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Performance measurement whitepaper

CAMMS
CAMMS

The document discusses the importance of maximizing flexibility in organizational performance measurement. It states that performance measures should reflect objectives, be useful for decision making, and focus on key performance areas. The document advocates for balancing financial and non-financial, lead and lag measures. It also emphasizes allowing flexible reporting of measures over time and across organizational levels to provide management with a comprehensive view of performance.

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CAMMS Whitepaper THE IMPORTANCE OF MAXIMISING FLEXIBILITY IN MANAGING YOUR ORGANISATIONAL MEASURES www.cammsgroup.com
CAMMS Whitepaper In todays intensely competitive and 鍖nancially unstable environment, an organisations performance is critical. I am a 鍖rm believer that performance management done well can transform an organisation, making it ultimately more successful in its everyday activities and business processes, 鍖owing through to the achievement of its highest level strategic goals. However, as in鍖uential management consultant Peter Drucker said What gets measured gets managed. All too often organisations arent e鍖ectively or e鍖ciently measuring what they doing and factoring this into their decision making and future development. Measures (or KPIs) should exist at all levels of the organisation and a successful performance management system creates a network of measures that enable performers at all levels to see and measure their impact on critical organisation outputs. The key is to ensure that your organisation creates e鍖ective measures that enable 鍖exibility of reporting in the future. What makes a good measure? Each organisation needs to decide for itself what performance measures are important and need to be collected and reported upon. It is worth remembering the words of Robert S. Kaplan and David P. Norton, creators of the balanced scorecard, Measure what you want, not want what you can measure. By striking a balance in its performance measurement system, a company compiles a more complete picture of how it's doing. This comprehensive picture enables executives and managers to learn from mistakes, constantly improve, and make the smartest possible decisions. Performance measures should re鍖ect corporate objectives and be linked to the organisations plans (strategic and corporate) be useful for decision making and/or required for reporting be simple, understandable and interpretable be measurable and quanti鍖able be capable of being collected regularly and consistently to re鍖ect trends be cost e鍖ective to collect, analyse and report focus on key areas of performance, not all areas of performance where appropriate, be linked to a standard and be able to be benchmarked Balance is key to a strong performance measurement system. E鍖ective performance measurement provides that comprehensive range of information with which a company can gauge its performance. Achieving the balance in measures includes consideration of the following: The importance of maximising o inputs, outputs and outcomes o 鍖nancial and non-鍖nancial 鍖exibility in o lead and lag managing your o quality, quantity, timeliness and cost organisational measures www.cammsgroup.com
CAMMS Whitepaper The need for 鍖exibility in measures for reporting purposes Traditionally performance measurement softwares focus has been on simple and rigid tracking of key performance indicator data. This is 鍖ne if you only want to report on your measures in a narrow context on an ongoing basis. However, a more considered approach to what it most useful to management and employees in performance tracking, combined with new technology, has enabled a more 鍖exible and dynamic approach to performance measurement. CAMMS has incorporated this functionality and 鍖exibility into its suite of software products, to enable organisations to: link KPIs by a simple drag and drop at any level of the organisation or planning structure automatically roll down and roll up KPIs at any level setup calculated KPIs allow both YTD and current period views of performance automate tracking of KPIs from other corporate software applications weight KPIs within Scorecards at any level perform trend analysis on KPI data over time use KPIs to empower the organisation on multiple fronts on screen graphical analysis with multiple customisation options Case Study City of Boroondara The City of Boroondara is a metropolitan council, representing more than 165,000 people in the inner-eastern suburbs of Melbourne. The Council has been using CAMMS interplan速 solution for 5 years to bring their performance management framework to life through its integration of planning, measurement, reporting and resource allocation. In June 2011 at the Australasian Reporting Awards in Melbourne, the Council won the coveted 2011 Report of the Year, for their Annual Report 2009-10, over Australian business giants BHP Billiton, Telstra and Woodside Petroleum. The awards are designed to promote excellence in report writing and are open to all public companies including the major industrials and banks as well as non-for-pro鍖t and public sector organisations. 2011 Mayor of Boroondara Councillor Nicholas Tragas said "The quality of this report is greatly assisted by our rigorous internal reporting regime aimed at e鍖cient operations on behalf of our community." Tragas believes the collation of correct and timely information encourages better decision-making. Reliable software is crucial to this process. "If you have a good repository to capture tangible, recorded information, you're on the way there," he says. In Conclusion The importance There is increasing pressure on Local Government to improve management, performance and of maximising transparency across all service areas. CAMMS believes the development of a more 鍖exible approach to performance measures and improved reporting analysis will provide long term 鍖exibility in bene鍖ts to the sector and individual organisations. managing your CAMMS suite of integrated solutions has been helping organisations worldwide drive organisational performance for nearly 10 years. measures www.cammsgroup.com
Organise a demonstration and see the di鍖erence 鍖rst hand by contacting: AUSTRALIA/NEW ZEALAND NORTH AMERICA SRI LANKA UNITED KINGDOM T: +61 (0)8 8212 5188 T: +1 416 322 2925 T: +94 (0)115 443 443 T: +44 (0)1273 666 360 F: +61 (0)8 8212 5288 F: +1 416 322 2932 F: +94 (0)112 470 374 F: +44 (0)1273 666 361 E: sales@cammsgroup.com E: sales@cammsgroup.com E: sales@cammsgroup.com E: sales@cammsgroup.com AUSTRALIA | NEW ZEALAND | NORTH AMERICA | SRI LANKA | UNITED KINGDOM

