STRATEGIC

MANAGEMENT
LECTURE 8

Dr. Mahmoud El Damaty

Consultant Surgeon
AUC & AASTMT Instructor
Lecture Eight
• Performance Evaluation and Improvement

drdamaty@aucegypt.edu 2
Performance Management
• Performance Management is the use of performance management information to
effect positive change in organizational Culture, Systems and Processes, by :
Helping to set agreed-upon performance goals,
Allocating and prioritizing resources,
Informing managers to either confirm or change current policy to meet those goals.

drdamaty@aucegypt.edu 3
Performance Management
Goal
• To ensure that the vision of the organization is being met by defining and measuring
outcomes reflected in the vision.

drdamaty@aucegypt.edu 4
Characteristics of
PI Models (PCOS) Organized
Articulated
Documented
Planned

Interdisciplinary, Cross
Functional Approach

Collaborative
PI Systematic
Models
Priorities
Baseline assessment
Improvement
Organization
Monitoring & Maintenance
Wide
Involving All Departments/Services
Involving All Leaders
drdamaty@aucegypt.edu 5
Properties of performance measures
include
1. Fully specified before data collection, to ensure uniformity of application.
2. Reliability and validity.
3. Allows for differences among patients to ensure that it measures actual
differences in quality of care and not differences in case mix and severity of illness.
4. Displayed in graphic formats accompanied by information confidence limits.
5. Should be related to the organization performance goals.

drdamaty@aucegypt.edu 6
Balanced Scorecard "BSC"
OR Strategic Scorecard
• Definition: It is a translation of mission, vision and strategy into a set of top-level
approved financial and non-financial measures that drive organizational change and
improvement. It is based on the organization strategic plan.

drdamaty@aucegypt.edu 7
four steps required to
design BSC
1. Translating the vision into operational goals;
2. Communicating the vision and link it to individual performance;
3. Business planning; index setting
4. Feedback and learning, and adjusting the strategy accordingly.

drdamaty@aucegypt.edu 8
Use of BSC
• Uses: an approach to performance measurement.
• It helps organizations to link long term strategy with short term activities.

drdamaty@aucegypt.edu 9
Measure Categories
of "BSC"
1. Customer perspective (clients, employees and other customers): “How do our
customers see us?”.
2. Financial perspective: “How do we look to providers of financial resources?”.
3. Operations / internal perspective: “at what must we excel?”.
4. Innovation and growth: “ Can we continue to improve and create value for
customers?”
• For each perspective, there is likely to be several objectives. Each one should have at
least one measure.

drdamaty@aucegypt.edu 10
"BSC" answers
• How are we doing?
• Are we there yet?

drdamaty@aucegypt.edu 11
drdamaty@aucegypt.edu 12
Problems that can be
solved by BSC

drdamaty@aucegypt.edu 13
Dashboard
• Performance dashboards are a commonly used management tool to gauge
performance and progress toward business goals.

drdamaty@aucegypt.edu 14
dashboard

• Dashboards can be designed and developed to address a wide range of objectives,

from monitoring the viability of a global organization's business strategy, to keeping
a check on a department's ability to achieve service-level targets.

drdamaty@aucegypt.edu 15
Benefits of dashboards
They offer a panoply of benefits to everyone in an organization, from executives to
managers to staff:
1. Communicate strategy,
2. Refine strategy,
3. Increase visibility,
4. Increase coordination and motivation,
5. Give a consistent view of the business.,
6. Reduce costs and redundancy,
7. Empower users, and deliver actionable information.

drdamaty@aucegypt.edu 16
dashboard
• In short, performance dashboards deliver the right information to the right users at
the right time to optimize decisions, enhance efficiency and accelerate bottom-line
results.
• These initiatives convinced many executives that they could gain lasting competitive
advantage by empowering employees to work proactively and make better
decisions by giving them relevant, actionable information.

drdamaty@aucegypt.edu 17
four different levels of performance
dashboards
1. CEO/board level, comprised of about six high-level metrics;
2. Corporate vice president/director level, between 12 and 20 metrics;
3. IT strategic level, similar to above, but focused on IT; range of metrics, between 12
and 50; and
4. IT operational dashboards, commonly about 20 metrics each.

drdamaty@aucegypt.edu 18
Performance improvement
• Performance improvement is a form of organizational development focused on
increasing outputs and improving efficiency for a particular process or procedure.
• Performance improvement can occur at different levels including the employee
level, team level, the division or unit level and the organization as a whole.

drdamaty@aucegypt.edu 19
Performance improvement Approaches
List
1-PTAC Approach. 7-Organizational Dynamics Inc. – FADE
2-PDCA or PDSA Cycle Cycle
3-FOCUS PDCA 8-Juran Trilogy Model
4-Xerox 10 step benchmarking model 9-The organizational Development
Model (APIE)
5-Baldrige Criteria for performance
excellence 10-The Six Sigma Strategy
6-Ernest & young seven step IMPROVE 11-Lean Thinking Approach
model 12-Acclerated Rapid Cycle (PDCA)

drdamaty@aucegypt.edu 20
1) PTAC Approach-JC 1993
Plan

Check PTAC Test

Act

drdamaty@aucegypt.edu 21
2)The PDCA/PDSA Cycle

drdamaty@aucegypt.edu 22
PDCA Steps

• PLAN: Design or revise process components & plan the necessary action steps
• DO: Implement the plan and measure its performance (Pilot Test)
• CHECK: Assess the measurements (against desired outcomes) and report the results
to decision makers [STUDY: Study the results]
• ACT: Decide on changes needed to improve the process then (Fully Implement) –
then Maintain Improvements

drdamaty@aucegypt.edu 23
3) FOCUS-PDCA

drdamaty@aucegypt.edu 24
4) The Malcolm Baldrige
Award

drdamaty@aucegypt.edu 25
5) Seven Steps for CPI

drdamaty@aucegypt.edu 26
6) Organizational Dynamics
-FADE Cycle
Focus

Execute
FADE Analyze
Cycle

Develop

drdamaty@aucegypt.edu 27
7) QM Cycle- Juran Trilogy
Model

drdamaty@aucegypt.edu 28
8) The Organizational Development
Model (APIE)
Assess

Evaluate
APIE Plan

Implement

drdamaty@aucegypt.edu 29
9) The Six Sigma Philosophy

drdamaty@aucegypt.edu 30
10) The Six Sigma Steps-
DMAIC

drdamaty@aucegypt.edu 31
11) The Lean Thinking
Process

drdamaty@aucegypt.edu 32
12) The RAPID CYCLE - PDCA

drdamaty@aucegypt.edu 33
THANK YOU
drdamaty@aucegypt.edu

Dr. Mahmoud Mohamed El Damaty

+201222850959