The document discusses performance appraisal and the balanced scorecard approach. It describes the balanced scorecard as a framework that uses financial measures and measures regarding customers, internal processes, and learning/growth. It provides examples of performance measures that could be used for each of these perspectives in a balanced scorecard.
2. -When they are going to get time?
-They‘ll make time.
-Don’t they have real work to do?
-This is the real work.
The Gentleman’s Three
by Brian J. Hall & Andrew Wasynczuk
4. Trait-based
Information
Job Behavior-based
Performance? Information
Results-based
Information
Types of Performance Information
5. Criticisms of Performance Appraisal
◦ Focus is too much on the individual and does
little to develop employees.
◦ Employees and supervisors believe the
appraisal process is seriously flawed.
◦ Appraisals are inconsistent, short-term
oriented, subjective, and useful only at the
extremes of performance.
Uses of Performance Appraisal
9. What is the BSC?
Financial
To succeed Objectives Measures Targets Initiative
excel at?
must we
processes
business
what
customers,
s and
shareholder
our
To satisfy
Initiatives
financially,
how should
we appear to
our
shareholders?
Objectives
Targets
Customer
VISION
s
Measure
Measures
Internal Business
AND
STRATEGY
Process
Targets
Objective
Learning & Growth
s
Initiatives
To achieve
our vision,
Objective Measures Targets Initiatives
customers?
vision, how
To achieve
s
should we
appear to
how will we
sustain our
ability to
our
our
change and
improve?
10. Performance Measures in Financial Perspective
Return on investment Cross-selling
Economic value added Customer and product line
Sales growth rate by segment profitability
Percentage revenue from new Revenue/employee
product, service, or customer Cost reduction rate
Share targeted customer an Unit cost
account
Payback
Cross-selling
Return on Capital Employed
Working capital ratios (cash-to-
cash cycle)
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11. Customer Perspective
Information about market & customer
Customer selection, acquisition, retention & growth
Who are profitable customers?
— Target Segmentations
What do they need? [same as the thing we serve them]
— Customer Values Propositions (e.g. QSC&V –
quality, services, cleanliness, and value)
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12. Performance Measures in Customer Perspective
Market Share: Reflects the proportion of business in a given
market (in term of number of customer, dollar spent, or unit
volume sold) that a business unit sells.
Customer Acquisition: Measures, in absolute or relative, the rate
at which a business unit attracts wins new customers or business.
Customer Retention: Measures, in absolute or relative, the rate at
which a business unit retains or maintains ongoing relationships
with its customers.
Customer Satisfaction: Assesses the satisfaction level of
customers along specific performance criteria within the value
proposition.
Customer Profitability: Measures the net profit of a
customer, after allowing for the unique expenses required to
support customer.
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13. Performance Measures in Customer Perspective
Market Share: Reflects the proportion of business in a given market (in term of
number of customer, dollar spent, or unit volume sold) that a business unit sells.
Customer Acquisition: Measures, in absolute or relative, the rate at which a
business unit attracts wins new customers or business.
Customer Retention: Measures, in absolute or relative, the rate at which a
business unit retains or maintains ongoing relationships with its customers.
Customer Satisfaction: Assesses the satisfaction level of customers along
specific performance criteria within the value proposition.
Customer Profitability: Measures the net profit of a customer, after allowing
for the unique expenses required to support customer.
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14. Performance Measures in Internal Process Perspective
Quality Rework
Response time New product introduction
Cost Service error rate
Yields
Product development cycle
Waste
Hours with customer
Scrap
Time to market
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15. Performance Measures in Learning & Growth Perspective
Employee satisfaction
Employee retention/turnover rate
Employee productivity
Information system availability
Organizational Climate Index
Personal Goals Alignment Index
Staff development
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