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Performance measurement whitepaper

  • 1. CAMMS Whitepaper THE IMPORTANCE OF MAXIMISING FLEXIBILITY IN MANAGING YOUR ORGANISATIONAL MEASURES www.cammsgroup.com
  • 2. CAMMS Whitepaper In todays intensely competitive and 鍖nancially unstable environment, an organisations performance is critical. I am a 鍖rm believer that performance management done well can transform an organisation, making it ultimately more successful in its everyday activities and business processes, 鍖owing through to the achievement of its highest level strategic goals. However, as in鍖uential management consultant Peter Drucker said What gets measured gets managed. All too often organisations arent e鍖ectively or e鍖ciently measuring what they doing and factoring this into their decision making and future development. Measures (or KPIs) should exist at all levels of the organisation and a successful performance management system creates a network of measures that enable performers at all levels to see and measure their impact on critical organisation outputs. The key is to ensure that your organisation creates e鍖ective measures that enable 鍖exibility of reporting in the future. What makes a good measure? Each organisation needs to decide for itself what performance measures are important and need to be collected and reported upon. It is worth remembering the words of Robert S. Kaplan and David P. Norton, creators of the balanced scorecard, Measure what you want, not want what you can measure. By striking a balance in its performance measurement system, a company compiles a more complete picture of how it's doing. This comprehensive picture enables executives and managers to learn from mistakes, constantly improve, and make the smartest possible decisions. Performance measures should re鍖ect corporate objectives and be linked to the organisations plans (strategic and corporate) be useful for decision making and/or required for reporting be simple, understandable and interpretable be measurable and quanti鍖able be capable of being collected regularly and consistently to re鍖ect trends be cost e鍖ective to collect, analyse and report focus on key areas of performance, not all areas of performance where appropriate, be linked to a standard and be able to be benchmarked Balance is key to a strong performance measurement system. E鍖ective performance measurement provides that comprehensive range of information with which a company can gauge its performance. Achieving the balance in measures includes consideration of the following: The importance of maximising o inputs, outputs and outcomes o 鍖nancial and non-鍖nancial 鍖exibility in o lead and lag managing your o quality, quantity, timeliness and cost organisational measures www.cammsgroup.com
  • 3. CAMMS Whitepaper The need for 鍖exibility in measures for reporting purposes Traditionally performance measurement softwares focus has been on simple and rigid tracking of key performance indicator data. This is 鍖ne if you only want to report on your measures in a narrow context on an ongoing basis. However, a more considered approach to what it most useful to management and employees in performance tracking, combined with new technology, has enabled a more 鍖exible and dynamic approach to performance measurement. CAMMS has incorporated this functionality and 鍖exibility into its suite of software products, to enable organisations to: link KPIs by a simple drag and drop at any level of the organisation or planning structure automatically roll down and roll up KPIs at any level setup calculated KPIs allow both YTD and current period views of performance automate tracking of KPIs from other corporate software applications weight KPIs within Scorecards at any level perform trend analysis on KPI data over time use KPIs to empower the organisation on multiple fronts on screen graphical analysis with multiple customisation options Case Study City of Boroondara The City of Boroondara is a metropolitan council, representing more than 165,000 people in the inner-eastern suburbs of Melbourne. The Council has been using CAMMS interplan速 solution for 5 years to bring their performance management framework to life through its integration of planning, measurement, reporting and resource allocation. In June 2011 at the Australasian Reporting Awards in Melbourne, the Council won the coveted 2011 Report of the Year, for their Annual Report 2009-10, over Australian business giants BHP Billiton, Telstra and Woodside Petroleum. The awards are designed to promote excellence in report writing and are open to all public companies including the major industrials and banks as well as non-for-pro鍖t and public sector organisations. 2011 Mayor of Boroondara Councillor Nicholas Tragas said "The quality of this report is greatly assisted by our rigorous internal reporting regime aimed at e鍖cient operations on behalf of our community." Tragas believes the collation of correct and timely information encourages better decision-making. Reliable software is crucial to this process. "If you have a good repository to capture tangible, recorded information, you're on the way there," he says. In Conclusion The importance There is increasing pressure on Local Government to improve management, performance and of maximising transparency across all service areas. CAMMS believes the development of a more 鍖exible approach to performance measures and improved reporting analysis will provide long term 鍖exibility in bene鍖ts to the sector and individual organisations. managing your CAMMS suite of integrated solutions has been helping organisations worldwide drive organisational performance for nearly 10 years. measures www.cammsgroup.com
  • 4. Organise a demonstration and see the di鍖erence 鍖rst hand by contacting: AUSTRALIA/NEW ZEALAND NORTH AMERICA SRI LANKA UNITED KINGDOM T: +61 (0)8 8212 5188 T: +1 416 322 2925 T: +94 (0)115 443 443 T: +44 (0)1273 666 360 F: +61 (0)8 8212 5288 F: +1 416 322 2932 F: +94 (0)112 470 374 F: +44 (0)1273 666 361 E: sales@cammsgroup.com E: sales@cammsgroup.com E: sales@cammsgroup.com E: sales@cammsgroup.com AUSTRALIA | NEW ZEALAND | NORTH AMERICA | SRI LANKA | UNITED KINGDOM