Manage an information or knowledge system

BSBIMN501A Manage an information or knowledge system QUEENSLAND INTERNATIONAL BUSINESS ACADEMY

Manage use of information of knowledge management system 2.4 Collect information on achievement of performance measures

What are performance measures? • Performance measures indicate the extent to which progress is being made towards meeting predetermined business objectives and goals. • They are expressed as tangible information that signifies whether or not a system is operating in an efficient and cost-effective way

What are performance measures? • Once a decision about how to measure a particular performance measure has been established, it should remain unaltered to render it a useful tool for analysis. • Consistent measurements also allow for objectives to be set and monitored. • These objectives can be used as motivational tools to improve performance.

What are performance measures? • Performance measures can be described in terms of: • key performance indicators and objectives • qualitative and quantitative research • evaluations of outcomes • performance standards.

How can we collect information about achieving performance measures? • We can use strategies to collect information about achieving performance measures in much the same way that we would collect any information:

Define the task • Write down a brief description of your task. • This sets your focus and provides a springboard from which you can begin collecting information.

Decide what you need to know • With your task clear in mind, you can begin to work out what you need to know in order to fulfil it. • Sometimes, you have to collect one piece of information before you can find another. • If the performance measure involves bringing together a number of elements, you may have to do some planning to clarify what is required.

Decide what you need to know • Here is a way to do it: • Break up your task into its elements. • Next to each element, work out what information you need. • Next to each information need, write where you might go to find the information.

Sort out what is and isn't relevant • You could end up with a lot of information-possibly too much. if this is the case, you will have to sort it out. • This is done by asking the following questions: • Does the information help to achieve the task? • Does the information help to make a decision? • Are you confident the information is accurate? • Is the information repetitious?

Assess whether or not you have adequate information • Now that your information has been sorted and culled, you should be able to clearly see if there are any holes in it. • The holes will highlight whether or not there is enough information to complete the task or make a decision.

Assess whether or not you have adequate information • Maybe you are missing something or perhaps you need to expand on some of the information that you have collected. • In either case, you can begin again by deciding what you need to know and working through the process described above.

Using research to collect information about trends in business performance • Trends occur over time; we can identify trends in the short, medium or long term. • The way we analyse trends is based on the principle that what has happened in the past is an indicator of what will happen in the future. • In business, trends can tell us if an aspect of an organisation is moving in a positive or negative direction.

Using research to collect information about trends in business performance • Trend analysis therefore identifies: • changes over time • the ratio of changes • the rates at which changes take place. • Comparing a trend in one business area with another can sometimes indicate cause and effect relationships; for example, a rise in sales figures causes an increase in production.

Using research to collect information about trends in business performance • The information that is gathered from trend analysis can be used to forecast future changes in the organisation. • This helps managers to plan for the future and make decisions about matters such as staffing, production and space requirements.

Using quantitative analysis to evaluate and report trends • Trends are analysed using numerical data that is gathered from documents such as financial statements. • When numerical data is used for analysis, it is known as 'quantitative analysis'.

Using quantitative analysis to evaluate and report trends • Quantitative analysis is used when there is a need to classify, count and create statistical models. • It allows for precise, objective measurements that can be used to test hypotheses.

Using quantitative analysis to evaluate and report trends • Technical analysts identify trends by calculating 'moving averages'. • Different types of moving averages are calculated to identify different types of trends for different purposes such as to: • verify existing trends • identify emerging trends • detect overextending trends that are about to reverse.

Using quantitative analysis to evaluate and report trends • Information collected from quantitative analysis can be expressed as a ratio, percentage, comparison, or figure. • Reports about trends rely heavily on charts and graphs to get their point across. • These visual aids are almost always accompanied by some textual discussion and explanation.

Using research to collect information about developments in business performance • Developments also happen over time and can be identified over the short, medium or long term. • However, the information derived from analysing developments is different from analysing trends. • Developments have to do with incidents that cause changes

Using research to collect information about developments in business performance • By observing incidents, we can learn from past mistakes and implement changes for improvements. • For example, if, during an in-house training program, some of the workers failed to attend all sessions, an organisational procedure could be put in place to ensure that all relevant workers will be able to fully attend training commitments in the future.

Using research to collect information about developments in business performance • Looking at developments therefore involves looking at past decisions and their consequences over time. • For instance, the consequence of workers not fully attending training programs could result in poorer customer service, which could result in lower sales, which would cause profits to fall and that would mean that eventually costs would have to be cut.

Using qualitative analysis to evaluate and report developments • Developments are analysed using descriptive data which is known as 'qualitative analysis'. • Qualitative analysis uses words and/or audio-visual tools and sometimes objects, such as broken products, to gather data. • This is accomplished through observation, interviews, questionnaires and surveys.

