Final Project: Performance Management Plan Development Project
DIRECTIONS:
Overview:
Using the Balanced Scorecard Institute (BSI) framework, you can see that developing KPIs is a systematic process that begins with understanding the goal of the strategy of the firm. Thus, it is important to frame your plan using the strategy as your goal. The BSI framework is a subset of the final project deliverable and is KEY to your success.
KPI Process Using BSI Framework (slightly modified by the following to meet the needs of this course:
https://www.balancedscorecard.org/
https://www.balancedscorecard.org/Solutions/KPIs
https://kpi.org/KPI-Basics
Pre-KPI: Always begin by articulating your strategy properly.
KPI development steps:
• Describe the intended result(s)
• Understand alternative measures
• Select the right measurement(s) for each goal/objective
• Define composite indicators as needed
• Set targets and thresholds
• Define and document selected performance measures
Performance analysis steps:
• Propose an appropriate automation tool
• Show how you would collect and monitor performance
• Show how you would analyze and draw conclusions
• Provide an improve performance plan
Writing Your PM Plan:
If this is your first time to write this type of plan, I recommend that you think of it as a project and outline the process of building a plan for execution by your firm. Think of this as if you are developing the plan and then trying to gain management approval to use such plan in their business.
So, this type of paper is a like a business case analysis arguing the PM Plan acceptance. Thus, you will need to establish where your PM Plan is located and for what company. From there, you will analyze the company including its strategy, its competitors, its market, its products/services and its financials. You will then work the KPI process to establish your overall PM Plan resulting in a final scorecard. You will also have an implementation plan, reporting plan, and a plan for continual improvements/refinements.
For the presentation, it will be timed (so you have to strategize what to put into your presentation and how you are going to sell your PM plan). Your goal is to explain your plan as if you have the management of the company in the room and you are selling them on your ideas of how to improve their organization using EPM/PM planning.
The overall process is detailed in the following Table of Contents which you must follow. On the last page, there are further comments/instructions to assist you in completing the table of contents process which leads to a solid EPM/PM plan. However, do not hesitate to contact me to discuss any section that is unclear. This process is critical to the building of a strong performance management system.
NOTE: This Table of Contents is designed for a broad use – Company, Department, and Project EPM/PM planning can use it. Where you see “Company” in the Table of Contents, this may change depending on your focus. If you are a department manager and doing a plan, then you should change all “Company” to your department. If you are doing a project, then you should change all “Company” in the table to read your project name.
Table of Contents – MUST USE THIS AND MUST HAVE PAGE NUMBERS TO EACH OF THE SECTIONS:
1) Executive Summary
2) Overview of the Company’s Landscape
a) Background of the company
b) Overall current performance – Financially and Company-wide
c) Company Strategies
i) Product Strategies
ii) Service Strategies
d) Market and Competitor Analysis
e) Additional Support Data
3) KPI Process Using BSC Framework
a) EPM Intended Result(s)
b) Proposed Brainstorm of Key Measures
c) Defined and Documented Selected Performance Measures
d) Define Composite Indicators
e) Established Targets and Thresholds
4) Mock-up Balanced Scorecard for the Company
a) Proposed Scorecard Overview
b) Additional Scorecard Elements:
i) Proposed Automation Tool
ii) Collection and Monitoring Plan
iii) Plan of Analysis of the Data
iv) Performance Improvement Plan
5) Conclusion
a) Plan Recap
b) Approval: “Do I have your approval to proceed with this plan?
Table of Contents – Comments/Guidance Blue: Range of Pages Needed
1) Executive Summary Overview of the whole plan and its focus and goals in brief. This should only be about ½ to 1 page maximum
2) Overview of the Company’s Landscape 3-5 pages maximum
a) Background of the Company The background should explain the company overall mission/vision and its purpose for existing. You should not provide any information that is not of value. So, you need to really think what to put here. This is not a historical timeline of the company but a focused view of the company’s mission and vision leading to the strategies it is trying to execute.
b) Overall Current Performance – Financially and Company-wide This should show the financial performance as well as it is business performance – how it is doing at reaching its strategies currently. This may require research in the University library databases, reading current event articles, looking a trade magazine articles….etc.
