APQC study id’s best management practices that drive bottom line

Houston, Texas — APQC has released the results of its latest best practices study, Using Metrics that Drive Bottom-Line Value. The study outlines how successful companies are using performance measurement systems to uncover risks and opportunities, develop management strategies, and drive business success, said a release.

Global consulting firm Accenture also supported the study, lending insights into business process management to help direct the research.

APQC’s research featured four organizations, Cargill Corn Milling, Delta Dental of Kansas, DM Petroleum Operations, and Public Service Electric & Gas, that experience competitive gains and successful business outcomes as a result of their performance measurement practices.

The practices include: aligning measures with strategic objectives by: requiring senior management (a centralized team or group) to analyze the business value stream, using collaboration systems that allow direct stakeholder feedback, linking measures to high-impact business processes, using “voice of customer” feedback from external and internal customers to identify and validate measures, and define customer-centric metrics, assigning an owner of the measurement system to maintain consistent collection and reporting approaches across the organization, and using the following change management techniques to secure buy-in for measurement:

-create a sense of ownership by involving staff in the development of the measurement system

-Provide a documented roadmap for the measurement process and outcomes

-Using a variety of techniques to foster accountability within the organization:

-Including measures as part of performance appraisals

-Connecting those measures with compensation

 “In this study we learned that organizations with measurement systems that truly impact their business outcomes share several key attributes,” said Chris Gardner, director, performance improvement, APQC.

“Some of these include having a business process management (BPM) center of excellence; a strong or very strong alignment of the organization’s measures with its strategic objectives; compensation and rewards that are linked to achieving targeted measures and results; a process to provide pertinent measurement data to the employees doing the work being measured; a culture of accountability for measures and results; and a centralized group responsible for analytics.” 

“The importance of selecting the right metrics via focused planning and stakeholder involvement provides an important foundation for achieving value-driven business process management,” said Dr. Mathias Kirchmer, executive director of Business Process Management at Accenture. “Process-oriented metrics can contribute significantly to the transparency organizations desire to support fast, well-informed decision making.”