Using qualitative analysis to evaluate and report developments • It is less precise and more subjective than quantitative analysis. In business it is useful for: • improving procedures • implementing new procedures • canvassing attitudes • finding ways to improve attitudes.

Using qualitative analysis to evaluate and report developments • Information collected from quantitative analysis can be conveyed as a comparison or change between two states. • Using qualitative analysis as their basis, reports about developments aim to give a complete description of incidental changes over time.

Using qualitative analysis to evaluate and report developments • This is usually a written description that presents the incidents by using the results from interviews, questionnaires and surveys to prove points. • The report might also include objects and audio/visual components as evidence.

Key performance indicators (KPI’s) and performance objectives • Key performance indicators define an organisation's performance objectives and track its progress in achieving them. • These indicators will vary from one organisation to another, depending on what factors are considered to be most important. • Below are some examples of performance objectives.

Key performance indicators (KPI’s) and performance objectives • Production • increase the number of each product manufactured • introduce new products to be manufactured • produce better quality products • reduce the number of defective products manufactured • Productivity • decrease production time • reduce worker absenteeism • reduce delays due to machinery malfunctions • establish proficient inventory control

Key performance indicators (KPI’s) and performance objectives • Wastage • reduce excessive use of resources • reduce land, air and water emissions • conserve energy • recycle non-hazardous waste • Sales • increase sales of existing products • introduce new products for sale • reduce customer complaints • increase customer retention • Improve cross-selling opportunities

Key performance indicators (KPI’s) and performance objectives • Income • increase total income • improve speed of invoicing to customers • reduce time for payment of invoices • Expenditure • ensure sufficient funds for expenses • improve inventory control • obtain competitive prices for outgoings team

Performance standards • Performance standards are statements that specify the required levels of performance that are needed to carry out various activities within an organisation. • These standards can be stated and measured in terms of quantity, quality and/or timeliness and are a useful tool for assessing individual or team performance.

Codes of conduct • Codes of conduct define the values, principles and rules of behaviour that are expected from an organisation's workers. • They represent a voluntary statement that is usually written by an organisation's top management team-sometimes with the aid of consultants. • Codes of conduct are designed to protect the welfare and rights of all workers and stakeholders in the organisation.

Enterprise guidelines • Enterprise guidelines are a written statement of the organisation's commitment to ensuring that the workplace is free from any types of discrimination, harassment or privacy invasions. • They outline the organisation's objectives and specify that disciplinary actions will be taken if there is a breach of policy.

Enterprise guidelines • Definitions of discrimination, harassment and privacy are also included. • These policies and procedures are often incorporated in the organisation's codes of conduct.

Policy statements • Policy statements detail the guidelines and principles involved in company policy. • A policy can be described as a course of action that is to be adopted under all circumstances. • There may also be duties attached to the policies.

Policy statements • One of the most common organisational policy statements is the occupational health and safety policy. • It must be understood by all the people involved in the organisation as employees well as those who work as contractors and suppliers.

Qualitative and quantitative research for measuring individual performance • Individual performance appraisals are widely held in many organisations. • Their purpose is usually to motivate workers to perform their responsibilities better and reward them for doing so.

The pros • One of the arguments for individual appraisals is that, if each worker in an organisation performs at his or her best, then the organisation's performance as a whole will follow-processes will run more smoothly; objectives will be realised. • Both qualitative and quantitative research can provide evidence to help managers measure an individual's performance.

The pros • Some of the tools used in qualitative analysis, such as interviews and surveys, can be completed by supervisors or team leaders and applied to reveal performance developments over time. • Performance trends can be extracted by looking at sales and financial data, as well as surveys based on scales or numerical responses for a particular individual.

The cons • Many managers, when faced with the task of giving individual performance appraisals, often feel that they don't have enough objective evidence to evaluate • how much an individual contributed to a specific project • what an individual personally produced • what part an individual played in achieving organisational outcomes

The cons • Another commonly held criticism of individual appraisals is that the process encourages workers to work individually-rather than sharing or collaborating with other workers-in the hope that their achievements will be recognised more easily as their own. • If this happens, teamwork becomes far less effective, productivity is slowed and organisational outcomes suffer as a result.

Measuring performance by assessing outcomes achieved by teams • Because of the potential problems associated with individual appraisals, some organisations opt to either combine individual appraisals with assessing outcomes achieved by teams, or to focus solely on the work of the organisational team.

Measuring performance by assessing outcomes achieved by teams • Outcomes achieved by teams can be assessed by: • asking each team member to assess the performance of other team members • asking team members to evaluate themselves • comparing the successes and failures of past projects with the current project

Measuring performance by assessing outcomes achieved by teams • Outcomes achieved by teams can be assessed by: • comparing the results of the current project with the objectives set out prior to project commencement • identifying whether deadlines were met during the course of the project • identifying what didn't go to plan and why • establishing whether team members rose to the various challenges and difficulties they were presented with.

Manage an information or knowledge system