Allen, Dan. Take a good look at yourself: how to make IS performance
self-examination more thorough.ComputerWorld (February 15,
1993): 90-91.
When looking at the performance of information systems, the author advocates concentrating on
the organizational mission in order to link performance measures to job objectives
Atkinson, Anthony and James Q. McCrindell. Strategic performance measurement in
government.CMA - the Management Accounting Magazine 71,
no.3 (April 1997): 20+.
Suggests a strategically-oriented model for performance measurement for the public sector. The
model aligns performance to goals by identifying and communicating objectives to everyone
concerned and developing agreements with stakeholders which will lead to a strategic
performance measurement system.
Atkinson, Anthony J., John H. Waterhouse and Robert B. Wells. A stakeholder
approach to strategic performance measurement.Sloan Management
Review 38, no.3 (Spring 1997): 25-37.
A model for measuring an organization's performance helps all members - customers, suppliers,
employees, and community - understand and evaluate their contributions and expectations. By
focusing on the secondary processes for achieving primary objectives, such as profit, the system
provides a tool for monitoring implicit and explicit contractual relationships with stakeholders
(version of article summary).
Atkinson, Anthony A., John H. Waterhouse and Robert B. Wells. A stakeholder
approach to strategic performance measurement.Sloan Management
Review 38, no.3 (Spring 1997): Reprint 3832. (Abstract and order link at
http://web.mit.edu/smr-online/past/spring97/index.html).
Performance measurements must be able to evaluate intangibles as well as traditionally
accountable activities. Current measures need to call attention to the objectives of the
organization; they must monitor by measuring and reporting progress in meeting goals; they must
show how process performance affects the organization as a whole. The authors offer a model of
both financial and nonfinancial performance measures for the purpose of measuring performance
to help all stakeholders understand and evaluate their progress.
Atwood, Corwin L. and Max Engelhardt. Techniques for uncertainty analysis of
complex measurement processes.Journal of Quality Technology
28, no.1 (January 1996): 1-11. (BPR004).
This article on the analysis of uncertainties in complex measurement processes is based on case
study methods.
Badri, Masood A., Donald Davis and Donna Davis. Study of measuring the critical
factors of quality management.International Journal of Quality & Reliability
Management 12, no.2 (1995): 36-53. (BPR011).
This article classifies organizational requirements for effective management as found in the
literature into eight separate categories and studies means of measuring these critical factors in
order to develop and test theories of quality management.
Balkcom, John E., Christopher D. Ittner and David F. Larcker. Strategic performance
measurement: lessons learned and future directions.Journal of Strategic
Performance Measurement 1, no.2 (April-May 1997): 22-32.
While performance measurement systems have played a key role in developing strategic plans,
achieving strategic objectives, and motivating managers, many managers feel that their existing
measurement systems do not satisfactorily fulfill these functions. According to one survey, six out
of ten respondents reported they were either overhauling or replacing their performance systems.
Over the past decades, a number of new measurement innovations have been adopted as
companies search to solve their measurement problems. This article looks at the lessons learned
and offers some ideas for future directions in strategic performance measurements (Article's
executive summary)
Bierbusse, Paul and Tony Siesfeld. Measures that matter.Journal
of Strategic Performance Measurement 1, no.2 (April-May 1997): 6-11.
This study shows that nonfinancial measures are important when valuing organizations. Smart
organizations searching for ways to incorporate intangibles such as quality of management, R&D,
and innovation into their regular performance evaluation need to identify the key measures for
their particular environment and strategically manage the measures.
Bogan, Christopher E. and Michael J. English. Benchmarking for best
practices: winning through innovative adaptation. New York: McGraw-Hill, 1994.
312 pp. (Shelved at HD62.15.B64 1994).
The authors note that benchmarking is the systematic process of searching for best practices,
innovative ideas, and highly effective operating procedures that lead to superior performance.
Best practice benchmarking, considering the experience of others, is a fundamental approach to
managing in today's work world. New and innovative methods are important because
organizations must look outside to find the best practices in order to motivate their organization
to meet the highest standards possible. Included in the appendix are worksheets that can be copied
in order to integrate benchmarking into the organization.
