The document discusses key concepts in performance measurement and strategic information management. It emphasizes that consistent, accurate data across business areas provides real-time information to evaluate processes, products and services to meet objectives and customer needs. It also discusses leading practices like developing performance indicators reflecting customer needs, using comparative data to improve, and involving all employees in measurement activities.

1. Chapter 8 Performance Measurement and Strategic Information Management

2. Key Idea A supply of consistent, accurate, and timely data across all functional areas of business provides real-time information for the evaluation, control, and improvement of processes, products, and services to meet both business objectives and rapidly changing customer needs.

4. Process Flow Measures and Indicators Data Analysis Information

5. Use of Information and Analysis Customer Requirements Measurements Processes Results Design Control Prediction Validation Measurement supports executive performance review and daily operations and decision making.

6. Key Idea Measurement-managed companies are more likely to be in the top third of their industry financially, complete organizational changes more successfully, reach clear agreement on strategy among senior managers, enjoy favorable levels of cooperation and teamwork among management, undertake greater self-monitoring of performance by employees, and have a greater willingness by employees to take risks.

10. Key Idea To make decisions that further the overall organizational goals of meeting, or exceeding, customer expectations and making productive use of limited resources, companies need good data and information about customers and markets, human resource effectiveness, supplier performance, product and service quality, and other key factors, in addition to traditional financial performance and accounting measures.

12. Key Idea A good balanced scorecard contains both leading and lagging measures and indicators. Lagging measures (outcomes) tell what has happened; leading measures (performance drivers) predict what will happen.

20. Key Idea Organizations need comparative data, such as industry averages, best competitor performance, and world-class benchmarks to gain an accurate assessment of performance and know where they stand relative to competitors and best practices.

22. Key Idea In designing a performance measurement system, organizations must consider how the measures will support senior executive performance review and organizational planning to address the overall health of the organization, and how the measures will support daily operations and decision making.

24. Linkages to Strategy Key business drivers (key success factors) Strategies and action plans Measures and indicators

25. Key Idea The things an organization needs to do well to accomplish its vision are often called key business drivers or key success factors . They represent things that separate an organization from its competition and define strengths to exploit or weaknesses to correct.

27. Key Idea Good measures and indicators are actionable ; that is, they provide the basis for decisions at the level at which they are applied.

31. Key Idea Organizations need a process for transforming data, usually in some integrated fashion, into information that top management can understand and work with.

35. Key Idea In manufacturing, quality costs are primarily product-oriented; for services, however, they are generally labor-dependent, with labor often accounting for up to 75 percent of total costs.

38. Key Idea Data used for planning and decision making need to be reliable, accurate, secure, and accessible to those who need them.

40. Key Idea In many companies, business information is only accessible to top managers and others on a need-to-know basis. In high-performing companies, business information is accessible to everyone.

42. Key Idea Knowledge assets refer to the accumulated intellectual resources that an organization possesses, including information, ideas, learning, understanding, memory, insights, cognitive and technical skills, and capabilities.