system, and via the use of other devices (for example, via email, the Internet, by post, etc.);
while section five analyses the use made of the provided EE PM tools, in particular the EE PM frameworks to develop performances measures suitable for both the EE and internal levels: Here there is also an opportunity to document improvements and suggestions to the EE PM system.
Section six examines whether the organisation has taken steps to ensure the standardisa- tion of EE PM within the company: This is performed by setting down standards in terms of benchmarking results from the EE PM system; settling the question of ownership of individual performance measures; and setting concrete dates for frequency of measuring, audits, and reviews. The establishment of records and the ability of being able to revise, clarify, and withdraw these (when appropriate) are also examined here. Section seven asks whether a control activity, which enables the organisation to tell whether their inputs into the EE PM system are consistent and valid, is in place and is actually being used, as op- posed to a situation whereby only lip service is being paid to it. Section eight questions whether operational measures are being regularly monitored, especially in “hard-to-reach”
areas, such as with services, purchasing, and subcontractors, and whether the whole is be- ing audited regularly. Section nine queries the strategic use of the results from the EE PM system: Is effective use being made of the feedback for updated strategy formulation? Are there requirements for new performance measures? Section ten explores the overall good and bad effects of the implemented system: Effects may be either visible (for example, improve- ments in the measuring of quality, cost, time, etc.) or invisible (the political implications of the implementation); it also asks whether existing PM policies reflect these effects of the EE PM system. Finally, section eleven points to the fact that EE PM is not a stable entity;
organisations need to understand that EE PM moves on, and requires both long-term EE PM plans, and immediate internally-oriented short-term solutions to succeed.
A specific ranking and weighting of the areas in the self-assessment checklist has not been outlined here in the generic version of the checklist; however, an example of its usage is given in the section outlining the case study.
Extended.Enterprise.Performance.Measurement.
Table 5. Extended enterprise performance measurement external assessment checklist
No. Question
1. PM Leadership for each EE node A. Senior executive leadership B. Management for PM
C. Responsibility for PM and shared EE PM system ideology 2. PM Information and analysis
A. Scope and management of EE PM and associated information B. Competitive comparisons and benchmarking
C. Analysis and uses made of internal-perspective measures 3. Strategic PM planning
A. Strategic PM planning process used B. PM plans
4. Human resources within PM A. Employee involvement in PM B. Employee education and training in PM
C. Employee performance and recognition systems in PM D. Employee well-being and satisfaction with PM in company 5. Management of the PM system
A. Design and introduction of PM into production and service functions B. Process measurement: product and service production and delivery processes C. Process measurement: business processes and support services
D. Internal measurement E. Supplier measurement F. Maintenance of EE measures G. Frequency of audits 6. PM and operational results
A. Product and service measurement results B. Company operational results
C. Business process and support service results D. Internal results
E. Supplier results
7. EE PM
A. EE-perspective measures actively measured?
B. EE-perspective measures actively used?
C. EE-perspective measures actively disseminated?
In order to clearly understand the function of this assessment checklist, it must be remembered that it represents the EE node as seen from the external EE host’s viewpoint. For example, the EE host, when looking at the EE PM system as applied by an individual EE node, will be looking for clear signs of PM leadership (section one), at senior executive level that cascades down towards the operational level, with a shared sense of responsibility for the success of the EE PM initiative as a whole. The scope of the management of the EE PM system (section two), and its use of benchmarking and comparative procedures may also be expected as an assessment priority; while the use made of strategic planning (section three), with the appropriate EE PM tools, and strategic PM plans of implementation may also be deemed a necessity. The issue of spreading the message of EE PM beyond manage- ment to include employees (section four) is a must for successful EE PM; consequently, the EE host may look for the signs of employee education, training, and satisfaction within the node’s EE PM system.
The EE PM system functions in a number of areas, in particular the production and service departments of the EE node’s organisation (section five); the EE host wishes to ensure the smooth operation of the EE, and so particular attention must be paid to process measurements (as opposed to measures simply devoted to the product); this may result in a concentration on the EE node’s measures to regulate delivery, service, and production processes, as they impact on the internal and supplier perspectives. Further, an examination of operational measures and results may be expected (section six) in these areas also. At the EE level, the EE host will wish to be satisfied that EE-perspective measures are actively measured, used, and disseminated (section seven). The original emphasis for EE PM comes from a desire to satisfy the customer, so a focus on the EE node’s customer-perspective (section eight) should also be expected. The relationship which the node has with its customers, in terms of the interaction between them to develop customer-oriented measures, and the results of this interaction and the subsequent satisfaction of customers with their supplier, may also be analysed.
Note that, as with the self-assessment checklist, a specific ranking and weighting of the areas in the external checklist has not been outlined here in the generic version; however, an example of its usage is given in the following section outlining the case study.
8. Customer focus
A. Customer-perspective: current and future B. Customer relationship measurement C. Customer satisfaction determination D. Customer satisfaction results E. Customer satisfaction comparison
Table 5. continued