Bukowitz, Wendi R. and Ruth L. Williams. New metrics for hidden assets.Journal of Strategic Performance Measurement 1, no.1
(February-March 1997): 12-18.
A new measurement tool, the knowledge management assessment tool (KMAT), looks at the
inputs to the knowledge management process and examines how companies perceive their own
performance. This article examines process measurement using the results of the KMAT tool and
explores how some companies view their own performance in knowledge
management.
Burk, Karen CHECK. Activity based costing. North White
Plains, NY: CVE, 1995. 21 min. videocassette.
This video tells how activity-based costing, a powerful financial measurement tool, is linked to
quality management.
Burns, John, Robert Scapens and Stuart Turley. The crunch for numbers (use of
non-financial performance indicators).Accountancy 119,
no.1245 (May 1997): 86+.
This study of organizations using a number of non-financial performance measures shows that
these measures tend to be customer-focussed and may include complaints, returns, on-time
deliveries, level of customer satisfaction, absenteeism, reworking, and wastage rates.
Caudle, Sharon L. Measure and track performance continuously. In
Reengineering for results: keys to success from government experience.
, Section 5. Washington: National Academy of Public Administration, 1995. (BPR182; Complete
work shelved at HD58.8.C38 1994).
Chapter on performance measurement.
Caudle, Sharon L. Performance results: the information technology factor.New Directions for Evaluation (American Evaluation Association) no.
75(Fall 1997): 63-78.
Article gives guidance on measuring information technology applications performance.
Information technology is often a key factor in delivering public services effectively and
efficiently. The author presents five best practices in building and sustaining a successful IT
performance management system. First of all, leading organizations define specific goals,
objectives and performance measures and develop a picture of how IT outputs and outcomes
impact. Leading organizations follow a balanced scorecard approach and target IT measures,
results, and accountability at different levels of decision making. Finally, leading organizations
build a comprehensive IT measure, data collection and analysis capability, and then work to
improve those IT processes that meet mission goals.
Chan, Yolande and Heather Smith. Practitioner's guide to IS performance
measurement. Chicago: Society for Information Management, 1995.
This guide examines performance measures and discusses issues related to efficiency,
effectiveness, and productivity of information systems. Six measurement categories are given for
assessing an information system's impact on the organization: system quality (reliability, response
time), information quality (accuracy and relevance), frequency of use, user satisfaction, individual
impact, and organizational impact.
Christenson, Lucille. Case study S9-Integration of business plan, strategic plan,
customer service plan, unit self assessment and employee performance appraisals.
Washington: American Society for Public Administration, 1996. 8 pp.
This case study describes the development of a quality management plan by Washington State
offices. The managers were able to adapt many measures from their business plan and submit
them as budget measures although they did not find many outcome or efficiency measures. The
indicators used to set employee goals made it possible to present clear expectations as well as a
clear way to measure progress.
Developing comprehensive performance indicators.CMA - the
Management Accounting Magazine 71, no.2 (March 1997): 39.
The Society of Management Accountants of Canada offers their Management Accounting
Guideline No. 31, which discusses techniques for developing performance indicators linking goals
and business strategies.
The DoD enterprise model: strategic activity and data model.
Washington: Office of the Secretary of Defense, 1994. [Various pagination]. (Shelved at
T58.64.D64 1994).
This is a plan of action for managers at the DoD. The Enterprise Model is the basis for their
implementation of business process reengineering. They want the Enterprise Model to be used for
direction and a better understanding of what the DoD is trying to accomplish. It calls for the
creation of value chains, end-to-end vital mission-critical core processes and essential support
processes which start with mission needs and performance measures, and end with products and
services delivered to primary consumers. If costs exceed benefits, process owners reengineer their
processes for economy and efficiency.
Dumond, Ellen J. Making the best of performance measures and information.International Journal of Operations and Production Management 14,
no.9 (1994): 16-31.
Performance measures were found to make individual employees more satisfied with their
decisions and their work atmosphere. Performance measurement was discovered to be one of
three factors that affect employees' decision making; the other factors included interactions with
other internal organizations and access to information about external events.
