INDEX

Achmea mission statement, 202

Activity-based costing (ABC), 2324, 123
Activity-based management (ABM), 2324
Added-value relationships, 220224,
226227, 230231, 245246
insurance performance network and, 249,
252253, 254255
supermarket performance network,
260262, 263265, 266
AIPU. See Average invoice per user
Airlines, 192, 198, 199200
Alignment, 1117, 6781
horizontal, 65, 7881, 8386, 8990,
9697, 114, 167
perception and, 1417, 33, 4546, 62,
7274, 78, 86, 135, 156159, 164,
173174, 244
in performance leadership framework,
6162
performance networks and, 243245, 269,
279280
of personal and corporate objectives, 4650
transparency and, 70, 72
across value chains, 12, 17, 7980, 211
values, culture and, 156160
vertical, 7881, 82
Allen, Woody, 247
American culture, 278
Analytical dimension, 5859, 62, 64, 6781,
218219
Apple iPod, 12, 214, 222
ARPU (average revenue per user), 9094
Asset specificity, 216
Athletixx Sportshoes, case study, 240243
Auto industry, 25, 157, 213, 232233, 235, 256
Avaya mission statement, 194, 196

Average invoice per user (AIPU), 9091, 93

Avery Dennison mission statement, 200
Baker and Sons (B&S), 125128
Balanced scorecard, 1, 9, 2631, 33, 46, 165,
173, 217
Banking, 9497, 129134, 171173,
186188, 284
Behaviors, 105
aligned and authentic, 12, 1416, 33
culture, values and, 138139,
141154, 157
dysfunctional, 10, 12, 1415, 3741, 46,
50, 60, 63, 74, 139, 146, 148151, 153,
154, 163, 245246, 271
measurement as driver of, 711, 3451, 81,
100, 101, 106, 144, 217218, 245, 278
Best practices, 12, 9, 13, 277
Beyond budgeting, 2022, 33, 217
Billability, 144
Boundary defining, 138
Bounded rationality, 216
Brand value, 204206, 209210, 223, 243
British Telecom mission statement,
207208
Brokers, 249250
Budgeting, 2022, 31, 33, 7475, 80,
114115. See also Beyond budgeting
Business domains, 65, 78, 80, 84, 99107,
110, 112114
Business interfaces, 42
business domains and, 101107, 110,
112114
collaboration and, 99118
in management processes, 114115
metrics, 101118

296

Index 297
Business models, 17, 26, 56, 5960, 62,
7273, 110, 170179
Business plan, 77
Business processes, 8, 12, 13, 2631
Business terms, 8298
Business webs, 215
Call centers, 106108, 112113, 129130,
133, 171173, 270
Campaign management, 106108, 112113
Case studies
Athletixx Sportshoes, 240243
banking, 9497, 129134, 171173,
186188, 284
Direct Bank, 129134
EnGen, 232233
E-plus, 9094, 97
on feedback, 4344
IT department, 122125, 237240
La Runion, 115117
Metso Corporation, 182186
Rabobank, 186188
railway company, 8790, 97
software company, 8386, 97
Chief information officer (CIO), 110, 113
CIO. See Chief information officer
Codependence, 59
Cognitive dissonance, 1415
COGS. See Cost of goods sold
Colgate mission statement, 203
Collaboration, 12, 42, 44, 47, 49, 99118,
214, 247248. See also Networks
Comfort information, 7172
Commitment generators, 138
Community, 201202, 228230
Competence trust, 234, 249, 264
Competitive differentiation, 187188
Consumer packaged goods (CPG) suppliers,
259260, 266
Consumers, 13, 251
Continuous improvement, 24, 28, 75, 115,
148, 242
Contractual trust, 234, 264, 265
Contribution margin, 47
Control, 9, 13, 139, 140, 145146, 175
Corporate cultures, dimensions of, 146156
Group vs. individual focus, 146148, 155
Internal vs. external orientation, 152153,
155
Meritocracy vs. aristocracy, 147149, 155
Rules vs. relational orientation,
149150, 155

