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A partir de los principios del Balance Scord Card se hace una explicación sencilla de las 4 perspectivas del negocio
Citation preview
1Copyright: Tommie Johansson 2007
TALLER: TALLER: LAS 4 PERSPECTIVAS DE UN SISTEMA DE LAS 4 PERSPECTIVAS DE UN SISTEMA DE
NEGOCIO: PROCESOS, PERSONAL, SERVICIONEGOCIO: PROCESOS, PERSONAL, SERVICIO A CLIENTES Y ASPECTOS FINANCIEROS.A CLIENTES Y ASPECTOS FINANCIEROS.
TOMMIE TOMMIE JOHANSSONJOHANSSON
JUAN JUAN MILLMILLNN
2Copyright: Tommie Johansson 2007
Las 4 perspectivas - procesos, personal, servicio a cliente y aspectosfinancieros de un sistema de negocio
Based on the Balance Scorecard and applied to the ISO 9000 family of standards
Tommie J. JohanssonSuecia
3Copyright: Tommie Johansson 2007
Breakthroughs in performance...
{ It cannot be accomplished only by monitoring and controlling financial measures of past performance
{ Reliance on summery financial performance measures are hindering organizationsabilities to create future economic value.
... require major change... require major changess, and that includes, and that includeschanges in the measurement and managementchanges in the measurement and managementsystems used by an organization.systems used by an organization.
4Copyright: Tommie Johansson 2007
Why important?
oThe information age requires new capabilities for competitive success.
oThe information age requires new capabilities for competitive success.
o develop customer relationshipso introduce innovative products/serviceso customized high quality products/serviceso low costs and short lead timeso mobilize employee skills and motivationo deploy information technology
5Copyright: Tommie Johansson 2007
Balanced Scorecard
{ Measures the organizations performance across four perspectives:z financialz customerz internal business processesz learning and growth (personnel)
{ Measures the organizations performance across four perspectives:z financialz customerz internal business processesz learning and growth (personnel)
6Copyright: Tommie Johansson 2007
Internal and external perspectives
FinancialFinancial CustomersCustomers
ProcessesProcesses
PersonnelPersonnel
7Copyright: Tommie Johansson 2007
The balance between
{ short and long term objectives{ financial and non-financial measures{ outcome indicators and performance
drivers{ external and internal performance
perspective
8Copyright: Tommie Johansson 2007
Financial Perspective
Financial measures are valuable in summarizingthe readily measurable economic consequencesof actions already taken.
Financial performance measures indicate whether a companys strategy, implementation and execution are contributing to bottom-line improvement. (see ISO 10014)
Financial measures are valuable in summarizingthe readily measurable economic consequencesof actions already taken.
Financial performance measures indicate whether a companys strategy, implementation and execution are contributing to bottom-line improvement. (see ISO 10014)
9Copyright: Tommie Johansson 2007
Customer Perspective
Management identifies the customers and market segments in which the organization will compete and the measures of performance in these segments.
The customer perspective enables managers to articulate the customer and market-basedstrategy that will deliver superior futurefinancial returns
Management identifies the customers and market segments in which the organization will compete and the measures of performance in these segments.
