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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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