performance measurement for sme's

vision

Core Business Values

Objectives

• The “Measurable Steps”

required to Achieve the

Business Vision & Mission

Vision

• A “Graphic Description” of

what the Business will look

like in its completed form.

Mission

• The “Unique Benefits” and

value the business delivers to

its target audience

The Foundations for a: “Long Term Sustainable Business”

Values

• The “Internal Drivers” that

inspired the founder to Create

and Develop the Business

What do we measure our performance against?

To measure our Performance we need to

Articulate and Document our Business:

Values

Vision

Mission and

Objectives

To achieve our Vision, Mission & Objectives we need

to Measure Our Performance against those aspirations

When you can “Measure” what you are speaking

about, and “Express it in Numbers”, you know

something about it;

But when you “Cannot Measure it”, when you

“Cannot Express it in Numbers”, your knowledge

is of a meager and unsatisfactory kind.

William Thompson (Lord Kelvin), 1824–1907

PERFORMANCE MEASUREMENT

How do we Measure Performance from one area of

the business in relation to another?

COMBINED

STRATEGY

Marketing/sales

Objectives What do we want to do?

Delegation

Who will do it?

Steps

How will we do it?

Results

How well Did we do?

Production/Operations

Objectives

What do we want

to do?

Delegation

Who will do it?

Steps

How will we do it?

Results

How well Did we do?

Management/Logistics

Objectives

What do we want

to do?

Delegation

Who will do it?

Steps

How will we do it?

Results

How well Did we do?

Strategy & Planning

Objectives

What do we want

to do?

Delegation

Who will do it?

Steps

How will we do it?

Results

How well Did we do?

BALANCED SCORECARD by Robert Kaplan & David P Norton

But how do we measure the

intangible aspects of the business?

Preparing for PERFORMANCE MEASUREMENT Adapted from Harvard Business Review

How do we want to be seen by Stakeholders?

FINANCIAL PERSPECTIVE

Objectives Measures

CUSTOMER PERSPECTIVE

Objectives Measures

INTERNAL PERSPECTIVE

Objectives Measures

LEARNING PERSPECTIVE

Objectives Measures

How do we want

Customers to see us? What must we excel at?

How will we continuously improve

and create value?

If we are not “Measuring Our Performance”

How can we “Improve Our Performance”?

What measurement tools can we use?

No

. MAIN BUSINESS OJECTIVE LEVEL OF ACHIEVING OBJECTIVE SCORE 0 - 10

1

2

3

4

5

6

7

8

9

10

11

12

13

14

This Business Objectives Scorecard is a powerful and simple way to

measure progress towards achieving your Business Objectives.

HR & External

Resources

NAME/RESOURCE NAME/RESOURCE NAME/RESOURCE NAME/RESOURCE

TOTAL

SCORE Business Functions

Admin

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Finance

Bookkeeping &

Monitoring

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Human Resources

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Product

Development

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Operations

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Quality Control

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Distribution

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Marketing & Sales

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

Customer Service

Score:

Date:

Score:

Date:

Score:

Date:

Score:

Date:

TOTAL SCORE

Business Resource Performance Matrix From:__________ to____________

1 2 3 4 10 7 8 6 5 9

Customer

Satisfaction

Turnover &

Profits Growth

Return from

Networking Efforts

Operations

Performance

Distribution &

Service Delivery

Quality Control Return from

Marketing Efforts

Sales Targets

& Sales Growth

Name:___________________________________ Date:__________________________

How has your BUSINESS performed (out of 10) in each category of the wheel below over the past:-

week/month/quarter/six months/year?

PERFORMANCE MEASUREMENT

If we don’t own it - We won’t do it!

GETTING “YOU” TO WHERE “YOU” WANT TO BE

www.johnnykinsella.com