Download - Turning Performance Objectives Into Operations Priorities

7/28/2019 Turning Performance Objectives Into Operations Priorities

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Presented By:-

Mriganka Chakraborty(46)Saurav Dey(66)


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While service concept defines the nature ofservice to be provided, the performanceobjectives define the competitive or strategicpriorities for the operations.

Performance objectives are also the basis for

development of performance measurementsystems and a key way of linking operationsperformance measures to strategy.

Introduction


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Competitive organizations have to compete on many

different criteria which might include:-

Price Quality

Availability

Reliability

Speed of service

Flexibility

Range of services

New service development

Uniqueness


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Two dimensions importance and performance canbe used to help operations manager prioritize these

objectives so that they know where it is appropriateto spend time, effort and money.


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The importance of a factor can be assessed in termsof its importance to customers(internal or external).

Three categories of importance are:-

Qualifiers

Order Winners

Less Important Factors

Importance


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May not win business but play an important part inretaining business, by which we mean customers or

sources of fundings. If performance falls below a certain point compared

to other organizations, business may be lost. Aninternet service provider may lose customers if

access to its network is slower or more difficult thanthrough its competitors.

Qualifiers


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These are relatively unimportant but should not beignored because they may become as source of

advantage at some future point.

Less Important Factors


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OrderWinners(Attractors)

Strong 1 Crucially importantto attract business

Medium 2 Important to attractbusiness

Weak 3 Useful for attracting

new business

Qualifiers(retainers) Strong 1 Vital for retention

Medium 2 Important forretention

Weak 3 Useful for retention

Less Important Strong 1 Not usuallyimportant

Medium 2 Rarely consideredimportant

Weak 3 Not at all important


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It is the second dimension for assessing performanceobjectives, is concerned with the performance of each

objective against other or competing organizations. A nine point scale can be used to assess relative

performance of any of the factors

Performance


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Better than others Strong 1 Considerably betterthan others

Medium 2 Clearly better thanothers

Weak 3 Somewhat better than

others

The Same as Others Strong 1 Marginally betterthan others

Medium 2 The Same as Others

Weak 3 Marginally worse

than othersWorse than others Strong 1 Somewhat Worse

than others

Medium 2 Usually Worse thanothers

Weak 3 Considerably Worsethan others


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The Importance

Performance Matrix


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By applying the importance performance matrixoperations managers can translate strategic into clear

priorities for the operation, identifying where limitedresources may best be spent to support theorganizations strategic intentions.


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THANK YOU

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