Criteria for Performance measurement
Illustrative Example
In this section you
have been provided with a brief description of the criteria of
Kanji Business Excellence Measurement System (KBEMS) and the scores
associated with them. You may also remember that these scores
are taken together to calculate the final Performance Excellence
Index using a mathematical technique called Structural Equation
Modelling. Next Section gives you some basic information about
the software package that deals with all these calculations.
Let us take an example in order to help you to understand the
main outputs and how they can be combined to determine Kanji-Certification
Index (KCI).
Figure 3 shows a chart (from the survey data) with the indices
for the criteria that form Part A. Suppose it shows some similarities
with your organisation. A quick look at figure 3 allows you to
identify easily the strongest points (in this case, Customer Focus,
Improvement Culture and Delight the Customer) and the main areas
that needed improvement (Management by Fact, Process Improvement
and Leadership, in this example). As on overall, your organisation
have achieved 72 points, as indicated by the Performance Excellence
A (C10).
 |
C1 - Leadership
C2 - Delight the Customer
C3 - Management by Fact
C4 - People Based Management
C5 - Continuous Improvement
C6 - Customer Focus
C7 - Process Improvement
C8 - People Performance
C9 - Improvement Culture
C10 - Performance Excellence A
|
|
Figure 3. Indices for KBEMS - Part A
|
Let us now suppose you have considered
Part B for three different stakeholders - customers, suppliers
and financial institutions. As illustrated in Figure 4,
your customers gave you an overall score of 60 points (C5).
This may come as a surprise, since from your internal assessment
(see Figure 3) Customer Focus and Customer Delight were among
your strongest points. The indices obtained in Part B indicate
that your efforts should probably be focused on communicating
the organisational values (C1) and managing the processes (C2)
which are the key issues for your customers.
 |
C1 - Organisational
Values
C2 - Process Excellence
C3 - Organisational Learning
C4 - Delight the Stakeholders
C5 - Performance Excellence B |
|
Figure 4. Indices for KBEMS - Part B
|
Similarly, assume that your suppliers
gave you 40 points and the financial institutions 74 points.
Consequently, your Performance Excellence B
score will be:
and finally Kanji-Certification Score for your
organisation will be:
With the help of the above OEI score and using
the indices for KBEMS - Part A (Figure 3) and KBEMS - Part B
(Figure
4) you will be able to understand the required areas of improvement
for your organisation.