The customer perspective enables managers to articulate the customer and market-basedstrategy that will deliver superior futurefinancial returns
10Copyright: Tommie Johansson 2007
Internal Business Process Perspective
In this perspective, management identify the critical internal business processes in which the organization must excel.These processes enable the organization to:
In this perspective, management identify the critical internal business processes in which the organization must excel.These processes enable the organization to:
{ deliver the value that will attract and retain customers,
{ satisfy owners expectations of excellent financial returns
11Copyright: Tommie Johansson 2007
Learning and Growth Perspective
This perspective identifies the infrastructurethat the organization must build to create long-term growth and improvement.Organizational learning and growth come fromthree principal sources:
o People, systems and company culture.The far most important resource in the organization is Competence (see ISO 10015)
This perspective identifies the infrastructurethat the organization must build to create long-term growth and improvement.Organizational learning and growth come fromthree principal sources:
o People, systems and company culture.The far most important resource in the organization is Competence (see ISO 10015)
12Copyright: Tommie Johansson 2007
The framework of a Business Management system
13Copyright: Tommie Johansson 2007
Linking the measures to the strategy
{ Cause-and-Effect relationships{ Outcomes and Performance drivers{ Linkage to the financial perspective
14Copyright: Tommie Johansson 2007
Cause and Effect Relationship (ex)
Employeescompetence
On-timedelivery
Return oncapital
Processquality
Processcycle timeProcess
cycle time
Customerloyalty
FinancialFinancial
CustomerCustomer
Internal Business ProcessInternal Business Process
Learning and growthLearning and growth
15Copyright: Tommie Johansson 2007
Outcomes and Performance drivers
The outcome measures are more generic and tend to be laglag indicators (operational), such as Profitability, Customer satisfaction, Employee turnover etc.The performance drivers, the leadlead indicators (strategic), tend to be unique for an organization and reflects the strategy, such as Cycle time, Defect rates, strategic competence etc.A good business system should have a mix of Outcome measures and Performance drivers.
16Copyright: Tommie Johansson 2007
Linkage to Financials
It is easy to become pre-occupied with such objectives as quality, cycle time, innovation andemployee empowerment for their own sake.
These objectives must be linked to outcomes that directly influence customers and that deliver future financial performance (ISO 10014).
It is easy to become pre-occupied with such objectives as quality, cycle time, innovation andemployee empowerment for their own sake.
These objectives must be linked to outcomes that directly influence customers and that deliver future financial performance (ISO 10014).
17Copyright: Tommie Johansson 2007
The model
18Copyright: Tommie Johansson 2007
Model of a process-based QMS
Continual improvement of thequality management system
CustomersCustomers
Requirements
SatisfactionMeasurement.analysis andimprovement
ResourceManagement
Managementresponsibility
Productrealization Product
INPUT OUTPUT
19Copyright: Tommie Johansson 2007
The 4 perspectives and ISO 9001
PeoplePeople
ProcessesProcesses
FinancialFinancial CustomersCustomers
ISO 9001, clause 6ISO 10015
ISO 9001, clause 7
ISO 9001, clause 7.2and 8.2.1ISO 9001 ?
ISO 10014
20Copyright: Tommie Johansson 2007
People perspective
is mainly about linking the need for competence to the business plan and to manage knowledge
21Copyright: Tommie Johansson 2007
People
{ Employees competence{ Information systems capabilities{ Motivation and empowerment{ ISO 10015:1999 (2006)
22Copyright: Tommie Johansson 2007
Lead
Core employee measures LagResultsResults Core
Measures
EmployeeRetention
EmployeeProductivity
EmployeeSatisfaction
TechnologyInfrastructure
Climate forAction
EmployeesCompetence
Enablers
23Copyright: Tommie Johansson 2007
ISO 10015:1999 & 2006
Quality Management - Guidelines for training
24Copyright: Tommie Johansson 2007
Quality management - Guidelines for training
Changes may require an organization to analyze itscompetence-related needs.
This standard provides guidance that can help an organization and their personnel when addressing issues related to training.
ISO 1001
5ISO
10015
25Copyright: Tommie Johansson 2007
Linking Competence
Business planBusiness plan
HumanHumanresourcesresources
Technicalresources
Financialresources
Otherresources
CompetenceCompetence RemunerationOthers
TrainingTrainingneedsneeds
Otherneeds
26Copyright: Tommie Johansson 2007
ISO 9001:2000
6. Resource Management6.2 Human resources
Competence, awareness and trainingThe organization shalla) Determine the necessary competence for personnel
performing work affecting product quality,b) Provide training or take other actions to satisfy
these needs,c) Evaluate the effectiveness of the actions taken,d) e) Maintain appropriate records of education,
training, skills and experience.
27Copyright: Tommie Johansson 2007
Definitions: (from ISO 10015)
CompetenceCompetence - application of knowledge,skills and behaviours in performance
Training Training - process to provide and developknowledge, skills and behaviors to meet requirements
28Copyright: Tommie Johansson 2007
Scope of ISO 10015
These guidelines cover the development, implementation, maintenance and improvement ofstrategies and systems for training that affect thequality of the products supplied by an organization.