DuPont-Morales, M. A. and Jean E. Harris. Strengthening accountability:
incorporating strategic planning and performance measurement into budgeting.Public Productivity and Management Review 17, no.3 (Spring 1994):
231-239.
As competition for limited resources intensifies, it becomes critical for management to report on
program results and outcomes. This performance information becomes a tool to help
decisionmakers weigh the costs and benefits of taking funds from some programs in order to add
new funds to other programs.
Eichen, Susan P. and David N. Swinford. Performance measurement and incentive
compensation.Journal of Strategic Performance Measurement
1, no.3 (June-July 1997): 28-33.
This article discusses the criteria for selective effective performance measures in incentive
compensation plans, and presents an overview of the types of measures used in these plans. To be
effective in motivating employee behavior, performance measures in incentive plans should be
relevant to the organization's goals, well understood by participants, within the participants' "line
of sight", and reasonable. Organizational goals can and should be quantified - including both
financial and nonfinancial goals. Performance measures should be balanced between company and
individual performance, and may be internally or externally referenced, or a blend of both (Article
executive summary, p. 18).
Evans, Hugh, Gary Ashworth, Jeff Gooch and Roger Davies. Measures that
matter.Journal of Strategic Performance Measurement 1, no.2
(April-May 1997): 12-19.
Organizations must adopt a more enlightened approach to assessing and managing company
performance or they will have increasing difficulty in coping with the challenges they confront in
meeting the goals they set. The key to organizational success is not only determining which
approaches are the most relevant, but also making these approaches work. An integrated
approach is the secret to leveraging dramatic and sustainable performance improvement (article's
executive summary)
Federal personnel management: views on selected NPR human resource
recommendations. GAO\GGD-95-221BR. Washington: General Accounting Office,
1996. 50 pp. (Shelved at JK469.U54 1995b).
This report provides information on the views of federal human resource officials regarding
National Performance Review (NPR) human resource recommendations. The findings indicate
that human resource officials are in favor of the flexibility that decentralization would offer, but
are concerned that NPR recommendations would add to their overall workload. NPR calls for
OPM oversight process to ensure compliance with the merit principles, whereas the agency
human resource officials believe the federal agencies can adequately oversee their own
performance measurement systems. OPM is working with agency offices to develop a set of
performance indicators to help agencies in monitoring their activities.
Forson, Andrew. Performance measurement 2000: the growth of real-time
reporting.Journal of Strategic Performance Measurement 1,
no.6 (December 1997): 22-29.
1/98 version: The future of performance measurement will be found in using a company's
information technology infrastructure to conduct day-to-day real-time reporting of both
qualitative and quantitative measures. These real-time systems must be strongly linked to the
company's strategic objectives. As illustrated in this article, such real-time systems are not a
futuristic fantasy, and they have already been put in place in various types of companies
(Executive summary)
Garvin, David A. Leveraging processes for strategic advantage: a roundtable with
Xerox's Allaire, USAA's Herres, SmithKline Beecham's Leschly, and Pepsi's Weatherup.Harvard Business Review 73, no.5 (September-October 1995):
77-90. (BPR049).
This article captures the essence of a roundtable discussion involving four of the pioneers in the
shift to processed organization over functional organization. They are trying to decide how this
new type of horizontal work flow, called processes management, will be led and what type of an
effect senior management can expect.
A guide to designing performance indicators. Washington:
National
Academy of Public Administration, 1993.
This report provides a guide to develop performance indicators by presenting a six-phrase
Performance Indicator Design Cycle with details on each phase.
Gupta, Shalini. Jobs, structure take a hit.Computing
Canada 22, no.7 (March 28, 1996): 30+.
Technology must be aligned with people and process elements if employees are to effectively use
new technology. Changing and improving the way people do their jobs necessitates identifying
core competencies required in each job and estimating the amount of time to be spent on various
activities.
Hatry, Harry, Craig Gerhart and Martha Marshall. Eleven ways to make performance
measurement more useful to public managers.Public
Management 76, no.9 (September 1994): 15+.
This article includes suggestions on making performance measurement by public agencies more
productive.
Huizing, Ard, Esther Koster and Wim Bouman. Balance in business reengineering: an
empirical study of fit and performance.Journal of Management Information
Systems 14, no.1 (1997): 93-118.
