Management by Measurement

Designing Key Indicators and Performance Measurement Systems

verfasst von: Professor Fiorenzo Franceschini, Dr. Maurizio Galetto, Dr. Domenico Maisano

Verlag: Springer Berlin Heidelberg

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

A world that is changing faster and faster forces companies to a continuous performance monitoring. Indicators give the impression to be the real engine of organizations or even the economy at large. But performance indicators are not simple observation tools. They can have a deep “normative” effect, which can modify organizational behaviour and influence key decisions. Companies are what they measure! The selection of good performance indicators is not an easy process. This monograph focuses on the designing of a Performance Measurement System (PMS), knowing that “magic rules” to identify them do not exist. Some indicators seem right and easy to measure, but have subtle, counter-productive consequences. Other indicators are more difficult to measure, but focus the enterprise on those decisions and actions that are critical to success. This book suggests how to identify indicators that achieve a balance in these effects and enhance long-term profitability.

Inhaltsverzeichnis

Frontmatter

1.. Quality and process indicators

Abstract

It is widely known that most of the complex organizations implement performance measurement systems, in order to give true attention to results, responsibilities, and targets.

2.. Indicators criticalities and curiosities

Abstract

Indicators can be used within a wide-range, as discussed in Chap. 1. By reading any journal, it seems that these “magic” numbers influence the fate of the world: “European countries with deficit/GDP ratio lower than 3% can adopt Euro currency”; “country inflation is running at 2.7 %”; “the air quality index value is 6 (the elderly and children may be at risk. It is advised that these categories of people limit prolonged periods of time outdoors)” and so on.

3.. The condition of uniqueness in process representation

Abstract

One of the most critical aspects in operations management is “translating” a firm’s goals into performance indicators. The representation is a critical aspect for the process description. “To represent” means transferring the properties of an examined process into a set of indicators, trying to describe the processes’ most important aspects.

4.. Performance indicators properties

Abstract

The previous chapters described indicators as helpful tools in collecting information and analysing the evolution of complex systems/processes.

5.. Designing a performance measurement system

Abstract

The present chapter discusses how to establish and maintain a performance measurement system. This operation is at the “heart” of performance-based management processes. A performance measurement system, flowing from the organizational mission and the strategic planning process, provides the data that will be collected, analyzed, reported, and, ultimately, used to make sound business decisions.

6.. Indicators, measurements, preferences and evaluations: a scheme of classification according to the representational theory

Abstract

The properties of an object, either directly or indirectly observable, may essentially be judged and described by three basic operations: measurements, evaluations and preferences. The aim of the present chapter is to propose a scheme to classify these three operations, and to provide a comparison within the indicators environment.

Backmatter

Titel: Management by Measurement
verfasst von: Professor Fiorenzo Franceschini
Dr. Maurizio Galetto
Dr. Domenico Maisano
Verlag: Springer Berlin Heidelberg
Electronic ISBN: 978-3-540-73212-9
Print ISBN: 978-3-540-73211-2
DOI: https://doi.org/10.1007/978-3-540-73212-9