performance measurement cover -...
TRANSCRIPT
4.1a Establish Company Goals and Key Requirements
Company Goal Key Requirements Customer Satisfaction Key Requirements 1. Competitive pricing
Company Goal: Customer Satisfaction 2. Product availabilityStakeholder: Customers 3. Accurate, intact shipments
4. Friendly, courteous, respectful, ethical service5. Product selection6. Easy to do business with7. Fast delivery8. Knowledge9. Timely, relevant, quality, marketing communication10. Industry support
Employee Satisfaction Key Requirements Company Company Goal: Employee Satisfaction 1. Good salary and benefitsStakeholder: Employees 2. Job Security
3. The right tools and support to do my job4. Advancement opportunities5. Opportunities to utilize my knowledge, skills and abilities in my job6. Clear communication of goals, expectations, and direction by management7. Meaningful, satisfying job assignment(s)8. Decision making authority in my job9. Friendly, courteous, respectful, ethical environment10. Honest, constructive feedback on my work
Vendor Satisfaction Key Requirements 1. Friendly, courteous, respectful, ethical relationship
Company Goal: Vendor Satisfaction 2. Easy to do business withStakeholder: Vendors 3. Timely payment
4. Candid two‐way communication
Shareholder Satisfaction Key Requirements 1. Financial performance
Company Goal: Shareholder Satisfaction 2. Support the NRA and Second AmendmentStakeholder: Shareholders 3. Industry support
Modern Management Practices Key Requirements 1. Receive Malcolm Baldrige National Quality Award
2. Receive Missouri Quality Award
3. ISO Registration4. Six Sigma Green Belt Certification
4.1b - Link Goals and Requirements to Department and Individual Scorecards
Company Goals
Customer Satisfaction
Company Requirements
Product Availability
Accurate, Intact
Shipments
Easy to do business with
Department Scorecard
In-stock Rate
Shipping package quality
Fast Delivery
Abandoned Calls
Individual Scorecard
• In-stock rate by product line
• Package quality rate
• Picking error rate
• Ship QC invoices per hour
4.1b - Review Key Company Scorecard Measures
Company Key Measures 2009 YTD Actual
2009 YTD Goal
December/Q4
December/ Q4 Goal 1 2 3 4 5 6 7 8 9 10 11 12
Customer Satisfaction - Overall1 93.0% 92.0% 93.0% 93.0%
Employee Satisfaction and Engagement 79.5% 82% N/A N/A na na na na na na na na na na na
Vendor Satisfaction 91.5% 90% 94.1% 90%
Gross Sales - Overall $xxxxxx $xxxxxx $xxxxxx $xxxxxx
Net Income % of Net Sales 12.5% 10.0% 4.3% 11.7%
Earnings Distribution 100.0% 100% 100.0% 100% ATimely Payment of Earnings 42.0% 100% 100% 100% na na na na AInventory Turns (Paid) 9.2 10.0 9.8 11
Baldrige Score 100% 100% 100% 100%
Strategic Plan Execution 92.0% 95% N/A NA na na
% of Customer Orders with NRA Round-Up 59.8% 62.5% 58.5% 62.5%
4.1b – Department Scorecards Measure Key Processes based on ISO Process Maps
Logistics Process Scorecard
Area Process Section Process Measures 2009 2010 YTD January/Q1Actual Goal Actual Goal
Stocking Cost per Invoice - Stocking $X.XX $X.XX $X.XX $X.XX $X.XXCost per Line - Stocking $X.XX $X.XX $X.XX $X.XX $X.XX
Receiving Cost per Invoice - Receiving $X.XX $X.XX $X.XX $X.XX $X.XXReceiving Same Day 99.4% 98.4% 95.0% 98.4% 95.0%
Shipping Same Day Shipping 98.9% 99.6% 99.0% 99.6% 99.0%Shipping Package Quality 99.7% 99.9% 99.8% 99.9% 99.8%Shipping Accuracy 97.3% 97.7% 97.0% 97.7% 97.0%Cost per Invoice - Shipping $X.XX $X.XX $X.XX $X.XX $X.XX
Warehouse Cost per Invoice - Warehouse $X.XX $X.XX $X.XX $X.XX $X.XXCost per Line - Warehouse $X.XX $X.XX $X.XX $X.XX $X.XX
Process Management
ISO Corrective Action 100.0% 100% 100% 100% 100%
4.1b Measure Strategic Objectives which support and align with Company Goals.
