Q9E-Summary of Key Points and Terminology - Chapter 12

Q9E-Summary of Key Points and Terminology - Chapter 12 -...

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Managing for Quality and Performance Excellence, 9 th Edition Summary of Key Points and Terminology Chapter 12 – Measurement and Knowledge Management for Performance Excellence Organizations need performance measures to drive strategies and organizational change, to manage resources, and to operate processes effectively and continuously improve. Data and information support control, diagnosis, and planning. Benefits include better knowledge of product and service quality, worker feedback, a basis for reward and recognition, means of assessing progress, and reduced costs through better planning. The balanced scorecard consists of four perspectives: financial, internal, customer, and innovation and learning perspectives. A good balanced scorecard contains both leading and lagging measures and links them through logical cause-and-effect relationships. The Baldrige criteria provides a slightly different view of a balanced scorecard, and focuses on five categories of performance results: 1. Product and process outcomes 2. Customer-focused outcomes 3. Workforce-focused outcomes 4. Leadership and governance outcomes 5. Financial and market outcomes Although many specific measures and indicators can be defined in each category, the ones an organization chooses should be tied to those factors that make it competitive in its industry. The purposes of a performance measurement system include providing a perspective of the past, present, and future; identifying trends and progress; facilitating understanding of cause-and-effect relationships; providing direction and support for continuous improvement; and allowing performance comparison to benchmarks.
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  • Spring '14
  • GaryE.Rafe

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