This standard applies to all types of organizations.
ISO 1001
5ISO
10015
29Copyright: Tommie Johansson 2007
Training: a four-stage process
1Define
training needs 2Design and
plan training
3Provide for
training
4Evaluate training
outcomes
MONITOR
30Copyright: Tommie Johansson 2007
1. Defining training needs
#1 Defining the needs of the organization#2 Defining and analyzing competence requirements#3 Reviewing competence#4 Defining competence gaps#5 Identify solutions to close the competence gaps
Output: Document - Training needs specification
(part of the Training Plan specification)
31Copyright: Tommie Johansson 2007
Purpose of this stage
The purpose of this stage should be to define: the gaps between existing and required competence; the training needed by employees.
32Copyright: Tommie Johansson 2007
2. Designing and planning training
#1 Defining the constraints#2 Design the training plan
training methods and criteria for selection Training plan specification selection of a training provider
Output:Document - Training plan specificationincl. criteria and methods for evaluation of outcomes
33Copyright: Tommie Johansson 2007
Purpose of this stage
The purpose of this stage should be: design and planning of actions to be taken; definition of the criteria for evaluation and monitoring
34Copyright: Tommie Johansson 2007
Learning Objectives
{ Cognitive (Knowledge)
{ Affective (Attitude)
{ Behavioral (Skills)
{ Business Impact
35Copyright: Tommie Johansson 2007
3. Providing for the training
# Providing support* pre-training support* training support* end-of-training support
Outputs:- Evaluation reports of training outcomes- Reports from interviews with the trainees
36Copyright: Tommie Johansson 2007
Purpose of this stage
The purpose of this stage should be: supporting trainer and trainee; monitoring the quality of the training delivered
37Copyright: Tommie Johansson 2007
4. Evaluating training outcomes
Has the competence gap been closed by the training?Has the competence gap been closed by the training?
#1 In the short term...#2 In the long term...#3 Collect data and prepare evaluation report
Outputs:- up-dated individual training record- evaluation report with description of corrective and preventive actions
38Copyright: Tommie Johansson 2007
Remember ISO 9001/6.2.2 - the organization shall
{ determine the necessary competence
{ provide training or take other actions
{ evaluate the effectiveness of the actions taken
39Copyright: Tommie Johansson 2007
Purpose of this stage
The purpose of this stage should be: to confirm that both organizational and training
objectives have been met;
40Copyright: Tommie Johansson 2007
Kirkpatrick approach, four levelsfor evaluation of training
1. Reaction How trainee reacted to training (subjective) How did trainee feel about the training
Useful in improving instructional techniques, selection of methods etc
41Copyright: Tommie Johansson 2007
Kirkpatrick approach, four levelsfor evaluation of training
1. Reaction2. Learning What trainee knows as a result of the
training What skills, knowledge or attitudes
have changed and by how much
Useful for improving task analysis, knowledge and skills analysis and selection & design of instructional methods
42Copyright: Tommie Johansson 2007
Kirkpatrick approach, four levelsfor evaluation of training
1. Reaction 2. Learning3. Behavior What trainee does differently after
the training Whether trainee applies knowledge &
skills acquired to the job What on-the-job performance
improvements occurred as a result of the training
43Copyright: Tommie Johansson 2007
Kirkpatrick approach, four levelsfor evaluation of training
1. Reaction2. Learning3. Behavior4. Results Whether on-the-job application of the
knowledge & skills acquired during training produced measurable results In the market At the customers In the organization As increased productivity
44Copyright: Tommie Johansson 2007
The 2000 ASTD* state of the industry report
{ 77% used level 1 { 36% 2{ 15% 3{ 8% 4
What does it indicate?
* ASTD American Society for Training and Development
45Copyright: Tommie Johansson 2007
A five level model
{ Since Kirkpatrick established his original model, other theorists (for example Jack Phillips), and indeed Kirkpatrick himself, have referred to a possible fifth level, namely ROI (Return On Investment).
