OE21 7.5 Financial and Market Results

Achieve excellent results in financial and marketplace results and value

Strategic Objective:

Strategic Objective:

Measure and improve financial and marketplace results

Quality Objective:

Quality Objective:

Responsibility:

Lead: Leadership Focus Team (LFT-IT)  Support: Other focus teams, FAC

Strategic Objective:

Strategic Objective:

Approved by: G. Washington, Chair, Leadership Focus Team (LFT)

Approved: 20-Dec-17

VALUE ADDED

  1. Provides Trend Chart result for Baldrige 7.5 Financial and Market Results

  2. Supports Organization Performance Reviews and Action Plans

  3. Supports continuous improvement toward excellence of Results

  4. Ensures that the organization is focused on results

  5. Aligns results targets (goals) with all organization needs

  6. Facilitates Performance Reviews of Key Process Indicators (KPIs)

  7. Facilitates Continuous Improvements throughout the organization

  8. Improves decision making based on facts and trends

  9. Creates opportunities for Innovation to solve problems or improve performance in all areas of the organization

POLICY           7.5 COMMENTARY

(1) Financial Performance - The organization selects, measures and improves current levels and trends in key measures or indicators of financial performance, including aggregate measures of financial return, financial viability, and budgetary performance, as appropriate. The organization learns how these results differ by market segments and customer groups and applies this learning to provide additional value to these market segments and customer groups.

 

(2) Marketplace Performance - The organization selects, measures and improves marketplace performance results, including current levels and trends in key measures or indicators of marketplace performance, market share or position, market and market share growth, and new markets entered, as appropriate. The organization learns how these results differ by market segments and customer groups, and applies this learning to provide additional value to these market segments and customer groups

PROCESS

Process Flow Diagram for 7.5 

Process Chart for 7.1, 7.2, 7.3, 7.4 and 7.5 Results

Performance Management System (PMS) Requirements

Performance Measurement System Requirements

Performance Measurement System (PMS) - The Leadership Focus Team (LFT) acquires or licenses the Performance Measurement System (PMS) from a vendor unless the organization has its own PMS. The LFT ensures that the PMS has the following minimum capabilities:

 

  • Web Based with secure database and administration login features

  • The number of Key Intended Outcomes (KIOs) should be at least five; or unlimited

  • The number of Strategic Objectives should be unlimited

  • The number of Key Performance Indicators (KPIs) should be unlimited

  • The ability to add "Sub-KPIs" below each KPI

  • The ability of KPIs to track 1 to 12 months of measures and targets

  • The ability of KPIs to store at least 60 months of measures & targets

  • The ability of KPIs to allow input of narrative Action Plans

  • The ability to administer access rights to PMS login, and to KIOs and KPIs

 

PMS Trend Charts - The OE21 tools include PMS spreadsheet files which may serve as a temporary Performance Measurement System until such time the organization acquires or creates a more capable Performance Measurement System. The OE21 PMS Trend Charts have the following characteristics:

 

  • A measure is color-coded (blue) with measure values overlaid

  • Measure trend is projected from measure forward (dotted line)

  • Target (black) is the goal that the measure should reach or exceed

  • Alpha (green) is a benchmark comparison of another organization

  • Bravo (red) is another benchmark comparison of another organization

  • Analysis Narrative is written by the owner of the measure (or assignee)

  • Action Plan Narrative is written by the owner of the measure (or assignee)

  • Name of person responsible for measure collection and validity is provided

 

OE21 PMS Files - There are four (4) OE21 PMS spreadsheet workbooks that may be used before a more capable Performance Measurement System is acquired or licensed:  

 

Each of these PMS workbooks contains up to twenty (20) PMS Trend Charts with input data logs.

Inputs to 7.5 Financial and Market Results

  • List of Key Competitors or Comparative Organizations for selecting Trend Chart benchmarks

Measurement and Analysis Tools and Techniques

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (.xlsx) - Metrics List, Guidelines, M-Table, and 20 Trend Chart tabs

Outputs from 7.5 Financial and Market Results

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (.xlsx) - with up to 20 Trend Charts, each with a measure and trend line, a target (goal), two benchmark measures and a brief narrative action plan for who will do what and when to drive the measure to or beyond the target.

