Operational Performance Management - Annotated Bibliography Example

Title: OPERATIONAL PERFORMANCE MANAGEMENT Name: Institutional Affiliation: Tutor: Date: Operational Performance Management Barkdoll, Jane and Kamensky, John, “Key Factors that make a Balanced Scorecard Successful”, Washington DC, PA Times, July 2005, p.1. In this study, Operational Performance Management, OPM is defined as the analytical processes that help a company or organization realize its vision. It can be accessed from http://web.b.ebscohost.com/ehost/detail/detail?sid=93a121a2-4ea9-427f-ac34-3abafe51ea47%40sessionmgr114&vid=0&hid=106&bdata=JkF1dGhUeXBlPWlwLHVpZCZzaXRlPWVob3N0LWxpdmU%3d#db=e000xww&AN=203192 Operations Performance Management refers to the tasks that help an organization connect all its lines into one unit and achieve a particular goal. In essence, the data is collected from various inputs either machinery or human. The output is captured in reports that give the direction in which the company is growing and if they will achieve the perceived goals. There are some tasks that are necessary to achieve a successful organizational performance management. OPM has various models and approaches that are implemented for an achievement of the mission or vision of the organization. They include the consolidation of the measurement data and transformation into the desired goals. The precise selection of the ultimate goals is important in achieving a good balanced scorecard that shows a clear direction of the company. The involvement of the managers in delivering the key goals is necessary for a good performance system. “City Within a City: Neighborhood Quality of Life Index” and “City Within a City: Neighborhood Quality of Life Index: Technical Report.” Prepared by the UNC Charlotte and the Urban Institute; May 30, 1997. The purpose of this study is to analyze and outlines the performance management techniques in big business and the impact on the community as a whole. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=5&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. The article stipulates key organizational performance management tools in large entities. This is because most organizational performance management activities involve relationships between many stakeholders such as vendors, market partners and products. The relationship necessitates the need to have software tools that aid in the collection and analysis of the data. The information helps to realize the overall direction of the company. A business with a good operational performance index affects the nearby community constructively. This can be seen in a case study outlined in the article. A community that is within an area with an organization with a good performance management stands to gain a superior index as described in the article. Dilulio, Jr., John “The Church and the ‘Civil Society.’” The Bookings Review, Washington; Fall 1997; Vol. 15, Iss. 4. Kaplan, Robert S. “City of Charlotte (A)” and “City of Charlotte (B)” Cases of the Harvard Business School, 1998. In this article, the activities and relationships of religious organizations and civil society are described. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=5&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d The study clearly shows the impact of religious leaders in the implementation of operational performance management systems and their effect on the civil society. Performance management is important in establishing the goals that a civil society sets for its members. When an organization management or leader is clearly understood, then the impact on the society is seen. Most religious groups relay a positive effect on the society, and their organizational performance metrics needs to be focused on achieving the societal goals. This improves the community goals of morality and ethical behaviors. Most churches conduct an appraisal for their leaders to help them ensure that they are delivering the good morals of the Commonwealth. In the same regard, churches are organizational units that are focused on the primary goals. R. Kaplan, Performance Measurement in Non-Profit and Governmental Organizations (Boston, 1998) This study the definition and scope of organizational performance management core metrics. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=5&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. In the article, the frameworks for the implementation of organizational performance management are defined. The frameworks have a top-down structure that helps in the execution and planning of the activities of OPM. The study further elaborates the measurements that ensure the continuous implementation of organizational performance management systems. They include the calculation of acquired customers, new and existing. The metrics also give analyzes of the turnover from loyal customers. In addition, the bad debts are analyzed to offer a real direction in which the organization is moving. Other OPM metrics include the geographical and demographic computations of potential customers. Profitability, market, delinquency and outstanding balances are critical measurements in organizational performance management systems. The OPM measurements have many advantages. Some of them include the consistent and correct nature of key performance index related data. The efficiency and time-saving capabilities the metrics offer are vital to performance management. The trends even help in analyzing the patterns that the customers have, thus helping to achieve critical goals for the organization. R. Kaplan and D. Norton, The Balanced Scorecard- Measures That Drive Performance (Boston: Harvard Business Review, 1992) In this article, the methods of attaining an efficient organizational performance regulatory system are discussed. