Performance measurement strategic

The reporting process also enabled us to take inventory of our performance measures, our current sustainability initiatives, and our strategic framework for continuous improvement in corporate transparency. 

Rigorous techniques for technical effectiveness and performance measurement exist and have been used for years and must be mined for applicable lessons and directions for the pharmacometrics enterprise. The development of an integrated solution to these strategic and technical challenges is a particularly difficult, but nonetheless crucial, effort that will define the level of performance achievable by a pharmacometrics service in model-based development. 

Figure 20 provides some illustrative examples of financial and nonfinandal measures for a large management consulting firm, using the measurement framework shown in Figure 19. The performance measures are designed to provide feedback regarding implementation of strategic initiatives.

Most companies rely on budgets built on traditional accounting practice to measure their performance. Earlier in this chapter, in the description of market mediation cost, we pointed out the pitfalls. A preference for arms length relationships also stands in the way of multicompany efforts. Few in traditional departments such as procurement are prepared, by education, training, or inclination, to work strategically with suppliers. In fact, most performance measures discourage such activity. 

Of greater value is the ability to discover strategic supply chain opportunities. The questionnaire will not tell how but can point to the what, the output of the QFD matrix. These could be needs that no current supplier does a good job of satisfying. The strategic initiatives described in Chapter 10 are examples of responses to needs like these. In many cases, the strategic projects may also reinforce needs to improve in customer-critical performance measures. 

This is the process of quantifying action, of measuring performance. It recognises that the level of performance a business attains is a function of the efficiency and effectiveness of the actions undertaken by its management. Discredited by their focus on the short-term and lack of strategic focus, traditional cost-accounting performance measures have tended to be... 

Case 4 Establishing a supply chain performance measurement system An SME is trying to impiement a suppiy chain performance measurement system to assess the performance of its supply chain. The company wants to measure the efficiency of its operations and the atteiinment of its objectives with the given resources. In case a strategic supply chain orientation is not yet in place, the company can implement SCD Phase 1 CM1 before starting to implement the 1 ... 

These ideas transfer readily into the management of logistics and supply chain strategy. If suitable performance measures can be identified that link with the achievement of these strategic goals they can become the basis for a more appropriate scorecard than might traditionally be the case. 

Quality in the Chemical Industry. The chemical iadustry uses quahty as a strategic tool for financial success. Oae measure of quahty is the degree of product variatioa from lot to lot. Ia the chemical iadustry, it is oftea difficult to provide product speciftcatioas comprehensive eaough to easure product performance ia all apphcatioas (21). Therefore, the manufacture of product having a minimum of lot-to-lot variabihty allows the customer to use the product without modifying their formulation or process to accommodate such variation. 

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