This study addresses the complex relationship between fit and performance in business
reengineering. In the process of achieving fit, organizational goals are compared to current
performance and revealed gaps are closed by changed management measures. Achieving fit
implies that reengineering measures are properly attuned to objectives. The authors discuss the
relationships between goals and measures with which organizations hope to achieve the
improvements needed.
Information management reform: effective implementation is essential for
improving
federal performance. GAO\T-AIMD-96-132. Washington: General Accounting
Office, 1996. 13 pp. (Shelved at HD30.2.H63 1996. Also available at
http://www.gao.gov/AIndexFY96/abstracts/ai96132t.htm).
In his testimony, Christopher Hoenig discusses issues surrounding the implementation of the
Information Technology Management Reform Act (ITMRA) of 1996, requiring significant
changes to the way government agencies manage and acquire IT. He provides a snapshot of
where IT management stands today compared with the ITMRA standards for determining success
in the future, cites progress made in implementation activies and offers ideas about what Congress
can do to move ITMRA forward in a constructive manner.
Information management performance measures: developing performance
measures
and management controls for migration systems, data standards, and process
improvement. Washington: National Academy of Public Administration for the
Department of Defense, 1996. xvi, 67 pp. (BPR227; also shelved at JK468.A8I5 1996 and
accessible on the web at http://www.dtic.dla.mil/c3i/bprcd/5538.htm).
Performance measurement is now recognized as a strategic foundation to help reach
organizational goals. The Government Performance and Results Act of 1993 set guidelines for
strategic planning and performance measurement across the federal government. This NAPA
study recommends that DoD respond to Congress with a performance management strategy and
action plan demonstrating top management commitment. Three areas of the automated
information systems were prioritized for performance measures and management controls:
migration systems, data standards, and process improvements.
Information technology investment: agencies can improve performance, reduce
costs, and minimize risks. GAO\AIMD-96-64. Washington: General Accounting
Office, 1996. 75 pp. (Shelved at JK468.A8U54 1996b. Also available at
http://www.gao.gov/AIndexFY96/abstracts/ai96064.htm).
This book reports findings that agencies prioritize IT projects in alignment with key strategic
mission goals and attempt to integrate IT funding decisions with overall strategic business
planning and direction. Appendix III, "Description of an information technology investment
process approach", is a compilation of material on how federal agencies should manage
information systems using an investment process based upon analysis of the IT management best
practices found in leading private and public sector organizations.
Joyce, Philip G. Using performance measures for federal budgeting: proposals and
prospects.Public Budgeting and Finance (Winter 1993):
3-17.
The author focusses on two portions of a Congressional Budget Office study on performance
measurement: the status of the current federal performance measurement efforts, and specific
observations designed to inject a note of caution into the debate about performance measurement
and budgeting. The primary focus of efforts to manage for results should be on developing the
right measures, reporting them accurately, and then using them as tools for agency management.
Joyce does not advocate using them as resource allocation tools or to influence the budget in the
near term.
Kadaba, Sridha G., Walter H. Mengden and Mike McGrath. Creating value through
improving performance measurement in financial services.Journal of
Strategic Performance Measurement 1, no.2 (April-May 1997): 43-48.
Performance measurement information offers a distinct advantage to management. Performance
measurement processes should be flexible and timely and provide information critical to support
decisions. Adapting to change, measuring performance effectively, and putting information to
good use will help organizations succeed.
Kaplan, Robert S. Devising a balanced scorecard matched to business
strategy.Planning Review 22, no.5 (September-October, 1994):
15+.
Balanced scorecards are management tools that help evaluate performance and encourage good
planning. Traditional financial measures focus on past transactions and original expenditures
without sufficient focus on long-term benefits.
Kaplan, Robert S. Knowing the score (use of balanced scorecard in evaluating
management tools).Financial Executive 12, no.6
(November-December 1996): 30+.
The balanced scorecard can be used to integrate and evaluate the effectiveness of planning and
financial processes.
Kaplan, Robert S. New systems for measurement and control.Engineering Economist 36, no.3 (Spring 1991): 201-218.
