Web enabled Performance Measurement System (WePMS): Management Implications

1. Web enabled Performance Measurement System (WePMS): Management Implications • by • Sai S. Nudurupati • 3rd Year • ORS Funded Research • Dated 24 Jan 2003 • University of Strathclyde, Glasgow. WePMS: Management Implications

2. Agenda • Introduction • Background • Methodology • Implementation (three cases) • Cross Case Analysis • Conclusion WePMS: Management Implications

3. 1. Introduction Introduction • There are lot of frameworks and models on Performance Measurement Systems but most of them does not have IT platform (Bititci et al 2000 & Hudson et al 1999) • Many Performance Measurement Systems fail because of lack of IT platforms (Bourne et al 2000 & Bititci et al 2000) • A revolution in the market took place, offering commercial IT platforms to support Performance Measurement (In last decade) • Many companies not in a position to buy commercial IT platforms available for Performance Measurement (although biased, based on Scottish Companies) • Heavy Investment (for the sake of performance measurement) • IT Productivity Paradox WePMS: Management Implications

4. 1. Introduction Objective • “To design and implement Web enabled Performance Measurement System (WePMS) and assess its business and management implications” WePMS: Management Implications

5. 2. Background Anecdotal Evidence: Pilot Case MS Access Quality Analyst Publishing on Web MS Excel SQC Charts • Architecture of the web-enabled performance measurement system (WePMS) at the Pilot Company ODBC Connectivity MRP System WePMS: Management Implications

6. 2. Background Results of Pilot Case Study • Pros • Complete transparency of information • Dissemination of knowledge • More confident and proactive management style • Provoke team behaviour • Improve partnerships on supply chain • Cons • Resistance from some people as they are exposed • People with lack-of-time to do WePMS related tasks WePMS: Management Implications

7. 2. Background A structured review was undertaken on the following software products (vendors shown below) • Cognos Ltd. • CorVu Plc. • PB Views Ltd. • SAP Ltd. • Lucidus IPM. • ProMeaSys. • Hyperion Solutions • Inphase Software • PeopleSoft • IPS-Sendero • SAS Institute. • Ithink Analyst • Active Strategy • Comshare Software • Oracle Corporation Ltd. • QuantiSoft • Pilot Software Ltd. • Lotus Development Corp. • QPR Software WePMS: Management Implications

8. 2. Background Results of review on commercial software • The cost of most software products are extremely high ranging from £ 30k + Development + Consulting + Training costs. • Even though most of the software are able to adopt different frameworks, they are build based on Balanced Scorecard. • Most of the software are not good at controlling processes using statistical approach, which is required for organisations pursuing Six Sigma and similar techniques WePMS: Management Implications

9. 2. Background General Architecture of WePMS WePMS: Management Implications

10. 2. Background WePMS implementation issues Drivers Blockers • Two sets of forces exist within a social system Lewin’s (1947) Force Field Analysis • Lack of IT support • Parent company initiatives • Time and effort required • Resistance • Drive from senior management • Perceived benefits WePMS: Management Implications

11. 2. Background WePMS implementation issues • Contingent Approaches • Burns and Stalker (1961) • Dunphy and Stace (1990) • Contextualist Approaches • Child et al (1987) • Pettigrew (1990) However, Mintzberg (1987) and Orlikowski (1996) criticized the above approaches for neglecting the distinction between deliberate and emergent changes required during implementation WePMS: Management Implications

12. 3. Methodology Research Methodology • The emergent change can only be realized in action and hence Action Research is chosen as the main methodology for implementing WePMS in four out of six cases. • Label Co Ltd., Edinburgh. • Distillers Ltd., Kilmalid. • Warehousing, Paisley. • Education Centre, Glasgow. • However due to the lack of resources in the two out of six cases, Case Study approach was chosen as the main methodology. • Mineral Water Company Ltd., Perthshire. • Aircraft Engines Ltd, Ayrshire. WePMS: Management Implications

13. 3. Methodology Effect of WePMS on Business and Management (Concept Level) WePMS Imlementation IT Practices, such as data collection, data analysis, data communication etc. Performance Measurement Practices, such as frameworks, performance indicators etc. Enablers Employees using the system Management Implications Effects Business Results WePMS: Management Implications

14. 3. Methodology Effect of WePMS on Business and Management (Detailed Level) Enablers Effects & Results Up-to-date and accurate information Open communication of information Identification of business trends Comparing situation against targets Access to suppliers and customers Employers are using information Employers acting as teams Employees are not resistant Less time is spent on data analysis Employers are knowledgeable Employers using in routine business Using results oriented approach Empowerment Employees are more relaxed Identify Strengths & Weaknesses Promote partnership Proactive decision making Continuous improvement Dissemination of knowledge Benchmarking Improve behaviour & attitude WePMS: Management Implications

15. 4. Implementation SPC Software SBDS MS Access Shuttle Worth System Web Pages Architecture of WePMS implemented at Label Co Ltd. WePMS: Management Implications

16. 4. Implementation Effects: WePMS Implementation WePMS: Management Implications

17. 4. Implementation AS 400 Approach Database Data3 SPC Software MS Access Lotus Notes Web Pages Cognos Architecture of WePMS implemented at Distillers Ltd. WePMS: Management Implications

18. 4. Implementation Effects: WePMS Implementation WePMS: Management Implications

19. 4. Implementation MS Access Cognos Reporting Tool Web Pages Manual Input Architecture of WePMS implemented at Mineral Water Co Ltd. WePMS: Management Implications

20. 4. Implementation Effects: WePMS Implementation WePMS: Management Implications

21. 5. Cross Case Analysis Cross-Case Analysis • Resistance was observed initially in three cases, however it was overcome with the senior management commitment • In all four cases it has enormously decreased the time and effort required for data collection, analysis and communication • In all four cases information is made available on their Intranet • In three cases it provided up-to-date and accurate information, however in the fourth case it did not provide accurate information • In three cases it is being used for identifying business trends • In three cases, managers are more confident and pro-active in their decision-making. In the fourth case, managers are not confident about information • In all four cases, it has initiated and enhanced team behaviour • In three cases it has increased empowerment at management level but in two cases it increased empowerment at lower levels as well. • In only one case it promoted significant partnership with suppliers and customers • In all four cases, it did not enhance bench marking against competitors WePMS: Management Implications

22. 6. Conclusion Conclusion Performance Measurement Integration Information Technology Senior Management Commitment WePMS: Management Implications

23. Any Questions ? WePMS: Management Implications

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25. WePMS: Management Implications