Business
technology has evolved explicit and complex systems for managing.
It falls short in the way it defines exactly what is being managed.
Most descriptionsif they do represent something that can be
measuredare high-level indices such as sales volume or production
output. These are important and necessary indicators for executive
overview. They can tell if aggregate performance is meeting expectations.
But
indices provide little diagnostic information because they generally
do not point to the specific behaviors that produce the described
outcome. Successful line management must be able to identify and
direct the mechanism that produces the outcome. Most companies do
not have that information in a useable form.
Strategic
repertoires provide explicit information about the performances
that produce value and the necessary skills for successful performance.
[See the Strategic
Repertoire Development section of the performance Web site
for more information on this topic.]
Other
descriptions are generally aggregations of activityaggregates
such as the volume of clerical work, engineering or bookkeeping
as represented by head counts or hours. The problem is that aggregation
by activity makes no link between activity and result. A manager
probably couldnt accurately say "if we add X percent
to our clerical (or engineering) staff we will get Y increase in
production."
Over
the years, companies have found rule-of-thumb relations between
some kinds of input and output. Budget planners may be able to say,
"if we add 20 percent to our machinist pool, we can increase
output by 15 percent." This, however, only manages by regulating
input. More often the issue is how to increase output by 20 percent
with no increase in input. To do this you have to describe and manage
the explicit way that inputs produce result. You must define the
exact tasks being performed, the standards for performance and precise
skills that make that performance possible.
Precise
descriptions of performance are important to employees. If performance
expectations do not link individual actions with the result being
measured, employees will not see how they can affect the result.
In this case, positive results become a matter of chance. As the
Duke of York (and a number of other Shakespearean characters) said,
"things past redress are with me past care."
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application of tools
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