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CRITERIA 102
Category 4: Measurement, Analysis, and Knowledge Management
Sampson Gholston, Ph. D., Master Examiner, Professor, The University of Alabama in Huntsville
Turn Data Into information to driveorganizational performance
Introduction
Category 4
Performance Management
Summary
CONTENT OUTLINE Turn Data Into information to drive
organizational performanceCRITERIA 102
Introduction Sterling Management Model
Introduction Data, Information, and knowledge
Data• Values which on their own have no meaning• Letters• Numbers• Examples – 150170, English, 23, 1066, etc. • Database – organized collection of data
Information• Data that is given meaning by its context• Information = Data + Context • Examples – 15/01/70 (DOB), English (Language), 23 (days to expiration), $1066
(price) Knowledge
• Derived from information by applying rules• Informed decisions can be made by applying knowledge to information
Introduction Business Analytics
Data and analytics capabilities are growing fast• Growing availability of vast amounts of data
• IBM – 2.5 quintillion bytes of data per data; 90% of the data in the world today was created in the last two years
• Increased computational power• Colleges/universities curriculum is evolving
Data and analytics capabilities is changing the way we do business• Companies need data-savvy professionals• Turn data into information
Business analytics (data analytics) involves extracting information and knowledge from data
• Benefits• Improved performance• Develop better marketing strategies• Deepen customer engagement• Mitigate risk
Introduction Business Analytics
Prescriptive Analytics(What should we do?)
Predictive Analytics(What will happen in the future?)
Descriptive Analytics(What has happened in the past?)
Introduction Business Analytics
Business Strategy• Actions designed by business practitioners to achieve a business objective• Business objectives include maximizing profits, increasing employee
engagement/satisfaction, increase customer satisfaction, etc.• Examples of action include pricing decisions, advertising campaigns, and methods
of employee compensationBusiness analytics are needed to answer the three questions that Every organization must answer
• How well are we doing?• How do we know?• What must we do to get better?
Introduction Business Analytics
Predictive Analytics for Business Strategy• Lack of Data - strong theoretical model is often not enough to predict effective
business strategies • Sound theoretical arguments coupled with data becomes a strong tool to predict
effective business strategies• Predictive analytics is an ideal complement to create a successful business
strategy
Introduction Business Analytics
Data generation• Process that produces the pieces of information contained in a dataset • Steps to generating data
• Establish both formal and informal processes• Understand what variables are important• Create a representative statistical model • Collect and analyze relevant variables and perform simple tests - Uses of data
analysis include queries, pattern discovery, causal inference• Queries - a request for information from a database• Pattern Discovery - a distinct relationship between observations within a dataset
Introduction Business Analytics
Predictive Analytics for Business Strategy,, 1st Edition, Prince, 2019.
Introduction Business Analytics
Measures• Key Performance Indicators –KPIs)
• Variables useful in measuring performance • Lagging indicators – Information about the past• Leading indicators - provides insights about the future
• Lagging Indicators answer the question, “What happened/ What is happening?”• Can be generated by queries, pattern discovery, and causal inference
Predictive Analytics for Business Strategy,, 1st Edition, Prince, 2019.
Introduction Business Analytics
Leading indicators• Designed to answer the question, “What is going to happen?”• It helps firms in its future planning process with expectations and strategic
moves.• Lead information is not generally presented in a standardized format• Relate variables based on causal relationships
Predictive Analytics for Business Strategy,, 1st Edition, Prince, 2019.
Category 4 Measurement, Analysis, and knowledge management – 90 points
The Measurement, Analysis, and Knowledge Management Category asks• How your organization selects, gathers, analyzes, manages, and improves its data,
information, and knowledge assets• How it uses review findings to improve its performance• How it learns
Category 4 Measurement, Analysis, and knowledge management – 90 points
4.1 Measurement, Analysis, and Improvement of Organizational Performance• Performance Measurement• Performance Analysis and Review• Performance Improvement
4.2 Information and Knowledge Management• Data and Information• Organizational Knowledge
Category 4
Category 4
Category 4
Measurement, Analysis & Knowledge Management
• Performance Measurement & Agility• Performance Analysis, Review &
Improvement• Continuous Improvement & Innovation• Org Knowledge Management /
Learning• Data, Information, Information
Technology
Leadership• Mission Vision Values• Organizational Governance• Communication / Org Performance• Ethical & Legal Behavior
Strategy• Strategic Development• Innovation• Work Systems & Core Competencies• Strategic Objectives• Action Plans
Customers• Potential, Current, Competitor, Segmentation• Satisfaction (Dis), Engagement, Complaints• Product Offerings• Customer Relationships
Workforce• Capability, Capacity, Culture, Climate• Change management• Workforce / Leader Development• Learning & Dev Effectiveness• Career Progression
Results• Product and Process• Customer• Workforce• Leadership & Governance• Financial and Market
Operations• Product & Process Design • Innovations Management• Process Efficiency / Effectiveness• Supply Chain Management• Safety / Emergency Preparedness
Sterling Criteria Alignment Chart: Knowledge Management Linkages
Performance Measurement Three Levels of Performance Measurement, (Zairi, M.)
Levels of Performance Measurement• Organizational Performance Measurement (Cat. 2)
• Performance of the business related to the information available to its managers• Should be developed based on the needs and wants of the market• Translated into company strategy via KPIs.
• Process Performance Measurement (Cat. 6) • Focuses on performance at the process or department level• Should be derived from strategic objectives of the organization
• Individual Performance Measurement (Cat. 5)• Personal Performance • Potential problems
• Foster competition rather than teamwork• Goals may not be linked to strategy or customer requirements• Does not consider horizontal workflow• Dr. Deming – One of seven “Deadly Diseases” for organizations
Performance Measurement Class Exercise
Think of important points to consider when developing way to measure performance at each of the three levels.
• List two Organizational Performance Measurement • List two Process Performance Measurement that may be related• List two Individual Performance Measurement
Summary
Commentary • Category 4 Aim of performance measurement, analysis, review, and improvement is to
guide your process management toward the achievement of key organizational results and strategic objectives, anticipate and respond to rapid or unexpected organizational or external changes, and identify best practices to share.
• Alignment and integration are key concepts for successfully implementing and using your performance measurement system.
• Alignment and integration also include how your senior leaders deploy performance measurement requirements to track work-group and process-level performance on key measures that are targeted for their organization-wide significance or for improvement.
• Big data. The challenge, and the potential, of ever-increasing amounts of and modalities for data lie in choosing, synthesizing, analyzing, and interpreting both quantitative and qualitative data, turning them into useful information, and then acting operationally and strategically.
Presentation Resources
1. Insights into Performance Excellence 2019-2020
2. Performance Excellence: A Practical Handbook, Zairi, 2021
3. Predictive Analytics for Business Strategy,, 1st Edition, Prince, 2019.
4. Baldrige resources – website, criteria booklet, and commentary
CONTACT INFORMATION
PHONE NUMBER
EMAIL ADDRESS
WEBSITE
(850) 922-5316
www.floridasterling.com
