Cost and Performance Management: Creating Value with Measures Presented by Focused Management Inc. Facilitating Performance Improvement Through Better Use Of Information And The Application Of Decision Support Tools 2021/3/4 At Issue Every organization needs to measure and manage performance to satisfy the demands of stakeholders Today’s measurement and management methods are much better than in the past but need to be connected together The speed of change and information age computing and communications leave little margin for errors Decision making needs facts The Fish Tank Syndrome If each person described what they saw, would it be the same description? Perspectives vary! – Which is correct? Implications of The Fish Tank Syndrome We need a variety of perspectives and with which to obtain a balanced, disciplined and dynamic view of our businesses We need to develop a common / agreed understanding of the business and all of its characteristics We need a constantly available set of reference points to which we can return We need a living repository in which locate and maintain knowledge Result – What Is At Stake Inappropriate measurement systems can be costly experiments Sobey’s $50m ERP write off Boeing’s production problems in the late 1990’s Malcolm Baldridge winner, Wallace Co’ bankrupt Fortune 500 companies will face a $ Billion knowledge deficit next year By how much can profit be increased by changing your product/market mix to focus on your most profitable products Performance Architecture A combination of a business logic methodology, relevant software and systems capability. The links between the tools are as important as the tools themselves. Performance Architecture to Drive Value Systems Enabled
