successful, a non-broken linkage of EE nodes is a necessity, or else EE PM cannot be ac- curately measured. The key point, however, is that the questionnaire attempts to achieve an integrated and coherent vision of what PM at the EE level is; the use of legal devices, such as contracts and agreements, may be required to strengthen the issues outlined here.
In practical terms, the questionnaire in Table 3 should be seen as a free-lance tool used by EE hosts as part of the initial EE PM system set-up, and as such its use, and the use made of the results derived from its questions, will differ for each EE implementation. An example of one particular use, from the perspective of one EE host, will be given later in the section outlining the case study.
Extended.Enterprise.Performance.Measurement.
Table 4. Extended enterprise performance measurement self assessment checklist
No. Question
1. EE PM policy and objectives
A. Policy with regard to performance management, PM, and control
B. Are the methods advocated for determining EE PM policy and objectives followed?
C. Appropriateness and consistency of the contents of the EE PM objectives as related to by the individual company
D. Utilisation of standard EE PM frameworks
E. Deployment, dissemination, and permeation of EE PM objectives internally/ externally F. Checking of EE PM objectives and their implementation
G. Relationships between EE PM long-range plans and company-wide short-range PM plans 2. Organisation and its operation
A. A clear-cut line of responsibilities to develop, manage, and deal with EE PM (within the company) has been established.
B. Appropriateness of delegation and power
C. Cooperation between divisions (internal-perspective), and suppliers and customers (supplier-, customer-perspectives)
D. Activities of PM committees E. Utilisation of the PM tools F. EE PM control audits 3. Education and its extension
A. PM education plan (internally) and actual accomplishment B. Consciousness of PM, understanding of PM
C. Education concerning PM concepts and tools, and degree of permeation D. Ability to understand the effects of good PM at internal and EE levels
E. Education of those outside the EE PM system: suppliers, subcontractors, and so forth F. PM training activities
G. PM suggestion system and its implementation
4. Assembling and disseminating PM information and its utilisation
A. Assembling outside information: supplier-, customer-, EE-perspective information, for inclusion in the EE PM system
B. Disseminating information with other EE nodes C. Speed of disseminating information
D. Use of the decision support system for EE PM assembling/disseminating information requirements
E. Use of other devices for EE PM assembling/disseminating information requirements F. Analysis of the information available on the EE PM system decision support system
5. Analysis
A. Selection of important performance measures for the four perspectives B. Correct utilisation of the EE PM tools and techniques
C. Utilisation of other methods outside of the EE PM technique D. Fit of existing (in-house) techniques with EE PM techniques E. PM analysis, and use made of this analysis
F. Positiveness of suggestions for PM improvement 6. Standardisation
A. System used by the node to standardise the EE PM system within the company B. Methods of establishing, revising, and withdrawing standards
C. Actual records in establishing, revising, and withdrawing standards D. Contents of EE PM standards
E. Utilisation of EE PM standards in the company 7. Control
A. Control systems (internal) for PM and in related areas B. Actual conditions of the control activity
8. Performance Measurement—Operational A. Measurement and inspection facilities
B. Control of facilities/equipment, subcontracting, purchasing, services, and so forth C. Operational PM system and its audit
9. Performance Measurement—Strategic
A. Feedback of performance measures into new strategy development
B. Use of EE PM techniques to distill company strategy into performance measures C. Development of new performance measures outside of the EE performance measure list 10. Effects
A. PM effects
B. Visible effects, such as quality, cost, time, and so forth, monitoring effectiveness C. Invisible effects
D. Compatibility between prediction of effects and actual records 11. Future plans
A. Understanding of the EE PM status quo and concreteness B. Policies adopted to solve PM shortcomings
C. Plans for the promotion of EE PM for the future
D. EE PM, and its relationship with the company’s long-range plans
Table 4. continued
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.