Long-term vs. short-term orientation,

150151, 155
Theory X vs. Theory Y, 151152, 155
Corporate identity, 16, 157158, 188, 285
Corporate image, 16, 30, 157158, 170,
188, 285
Corporate social responsibility (CSR), 163189
Corporate strategy, 16
Cost of goods sold (COGS), 109
Covey, Stephen, 52, 5557, 277
CPG. See Consumer packaged goods
Credit risk, 121
Critical success factors (CSFs), 2425, 217
Cross-sell, 205
CSFs. See Critical success factors
CSR. See Corporate social responsibility
Cultural performance management analysis,
154156
Cultures, 41, 43, 60, 62
American, French and Dutch,
145146, 278
contract- vs. relationship-oriented, 41
feedback impacted by, 4344
Swedish, 145, 158159
values and, 137160, 237
Customers, 3, 24, 104
CSR and, 173175
external perception of, 16, 173174
in mission statements, 200201
performance networks and, 226, 228229,
231, 235
perspective, 2630
satisfaction, 8, 29, 47, 76, 139, 205, 208,
240, 253, 254, 275
service, 30, 271
value, 207208, 209
Days-sales-outstanding (DSO), 8, 39,
122123, 274
Dell mission statement, 196, 203
Demings Plan-Do-Check-Act cycle, 24
Dependence, 59
Development, testing, acceptance, and production (DTAP), 111
Direct Bank case study, 129134, 171173
Dominance, in relationships, 223
Donut model, 69, 70, 74
Double-loop learning, 32, 69, 73
Douwe Egberts, 12, 214, 223
Drucker, Peter, 165166, 168, 200
DTAP. See Development, testing,
acceptance, and production

298 Index
DuPont ratio analysis, 2223, 217
Dutch culture, 278
Economic reporting, 185
Economic value added (EVA), 23, 33,
207, 217
Economies of scale, 72, 102, 242
The Economist, 164, 167
EFQM. See European Foundation for
Quality Management
The 8th Habit (Covey), 56
Einstein, Albert, 7
Emotional/social dimension, 52, 5556.
See also Social dimension
Employees, 3, 8, 228230
EnGen case study, 232233
Enterprise resource planning (ERP), 239
Enterprise risk management, 120
Environmental reporting, 184
Environmental responsibility, 12, 166, 169,
173, 175, 179188
E-plus case study, 9094, 97
ERP. See Enterprise resource planning
European Foundation for Quality
Management (EFQM), 2526
European Union, 164165
EVA. See Economic value added
Extended enterprise, 167, 215, 222
External perception, 60
alignment, self, self-perception and,
1417, 4546, 62, 135, 157, 164, 244
self-perception vs., 7374, 157, 173174, 285
Feedback, 34
impact of, understanding, 4344
indicators, feed-forward and, 115116
loop, 70, 112, 114
types of, 70, 75, 78, 79, 86, 148153
Financial leverage, 22
Financial perspective, 26, 28, 30, 174,
177179, 188
Financial risk, 120, 121
Flow manager, 263
Ford, Henry, 99
FP. See Function points
Fraser, R., 21
French culture, 278
Friedman, Milton, 165, 168, 171
Function points (FP), 110, 274
Gaming, 38, 39, 144
GDP (gross domestic product), 162

Global Reporting Initiative (GRI), 169,

179182, 186, 202
Goals and objectives, 23, 78, 9, 10, 13,
4850
Goodwill trust, 234, 265
Google mission statement, 196197
GRI. See Global Reporting Initiative
Growth/learning perspective, 2628, 31, 174,
176177
Guilds, 161
Hawthorne effect, 35, 283
Heat maps, 124126
Hope, J., 21
Horizontal alignment, 65, 7881, 8386,
8990, 9697, 114, 167
ICT. See Information and communication
technology
Identity builders, 138
IKEA, 145, 158159
Independence, 59
Information and communication technology
(ICT), 268
Information exchange, 225227
Information technology (IT), 13, 177
case studies, 122125, 237240
development and operations, 110112,
113, 115
performance networks and, 215, 274
risks in, 111112, 113114
SLAs in, 104105
Innovation, 205206, 207, 217
Insurance companies, 43, 190
Insurance performance network, 247256
building, 251256
channel stakeholders, managing,
248251
multistakeholder collaboration with,
247248
Interdependence, 59
Intermediaries, 249
Internal relationships, managing, 269271
International Standards Organization (ISO),
164165, 166
Interpolis mission statement, 190
Investors, 229230
Islamic banking, 129131, 133, 172173,
284
ISO. See International Standards
Organization
IT. See Information technology