Organizations' attempts to adapt to today's technological capabilities and globally competitive
environment have been affected by out-of-date accounting systems. The author suggests
management accounting systems that will give operational control, add activity-based costing, and
assist capital investment decisions.
Kaplan, Robert S. and David P. Norton. Linking the balanced scorecard to
strategy.California Management Review 39, no.1 (Fall 1996):
53, 71-79.
The best Balanced Scorecards combine financial and non-financial measures that are derived from
the organization's strategy. Performance drivers and outcome measures should be linked in
cause-and-effect relationships.
Kaplan, Robert S. and David P. Norton. Putting the Balanced Scorecard to
work.Harvard Business Review 71, no.5 (September-October
1993): 134-147.
The importance of choosing measures based on strategic success is emphasized in this article,
which resulted from Balanced Scorecard experiences tying measures to an organization's strategic
plan. Instead of improving the performance of existing processes, focus must be on those
processes that must be performed exceptionally well for an organization's strategy to
succeed.
Kaplan, Robert S. and David P. Norton. Strategic learning & the balanced
scorecard.Strategy & Leadership 24, no.5 (September-October
1996): 18+.
The Balanced Scorecard (BSC) is a set of performance measures as a model for a strategic
measurement and management system that is based on organizational mission and strategy.
Performance is tracked along the lines of costs, customer service, internal process improvement,
and learning and growth.
Kaplan, Robert S. and David P. Norton. Using the balanced scorecard as a strategic
management system.Harvard Business Review 74, no.1
(January-February 1996): 75+. (May be accessed at
http://www.hbsp.harvard.edu/frames/groups/hbr/janfeb96/96107.html).
Using the Balanced Scorecard as the central organizing framework for important managerial
processes, executives revealed that they were using the Balanced Scorecard not only to clarify and
communicate strategy but also to manage strategy. Intangible assets were seen to be more
important to organizations and the Balanced Scorecard approach was shown to be an important
means of connecting long-term objectives to short-term actions.
Kaplan, Robert S. and David P. Norton. Why does business need a balanced
scorecard? (Part 1).Journal of Strategic Performance
Measurement 1, no.1 (February-March 1997): 5-11.
This article traces the evolution of performance measures from exclusively financial performance
measures toward the balanced set of performance measures that many forward-thinking
organizations are now using. The Balanced Scorecard provides a vehicle to translate performance
measures from four perspectives: financial, customer, internal-business-process, and corporate
learning and growth.
Kaplan, Robert S. and David P. Norton. Why does business need a balanced
scorecard? (Part 2).Journal of Strategic Performance
Measurement 1, no.3 (June-July 1997): 5-10.
This article examines the need for a Balanced Scorecard method of translating strategy into
specific objectives and measures, as well as means of monitoring progress. The Balanced
Scorecard should have an appropriate mix of outcome measures (lagging indicators) and
performance drivers (leading indicators) to describe where a company has been and to point the
way for future growth. Ultimately all measures should be tied to financial objectives but not be
guided solely by them.
Kettl, Donald F. Performance measurement, benchmarking, and
reengineering. Washington: Congress, House Committee on Government Reform
and Oversight, 1995. (This testimony before the House Committee on Government Reform and
Oversight, Subcommittee on Government Management, Information, and Technology, June 20,
1995 can be accessed on CIS microfiche 96-H401-43 or by its SuDoc Number Y4.G 74/7:P
41/4).
Professor Kettl, in focusing on how to manage for performance in his testimony, emphasized that
performance measurement works by shifting the focus from input to output. This change forces
people to look at their processes more strategically. He also brought out the pitfalls of
performance measures and shared important conclusions obtained from research on performance
management, accountability and governance.
Kline, James J. Local government outcome based performance measures and
customer service standards: has their time come?Government Accountants
Journal 45, no.4 (Winter 1997): 46+.
Outcome-based performance measures are increasingly being employed in the public sector. It is
important to make sure that measures are consistent with the mission statement and strategic
goals of the organization, that they are clear to customers and employees, and that measurements
and performance results are used to increase employee and customer morale and satisfaction.
Frequently it is found that outcome-based measures improve efficiency and
productivity.