c) Company Strategies A brief description of the company’s strategies should go here.
i) Product Strategies This is a more detailed look at specific Product-type strategies. Selection and knowledge of these help to understand how to design the EPM/PM well.
ii) Service Strategies This is a more detailed look at specific Service-type strategies. Selection and knowledge of these help to understand how to design the EPM/PM well.
d) Market and Competitor Analysis Listing the top competitors and analyzing the market you are in is critical to understanding performance of an organization. Select not only the top competitors, but others in different fields that may lead to insights of better run companies/departments.
e) Additional Important Data Any other data needed to better understand the company’s landscape
3) KPI Process Using BSC Framework 7-10 pages maximum
a) EPM Intended Result(s) Describe the intended result(s) of the plan. These should come from understanding what and where the company is. Most of the information will come from Section 2 above. This helps to see where there are issues and where you can develop measures to block/solve such issues
b) Proposed Brainstorm of Key Measures Describe, in detail, measures (4-5 measures) that are key to getting to the intended results in 3a. This section requires A LOT of thought and critical thinking. Review the BSC and see how the strategy map shows the connections of the 4 categories of the BSC. If unsure of the connects, re-research the BSC to see how it works with strategy mapping
c) Defined and Documented Selected Performance Measures Select the right measurement(s) for each goal/objective (see the Excel Spreadsheet in eLearning). In this section, define such performance measures explaining and justifying why you think they are the best measures to look at for your EPM/PM plan. You should have 2-3 selected measures for each category of the BSC…see the Excel File.
d) Defined Composite Indicators Some plans do not have Composite Indicators because they are at the lowest levels. Still, you need to think about them always. So, a Composite Indicator takes “Selected PM” and see’s if you can combined them into a higher-level measurement.
e) Established Targets and Thresholds Describe in detail, what are the targets and thresholds you have chosen for the plan. For each Target/Threshold, you need to have a. how it ties to the measure and b. why you chose it.
4) Develop the Mock-up Scorecard for the Company
4-5 pages maximum
a) Proposed Scorecard Overview Describe the scorecard proposed for the company and why it is important to adopt. This should be about 1 page long.
b) Additional Scorecard Elements: Include:
i) Proposed Automation Tool Research possible EPM Automation Tools that could be used to help computerize the gathering and reporting of a dashboard. There are many out there that are inexpensive beyond the major tools. You need to research and understand them. You do not always start with the tool. You MUST understand what you want from the tool first so the plan must be completed first before moving it to automation.
ii) Collection and Monitoring Plan Collection and Monitoring Plans show how you plan to collect the data for the scorecard. Is this monthly, weekly, quarterly, and how are you going to be reviewing the plan data to ensure that BIG DATA is coming in correctly?
iii) Plan of Analysis of the Data A Plan on how to analyze data helps to show how you will look at the data. It should answer, “if the data is wrong, what do I do?” It can also include how you see it would lead to conclusions to help the company
iv) Performance Improvement Plan Performance Improvement Planning happens on day-one. You must constantly be thinking about improving your plan, adding new measurements, or refining the ones you have. Here, this is a hypothetical exercise. So, if you could fast forward to the end of the reporting period, what changes might you make to the plan to make it better? Examples could be doing more research on competitors or testing out a measurement you think might be helpful but did not select at this time.
5) Conclusion Briefly describe your plan and its focus. Then discuss why you think this PM Plan would be helpful to the company and provide the next 1-5 steps to begin to implement such plan. End with the question, “Do I have your approval to proceed with this plan?” – as the goal is to gain approval from management to implement such a plan. This should be about 2-3 pages maximum.
Syllabus Instructions:
Performance Management Plan Development Project:
• Development of a Performance Management Plan for a selected organization: The project outcome will be a detailed performance management plan including sections on the company, market and competitor analysis, product strategies, market plan, manufacture plan, financial data, investment data, dashboards/metric tools proposed and overall executive summary. This plan will be formally submitted and should be error free and typed with no more than 20-25 pages excluding attachments and bibliography (at least 10 bibliography sites are required); font at 10-11; spacing at 1.5; margins- normal, APA format for citing’s. Executive Summary will be discussed in last class (5-10 presentation). This project will be due on the last day of class.