Performance Measurement. Integration of Information for

Process Improvement and

Innovation

Palmira López-Fresno

Corporate Quality Director – RACC

President Service Quality Committee - AEC

13 th ICIT. Malaysia 24-26 March, 2008

correo@palmiralopezfresno.com

I. Introduction

Process Management, a mechanism

for achieving competitive advantage

through performance improvement.

I. Introduction

PR

OC

ES

SE

S

FUNCTIONS

Overall process performance depends on the

performance of each phase of the process. The

concept and role of internal customer is critical

for overall effectiveness.

II. Process performance monitoring and evaluation

Business Process Management involves the use

of a measurement system.

One of the first pre-requisites for quality of

information is to incorporate information related

to all the stakeholders, from a holistic

perspective.

Profitability Obtained

Improvements Losses

Cost-effect. analysis Competency

Policies Budget

Measurem. of impact on

customers

Communication Customer Service

Use/knowledge

Measurem. of efficacy

Measurem. of customer satisfaction

Measurem. of orientation to customers

EXPECTED QUALITY

OBJECTIVE QUALITY

PERCEIVED QUALITY

PRODUCED QUALITY

ORGANISATION

(Internal perspective)

(Process based

indicators)

CUSTOMERS

(External perspective)

(Customer based

indicators)

II. Process performance monitoring and evaluation

II. Process performance monitoring and evaluation

This cycle can be applied to external or internal

customers and also to other stakeholders.

For each process the organization should have

indicators related to produced quality (efficiency,

cost, time, resources, etc.) and to perceived

quality (quantitative and qualitative).

The incorporation of

the internal customer

voice to the

performance

measurement system

A case experience

EXPECTED PERFORMANCE

PERCEIVED PERFORMANCE

III. Internal customers perceived quality evaluation

Main element for

process

effectiveness

monitoring

DISSENY AND

METHODOLOGY

IDENTIFICATION AND QUALIFICATION OF

PROCESSES

Indicators system

Inventory Maps Flow charts

Process Management

Manual

PROCESS MONITORING

Process Performance Monitoring Scorecards

PERIODICAL EVALUATION OF

PROCESSES

Internal and external customer

voice

Results from analysis of

indicators Benchmarking

Continuous improvement

and innovation

III. Internal customers perceived quality evaluation

The process performance monitoring system

was initially integrated by objective indicators

(internal perspective). External customer

satisfaction was also monthly monitored (data

analyzed separately).

An internal customer perceived quality

evaluation was implemented, in order to

complement the information the organization

had for decision making.

III. Internal customers perceived quality evaluation

To identify areas/aspects of poor

performance.

To identify causes of poor performance.

To increase employees awareness with

process management .

The final aim was to periodically identify the

processes, sub-processes or phases that

should be improved.

Objectives:

III. Internal customers perceived quality evaluation

Evaluation performed quarterly, via intranet, by

the Corporate Quality Direction.

Addressed yearly to all employees. A sample

of 25 % each quarter. Anonymous answering.

Evaluation of 13 main macro processes.

A questionnaire designed for each process,

specific questions for some products, and a

question related to global performance of the

process.

Methodology:

III. Internal customers perceived quality evaluation

Numeric scale, 5 grades, except some

questions related to frequency of use. An open

question to specify the 3 main improvement

aspects in the process.

Methodology:

Each person evaluates the processes in which

he/she is mainly involved, from a perspective

of internal supplier-customer.

III. Internal customers perceived quality evaluation

By key attributes, at a corporate level (linked to

compliance of values)

Results:

By process (horizontal view)

By unit /department (vertical view)

III. Internal customers perceived quality evaluation

Quantitative

Qualitative

Priorization of aspects to be improved for each

process (Importance-Performance Map), and

globally (key processes, by linking processes

to strategic lines).

Results:

III. Internal customers perceived quality evaluation

Global results:

Increased employees awareness and motivation

with regard to process management.

Better identification of causes of negative

tendencies; identification of improvements and

innovation in processes and products.

Better allocation of resources.

Anticipation of negative results.

IV. Conclusions

Two perspectives should be considered when

defining a measurement system: internal or process

based indicators (produced quality), and external or

customer based indicators (perceived quality).

Internal customers provide very useful information

on how processes are performing and which areas

should be improved or innovated.

Tools to prioritize improvement should be applied.

Thank you

Terima Kasih Palmira López-Fresno

Corporate Quality Director – RACC

President Service Quality Committee - AEC

correo@palmiralopezfresno.com

13 th ICIT. Malaysia, Kuala Lumpur, 24-26 March 2008