46Copyright: Tommie Johansson 2007
47Copyright: Tommie Johansson 2007
Monitoring and improving the training process
Inputs:- all records from previous stages, and/or- records from an internal quality audit procedure
Output:- action plan defining actions, setting deadlines andassigning responsibilities
48Copyright: Tommie Johansson 2007
Purpose of this stage
To ensure that the training process, as part of To ensure that the training process, as part of the organizationthe organizations quality system, is being s quality system, is being managed and implemented correctly and that the managed and implemented correctly and that the process is effective in meeting organizational and process is effective in meeting organizational and competence requirements.competence requirements.
49Copyright: Tommie Johansson 2007
Linking Competence
Business planBusiness plan
HumanHumanresourcesresources
Technicalresources
Financialresources
Otherresources
CompetenceCompetence RemunerationOthers
Otherneeds
Trainingneeds
50Copyright: Tommie Johansson 2007
Competence acquisition
{ Other needs than trainingz Recruitmentsz Consultantsz Insourcingz Outsourcing z Taking over a companyz Etc
51Copyright: Tommie Johansson 2007
Knowledge Management
Companies must learn to invest in and managebrain-power if they hope to compete in aneconomy where, more than ever, knowledge iswhat we buy and sell.
-Thomas S. Stewart-
52Copyright: Tommie Johansson 2007
53Copyright: Tommie Johansson 2007
Business process perspective
is mainly about reducing costs and continual improvement
54Copyright: Tommie Johansson 2007
Business Process Perspective
{ Time{ Quality{ Cost
{ Conformity{ Non-
conformity{ Efficiency
55Copyright: Tommie Johansson 2007
Total Quality Management
Customerneeds
Customerresults
Externalsupplier
Copyright: Tommie Johansson 2007
Managing the economics of a process
{ all processes within an organization have an economiceconomic effect
{ these effects will be experienced by the customer,customer, the organizationorganization or both
{ the organization can measure the effect as costs of conformityconformity or nonconformitynonconformity
{ the customers will indicate the effect by the level of customer satisfactioncustomer satisfaction
{ reports about costscosts and customer satisfactioncustomer satisfactionshould be analyzed to identify causes of any problem and opportunities for improvementimprovement
Copyright: Tommie Johansson 2007
The costs of the organization
Cost of conformitycost to fulfill all the stated and implied needs of customers in the absence of failure of the existing process Cost of nonconformity
cost incurred due to failure of the existing process
Copyright: Tommie Johansson 2007
The ModelStart Identify / Review
processes
Identify process activities
Monitor costs
Produce processcost report
Identify factorsaffecting Cus.Sat.Monitor customersatisfaction
Produce customersatisfaction report
Management review
Identifyopportunities
Improvem.opportunities
identified?
Is proposedimprovement
justified?
Conduct cost /benefit analysesyesyes
yesyes
nono
nono
Plan & implement improvements
Copyright: Tommie Johansson 2007
Monitoring costs
Savings
Correction
Control
Preventiontime
turn-over
25 - 30%
3 - 5%
1%
60Copyright: Tommie Johansson 2007
Quality Costs
Prevention Control CorrectPrevention Control Correctionionbefore delivery after delivery
instructions manuals training good suppliers
testing inspections proof reading
re-work scrap
repair replace loss of Image!