Case Study (not applicable)

7.5 Implementation Instructions

7.5 IMPLEMENTATION INSTRUCTIONS

Note: Implementation of 7.5 is led by the LFT-IT and supported by the other focus teams (CFT, OFT and WFT). When complete, the 7.5 outputs are reviewed and approved by the LFT (CEO, CFO, etc.)

Task 7.5-1 Select Performance Measures - The Leadership Focus Team (LFT) selects performance measures for this category. Measures are selected based upon contribution to, review, and improvement of performance, in each of these results:

 

  • 7.5a(1) Financial Performance Results

  • 7.5a(2) Marketplace Performance Results

The LFT uses the PMS Metrics Selection Tables in Figure 7.5-1 as a reference to help select measures and targets (goals) for the results items listed above.

 

NOTE 1: The PMS Metrics Selection Tables reference many of the Oe21 spreadsheet and survey models, which are a primary source of the performance measures selected for input into the Performance Measurement System (PMS). 

 

NOTE 2: As organizations mature and grow, they should consider licensing a good platform for their PMS needs, including Business Intelligence (BI) capability. The BI capability enables many additional analysis capabilities including the correlation of one data measure with others. The new BI systems (e.g. Microsoft PowerBI) also enable data connectivity and advanced charting and analysis of multiple types of performance measures.  

Figure 7.5-1 Metrics Tables for Financial and Marketplace Results

Task 7.5.2 Select Performance Measures from Oe21 Spreadsheets & Surveys - The Leadership Focus Team (LFT) assigns the person(s) responsible for the collection of performance measures that originate from outputs of the Oe21 spreadsheets and surveys. Some of these outputs may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21.

 

Task 7.5.3 - Collect and analyze Comparative Data (competitor benchmarks) The Focus Teams select competitive or comparative organizations that are sources of benchmark comparative data and information. The benchmark data may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21. 

 

Task 7.5.4 Collect and Input Performance Measures into PMS (or BI system) - The Focus Team chairpersons determine who in each focus team are responsible for collecting and input of performance measures and comparative data into the PMS or BI systems used for performance measurement and review. Before each performance review, these responsible persons shall collect, verify and input all data and information into the PMS or BI system.

 

Task 7.5.5 Analyze measures and benchmarks, including correlation where appropriate - The Focus Team chairpersons determine who in each focus team are responsible for analysis of measures and benchmarks, including comparative data used for performance measurement and review. Before each performance review, these responsible persons shall perform analysis and where appropriate, correlation of measures and benchmarks. Example, use the Scatter Diagram tool to compare customer loss to service defect rates. 

 

Task 7.5.6 Create action plans to drive measured to or beyond target values - The Focus Team chairpersons determine who in each focus team are responsible for the creation of action plans used to explain how measures will be driven toward or beyond target values. Before each performance review, the action plans will be input and verified as accurate, timely and appropriate actions, including who will do what to achieve the desired target value. The action plan analysis narrative should explain the direction of the trend (upward, no change, or downward) and add useful statements regarding what happened to date and where the trend is projected to go in the future. 

 

Task 7.5.7 Use PMS or BI to review Performance Measures and Action Plans - The Leadership Focus Team (LFT) attends regular (monthly) reviews of the performance measures current values, trends, and projections of measures for selected performance measures in the PMS or BI platform systems. ​

OE21 PMS Files - There are four (4) OE21 PMS spreadsheet workbooks that may be used before a more capable Performance Measurement System is acquired or licensed.  Download and preview each of these workbooks: 

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (.xlsx) 

  • CFT_7.2_PMS_Customer_Excellence_Metrics (.xlsx)

  • OFT_7.1_PMS_Operations_Excellence_Metrics (.xlsx)

  • WFT_7.3_PMS_Workforce_Excellence_Metrics (.xlsx)

 

Each of these PMS workbooks contains up to twenty (20) PMS Trend Charts with input data logs.

 

Figure 7.5-2 is an example of a Trend Chart with Analysis and Action Plan input. 

 

The Action Plan review the Analysis and Action Plan narratives that help define what is going on with the trends, and what steps must be implemented to drive the measure to or beyond its Target value.

 

7.5 OUTPUTS

 

  • Performance Measures (Trend Charts)

  • Performance Measures Analysis Narrative

  • Performance Measures Action Plan Narrative

 

Figure 7.5-2 Trend Chart and Action Plan for Financial Results (example)