2009 Strategic Objectives Year End Results1. Grow the business Goal: Grow sales by 20% 26.5%2. Improve website performance, Customer interface and overall value Goal: Improve CS Survey Question "Ease of finding what you are looking for" to 89%
85%
3. Improve Customer satisfaction and loyalty Goal: Improve Overall Customer Satisfaction Survey Results to 93% 93%4. Improve efficiency in key areas Goal: Reduce Operations Cost per Order from $X.XX to $Y.YY Y.YY5. Improve availability of data and information Goal: Expand Deployment of Vendor Satisfaction Survey and Achieve Vendor Satisfaction of 90%
91%
6. Improve quality in key areas Goal: Receive Baldrige Award Received
Key Process Area Process Measure Fig # Value Key Requirement Stakeholder
Logistics Shipping Same day shipping 7.1-7 Customer Value Fast delivery (7) CustomerShipping accuracy 7.1-5 Customer Value Accurate, intact shipments (3) CustomerPackage quality 7.1-4 Customer Value Accurate, intact shipments (3) Customer
Total Cost per invoice AOS Profitability Financial Performance ShareholderMarketing Publications Response rate-Flyer 7.5-13 Customer Value Timely, relevant, quality, marketing communicat ion (10) Customer
Response rate-M catalog 7.5-14 Customer Value Timely, relevant, quality, marketing communicat ion (10) CustomerMerchandising Product Selection Management Number of new products 7.1-6 Customer Value Product selection (6) Customer
Inventory Management In-stock rate 7.1-3 Customer Value Product availability (2) CustomerPricing Management Competitive pricing 7.1-1 Customer Value Competitive pricing (1) Customer
Product Selection Management Gross Sales Growth 7.3-1 Sustainability Financial Performance Shareholder
Pricing Management Net Income Percent of Net Sales 7.3-3 Financial return Financial Performance Shareholder
Inventory Management Inventory turns 7.3-5 Profitability Financial Performance Shareholder
Earnings Distribution 7.3-4 Financial return Financial Performance ShareholderOrder T aking Floor Operations Time Service Factor 7.1-9 Customer Value Easy to do business with (4) Customer
Floor Operations Abandoned Calls AOS Customer Value Easy to do business with (4) CustomerResults Management Total cost per call AOS Profitability Financial Performance ShareholderResults Management Total cost per order 7.5-12 Profitability Financial Performance Shareholder
4.1a3 and 4.1c Align and Integrate Company Goals, Processes and Action Plans for Sustainability
Detailed Area Performance
Measure
Company Scorecard
Department Scorecard
Area Key Process
Measures
Supervisor Daily Review
Monthly SLT Review
Monthly Review with
President
Monthly DLT Review
4.1a(3), 4.1b Deploy Measurement Tools through integrated organizational review
compe enc es CEO ident
Process Input Documents Description Output Participants TollgatesResults
Results gathering and analysis (as appropriate)
Survey results for Stakeholder key requirements and related process results
Key requirements' performance, Key measure and key process performance update
Results Presentation DLT and others DBM‐Results
Results review with President
Process scorecards Review Department's performanceHigh level review of under performing processes
President and VP Monthly meeting
Results Review Results Presentation Company Goal PerformanceHigh level review of under performing processes (Process owner notified)
SLT Monthly Results Review
Process owner to analyze with DLT
DLT, SupervisorsDBM‐Results
Process ManagementProcess analysis Key measures Process performance Process balanced scorecard DLT, others DBM‐PM
Process Management Process Balanced Scorecard Key and Support Process performanceProcesses that are underperforming, Root cause identification