Index 299
Joint-value relationships, 220224, 227, 231,
245246
insurance performance network and,
250253, 255256
managing, 265266
supermarket performance network,
261262, 265266
telecom performance network and, 271275
Kamprad, Ingvar, 158
Kaplan, R.S., 26, 165
Key performance indicators (KPIs), 9, 281
of brand value, 206
CSFs and, 25
for customer value, 208
KRI and, 46, 121
of shareholder value, 207
Key risk indicators (KRIs), 46, 121
KPIs. See Key performance indicators
KRIs. See Key risk indicators
La Runion case study, 115117
Leadership, 8, 61, 78. See also Performance
leadership
Leading indicator, 29
Learning/growth perspective, 2628, 31, 174,
176177
Lehman Brothers mission statement, 200, 203
Lexmark mission statement, 203
Local suppliers, 260
Logistics, manufacturing and, 108110, 113
Malone, Thomas W., 67
Management, 2, 61, 71. See also Performance management
campaign, 106108, 112113
hierarchy, 65, 7881, 103
loops of, 1820, 57, 58, 6770, 7378
processes, 114115, 148154, 174,
175176
risks, 46, 62, 65, 119134, 120122,
168170
Managers, 1, 9
Manufacturing, 108110, 113, 176
Market risk, 121
Mayo, Elton, 35
McGregor, D., 151152
Measure, 281
fixation, 3739
Measurement, 10
as driver of behavior, 711, 3451, 81,
100, 101, 106, 144, 217218, 245, 278
of goals and objectives, 78, 10

objectives of, 3435

performance, 9, 17
Mental dimension, 52, 5556
Merck mission statement, 202
Metrics, 8, 281
balancing, 4446
business interface, 101118
in loops of management, 1920
measurement driving behavior and,
3642, 4446, 50
Metso Corporation case study, 182186
Mind share, 205
Mintzberg, Henry, 166167
Misinterpretation, 38, 4041
Misrepresentation, 3839
Mission statement, 60, 64, 190210
in broad terms, 193, 196197, 210
definition of, 191192
external focus of, 193, 195, 210
implementing, 203210
as inspiring and truthful, 193, 197198,
210
to the point, 193, 194195, 210
rediscovering, 190198
as specific, 193, 195196, 210
stakeholder analysis of, 198203
See also by company
Mobile virtual network operators
(MVNOs), 214
Money transfers, 9497
Motivation, 8, 55, 176
MVNOs. See Mobile virtual network
operators
Myopia, 38, 39, 45
Net operating profit after taxes (NOPAT), 23
Networks, 7980. See also Performance
networks
Nike, 12, 169170, 194, 195, 204206, 207,
214
mission statement, 204206
Nokia mission statement, 196
NOPAT. See Net operating profit after taxes
Norfolk Southern mission statement, 196
Norton, D.P., 26, 165
Objectives, 3435, 4650. See also Goals
and objectives
On the Folly of Rewarding A, While Hoping for B, 46
Once and done rate, 273
Operational dimension, 57, 62, 64, 6781,
218219

