Page 262 - Microsoft Word - 00 Prelims.docx

Chapter 11

3.4 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 The model makes a link between the
metrics chosen. Standards should have achievement of corporate strategy and

three characteristics: the management of HR.
1 Ownership To ensure employees are motivated to
meet the standards, the standards need
2 Achievability to be:

3 Fairness 1 Clear

2 Linked to controllable factors

256