Web enabled Performance Measurement System WePMS: Management Implications

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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.

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Agenda

• Introduction
• Background
• Methodology
• Implementation (three cases)
• Cross Case Analysis
• Conclusion

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Introduction
1. 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

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Objective
1. Introduction

• To design and implement Web enabled Performance
  Measurement System (WePMS) and assess its
  business and management implications

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Anecdotal Evidence Pilot Case
2. Background
MS Access
Quality Analyst
Publishing on Web
MS Excel
SQC Charts
ODBC Connectivity
MRP System

• Architecture of the web-enabled performance
  measurement system (WePMS) at the Pilot Company

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Results of Pilot Case Study
2. Background

• 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

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A structured review was undertaken on the
following software products (vendors shown below)
2. Background

• 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

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Results of review on commercial software
2. Background

• 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

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2. Background
General Architecture of WePMS
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WePMS implementation issues
2. Background

• Two sets of forces exist within a social system
  Lewins (1947) Force Field Analysis

Drivers
Blockers

• Lack of IT support
• Parent company initiatives
• Time and effort required
• Resistance

• Drive from senior management
• Perceived benefits

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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
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Research Methodology
3. 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.

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Effect of WePMS on Business and Management
(Concept Level)
3. Methodology
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
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Effect of WePMS on Business and Management
(Detailed Level)
3. Methodology
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 Employer
s 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
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Architecture of WePMS implemented at Label Co
Ltd.
4. Implementation
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Effects WePMS Implementation
4. Implementation
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Architecture of WePMS implemented at Distillers
Ltd.
4. Implementation
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Effects WePMS Implementation
4. Implementation
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Architecture of WePMS implemented at Mineral
Water Co Ltd.
4. Implementation
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Effects WePMS Implementation
4. Implementation
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Cross-Case Analysis
5. 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

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Conclusion
6. Conclusion
Performance Measurement
Integration
Information Technology
Senior Management Commitment
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Any Questions ?
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