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=5&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. Key performance frameworks drive operational performance management. In this article, the Balanced Scorecard strategy is discussed. The balanced scorecard is important in obtaining the performance of employees. At the beginning of each year, the employees lodge in their key goals and objectives of the year. After setting their targets, they sit down with their managers who countercheck their goals and the feasibility of the goals and rate their performance indexes at the end of the year. Most companies that adopt the balance score card are successful because their employees are well educated and trained on the specific goals that are needed from them. The balanced scorecard is an excellent performance measurement tool to access performance of each employee in the organization. Each business unit and individual collectively contributes to the success of the organizational performance management system. Finally, remuneration and compensation is often tagged on the balance scorecard results of each employee. Operational Decision Making D Sissionen and J. Foetrton, The Review of the Balanced Scorecard: Translating Strategy into Action (Boston: Harvard Business School Publishing, 1996) In this article, it outlines how the decision-making capabilities of an organization can be improved. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=5&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. The balanced scorecard is an effective way to collect performance data in an organization. It gives direction to the day to day operations of the organization. The decisions are made by management and can be either short-term or long-term. However, operational decisions are made by supervisors and low levels of management. The rational decisions assist in the help the management to attain the organizational goals. The decision made is divided into three classifications including; tactical, operational and strategic decisions, which are taken by the middle, lower and highest levels of management respectively. Katz, Bruce “Give Community Institutions a Fighting Chance.” The Brookings Review, Washington; Fall 1997; Vol. 15, Iss. 4. In this article, the operational decision-making process is outlined. It can be assessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. Community institutions organizational decision-making capabilities are not well structured. This phenomenon is highlighted in the article whereby critical decision-making are made putting into consideration of the risks involved. The community institutions are left out when making the critical decisions on a day to day basis, thus affecting the community organizations negatively in terms of development. The article further elaborates the essence of decision-making that enable open lines of interaction and communication that encourage information exchange. For instance, there are some decisions that allow a sense of empowerment among the community organizations, and mutual trust is involved in making the choices that affect the community. In fact, working together leads to a better and more informed decision-making platform for all the organizational decision-making levels i.e. governmental and community. McGowan, Robert and Dennis Wittmer “Gaining a Competitive Edge: Economic Development Strategies for State and Local Governments.” Public Administration Quarterly, Randallstown; Fall 1998; Vol. 22, Iss. 3. In the study, organizational decision-making strategies that enhance competitiveness of an organization are discussed. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. The article further discusses the importance of operational decisions making and its impact on business and economic development. The operational decision-making processes determine the business opportunities. If they are automated poorly or manually, the financial gain will not be realized. In the study, growth resources are allocated strategically to provide improvement areas. The article further shows that organizations have strived to make decision-making efficient in a bid to support the rationalization of their business processes. The decision-making approaches provide for cost cutting measures driving down the cost of doing business and outsourcing. The most successful organizations have decision-making standards that provide short term and long term competitive advantages. Finally, employee decision analytics has emphasized the consolidation of software tools in enhancing the business scopes. The problem is attacked by strategic decisions that impact on the revenue per employee, such as sales targets and balance score card focus. Poll, Roswitha, “Performance, processes, and costs: Managing Service Quality with the Balanced Scorecard”, Library Trends, Illinois, Spring 2001, Vol. 49, Issue 4. In this study, the decision-making quality is accessed. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. Findings from the study suggest that the quality of improved automated decisions gave realized clear business opportunities for the management of organizations. Operational decisions have profoundly impacted the market, time and cost of starting a business. For instance, 90% of the operational decisions lead to profitability of an organization. In fact, 25% of non-automated decisions have not produced good results. The study shows that when the right organizational decision-making mechanisms have produced a high level of accuracy and substantial gains to the organization. In a survey, most customers rated the consistency of the actions at 60% in achieving the right results in production and satisfaction of the goods and services. With the state of the art decision-making systems, managers have highlighted that they got the most value out of the systems. The level of interpretation of the data also blends with the business regulations and benefits received from maximizing the data analyzed while making decisions. Self, James “From Values to Metrics: Implementation of the balanced scorecard at a university library”, Performance Measurement and Metrics, United Kingdom, Volume 4, Number 2, 2003, pp. 57-63. In the article, the benefits of strategic decision-making tools are highlighted. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d In a survey, most organizational decision-making tool employs information technology to apply decisions in the form of decision support systems. The systems analyzed data and make it easier for management to make crucial decisions. In a case study, a library that implements state of the art decision-making tools suggest that there was a reduction in the redundancy levels in solving the problem. The time that it takes to make a decision is often less, and efficient management is realized. Operational decision-making enables a small segment of employees to work efficiently with wide networking. The study further reveals that the reporting process of executive decision-making tools is fine-tuned to provide a clear distinction between operational and analytical data. James Self, the author of the book, outlines the values that have been realized in use of the balanced scorecard in generating critical operational decisions, their data architectures and human interventions that are involved. A blueprint of the systems data and the administrators of operational decision support systems streamline the level of business intelligence that is produced. The decision support systems offer a number of benefits from the use of computer applications. Operations Strategy Sherman, Hugh and David S. Chappell “Methodological Challenges in Evaluating Business Incubator Outcomes.” Economic Development Quarterly, Thousand Oaks; Nov. 1998; Vol. 12, Iss. 4. In the article, the analysis of operational strategy in business organizations is discussed. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. In the study, the author quotes the strategy importance in choosing to perform some tasks differently from other competitors and the impact of a critical operational strategy. A precise strategy is a plan of how to produce and deliver their goods and services to the consumers. The article further discusses the challenges of not having a strategy when an entrepreneur is starting a business. An operational strategy helps the organization to tackle their competitors efficiently. State of the art operational procedures such as a balanced scorecard contributes to cut business costs and enhance stakeholder confidence. The trickledown effect of the policy impacts on the day to day activities of the organization, the resources and assets needed to capture the operational goals are also discussed. The competitive edge is gained by doing business differently. David Chapel, the co-author of the article describes corporate strategy and its difference from organizational strategy. As an organization grows, innovation into a new range of products and services is essential to obtain the growth target. The operational model is dependent on the operational strategy and is a crucial ingredient of developmental goals. R. Simmons, “Control in the Age of Empowerment”, (Boston: Harvard Business Review, 1995) This article illustrates what constitutes an operational strategy. It can be accessed from http://web.b.ebscohost.com/ehost/detail/detail?sid=93a121a2-4ea9-427f-ac34-3abafe51ea47%40sessionmgr114&vid=0&hid=106&bdata=JkF1dGhUeXBlPWlwLHVpZCZzaXRlPWVob3N0LWxpdmU%3d#db=e000xww&AN=203192. According to the author of this article, the primary focus of operations strategy lies in the structural policies and the capabilities of the decisions. The fundamental capabilities determine where the business is located and where most of the operations shall be taking place. The article further describes the capacity in which the operations will be done, such as the online resources available to run the business. The technological processes are determined by the operational strategies that have been chosen. Various organizations have strategies that ogre well with