Performance Measurement & Management

Performance Measurement & Management

Lean focuses on the value of continuous process improvement and the cost of not having it built into business models. Lean measurements are designed to expose problems rather than gauge progress.

 
Toyota Kata

Toyota Kata: Managing People for Improvement, Adaptiveness, and Superior Results - Mike Rother Finally a true insight into the “culture” of the Toyota Production System, that looks beyond the ubiquitous discussion on Lean tools and techniques to the essence of TPS as a business model to “expose” problems and create employees who are willing and able to solve those problems as a daily habit…

 

The New Organizational Wealth The New Organizational Wealth: Managing and Measuring Knowledge-Based Assets by Karl Erik Sveiby provides the conceptual framework for changing business strategies to focus on intangible assets. Using its guidelines, the reader will learn how to identify the indicators for their company's intangible assets-their company's talents and strengths, their customers' support and interest and their suppliers' reliability and ingenuity.

 

Performance Measurement Performance Measurement for World Class Manufacturing: A Model for American Companies (Corporate Leadership) by Brian Maskell makes the case that there are three primary reasons why Lean organizations need new performance measures:
  • Traditional Management Accounting is no longer relevant or useful to a company moving toward a world class (Lean) manufacturing environment.
  • Customers are forever requiring higher standards of quality, performance and flexibility.
  • Lean management techniques used in production plants are completely different from traditional plants.

 

Japanese Management Japanese Management Accounting by Monden and Sakurai presents cost management systems used in Lean as an integral part of business decisions. It emphasizes the critical importance of cost management in product development and operations and provides the reader with insights into the advantages of a well-developed cost management system.

 

Practical Lean Accounting Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise by Brian H. Maskell and Bruce Baggaley. Although its title suggests that it is about accounting only, the authors deal almost as much with how to manage perceptions, progress and processes in establishing Lean operations to create a Lean enterprise. In addition, the book is designed to allow you to apply its wisdom regardless of where you are in implementing Lean manufacturing or services.

 

Real Numbers Real Numbers: Management Accounting in a Lean Organization by Jean E. Cunningham, Orest J. Fiume, and Emily Adams helps managers understand management accounting practices - which often produce complex financial statements - which have little to do with reality. Each of the authors is a CFO who probes management accounting systems and how simplicity and clarity can be restored to an organization's accounting system. The authors provide some solid, invaluable advice on tweaking accounting practices to get the most from facts and figures generated by accountants.

 

Drive

Drive: The Surprising Truth About What Motivates Us – Daniel Pink Another Pink masterpiece, where he makes a compelling case for companies seeking to enhance their performance, to overhaul their antiquated business measurement systems, and begin to measure what matters—that which drives people’s performance. Measure to motivate.

 

Perhaps your interest is sustaining a continuous improvement process.a Lean Management system. Then I would suggest you read...

Shigeo Shingo A Study of the Toyota Production System: From an Industrial Engineering Viewpoint (Produce What Is Needed, When It's Needed) by Shingo. Shigeo Shingo was the mastermind behind the Toyota Production System, constantly experimenting and thinking on how to improve. There are a lot of books about the Toyota Production System, but this is one of the most useful for those actually attempting to implement elements of this system. This book is detailed, specific, clearly written, and very well translated. More importantly, it will make you stop to think, scratch your head in disbelief, and then finally agree in amazement.

 

The gold mine The Gold Mine: A Novel of Lean Turnaround by Freddy Ballé and Michael Ballé is the first book to comprehensively introduce all the Lean tools by means of a vivid personal story showing how hearts and minds are won over. It presents all the key Lean principles, ranging from well-known ideas such as pull and flow, to lesser-known yet equally important principles such as jidoka and heijunka. The book also reveals Lean as a system-using a realistic story to show how the principles are interrelated and how they lead to useful tools such as kanban or 5S.

