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Index
Copyright
Contents
Preface
INTRODUCTION
Selection of tools and practices
Scope of reviews
Context for reviews
Generic success factors
How to use this book
Conclusions
Part I
Strategic Planning
1
MISSION STATEMENTS
What is this practice and how effective is it?
Businesses and great relationships
Shareholder value
A noble purpose at Whole Foods
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Too many leaders think they are visionaries
Rethinking rewards at BP
Conclusions
2
STRATEGIC PLANNING
What is this practice and how effective is it?
Opening up the planning process at HCL Technologies
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Clearly articulating your strategy is crucial
Consider using discovery-driven planning
Conclusions
3
STRETCH GOALS
What is this practice and how effective is it?
Setting aspirational goals at an Asian telecom company
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Stretch at General Electric
Conclusions
4
BALANCED SCORECARD
What is this practice and how effective is it?
The five common traits of the balanced scorecard
The balanced scorecard can also be an inhibitor of innovation
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Don’t rely on strategy maps before they can be tested
Conclusions
5
DYNAMIC RESOURCE MANAGEMENT
What is this practice and how effective is it?
Why is the quality of decision making so poor?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Gary Hamel on resource allocations
Thorough analysis and decision making at Toyota
Encourage managers to be open and honest about risk and uncertainty
Conclusions
6
ENTERPRISE RISK MANAGEMENT
What is this practice and how effective is it?
The dangers noted in The Risk Management of Everything
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Understand the risks embedded in management systems
Conclusions
7
KNOWLEDGE MANAGEMENT
What is this practice and how effective is it?
Four levels of knowledge
Learning is about work, work is about learning
The impact of social networking
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Invest in helping people use, rather than search for, knowledge
Conclusions
8
BENCHMARKING
What is this practice and how effective is it?
Benchmarking at Hilton Hotels
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Beware of superstitious learning
Data quality matters
Conclusions
9
SUSTAINABILITY
What is this practice and how effective is it?
Focusing on social issues can be a challenging and disruptive process
General Electric has finally come off the sustainability fence
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
Part II
Shareholder and Customer Value
10
INTANGIBLE ASSETS
What is this practice and how effective is it?
Valuing intangibles in aggregate
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
11
ECONOMIC VALUE ADDED
What is this practice and how effective is it?
EVA at Diageo
EVA Momentum
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
12
KEY VALUE DRIVERS
What is this practice and how effective is it?
The four rules of value creation
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Some organizations use analytics to identify key drivers
Conclusions
13
REVENUE GROWTH ANALYSIS
What is this practice and how effective is it?
Using a more analytical approach
Using an SRS at Alcoa
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
14
CUSTOMER VALUE PROPOSITION
What is this practice and how effective is it?
How do you define customer value?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
15
CUSTOMER RELATIONSHIP MANAGEMENT
What is this practice and how effective is it?
The flawed logic in CRM systems
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
16
STRATEGIC AND PROFITABLE CUSTOMERS
What is this practice and how effective is it?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
17
LOYALTY MANAGEMENT
What is this practice and how effective is it?
The flaws in customer satisfaction surveys
New measures of loyalty
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
Part III
Lean Cost Management
18
TOTAL QUALITY MANAGEMENT
What is this practice and how effective is it?
Traditional U.K. and U.S. approaches to quality management
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
19
ACTIVITY-BASED COSTING
What is this practice and how effective is it?
An ABC revival
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
20
BUSINESS PROCESS REENGINEERING
What is this practice and how effective is it?
“Staple yourself to an order”
What is the performance potential of this practice?
Be wary of placing too much emphasis on IT
What actions do you need to take to maximize the potential of this practice?
Conclusions
21
LEAN MANUFACTURING
What is this practice and how effective is it?
The Toyota Production System is based on five key ideas
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Make decisions slowly
Conclusions
22
LEAN SERVICES
What is this practice and how effective is it?
The six principles of value stream mapping
Lean services at Fujitsu
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
23
SIX SIGMA
What is this practice and how effective is it?
The six sigma program
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
24
TARGET COSTING
What is this practice and how effective is it?
Target costing at Olympus
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
25
LEAN ACCOUNTING
What is this practice and how effective is it?
The Wiremold case
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
26
SHARED SERVICES
What is this practice and how effective is it?
An internal market at Handelsbanken
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Choose the right charge-back model
Conclusions
27
OUTSOURCING AND OFFSHORING
What is this practice and how effective is it?
Outsourcing at General Electric
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Build a strategic partnership with the outsourcing provider
Conclusions
28
INVESTMENT (PORTFOLIO) MANAGEMENT
What is this practice and how effective is it?
Building an investment optimization system at American Express
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Distinguish between project risk and portfolio risk
Conclusions
29
EXPENSE MANAGEMENT
What is this practice and how effective is it?
How Cisco Systems cut travel expenses
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
Part IV
Performance Measurement
30
ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS
What is this practice and how effective is it?
Does it matter which vendor you choose?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
31
BUSINESS INTELLIGENCE
What is this practice and how effective is it?
Welcome to the world of business intelligence
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Avoid using BI to micromanage people
Conclusions
32
KEY PERFORMANCE INDICATORS
What is this practice and how effective is it?
Which measures are important?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
33
ROLLING FORECASTS
What is this practice and how effective is it?
Bias is a major problem
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Spend the most time on the sales forecast
Conclusions
34
BUSINESS ANALYTICS
What is this practice and how effective is it?
Most standard KPI reporting systems suffer from problems
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
35
BEST-PRACTICE REPORTING
What is this practice and how effective is it?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Base the context for good or bad performance on relative performance rather than fixed targets
Conclusions
36
OPEN BOOK MANAGEMENT
What is this practice and how effective is it?
Five key features of real transparency
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
Part V
Performance Evaluation
37
PERFORMANCE APPRAISALS
What is this practice and how effective is it?
Be wary of “forced rankings”
Using peer reviews at HCL Technologies
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
38
RECOGNITION AND REWARDS
What is this practice and how effective is it?
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Think about how to use the power of recognition systems
Conclusions
39
EXECUTIVE COMPENSATION
What is this practice and how effective is it?
Scrap executive bonuses, says Henry Mintzberg
Do financial incentives motivate leaders to improve the value of the business?
Focus on the person not the pay
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
40
PROFIT-SHARING SCHEMES
What is this practice and how effective is it?
Groupwide profit sharing at Handelsbanken and Southwest Airlines
What is the performance potential of this practice?
What actions do you need to take to maximize the potential of this practice?
Conclusions
Notes
Acknowledgments
About the Authors
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