Kohl, Linda. Testimony. Washington: Congress, House
Committee on Government Reform and Oversight, 1995. (Testimony before the House
Committee on Government Reform and Oversight, Subcommittee on Government Management,
Information, and Technology, June 20, 1995).
Linda Kohl's testimony on performance measurement, benchmarking, and reengineering efforts
within government included information on the "Minnesota Milestones" program, a statewide
benchmarking project that uses benchmarking and performance measurement as public policy
tools to hold government accountable for results. The program is a three-step process: identifying
long-term vision, developing measures against five criteria (clarity, validity, availability of data,
accuracy, and output), and obtaining feedback on the measurement.
Lingle, John H. and William A. Schiemann. From balanced scorecard to strategic
gauges: is measurement worth it?Management Review 85, no.3
(March 1996): 56-61.
Research indicates that measurement plays a critical role in translating business strategy into
desired results. To design a good measurement system there should be an agreed-upon strategy,
clear communication, focus and alignment efforts, and an accepted organizational culture.
Barriers identified included fuzzy objectives, too much reliance on informal feedback systems, and
inadequate measurement systems.
Managing for results: regulatory agencies identified significant barriers to
focusing
on results. GAO\GGD-97-83; B-275122. Washington: General Accounting Office,
1997. 89 pp. (Shelved at JK468.P75U54 1997f. Also available at
http://www.gao.gov/AIndexFY97/abstracts/gg97083.htm).
Regulatory agencies are reported to be slow in moving to results-oriented management. Because
regulatory agencies find it difficult to isolate and measure their unique contribution to a result that
is affected by a variety of factors outside the agency, they find it difficult to develop solutions to
measurement problems in order to establish results-oriented goals and measures.
Maskell, Brian H. Practical implementation of new performance measurements in
manufacturing companies.Journal of Strategic Performance
Measurement 1, no.3 (June-July 1997): 35-38.
The five primary steps required to successfully implement an approach to performance
measurement are: get ready; develop strategic measures; organize work teams and process
measures; implement a pilot; and roll-out organization-wide. The article offers a list of 15
questions to consider in exploring potential measurement implementations.
Measuring and rewarding performance.International Journal of
Retail
& Distribution Management (Winter 1993): xi-xii.
There are seven principles for sound performance measurement: all measures must be linked to
strategies; all measures must address the cause of current results or forecast future results; all
measures must be custom-designed for the user; measurement reports must be brief, clear,
graphic, quickly interpretable, widely distributed, and thoroughly digested; measurement reports
must offer competitive, comparative baselines and trends; the frequency of measures and reports
must consider the cycle time for meaningful changes or results to occur; and the distribution of
reports must consider the need for full participation. Beyond financial measures are diagnostic,
strategic, and performance criteria.
Meyer, Marshall W. Dilemmas of performance measurement.Journal of Strategic Performance Measurement 1, no.2 (April-May
1997): 33-42.
The problem with choosing measures is endemic in firms today; there is a problem with choosing
a small number of measures, the so-called Hank Moles problem. The difficulty is knowing what to
measure. Firms have barely begun to understand how to measure organizational performance.
This article outlines some key dilemmas of measuring performance, which follow from the
peculiar nature of performance in organizations. The peculiarity of organizations is that their
performance lies in the future and largely beyond the reach of measurement (Article's executive
summary)
Mihm, J. Christopher. GPRA and the new dialogue.Public
Manager 24, no.4 (Winter 1995-1996): 15-18.
The author notes the positive benefits accruing to organizations that focus on outcomes as
required by GPRA. Clarity of mission, achievement of outcomes, and systematic use of
performance information improve organizational effectiveness necessary for survival.
Moravec, Milan. Bringing performance management out of the Stone Age.Management Review 85, no.2 (February 1996): 38-42.
This article notes that effective new systems share principles: performance management should
support the organization's mission and values; measurements of performance should be related to
values; and training in new performance processes should include employees and
supervisors.
Muir, Holly J. Developing benchmarking metrics: a librarian's
guide. Library Benchmarking Notebook #2. Universal City, TX: Library
Benchmarking International, 1993. 48 pp. (Shelved at Z678.85.L53 no.2).