61Copyright: Tommie Johansson 2007
Customer perspective
is mainly about understanding the customers needs
Copyright: Tommie Johansson 2007
Monitor Customer Satisfaction
Customer satisfaction can be assessed through:o verbal surveyo written surveyo suggestion processo complaint processo focus groupso comparison studyo reasons for lost saleo other methods
63Copyright: Tommie Johansson 2007
Customer Perspective
o Market shareo Customer acquisitiono Customer retentiono Customer satisfactiono Customer profitabilityo Image and reputationo Trademark protection
64Copyright: Tommie Johansson 2007
Core measures
MarketShare
CustomerAcquisition
CustomerRetention
CustomerProfitability
CustomerSatisfaction
Lead
Lag
65Copyright: Tommie Johansson 2007
Market segmentation
{ Identify the customer objectives in each targeted segment
{ not just choosing what to do - but also choosing what NOT to do
66Copyright: Tommie Johansson 2007
Financial perspective
is mainly about realizing financial and economic benefits of the quality management system
67Copyright: Tommie Johansson 2007
Financial strategy
{ Revenue growth and mix{ Cost reduction{ Productivity improvement{ Asset utilization{ Investment strategy
68Copyright: Tommie Johansson 2007
Financial Perspective
o Revenueo Cash flowo Sales Growtho Cost reductiono Productivity improveo Return-on-capital-employed (ROCE)o ISO 10014:2006
69Copyright: Tommie Johansson 2007
ISO 10014:2006
Quality Management - Guidelines for realizing financial and economic benefits
70Copyright: Tommie Johansson 2007
Guiding stars for the review
Addressing top Addressing top managementmanagementas nonas non--QMQM
expertsexperts Show me the Money
Show me the Show me the MoneyMoney
71Copyright: Tommie Johansson 2007
ISO 10014 aims high
{ To bridge the gap between top management and the quality professionals
{ To assist top management to understand and implement the quality management principles
72Copyright: Tommie Johansson 2007
Differing perspectives the gap
{ Top managements view of operations is highly compressed and expressed in financial terms
{ Quality professionals is routinely unable to translate improvement efforts into financial terminology
73Copyright: Tommie Johansson 2007
Importance of the principles
{ How would it be possible to implement and operate a management system if top management doesnt understand and/or are aware of the principles that are fundamental to lead the organization towards improved performance?
74Copyright: Tommie Johansson 2007
Financial and economic benefits
{ Financial benefit is the result of organizational improvement expressed in monetary form, and realized by cost-effective and motivational management practices within the organization.
{ Economic benefit is generally attained through effective and efficient management of resources and implementation of applicable processes for improving the overall strategic worth and health of the organization.
75Copyright: Tommie Johansson 2007
The scope of ISO 10014
{ This International Standard provides guidelines for realizing financial and economic benefits from the application of management principles developed from the ISO 9000 quality management principles.
{ It is directed to top management of the organization and complements ISO 9004:2000 for performance improvements. It provides examples of achievable benefits and identifies management methods and tools that are available to assist with the achievement of those benefits.
{ This International Standard consists of guidelines and recommendations, and is not intended for certification, regulatory or contractual use.
76Copyright: Tommie Johansson 2007
The structure and content
{ Based on the 8 quality management principles of ISO 9000:2005
{ Encouraging the process approach to manage an organization
{ Presenting a Self-assessment tool based on the principles
{ Giving examples of methods and tools to realize financial and economic benefits
77Copyright: Tommie Johansson 2007
Quality management principlesISO 9000:2005
a) Customer focusb) Leadershipc) Involvement of peopled) Process approache) System approach to managementf) Continual improvementg) Factual approach to decision makingh) Mutually beneficial supplier
relationship
78Copyright: Tommie Johansson 2007
The way to use the guideline
79Copyright: Tommie Johansson 2007
The self assessment (annex A)
{ Maturity level descriptions 1 to 5z Level 1 immature organization, the
practice is not found or not yet started
z Level 3 approximately 50% occurrence, the practice is commonly found
z Level 5 almost 100% occurrence, the practice is recognized as best-in-class
80Copyright: Tommie Johansson 2007
The self assessment (annex A)
{ Two different levels of assessmentz One initial 24 questions z Comprehensive - ~80 questions
81Copyright: Tommie Johansson 2007
82Copyright: Tommie Johansson 2007
83Copyright: Tommie Johansson 2007
Use of quality management principles
{ The principle quoted{ P D- C A approach for each principle{ A flowchart for each sub-clause
84Copyright: Tommie Johansson 2007
Customer focus
{ Organizations depend on customers for their sustainability. To ensure sustainability, organizations should identify and manage the risk of customer dissatisfaction by understanding and meeting current and future customer needs and expectations.
