Process performance measurement. Do you include your employees' perception? critical stakeholders for perfomance enhancement.

1. Performance Measurement.
Integration of Information for
Process Improvement and
Innovation
Palmira López-Fresno
Corporate Quality Director – RACC
President Service Quality Committee - AEC
13 th ICIT. Malaysia 24-26 March, 2008
correo@palmiralopezfresno.com

2. I. Introduction
Process Management, a mechanism
for achieving competitive advantage
through performance improvement.

3. I. Introduction
PROCESSES FUNCTIONS
Overall process performance depends on the
performance of each phase of the process. The
concept and role of internal customer is critical
for overall effectiveness.

4. II. Process performance monitoring and evaluation
Business Process Management involves the use
of a measurement system.
One of the first pre-requisites for quality of
information is to incorporate information related
to all the stakeholders, from a holistic
perspective.

5. Profitability
Obtained
Improvements
Losses
Cost-effect. analysis
Competency
Policies
Budget
Measurem.
of impact on
customers
Communication
Customer Service
Use/knowledge
Measurem.
of efficacy
Measurem.
of customer
satisfaction
Measurem.
of orientation
to customers
EXPECTED
QUALITY
OBJECTIVE
QUALITY
PERCEIVED
QUALITY
PRODUCED
QUALITY
ORGANISATION
(Internal perspective)
(Process based
indicators)
CUSTOMERS
(External perspective)
(Customer based
indicators)
II. Process performance monitoring and evaluation

6. II. Process performance monitoring and evaluation
This cycle can be applied to external or internal
customers and also to other stakeholders.
For each process the organization should have
indicators related to produced quality (efficiency,
cost, time, resources, etc.) and to perceived
quality (quantitative and qualitative).

7. The incorporation of
the internal customer
voice to the
performance
measurement system
A case experience
EXPECTED
PERFORMANCE
PERCEIVED
PERFORMANCE

8. III. Internal customers perceived quality evaluation
Main element for
process
effectiveness
monitoring
DISSENY AND
METHODOLOGY
IDENTIFICATION AND
QUALIFICATION OF
PROCESSES
Indicators
system
Inventory Maps Flow charts
Process
Management
Manual
PROCESS MONITORING
Process Performance Monitoring
Scorecards
PERIODICAL
EVALUATION OF
PROCESSES
Internal and external customer
voice
Results from analysis of
indicators Benchmarking
Continuous
improvement
and innovation

9. III. Internal customers perceived quality evaluation
The process performance monitoring system
was initially integrated by objective indicators
(internal perspective). External customer
satisfaction was also monthly monitored (data
analyzed separately).
An internal customer perceived quality
evaluation was implemented, in order to
complement the information the organization
had for decision making.

10. III. Internal customers perceived quality evaluation
 To identify areas/aspects of poor
performance.
 To identify causes of poor performance.
 To increase employees awareness with
process management .
The final aim was to periodically identify the
processes, sub-processes or phases that
should be improved.
Objectives:

11. III. Internal customers perceived quality evaluation
 Evaluation performed quarterly, via intranet, by
the Corporate Quality Direction.
 Addressed yearly to all employees. A sample
of 25 % each quarter. Anonymous answering.
 Evaluation of 13 main macro processes.
 A questionnaire designed for each process,
specific questions for some products, and a
question related to global performance of the
process.
Methodology:

12. III. Internal customers perceived quality evaluation
 Numeric scale, 5 grades, except some
questions related to frequency of use. An open
question to specify the 3 main improvement
aspects in the process.
Methodology:
 Each person evaluates the processes in which
he/she is mainly involved, from a perspective
of internal supplier-customer.

13. III. Internal customers perceived quality evaluation
 By key attributes, at a corporate level (linked to
compliance of values)
Results:
 By process (horizontal view)
 By unit /department (vertical view)

14. III. Internal customers perceived quality evaluation
 Quantitative
 Qualitative
 Priorization of aspects to be improved for each
process (Importance-Performance Map), and
globally (key processes, by linking processes
to strategic lines).
Results:

15. III. Internal customers perceived quality evaluation
Global results:
 Increased employees awareness and motivation
with regard to process management.
 Better identification of causes of negative
tendencies; identification of improvements and
innovation in processes and products.
 Better allocation of resources.
 Anticipation of negative results.

16. IV. Conclusions
 Two perspectives should be considered when
defining a measurement system: internal or process
based indicators (produced quality), and external or
customer based indicators (perceived quality).
 Internal customers provide very useful information
on how processes are performing and which areas
should be improved or innovated.
 Tools to prioritize improvement should be applied.

17. Thank you
Terima Kasih
Palmira López-Fresno
Corporate Quality Director – RACC
President Service Quality Committee - AEC
correo@palmiralopezfresno.com
13 th ICIT. Malaysia, Kuala Lumpur, 24-26 March 2008