 

Accountability Accountability: Getting a Grip on Results by Klatt, Murphy & Irvine. Accountability is a promise and obligation to both yourself and those around you, to deliver specific, defined results. Accountability closes the gap between intent and action. This is a wonderful how to book for leaders wanting to build accountability into their organizations and workforce.


 

Maybe you're interested in reading about more advanced Lean strategies, such as Strategy Maps. Then, you would want to read...

Getting Right Things Done Getting the Right Things Done: A Leader's Guide to Planning and Execution by Pascal Dennis (available through The Lean Enterprise Institute - see Links). Getting the Right Things Done demonstrates how strategy deployment can help leaders harness the full power of Lean. This book outlines the nuts and bolts of Hoshin Kanri (strategy deployment), and is designed to provide readers with a framework for understanding the key components of strategy deployment: agreeing on the company's "True North," working within the PDCA cycle, getting consensus through "catchball," the deployment leader concept and A3 thinking. It links action to theory and reminds us that Lean tools - like value-stream maps, kaizen events, and 5S - are only the means to an end, not ends in themselves.

 

Balanced Scorecard The Balanced Scorecard: Translating Strategy into Action by Kaplan and Norton. The Balanced Scorecard: Translating Strategy Into Action is introduced as a management (not just a measurement) system designed to channel the organization's knowledge and activities toward achieving long-term strategic goals. Senior executives in various companies have used the Balanced Scorecard as the central organizing framework for important managerial processes such as individual and team goal-setting, compensation, resource allocation, budgeting and planning, and strategic feedback and learning. As an agenda of leadership discussion on business strategies and implementation framework, it provides a practical guide to translating strategy into action and making everyone work "on strategy". The balanced scorecard is both comprehensive and actionable.

 

Strategy Focused Org The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment by Kaplan and Norton. Kaplan and Norton note that, according to an abundance of research data, only 5% of the workforce understand their company's strategy, that only 25% of managers have incentives linked to strategy, that 60% of organizations don't link budgets to strategy, and 85% of executive teams spend less than one hour per month discussing strategy. After rigorous and extensive research of their own, the authors observed five common principles of a Strategy-Focused Organization:
  • Translate the strategy to operational terms
  • Align the organization to the strategy
  • Make strategy everyone's job
  • Make strategy a continual process
  • Mobilize change through executive leadership
The book provides leaders with a reliable foundation for the design of a management system to create Strategy-Focused Organizations.

 

Strategy-Maps Strategy Maps: Converting Intangible Assets into Tangible Outcomes by Kaplan and Norton discusses two separate but related components that further develop and refine the core concepts introduced in the earlier two books, and, a rigorous examination of new ideas and new applications by which to convert intangible assets into tangible outcomes (specifically Human Resources and Information Technology).

 

Balanced Scorecard Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results by Paul R. Niven. Based on Kaplan and Norton's Balanced Scorecard (BSC) research and writings, Niven has developed a practical step-by-step implementation framework, and shows how to imbed the BSC into critical organization processes. This is a wonderful companion to any Lean journey.

 

HR Scorecard The HR Scorecard: Linking People, Strategy, and Performance by Becker, Huselid & Ulrich. This is simply a required read for Human Resource managers and professionals. It provides a practical and compelling way to define and measure HR's effect on the bottom line of the organization. I believe this is a fundamental breakthrough in thinking about the HR function and specifically its role in business strategy and financial and operational results.

 

Hoshin Kanri Lean Enterprise Hoshin Kanri for the Lean Enterprise: Developing Competitive Capabilities and Managing Profit by Thomas L. Jackson. At the heart of the Lean enterprise, is a unique operating system - Hoshin Kanri. It is a method of strategic planning and a tool for managing complex projects, a quality system geared to ensuring organizations faithfully translate the voice of the customer into new products and a business operating system that ensures reliable profit growth. The secret of Hoshin Kanri is that it provides for a superior organizational learning method and a competitive resource development system.
"This book is a must read!"

Brigid Pelino, EVP,
WestJet Airlines

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