1. Understanding Criteria Linkages

2. Which System is more Complex ?
System : A
System : B

3. How do you see Your Organisation ?
(1)
(3)
(2)

4. “The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements…..But what is important is having all the elements together as a system. It must be practiced everyday in a very consistent manner-- not in spurts .”
– Taiichi Ohno

5. Relationships between Criteria and Sub Criteria
Some of the more obvious links between Enablers and Results are:
Criteria 3 and 7
5 and 6
4/5 and 9
2 and 5/9
Some examples of sub-criteria links are:
Sub-criteria 1b, 2d and 5a
1d, 3e and 5b
1c, 4a and 5e
The Criteria are not independent boxes, but should be clearly inter-linked in a good organization.
Assessors should look for linkages specific to the organizations being assessed.

6. Achieving Shareholder Value Through Total Customer Satisfaction
Income Growth
Customer Loyalty and Commitment
Customer Satisfaction
Customer Responsiveness

7. Model Dynamics Up-stream Down stream 1. 2. Enablers Results Time lag
Leading indicators
Lagging indicators
Up-stream
Down stream 6a 6b 7b 7a
Not a static model.
First element of dynamics is to recognise that some of the Criteria are leading indicators and some are lagging indicators.
The diagram above illustrates the principle in simple terms.
Whilst 'lagging indicators' is in common usage in the UK, 'trailing' or 'following' may give a better meaning in translation.
Performance measures provide an essential feedback-loop in the process of strategic change. However, the learning process is often hampered as the measurement system provides wrong or incomplete information. This is because the systems in use ignores the existence of different value systems within the organization. As a result, the knowledge generated by the performance measurement system is biased towards those groups of stakeholders that have the strongest influence.
In order to achieve complete learning, a performance measurement system should reflect the value system of all the organization's stakeholders while establishing the right compromise between conflicting goals. This can be achieved by developing a hierarchy of performance measures that is aligned with the organization's value system and provides feedback for the evaluation of strategic options as well as their implementation.
In a dynamic environment, it is not possible to first define and then implement a performance measurement system. The selection of performance measures must be a continuous process. The selection criteria is driven by the competitive environment and the individual learning requirements. It is therefore, necessary constantly to review the performance measurement system and make projections on future measurement requirements. By developing a performance measurement hierarchy for each group of stakeholders and establishing the interrelationships between these hierarchies, it becomes possible to align the performance measurement system with the organization's value system and strategic direction dynamically. 8b 8a 9b 9a

8. Linkages of People Results with Enablers2c 2d
Strategy 3a 3b 3c 3d 3e
Leadership
People 1a 1b 1d 1e
People Results
7a, 7b
Processes,
Products and
Services 5a 5b
Partnerships and Resources 4c 4d 4e

9. Linkages of Key Results with Enablers
LINKAGES OF KEY PERFORMANCE RESULTS WITH ENABLERS
Linkages of Key Results with Enablers 2
Strategy
Leadership
People 1 3
Key Results
9a, 9b 4a 4b 4c 4d 4e
Processes,
Products and
Services 5
Partnerships and Resources

10. Linkages of Customer Results with Enablers2d
Strategy 3a 3b 3c 3d 3e
Leadership
People 1a 1b 1c 1d 1e
Customer
Results
6a, 6b 5a 5b 5c 5d 5e
Processes,
Products and
Services
Partnerships and Resources 4a 4b 4c 4d 4e

11. Linkages of Society Results with Enablers
Strategy 2a 2b 2c
Leadership
People 1a 1b 1c 1d 3a 3e
Society Results
8a, 8b
Processes,
Products and
Services 5a 5b 5c 5d 5e
Partnerships and Resources 4a 4b 4c 4d 4e

12. Linkages amongst Results Criteria6
Customer Results
Key Results
People Results 9
Society Results 7 8

13. Measurement for Effectiveness6b 6a
9,8,7
Enabler Sub-criteria
Performance indicator
Perceptions
Impact on other results

14. Criteria Linkages in the Model
6a to 9a 1d 3 1c 2a 5b
5c 5d 5e
6b 7b 8b 9b
6a 7a 8a 9a 1a 2c 2d 5a 1b 2b 4
6b to 9b 1C
1b & 4e

15. Policy and Strategy and The Effective Operation of its Processes
Vision
Mission
Values
Leadership
Strategies
Creating and Develop-ing Markets
Creating and Develop-ing New Products
Produc-ing
Selling and Service
Managing Relation-ships
Performance Indicators
Key Performance Indicators
Key Strategic Outcomes
Stakeholders’ Perceptions
Partnerships
Technology
Finances (Investments)
Information and Knowledge
Physical Assets (Material, Building, Equipment)
People