance management forward in important new directions.
Boston, MA (USA)
January 2008
Dr. Kaplan is Baker Foundation Professor, Harvard Business School, and Chairman of Professional Practice at Palladium Group, Inc. Dr. Norton is Founder and Director, Palladium Group, Inc.
Preface
IMPROVING PERFORMANCE IS CENTRAL TO SUCCESS
Organizations seeking to drive business performance and lead in their markets must develop a culture of intelligent execution. The act of execution is decision making, and better execution comes from better decision-making abilities. Organizations that can improve these capabilities across their organization will outperform those that don’t.
In the first decade of the twenty-first century, the business landscape is evolving at an unprecedented pace. We find ourselves in an increasingly global economy, facing a steady stream of new competitors, new fields of play, and emerging markets. Customers are continuously offered new products and services, compelling value propositions, and creative business models by the competition. The scope of opportunity and competition are both increasing, as is the scrutiny of the stock markets in assessing performance quarter to quarter. Companies are under constant pressure to do more with less and to deliver better returns than the competition. Public sector organizations face similar constraints as growing populations and increasing needs from the citizenship demand more from constrained budgets. Whether the goal is sustainable growth, entering new markets, or just to operate more efficiently, the key to achievement is in learning how to drive performance throughout an enterprise.
Performance management is a top priority for organizations of all types and sizes. Organizations are learning that you can cut costs only so much or acquire new business only so often. Eventually, the core of business productivity and shareholder value is the organization’s ability to execute more effectively, with each person inside the company.
In order to execute more effectively with what they have, companies must develop capabilities to drive business performance. The ability to effectively manage performance can deliver the percentage points of increased margin, cost savings, customer satisfaction, growth, or market share, which can make the difference in outperforming the competition and increasing their stock price.
Developing performance management capabilities means changing the way people are empowered to make better decisions. It requires a transition from a restrictive, command-and-control approach to a management style that includes more participants in the performance management process. Involving more employees in the management discussion allows them to take greater ownership for their individual contributions, and empowers them to take responsibility for their performance, to be accountable for results, and thus deliver greater impact.
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!
Lesen Sie weiter in der vollständigen Ausgabe!