What is VbPm?
Firstly…it stand for Value based performance management and as the name would suggest it is an innovated way to take the guess work out of Measures and KPI’s. Traditional value maps fail, they are bulky and not interactive, making a change…is a nightmare and these are generally managed in Excel, or even PowerPoint then distributed as PDF’s.
Imagine the future.
A completely interactive interface that you can work with and build upon within your organization, you manage and own your own value map….. ok …not so great… I mean.. yes, value maps are great…but we need more.. Organizations need to have a better way of relating all the value activities (Value statements) to both the organizations mission statements, objectives and yes…its measures and KPI’s.
In this manner, you can now see which KPI’s relate to which value activities across which departments and for which objectives. Your organization will no longer be pitting one KPI Digital against the other, when there is focus on growing one measure, another one declines…learn how to monitor and control their intricate relationships through a flexible and interactive interface allowing you to truly align activities with Mission statement.
Value statements are grouped by Focus area which in turn are grouped by Goals leading up to Shareholder Value and then to the Mission/Purpose of the organization. This innovative approach allows organizations to now best understand which KPI’s and Measures most impact their Mission allowing them to focus on inter departmental collaboration for measures and KPI’s identified as common across departments / Goals and Objectives. VbPm is all about the relationship between strategy and it’s execution ensuring the best possible measures and KPI’s receive the correct attention in the correct areas of the business.
Almost all products in the market today focus on data preparedness, and they are correct in doing so, but this is not the full story. Unfortunately this does not eliminate the reality that many times when a department focuses on specific measures and KPI’s as their departmental objectives, they are adversely impacting other KPI’s and measures critical to meeting the organizations objectives. This becomes highly counterproductive.
S. Kaplan and David P. Norton describe “how the balanced scorecard can
address a serious deficiency in traditional management systems” but they can
only explain the needed process and as great as this is, it still needs the
flexibility of a centralized tool that will allow the sharing and controlling
of the process used to define the metrics and KPI’s.
-Harvard Business Review, Using the Balanced Scorecard as a Strategic Management System, JULY–AUGUST 2007 ISSUE
Please look for our next post on VbPM.
PERFORMANCE MANAGEMENT PRACTICE LEADER
CHEF DE PRATIQUE EN GESTION DE LA PERFORMANCE
Tel: 514 426-9467 X 106 Mobile: 514-912-8338