300 Index
Operational problems, escalation of major,
7071
Operational risk, 120, 121
Organizational learning, 3133, 177
Organizations
definition of, 23
development of, questions for, 58
external vs. internal strategies in, 16
four needs of, 56
as living organisms, 15, 5254, 201
in mission statements, 201
Ossification, 38, 41
OTIF (on time, in full), 263
Outsourcing, 12, 49, 215, 236, 244
Partners/suppliers, 203
Pension funds, 178
Perception
alignment and, 1417, 33, 4546, 62,
7274, 78, 86, 135, 156159, 164,
173174, 244
external, 1417, 4546, 60, 62, 7374,
135, 157, 164, 173174, 244, 285
self-, 1417, 4546, 60, 62, 72, 7374, 78,
135, 157, 164, 173174, 244, 285
Performance benchmarks, 2021
Performance improvement portfolio, 132133
Performance indicators, 279. See also ARPU;
Comfort information; Key performance
indicators
business domains and, 99100
in cultures, 146153
EVA, 23
measurement driving behavior and,
3640, 45, 5051, 144
in operational dimension, 57
owners and responsibility of, 12
performance networks and, 228, 231, 253,
254, 275276
ROE, 22
strategy maps and, 2930
Performance leadership, 50
dimensions of, 5460, 6264
framework, 6164
website for, 280
Performance management, 1833
bottom-down approach to, 36
definition of, 9, 17
goals of, 100
problems with, 13
risk management and, 65, 119134
top-down approach to, 910, 13, 36, 50, 277
unintended consequences of, 3741

Performance management methodologies,

17, 5455, 63
as closed systems, 120121
organizational learning and, 3133
summary guide to, 2031
Performance measurement, 9, 17
Performance networks, 167, 213246
alignment and, 243245, 269, 279280
building, 251256
information exchange and, 225227
insurance, 247256
key characteristics of, 224
performance indicators and, 228, 231,
253, 254, 275276
reciprocity in, 228232, 251252,
261263, 271272
relationships within, 219246
stakeholders and, 228230, 247251,
257258, 279280
supermarket, 257266
telecom, 214, 267276
themes, 221222
transparency and, 218, 223, 224228,
234235, 243, 253, 255
trust in, 219, 220, 224, 234237, 243,
248249, 251, 264265
Performance prism, 228229, 272
Performance/risk maps, 124128, 131132
PEST (Political, Economic, Social, and
Technological) analysis, 11, 281
P&G. See Proctor & Gamble
Philanthropy, 164, 167168, 173174, 187
Philips (appliance company), 12, 214, 223
Physical dimension, 52, 5556
Point-of-sale (cash register data) analysis,
259260
Porter, M.E., 166, 167
Power, in relationships, 223
Pretzel model, 6970, 72, 7576, 78
Private label suppliers, 260261
Probabilities, 73, 124125
Procter & Gamble (P&G) mission
statement, 209210
Profit margin, 22
Profitability, 24, 47
Public relations, 16, 62, 64, 168, 170,
173174, 175
Quality problems, 101102
Rabobank case study, 186188
Rack jobbing, 259
Raiffeisen concept, 186

Index 301
Railway company case study, 8790, 97
Real-time information, 7578, 80
Reciprocity, in performance networks,
228232, 251252, 261263, 271272
Regulators, 229230
Relationships, 219246, 278280. See also
Added-value relationships; Joint-value
relationships; Transactional relationships
internal, managing, 269271
power/dominance in, 223
Reputation risk, 120, 121
Responsibility, 10, 11
environmental, 12, 166, 169, 173, 175,
179188
of performance indicators, owners and,
12
shared, 99, 102, 113, 116
Return on capital employed (ROCE),
129130, 133, 171172
Return on equity (ROE), 22
Revenue
ARPU and, 9394
definitions of, 8386, 97
predicting, 123124
Reward systems, 4748, 144145, 147,
148154, 156
RFM (recency, frequency, monetary value),
123
Right first time, 273, 276
Right-time information, 78
Risks
credit, 121
financial, 120, 121
in IT, 111112, 113114
management, 46, 62, 65, 119134,
120122, 168170
market, 121
operational, 120, 121
probabilities, 124125
reputation, 120, 121
strategic, 120, 121122, 125127, 183
ROCE. See Return on capital employed
ROE. See Return on equity
Role distance, 1415
Rolling forecasts, 20, 7475, 75, 115
Sarbanes-Oxley Act, 11
Scenario analysis, 7274, 80
SDM. See Sustainable development management
Self-assessment, with EFQM, 2526

