PMA 2012 - From Strategy to Delivery, 11-13, July. CAMbridge, UK Later on a revised version of the conference paper was published in MBE: http://www.emeraldinsight.com/doi/abs/10.1108/MBE-08-2013-0045

1. PMA 2012 - FROM STRATEGY TO DELIVERY, 11-13, JULY. CAMBRIDGE, UK / HARRI
LAIHONEN, AKI JÄÄSKELÄINEN, SANNAPEKKOLA
EMPIRICAL CALL FOR SYSTEMIC
PERFORMANCE MEASUREMENT

2. AGENDA
• Context/background
• Three case studies
• What do we mean by systemic PM and why?
• Summary and conclusions
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3. CONTEXT/BACKGROUND
• 3 year research project ”Innovative service metrics”
• 9 researchers
• 38 interviews
• Around 50 workshops
 A strategic need to illustrate the overall outcomes and effectiveness
of inter-organizational service chains
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4. EMPIRICAL STUDY
• The empirical study was carried out between 5/2011 and 3/2012.
• The studied case environments were family welfare clinic of the City
of Tampere (Finland), joint infrastructure construction of the City of
Helsinki (Finland), and a franchising network, providing kitchen
fitments.
Workshop I Workshop II Workshop III Workshop IV
PURPOSE
Modeling service
operations
RESEARCH QUESTION
What are the key
performance drivers?
PURPOSE
Defining measurement
approach
RESEARCH QUESTION
What kind of an
approach suites?
PURPOSE
Recognizing a need for
new measures?
RESEARCH QUESTION
What is the status of
measurement?
PURPOSE
Developing new
measures
RESEARCH QUESTION
What kind of measures
fit the context?
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5. CITY OF TAMPERE - FAMILY WELFARE
CLINIC
• A new way of organizing the care. The distinctive feature lays in the multi-professional
teams that bring together personnel with different
professional backgrounds.
• One of the main objectives of the clinic is to intensify collaboration
between 25 welfare clinics, district hospital and other social services.
• The purchaser of services, needs information about the effectiveness in
order to complement the traditional productivity perspective.
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6. CITY OF TAMPERE - FAMILY WELFARE
CLINIC
• A new way of organizing the care. The distinctive feature lays in the multi-professional
teams that bring together personnel with different
• Need to demonstrate the value of a new multi-professional service
• Outcomes always result from the joint efforts of several
professional backgrounds.
organizations
• One of the main objectives of the clinic is to intensify collaboration
• Organization-oriented measurement approach has led to poor
between 25 welfare clinics, district hospital and other social services.
collaboration of different professionals
• Linking the perspectives of a purchaser (effectiveness) and a
• The purchaser of services, needs information about the effectiveness in
producer (efficiency)
order to complement the traditional productivity perspective.
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7. CITY OF HELSINKI - JOINT
INFRASTRUCTURE CONSTRUCTION
• Measurement information is needed to determine whether the strategic
objectives are met or not. This view represents the customer perspective.
• A need to identify pitfalls in construction processes in order to improve
fluency of operations
• Measurement should also support the implementation of a joint working
culture
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8. CITY OF HELSINKI - JOINT
INFRASTRUCTURE CONSTRUCTION
• Measurement information is needed to determine whether the strategic
objectives • Need to are demonstrate met or not. the This value view of represents a new inter-the organizational
customer perspective.
service
• A need to identify pitfalls in construction processes in order to improve
• The public sees the effect of joint work of all operators (e.g. a
fluency of operations
closed street)
• Organization-oriented approach has led to sub-optimization and
• Measurement should also support the implementation of a joint working
poorly organized work
culture
• Lacking organizational culture for inter-organizational collaboration
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9. FRANCHISING NETWORK - PROVIDING
KITCHEN FITMENTS
• Franchising network consists of a parent company manufacturing kitchen
fitments and resellers selling these products to customers.
• A need to better integrate customer perspective to networked
performance measurement
• A need to understand how customer value is created and what the quality
of the whole customer service process is.
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10. FRANCHISING NETWORK - PROVIDING
KITCHEN FITMENTS
• Franchising • Need for network more detailed consists evaluation of a parent of the company quality manufacturing of the overall
kitchen
customer service process
fitments and resellers selling these products to customers.
• The overall service process always results from the joint efforts of
• A need to better integrate customer perspective to networked
several processes
performance measurement
• Organization and process-oriented approach has led to sub-optimization
and poor flow of information
• A need to understand how customer value is created and what the quality
• Lacking measurement culture for inter-organizational collaboration
of the whole customer service process is.
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11. GENERALIZING FROM THE CASE
STUDIES
Service operations
Network of actors
PERSPECTIVE III: Customer-perceived
performance of service operations
- Focus of measurement Ability to meet
customers’ expectations
PERSPECTIVE II: Internal performance of
the service network
- Focus of measurement : Ability of the
network to meet shared objectives
PERSPECTIVE I: Performance of
individual organizations
- Focus of measurement: Ability to reach
organizational goals
Compose a network
Service providers
Provides the service

12. DEFINITION: SYSTEMIC PERFORMANCE
• The performance of a service system is defined by three components:
1. performance of individual organizations (i.e., their ability to reach their
objectives),
2. internal performance of the service network (i.e., ability of the network to
meet shared objectives), and
3. customer-perceived performance of service operations (i.e., networks
ability to meet customers’ expectations).
See also: Lönnqvist, A. and Laihonen, H. (2012) “Welfare service system productivity: the concept and its application”,
International Journal of Productivity and Performance Management, 61(2), pp. 128 – 141.
 In order to capture the performance of the service system each of these
perspectives should also be measured!
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13. CONCLUSIONS
• Systemic approach is needed because:
1. it represents a genuine customer perspective on performance and
complements the internal focus of network-level measurement
2. networked nature of service provision challenges the organization-specific
measurement approaches – value is co-created and
organization-specific measurement solutions paint only a partial picture
on the capability of a service system to provide services efficiently and
effectively
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14. CONTACT
• Dr. Harri Laihonen, Tampere University of Technology,
harri.laihonen@tut.fi
• Dr. Aki Jääskeläinen, Tampere University of Technology,
aki.jaaskelainen@tut.fi
• Ms. Sanna Pekkola, Lappeenranta University of Technology, Lahti
School of Innovation,
sanna.pekkola@lut.fi
• http://www.tut.fi/pmteam
• http://www.lut.fi/en/lahti
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