Beyond Performance Management by Jeremy Hope Steve Player

Author:Jeremy Hope, Steve Player
Language: eng
Format: epub
ISBN: 9781422142264
Publisher: Harvard Business Review Press

What is the performance potential of this practice?

To reduce costs. In the typical organizational hierarchy, work is done in well-defined functions and departments. There are multiple handoffs between each team, and, in a manufacturing operation, this leads to buffer stocks to ensure that one process connects with another without disruption. The result is excess cost. In the process-based organization, teams connect and combine to provide a seamless solution to the customer. Only those processes and activities that are necessary and add value to the customer are performed. The result is the elimination of swaths of nonvalue-adding costs.

To improve quality. Despite the implementation of total quality management, quality is inevitably compromised when there are disconnections between processes. Errors and rework are inevitable. Quality is built into well-designed processes and is a key performance indicator for the process team. The result is lower-cost products and higher customer satisfaction.

To improve cycle times. Operating through disconnected functions and departments is invariably slow, as documents and transactions enter queues, then are batched, scanned, and archived at each stage. Speed is of the essence in the process flow system as one team hands over to the next. What’s important is that the handover from one workstation to the next goes smoothly.

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