Bitavarra, Lady Margarette G.

Four Measuring Performance Models

In our topic of Measuring Performance in Operations and Value Chains, there are 4 models that are used
by organizations.

Malcolm Baldrige Performance

- Malcolm Baldrige Performance - is a non-prescriptive framework that prepares your organization

to accomplish its objectives, enhance performance, and boost competitiveness. It mixes tried-and-
true methods on ongoing management and leadership challenges into a series of inquiries that
assist you in overseeing every aspect of your firm as a cohesive whole.
- Marriott International or The Ritz-Carlton Hotel Company, L.L.C. (1992 and 1999)
- To enhance overall performance and pursue excellence, it is built on an integrated performance
management framework that the entire organization uses. The fact that Baldrige is purposefully
non-prescriptive is valuable. It doesn't instruct executives on how to run their businesses.
Organizations operate in diverse settings, even in the same industry or market, are pursuing
distinct goals, have different core strengths, and are facing different strategic issues. There are no
two organizations that are exactly alike (internally and externally). Companies evaluate their own
systems in comparison to the precise information accessible. The foundational requirements for
performance excellence are based on seven categories, of which six are collections of processes
and the seventh is an assortment of results.

The Balanced Scorecard

- The Balanced Scorecard - A tool for tracking the company's strategic actions based on metrics
that were previously developed and that should affect at least four areas: finances, customers,
internal processes, and learning and growth.
- Apple Computer: Adjusting Long-Term Performance.
- Apple Computer developed a balanced scorecard to track and measure performance. A balanced
scorecard is anticipated to assist businesses in developing integrated, multidimensional
measurements so they can assess how they are doing in relation to their objectives, communicate,
and modify their strategy in a world that is changing quickly.

The Value Chain Model

- The Value Chain Model - is a framework for analysis used to examine relationships between
various operational components and how each one provides value to the overall level of revenues.
The primary and support activities in a company's value chain can be separated into two
categories. As they directly contribute to value creation, a company's operations, marketing and
sales, outbound logistics, and service are regarded as its core value-chain activities. On the other
side, support activities in value creation include procurement, management of the infrastructure,
and management of the human resources.
- Starbucks
- The concept of a "value chain" enables individuals to comprehend and distinguish between the
essential (which aid in gaining a competitive edge) and optional (which undermine market
leadership) activities that accompany each stage of producing a product. Additionally, it asserts
that if value is added at every stage, the product's overall value will increase, making it simpler to
earn more money.
The Service-Profit Chain

- The Service-Profit Chain - Harvard University scholars developed the idea and business model
known as the service-profit chain in the 1990s. It establishes connections between profitability,
client retention, staff loyalty, satisfaction, and output. The main driver of profit and growth is
client loyalty. Client happiness has a direct impact on customer loyalty. The value of the services
offered to clients has a significant impact on satisfaction. Employees who are content, devoted,
and productive create value. High-quality support services and rules that enable employees to
provide results to customers are what ultimately lead to employee happiness.
- Taco Bell
- It focuses on deriving profits through employee’s outstanding services which is expected to
improve by nurturing employees. The structure focuses on strengthening the base or the
foundation of the pyramid.