85Copyright: Tommie Johansson 2007
Customer focus, examples ofachievable benefits and tools
86Copyright: Tommie Johansson 2007
Leadership
{ Leaders, as top management, direct the organization to ensure sustainability, corporate and social responsibility and governance.
{ They should establish unity of purpose, confidence and trust, in a way that balances the needs and expectations of all interested parties.
{ They should create and maintain an environment that encourages involvement of people, learning, innovation and sustainability for achieving the organizations objectives.
87Copyright: Tommie Johansson 2007
Leadership, examples ofachievable benefits and tools
88Copyright: Tommie Johansson 2007
Involvement of people
{ Employees embody the knowledge capital and intellectual resource of an organization.
{ The full involvement of employees enables them to utilize their talents and abilities to contribute to the financial and economic well being of the organization.
89Copyright: Tommie Johansson 2007
Involvement of people, examples ofachievable benefits and tools
90Copyright: Tommie Johansson 2007
Process approach
{ A process is a set of interrelated or interacting activities that transforms inputs into outputs. It is a mechanism that adds value by facilitating the successful operation of an organization.
{ The systematic identification and management of the processes employed within an organization, and particularly the interactions between such processes, is referred to as the process approach.
{ Top management should utilize the processes established in the organization for effective planning and control of its operation.
91Copyright: Tommie Johansson 2007
Process approach, examples ofachievable benefits and tools
92Copyright: Tommie Johansson 2007
System approach to management
{ Organizations consist of complex, interrelated and interacting networks of processes. Because no activity or process exists in isolation, it is beneficial to manage interrelated processes as a single system.
{ The system approach to management facilitates sustainability and adaptation to change.
93Copyright: Tommie Johansson 2007
System approach, examples ofachievable benefits and tools
Achievable Benefits
optimized use of available resources optimized, effective and efficient processes; reduced time to market enhanced organizational performance, credibility
and sustainability
94Copyright: Tommie Johansson 2007
Continual improvement
{ A key factor in successfully sustaining the realization of financial and economic benefits is an effective continual improvement process.
{ This is reliant upon the committement of top management in the application of all eight interrelated management principles.
{ The benefits from the selection and use of the methods and tools identified in clause 5 become evident as added value continual improvement measurements.
{ It is important to take a holistic view of the needs of all interested parties to ensure an organization capable of effective changes for the realization of continual improvement.
95Copyright: Tommie Johansson 2007
Continual improvement
I m p l e m e n t e d A c t i o n s = F I N A N C I A L & E C O N O M I C B E N E F I T SA c h ie v a b le B e n e f i t s
im p r o v e d p r o f i t a b i l i t y im p r o v e d r e v e n u e s im p r o v e d b u d g e ta r y p e r f o rm a n c e r e d u c e d c o s t s im p r o v e d c a s h f lo w im p r o v e d r e tu r n o n i n v e s tm e n t
S o u r c e s o f O p p o r t u n i t i e s f o r I m p r o v e m e n t P l a n s P r o c e s s S t e p s R e v i e w f o r A c t io n
A u d it r e s u lt s
B e n c h m a r k in g o u t p u t s
B r a in s t o rm o u tp u t s
C u s to m e r f e e d b a c k
E x te r n a l f a c to r s- R e g u la t o r y- E m e r g in g t e c h n o lo g ie s- C h a n g e s in t h e m a r k e t p la c e- E n v ir o n m e n t a l / s o c ia l
F in a n c ia l P e r f o rm a n c e H u m a n R e s o u r c e
- A p p r a i s a l , - S a t i s f a c t io n f e e d b a c k - S u g g e s t i o n s
P r o b le m s o lv in g ( c o r r e c t iv e a c t i o n ) R e c o m m e n d a t io n s f o r im p r o v e m e n t R e s u l t s o f F a i lu r e m o d e s & e f f e c t s