their customers. In a survey, customer service and innovation are the key strategies that drive the companies to success. Customer focus is a key strategy that can help an organization to expand. Operational planning and control are also important in realizing the growth of an organization. For instance, Amazon.com ability to communicate to customers and deliver products within the stipulated times has enhanced their growth through customer satisfaction and loyalty. Quality systems ensure that the products that are sold are high tech and consistent. The survey clearly shows that attraction and people development strategies have impacted profoundly on profits. Hannah Wu, Karen Weigert, and Stratton Lloyd, “Bringing Strategy to Life Through the Balanced Scorecard”, 1999). In this article, the benefits of the balanced score card Operational strategy study are discussed. It can be accessed from http://web.b.ebscohost.com/ehost/detail/detail?sid=93a121a2-4ea9-427f-ac34- 3abafe51ea47%40sessionmgr114&vid=0&hid=106&bdata=JkF1dGhUeXBlPWlwLHVpZCZzaXRlPWVob3N0LWxpdmU%3d#db=e000xww&AN=203192. The article describes the strategic initiatives and best practice of organizations to enhance profitability and management goals. In essence, the identification of the disadvantages of traditional methods of operational strategy is essential for organizations in a bid to create innovative ways to policy formulation and financial impact. Such traditional performance metric systems are obsolete and do not offer the best decision support platforms. In fact, losses can be incurred by utilizing inefficient systems. Hannah Wu et al. illustrate the benefits of the Balanced Scorecard that include the innovation and creation of unexpected ideas. In addition, a balanced scorecard helps the management to get a clear picture of the direction of the company. The lives of performing members are continually accessed, and it provides a useful mode of communication between team members and the management. Learning and cross-organizational benefits are also realized by using the balanced scorecard. Time efficiency and better decisions are made from the output of the strategy. Improved processes provide a platform for profitability and growth. A good strategy delivers a link of measuring the key knowledge points. Lewis, Mike A., "Organizational Competence: Implications for Management of Operations," Journal of Operations and Production Management, Vol. 23, No. 7, 2003, 731–756. The article highlights the need for an excellent operational strategy. It can be accessed from https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. Operational strategy reflects in both the corporate strategy and the main decisions that are made within the organization. A company that does not implement a proper plan will be locked in a string of bad decisions that has long-term implementations. These decisions can be costly and time-consuming to the organization leading to unpredicted losses. The impact is a formulation of panic marketing driven initiatives that are not sufficient to resolve the problem at hand. Consequently, the business as a whole suffers from tactical inefficiencies, and the need for change will be costly, time-consuming and have less competitive impact. Mike Lewis, the author of the article further, discusses the consequences of the failure to employ strategic operations. He outlines the possibility of malicious attack or hampered competitive capability in the market. The assumption that the operational strategy can be secured by marketing initiatives only is misleading. This is because the business structure will remain inflexible amidst the evolving demand of the market and business stockholders and partners. Strategic decisions cover broad range of geographical locations, new market, and realistic consideration of market demands. Nielsen, Hinda, " Strategy Formation: A Continuous Process," Integrated Technological Systems, Vol. 14, No. 8, 2003, 677–685. In this study, the strategy formation process is discussed. It can be accessed online from, https://web.b.ebscohost.com/ehost/resultsadvanced?sid=8ff5b5ca-a64d-4623-b2da-0f9d9220c704%40sessionmgr198&vid=7&hid=106&bquery=performance+management&bdata=JkF1dGhUeXBlPWlwLHVpZCZkYj1lMDAweHd3JnR5cGU9MSZzaXRlPWVob3N0LWxpdmU%3d. In this study, Nielsen Hinda, the author discusses the operational, strategic attention that must be given to business to facilitate growth of the organization. The balance of direction of the organization's activities should be geared towards the performance and strategy. The author reflects the entire process of updating corporate strategy in line with the primary attributes such as reviewing, learning, aligning and redirecting the processes. The author further highlights that the first phase of implementation involves learning of the available options and choosing a suitable direction. The next stage involves reviewing the new and existing alternative over an ample range of time in order to facilitate a growth and maturity of ideas. Consequently, an analytical phase whereby the processes are implemented to document the financial impact of the strategy transformation. Finally, the directing step involves the process of testing the strategic ideas through organizational initiatives and activities. Read More