DLT, SLTMonthly Process Management
Corrective Action (Kaizen, DAP, CAP)
DLTDBM‐PM
Strategic Planning
Strategic Objectivesg jMS, Company Goals, SWOT, Core competenciest i
Input from Boardp Strategic Objectivesg jCEO President, Pres
Strategic Planning
MS, Company Goals, SWOT, Core competencies, Capacity and Capability, Training needs analysis, Customer listening posts, CAPs
Analysis to validate Strategic Objectives and their alignment with SOs and Company Goals
DAPs and CAPsSenior leaders with DLTs
DBM‐SP
Strategic Plan Review Company Strategic PlanReview the plan to balance stakeholder needs and identify blind spots
Strategic Objectives and Approved APs
SLTMonthly Strategic Planning meeting
Customer Focus
Customer Focus
Customer Groups, Customer key communication mechanisms, Market segments, C‐sat results, Loyalty & Retention measures
Analyze data and information to improve market place success
Results and other Documentation for QCF
DLT DBM‐CF (ME,MK)
Customer Focus
Customer Groups, Customer key communication mechanisms, Market segments, C‐sat results, Loyalty & Retention measures
Review the information SLT
QCFKnowledge Management
Knowledge ManagementReview Knowledge transfer, CKMs, Performance measurement system
evaluate the organizational performance measurement system
Needed improvements SLTQKM
Workforce Focus
Workforce FocusEKRs, HR scorecard, 3yr Capacity plan from SPP, E‐sat results, Succession plan
Analyze to EKR performanceRecruitment initiatives and other actions (APs, Kaizens) to achieve SP and satisfy EKRs
DLT DBM
Workforce Focus Workforce plan Review workforce plan Approved workforce plan SLT QWF
Leadership System Diagram
Senior Leaders create a strategic plan to achieve the vision and direction:
• Strategic Objectives (CEO/President)
• Company Strategic Plan (Senior Leadership Team)
• Department Strategic Plans (Department Leadership Team)
• Master Planning Calendar Meetings
• Capacity Planning• Succession Planning
Create Plan to Achieve
CEO and Board of Directors provide vision and direction:
• Mission Statement• Company Goals• Code of Conduct• Stakeholders• Shareholder Requirements• Company Culture
Set Direction
How do we gauge performance and improvement?
• Company Key Measures• Key Process Balanced Scorecard• Company Goals Results
Presentation• Department Scorecards• Individual Performance Measures
Measure Results
How will we maintain a focus on continuous improvement?
• Process Management and Improvement (ISO, Lean, Six Sigma)
• Modern Management Practices (Baldrige)
• Innovation• Knowledge Sharing• Leadership Development• University of Midway• Examiner Participation
Learning & GrowthSenior Leaders deploy the vision and direction:
• State of the Business Meeting• Department Knowledge
Sharing Meetings• Department Baldrige Meetings• Intranet• Mentoring• Strategic Planning Bulletin
Boards• Guests to Master Planning
Calender Meetings• Company Trips
Communicate/Deploy
Company GoalsCustomer SatisfactionEmployee SatisfactionVendor SatisfactionShareholder SatisfactionModern Management Practices
Stak
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Cust
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Key Requirements - Employee Key Requirements - Vendor Key Requirements - Shareholder Key Requir
emen
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Sust
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Focus on Results and Creating Value
Systems Perspective
Visionary Leadership
Customer Driven Excellence
Organizational and Personal Learning
Valuing Workforce Members and Partners
Agility
Focus on the Future
Managing for Innovation
Management By Fact
Societal Responsibility
Performance Measurement System
Key Link in Leadership System