a n a ly s i s ( F M E A ) R e s u l t o f B u s in e s s e x c e ll e n c e
m o d e l B E M R e s u l t s o f b a la n c e d s c o r e c a r d R e s u l t s o f m a n a g e m e n t r e v ie w R e s u l t s o f S ta t i s t i c a l p r o c e s s c o n t r o l
( S P C ) S e lf - a s s e s s m e n t r e s u l t s V a lu e o f g o o d s a n d s e rv ic e s Y ie ld
A c t io n p la n d e v e lo p m e n t
A ll o c a t i o n o f r e s o u r c e s
A p p l i c a t i o n o f a l l p r i n c ip le s a n d s e le c te d t o o l
D a t a a n a ly s i s
I d e n t i f i c a t io n o f a c t io n i t e m s
P r io r i t i s a t io n
R e - c o n d u c t in g s e lf - a s s e s s m e n t a n d e v a lu a t io n s
R e s u l t s e v a lu a t io n
S e lf - a s s e s s m e n t s
S e t a n d c a s c a d e o b je c t iv e s
T r e n d id e n t if ic a t i o n
B u d g e t a l l o c a t i o n s
C a p i t a l e x p e n d i t u r e
C a s h f lo w
C o s t r e d u c t i o n t a r g e t s
P e r f o rm a n c e t a r g e t le v e ls
P r o je c te d s a le s
S t r a te g i c p la n
I n p u t s
O u t p u t
F ig u r e 7
96Copyright: Tommie Johansson 2007
Factual approach to decision making
{ Decisions should, as far as practical, be based on evidence.
{ Knowledge generated from information and data, derived from measurement of processes or acquired from other sources, provides an essential base for enhancing the decision making capability of the organization.
{ Knowledge management is an important element in capturing, protecting and disseminating information.
97Copyright: Tommie Johansson 2007
Factual approach, examples ofachievable benefits and tools
Achievable Benefits
improved cash flow improved return on investment improved effectiveness of decision making optimized use of available resources optimized, effective and efficient processes enhanced organizational performance, credibility
and sustainability
98Copyright: Tommie Johansson 2007
Mutually beneficial supplier relationship
{ Top management should establish supplier partnerships that generate improved and sustained profits for both organizations.
{ Partnership between a supplier and the organization could include cooperative process improvements, information sharing, mutual resolution of problems and product development.
99Copyright: Tommie Johansson 2007
Supplier relationship, examples ofachievable benefits and tools
Achievable Benefits
reduced costs optimized use of available resources improved supply chain performance reduced time to market enhanced organizational performance, credibility and sustainability
100Copyright: Tommie Johansson 2007
Two annexes
A. Self assessment toolz Two simple and effective assessments
B. Methods and toolsz Brief summaries
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Business basics
Revenue Revenue Cost = ProfitCost = Profit
Key areas
{ Customer satisfaction{ Better products{ Supplier relations{ Image and reputation
{ Effective processes{ Efficient management{ Strategic competence{ Less problems
102Copyright: Tommie Johansson 2007
The management system
EffectiveEffective
EfficientEfficient
ProfitableProfitable
ISO 9001ISO 9001
ISO 9004ISO 9004
ISO 10014ISO 10014
CustomerCustomersatisfactionsatisfaction
Interested partiesInterested partiessatisfactionsatisfaction
SustainableSustainablecompetitivenesscompetitiveness
BusinessBusinessvisionvision
103Copyright: Tommie Johansson 2007
Most visible benefits
{ Optimization of available resources{ Increased effectiveness{ Improved profitability{ Increased competitiveness{ Improved communication{ Increased support for and confidence
in decisions
104Copyright: Tommie Johansson 2007
To sum up
{ Results are always achieved financially and/or as a degree of customer satisfaction
{ Business processes create the results{ People (competence) are the main
resource and the foundation for process improvement
105Copyright: Tommie Johansson 2007
Sources of information
{ Kaplan R, Norton D: The balanced Scorecard (HBS Press 1996)
{ ISO 9000{ ISO 9001{ ISO 9004{ ISO 10014: Guidelines for realizing
financial and economic benefits{ ISO 10015: Guidelines for training
106Copyright: Tommie Johansson 2007