Self-perception, 1417, 4546, 60, 62, 78,

164, 244
external perception vs., 7374, 157,
173174, 285
self vs., 78
Sense-making and control instruments, 139
Senseo, 12, 214, 223
Service level agreements (SLAs), 104105,
273, 278279
Service pricing, 24
Service providers, 250251
The Seven Habits of Highly Effective People
(Covey), 52, 5557
Share of channel wallet, 254
Shareholders
in mission statements, 202203
performance networks and, 225
value, 163, 188189, 206207, 209
Shell, 73, 174175, 236
Six Sigma, 24
SLAs. See Service level agreements
Social dimension, 52, 5556, 5960, 6264,
135, 161189
in business model, 170179
mission statement and, 191, 210, 211
of performance network, 219, 244
for risk management, 168170
Social system stabilizers, 139
Soft factors, 139
Software company case study, 8386, 97
Southwest Airlines mission statement, 198
Spiritual dimension, 52, 5556
SR. See Sustainability reporting
Staff, 201
Stakeholders, 61, 64
analysis, of mission statements, 198203
channel, managing, 248251
external perception of, 1617
goals and objectives of, 23, 4850
performance networks and, 228230,
247251, 257258, 279280
values, 163, 188189, 196
Starbucks mission statement, 194195
STEP analysis, 11, 281
Strategic initiatives, 71
Strategic risk, 120, 121122, 125127, 183
Strategy maps, 2930, 33, 120, 122128,
131132
Suboptimization, 38, 40, 103, 105, 144
Sunoco mission statement, 202203
Supermarket performance network, 257266
building, 261266

302 Index
stakeholder dynamics and, 257258
supplier relationships, managing, 258261
Suppliers, 3, 203, 225226, 228230,
258261, 259260, 266
Sustainability, 12, 34
Sustainability reporting (SR), 179182,
184187
Sustainable development management
(SDM), 183, 186
System goals, 191
TCE. See Transaction cost economics
TCO. See Total cost of ownership
Telecom companies, 42, 4849, 5354,
7172, 9094, 97, 207208
Telecom performance network, 214, 267276
building, 271276
internal relationships, managing, 269271
market dynamics and, 267269
Tetrapak mission statement, 194
Theory X v. Theory Y, 151152, 155
Time to market, 116
TNT (mail and express company), 170171,
176177
Total cost of ownership (TCO), 111,
113114, 274
Total weight, 116117
Train, 8790
Transaction cost economics (TCE), 215216
Transactional relationships, 219221, 223224,
226227, 229, 231, 239, 244246
insurance performance network and, 249,
252254
supermarket performance network,
261264
telecom performance network and,
271275
Transparency, 11, 34, 36, 49, 50, 117, 169

alignment and, 70, 72

performance networks and, 218, 223,
224228, 234235, 243, 253, 255
Triple P (people, planet, profit), 183
Triple-play installations, 268, 272, 274, 276
Trompenaars, Fons, 285
Trust, 219, 220, 224, 234237, 243,
248249, 251
competence, 234, 249, 264
contractual, 234, 264, 265
goodwill, 234, 265
Tunnel vision, 38, 40
Unilever, 171, 203
Value chains, 12, 17, 3031, 7980, 211
Value drivers, 3031, 129130, 204
Value networks, 215
Values, 44, 60, 63
brand, 204206, 209210, 223, 243
culture and, 137160, 237
customers, 207208, 209
identifying, 141144
positive and negative, 142144, 160, 168
shareholder, 163, 188189, 206207, 209
stakeholder, 163, 188189, 196
synthesis, 209
trust and, 236237
Values dimension, 60, 6264, 135, 137139
mission statement and, 190191, 210
of performance network, 219, 244
Vertical alignment, 7881, 82
Virgin Atlantic mission statement, 199200
Waste management company, 4344, 154
Welch, Jack, 20
Zero-based budgeting, 20, 33