Page 166 - APM Integrated Workbook STUDENT S18-J19
P. 166

Chapter 11






                           The building block model




               3.1  What is the building block model?

                    A performance measurement system for the service sector based on three
                     building blocks.


                                                    DIMENSIONS


                          6 dimensions (CSFs)                Need suitable metrics, e.g.

                          Downstream results:

                          1 Financial performance.           Turnover growth.

                          2 Competitiveness.                 Relative market share.

                          Upstream determinants:


                          3  Quality of service.             Service reliability.

                          4 Flexibility.                     Delivery time for service.

                          5 Resource utilisation.            Employee productivity.

                          6 innovation.                      New service  innovations.



                               STANDARDS                                    REWARDS

                  These are the targets (KPIs) set for        The model makes a link between the
                  the metrics chosen. Standards should        achievement of corporate strategy and
                  have three characteristics:                 the management of HR.


                  1    Ownership.                             To ensure employees are motivated to
                                                              meet the standards, the standards
                  2    Achievability.                         need to be:

                  3    Fairness.                              1     Clear.


                                                              2     Linked to controllable factors.









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