In this publication, the groundwork for a benchmarking study has already taken place. The author
begins to look at quantitative measures for identifying problems.
Newcomer, Kathryn E. , Issue editor Using performance measurement to improve
public and nonprofit programs.New Directions for Evaluation (American
Evaluation Association) no. 75(Fall 1997): 1-102.
Volume critically reviews the current state of the art in the design and use of performance
measurement in public and nonprofit programs. Authors of articles include prominent experts on
performance measurement in government with information on what works to measure
performance in public programs.
Orlikowski, Wanda J. and J. Debra Hofman. An improvisational model for change
management: the case of groupware technologies.Sloan Management
Review 38, no.2 (Winter 1997): 11+. (Abstract and order link at
http://web.mit.edu/smr-online/past/winter97/index.html).
The authors note that organizational change associated with the adoption of new technology is
ongoing and it is impossible to anticipate all possible changes. They identify three kinds of change:
anticipated changes which occur as planned; emergent changes which arise during the process;
and opportunity-based changes which emerge in response to problems and/or
opportunities.
Performance-based management: eight steps to develop and use information
technology performance measures effectively. Washington: GSA, 1996. v, 106 pp.
(Shelved at JK468.A8P47 1996).
The Clinger-Cohen Act requires federal agencies to establish a process of selecting, managing and
evaluating the results of their IT investments and report annually to Congress on progress made
toward agency goals, noting links between IT performance measures and agency programs. This
publication cites the following steps to develop and use IT performance measures effectively: 1)
link IT projects to agency goals and objectives at the beginning planning stage by using a
framework known as the "Balanced Scorecard" providing financial, customer, internal business,
and innovation/learning perspectives; 2) develop performance measures by selecting a limited
number of meaningful measures with a mix of short- and long-term goals which include outcomes,
as well as cost, timeliness and quality and a strong customer focus; 3) establish baselines to
compare future performance in order to determine performance improvement as a result of an IT
investment; 4) select IT projects with the greatest value based on the estimated economic return
of an IT investment plus its estimated contribution to an organization's business priorities; 5)
collect data needed for the chosen indicators; 6) analyze results by conducting measurement
reviews to determine if the project met the objectives and whether the indicators adequately
measured results; 7) integrate with existing management processes so that the results will be used;
8) communicate results to improve coordination and increase the focus of workers and
managers.
Quality and affordable services for Canadians: establishing service standards in
the
federal government. Ontario: Treasury Board of Canada, 1995. 25, 27 pp.
The Treasury Board, in this report, outlines service standards in the government and presents a
six-step process for developing service standards. Included are examples of success in using these
techniques.
Ramanathan, Kavasseri V. Value-based performance control strategies.Journal of Strategic Performance Measurement 1, no.3 (June-July
1997): 12-17.
As organizations re-invent themselves so as to deliver more value to customers and higher return
to stockholders, they are discovering the need to change their approach to measuring
performance. Competitive advantage requires companies to develop aggressive strategies for
delivering more customer value in less cycle time. Process-based performance measures that are
logically linked with financial control measures form a comprehensive and critical foundation to
direct and monitor competitive strategies in today's business environment (article executive
summary, p. 12)
Russell, John C. Driving change through performance measurement.Strategy & Leadership 25, no.2 (March-April 1997): 40+.
It is important to determine the criteria for success when working on strategic plans because an
organization must measure performance to determine whether organizational goals have been
met. The measurement system can be simple, specifying goals, developing relevant goals, and
determining how to collect data and disseminate the results.
Sauders, Carol Stoak and Jack Williams Jones. Measuring performance of the
information systems function.Journal of Management Information
Systems 8, no.4 (1992): 63-82.
This report on a Delphi study identifies appropriate performance measures and standards for
information systems.
Simons, Robert and Antonio Davila. How high is your return on management.Harvard Business Review (January-February 1998): 70-81.
