WEEK 8

Processes and Enablers Measures of Success

using
Triple Bottom Line Balanced Scorecard
Introduction
• Measures for Processes (Internal Business Process performance measures)
• Operational Management Measures

• Customer Management Measures

• Innovation Measures

• Regulatory and Social Measures

• Examples of Processes Measures (Internal Business Processes Measures)

Introduction
• Measures for Enablers (Learning and Growth performance measures)
• Human Capital Measures

• Information Capital Measures

• Organizational Capital Measures

• Examples of Enablers Measures (Learning and Growth Measures)

Measures for Processes (Internal Business
Process performance measures)
• When trying to create performance measures for Internal Business
Processes (Processes) in measuring the success of a company.

• We need to ask the question below:

• How will we know if we are successful in achieving our business objective?

• We will look at the following four internal process in being able to

measure the Internal Business Process of the company.
Measures for Processes (Internal Business
Process performance measures)
• 1. Operations Management Measures

• 2. Customer Management Measures

• 3. Innovation Measures

• 4. Regulatory and Social Measures

1.Operations Management Measures
• Operation management refers to the basic, routine and day-to-day
processes necessary to keep the engines of commerce (buying and
selling) running with the company.

• This reveals subprocesses of

• sourcing,
• manufacturing,
• distribution, and
• risk management.
2. Customer Management Measures
• Customer management refers to the way in which we identify our
prospective customers.

• Effective and efficient communication with customers either via sales,

marketing, and advertising.

• Understanding our customers needs and wants.

• Enhancing the quality of our products and services by retaining our

customers.
2. Customer Management Measures (continued)
Customer Management Measure comprise of five (5) subprocess as follows:

• 1. Selecting target customers;

• 2. Acquiring them by proactively communicating our value proposition;

• 3. Understanding the customer needs;

• 4. Retaining customers; and

• 5. Deepening our relationships with customers.

3. Innovation Measures
• Innovation measures refers to creating and supplying captivating new
products and services to distance ourselves (company) from our
competitors.

• As a performance measure it captures the dollar $ value spent on

Research and Development (R&D) to create growth with the company.

• Performance measures used within the balanced scorecard to

measure the success of the company are as follows:
3. Innovation Measures (continued)
• Employee hours on research and development

• Number of new products or services in the pipeline

• Number of new products or services introduced

• New product or service cycle time

• Revenue from new products or services

4.Regulatory and Social Measures
• Regulatory and Social Measures refers to watchdog groups applying
intense scrutiny to every facet of the executive
Examples of Process Measures (Internal
Business Process Measures)
• Average cost per transaction
• On-time delivery
• Average lead time
• Inventory turnover
• Environmental emissions
• Research and development expenses
• Community involvement
• Patents pending
• Average age of patents
• Ratio of new products to total
offerings
• Stock-outs
• Labor utilization
• Response time to customer requests
• Defect percentage
• Rework
• Customer database availability
• Breakeven time
Examples of Process Measures (Internal
Business Process Measures)…continued
• Cycle time improvement • Space utilization
• Continuous improvement • Frequency of returned purchases
• Warranty claims • Downtime
• Lead user identification • Planning accuracy
• Products and services in the • Time to market of new
pipeline products/services
• Internal rate of return on new • New products introduced
projects • Number of positive media
• Waste reduction stories
Measures for Enablers (Employee Learning
and Growth performance measures)
• Measures for Enablers refers to the growth of employees in making
sure the financial outcomes are achieved,

• Customers are satisfied, and

• Internal business processes are achieved with efficiency and

effectiveness in achieving the success of a company.
Measures for Enablers (Employee Learning
and Growth performance measures)
In order to measure the performance of Enablers (Employee Learning
and Growth), we will look at the following three areas:

• 1. Human Capital Measures

• 2. Information Capital Measures

• 3. Organizational Capital Measures

1. Human Capital Measures
• Human capital is one of the most important resources of any
company.

• Being able to measure the performance of human capital/human

resources in achieving the companies objectives is fundamental to the
companies success.
1. Human Capital Measures
• Below are a list of measures within Human Capital Measure that helps
develop the company's objective in achieving success.
• 1. Using core competencies to measure skill development
• 2. Using personal development planning to boost competence
holders
• 3. Measuring employee training
• 4. Employee productivity
2. Information Capital Measures
• Employee capabilities are a must for success in the new economy.

• To achieve the companies' goals, employees must have access to

certain physical and intangible tools to get their job done.

• Let's consider some of these tools and how we might measure their
impact on results
2. Information Capital Measures
• 1. The instruments of business – Information Technology and
Computers.

• 2. Access to information – Knowledge and skills in being able to use

the equipment in being able to access/retrieve the right information.

• 3. Information capital readiness – As with human capital, to prove

effective, information and technology must be aligned with
organizational strategy to produce benefits to the company success.
3. Organizational Capital Measures
• According to recent data in 2018 gathered by the Gallup Organization, less than
30% of American workers are fully engaged at work.

• While 55% are not engaged.

• Another 19% are actively disengaged, meaning not just that they are unhappy at
work but that they regularly share those feelings with colleagues via social media.

• All the training and sharing of information in the world will accomplish little if
employees are not motivated to perform their best or aligned with organizational
goals.
3. Organizational Capital Measures
• Below are some consideration when measuring an organization
capital.

• 1. Employee satisfaction

• 2. Encourage employee healthy lifestyle

Examples of Enablers Measures (Employee
Learning and Growth Performance Measures)
• Employee participation in • Turnover rate
professional or trade associations • Employee suggestion
• Training investment per customer
• Participation in stock ownership
• Average years of service plans
• Percentage of employees with • Lost-time accidents
advanced degrees
• Number of cross-trained employees • Value added per employee
• Absenteeism • Motivation index
• Outstanding number of
applications for employment
Examples of Enablers Measures (Employee
Learning and Growth Performance Measures)
• Diversity rates • Training Hours
• Empowerment index (number of • Competency coverage ratio
managers) • Personal goal achievement
• Quality of work environment • Timely completion of
• Internal communication rating performance appraisals
• Employee productivity • Leadership development
• Number of scorecards produced • Communication planning
• Health promotion • Reportable accidents
Examples of Enablers Measures (Employee
Learning and Growth Performance Measures)
• Percentage of employees with
computers
• Strategic information ratio
• Cross-functional assignments
• Knowledge management
• Ethics violations