Cost and Performance Management: Creating Value with Measures Presented by Focused Management Inc.
Facilitating Performance Improvement Through Better Use Of Information And The Application Of Decision Support Tools
Every organization needs to measure and manage performance to satisfy the demands of stakeholders
Today’s measurement and management methods are much better than in the past but need to be connected together
The speed of change and information age computing and communications leave little margin for errors
Decision making needs facts
The Fish Tank Syndrome
If each person described what they saw, would it be the same description?
– Which is correct?
Implications of The Fish Tank Syndrome
We need a variety of perspectives and with which to obtain a balanced, disciplined and dynamic view of our businesses
We need to develop a common / agreed understanding of the business and all of its characteristics
We need a constantly available set of reference points to which we can return
We need a living repository in which locate and maintain knowledge
Result – What Is At Stake
Inappropriate measurement systems can be costly experiments
Sobey’s $50m ERP write off
Boeing’s production problems in the late 1990’s
Malcolm Baldridge winner, Wallace Co’ bankrupt
Fortune 500 companies will face a $31.5 Billion knowledge deficit next year
By how much can profit be increased by changing your product/market mix to focus on your most profitable products