1/98 version: The classic business rations for measuring performance - return on equity, return on
assets, and return on sales, to name a few - may be useful. But none is designed specifically to
reflect how well a company implements its strategy. Enter return on management (ROM), a new
ration that gaugues the payback from an organization's scarcest resource: managers' time and
energy. Unlike other business rations, ROM is a rough estimate, not an exact percentage. Still it is
expressed like other business ratios by an equation in which the output is maximized by a high
numerator and a low denominator: productive organizational energy released/management time
and attention invested. Knowing which organizational factors conspire against or work to
maximize an organization's productive energy will help managers calculate a rough measure for
this equation. The authors suggest that organizations look at five factors - referred to as the "five
acid tests" to approximate this measure: Do employees know which opportunities do not directly
contribute to the organization's strategic mission? Do managers know what it would take for the
organization to fail? Can managers recall their key diagnostic measures with relative ease? Is the
organization free from drowning in a sea of paperwork and processes? Do all employees watch
the same performance measures that their bosses watch? If a manager can answer yes to these
questions, ROM is probably high. If the answer is no to some, ROM may be low, signaling that
managers may need to step up their communication with employees about what they should and
should not be focusing their efforts on (Version of executive summary)
Smith, B. G. Demystifying the quality concept.Security
Management 39, no.9 (September 1995): 33-4. (BPR156).
Although most quality measurement processes take time to implement, companies can start
immediately with simple measures of customer satisfaction. The author suggests using metrics, a
type of user study determining the usefulness of processes.
Smolowitz, Ira. Business forum: performance assessments.Business & Economic Review (University of South Carolina) 43, no.4
(July-September 1997) (Shelved at BPR219; accessible online at
http://researchl.badm.sc.edu/research/bereview/be43_4/assess.htm).
The author expresses his concerns about performance measurement and related performance
assessments of managers in a list of five problems associated with performance
assessment.
Stenzel, Catherine and Joe Stenzel. Implementing IT performance measurement: an
interview with Dr. Bruce Kavan.Journal of Strategic Performance
Measurement 1, no.6 (December 1997): 14-21.
1/98 version: Information technology is not unique in the realm of performance measurement
when compared to other functions in the organization. There are three levels of performance to be
measured in informations systems: 1)strategic level, 2)applications development level, and
3)operational level. Throughout the entire process, there must be an ongoing dialogue between
the service provider and the service user (Executive summary)
Stenzel, Catherine and Joe Stenzel. Revisioning the organization: the King goes to
war.Journal of Strategic Performance Measurement 1, no.3
(June-July 1997): 41-47.
This column examines the critical elements in establishing an organizational framework of
strategically aligned performance measures.
Trzcienski, Edward and Brooke Harper. Performance management tools ensure
quality customer service.Journal of Strategic Performance
Measurement 1, no.1 (February-March 1997): 19-24.
Performance management initiatives at this organization include the development of key
performance indicators (KPIs), a performance management system, and process development and
deployment, all of which are linked to customer satisfaction. Training of work teams is essential
when implementing a shared services center.
Using performance measures in the federal budget process.
Washington: Congressional Budget Office, 1993. xiii, 46 pp. (Shelved at HJ2031.U85
1993).
This study of the uses of performance measurement in federal budgeting is based on the notion
that federal agencies should be able to develop measures of program success, and that these
measurements would be useful to managers and other policymakers. CBO advises that the budget
process is not likely to be changed substantially until decisionmakers have program performance
information available when changing policy-making. For this reason, the immediate emphasis
should be on developing agency management performance measures that can be used in the future
as tools for allocating resources in a system oriented toward outcomes.
Willyerd, Karie A. Balancing your evaluation act.Training 34, no.3 (March 1997): 52+.
The balanced scorecard is an evaluation tool which is being used more and more often to measure
performance. The organization's strategy is evaluated by using financial, customer perspective,
and operational measures. Guidelines for using the balanced scorecard are offered in this
article.
Wruck, K. H. and M. C. Jensen. Science, specific knowledge, and total quality
management.Journal of Accounting and Economics 18, no.4
(1994): 63-82.
An analysis of TQM from an economic and organizational perspective, this article notes that
TQM improves productivity by encouraging the use of science in decision-making and
discouraging counter-productive defensive behavior. TQM requires that changes be made in
allocating decision rights, performance measurement systems, and reward and punishment
systems.
