Performance Measurement Training

Why is it that competing businesses with similar products, the same marketplace, and comparable resources can have far different business results? The difference is related to the metrics that leaders use to drive business performance throughout the organization.

Attend this executive course to learn how to drive your results by developing and using the right business performance metrics. You will find these metrics are essential to shape the behaviors of individuals at all levels of your organization to achieve outstanding business results.

Vertically aligned performance measurement and reward systems are examined at three levels:

1. At the senior executive level, aggregate performance measurements focused on increasing corporate economic value are established.
   
   
2. Performance measurements for functional leaders as well as those responsible for cross-functional processes are determined. Heavy emphasis is placed on developing an Executive Dashboard providing all the information functional decision makers need to make profitable decisions.
   
   
3. Operational measurements shaping the behavior of non-managerial and technical personnel are provided.Operational measures are derived from the principles of activity and service level analysis.

Keeping the three levels of measurement aligned with company strategy and reward systems is emphasized throughout the course.

The course concludes with a systematic approach and template your company can use for developing innovative compensation systems that are closely aligned with the performance measurement systems.

Unique Feature

Real-Time Case Study: Using current, publicly available corporate data, the relationship of strategic goals to aggregate economic performance will be illustrated.

Course Agenda
Critical Factors in Implementing Effective Performance Measurements
	How actual performance and the measurement of performance are related
	How measurement drives behavior
	How data integrity can impact measurements
	How the speed of technology change impacts performance measures
	How performance measurements often drive undesirable behavior and damaging decisions
	How the drop in loyalty (company and employee) isdriving a contractor mentality
	How performance is measured across functional boundaries
	How to define aggregate, functional, process, and operational performance measurements

Aligning Performance Metrics Throughout the Organization
	Principles of performance measurements that work
	What happens when measurements are not properly aligned up and down the organization
	What happens when measurements are not aligned across the organization
	What happens when there are technical, organizational, and cultural impediments to alignment

Driving Corporate Economic Performance: Measures for Executive Leadership
	Characterizing economic measurement formulas and determining when to appropriately use them
	Using new measurements to discover new performance leverage points
	Understanding the difference between economic profit measures and conventional profit measures
	How Generally Accepted Accounting Principles (GAAP) can result in misleading perceptions of performance
	Adjustments required to calculate economic profitsand eliminate cost distortions
	Connecting economic profit measurements to strategy formulation
	Connecting economic profits to tactical plans and measurements

On-Line Demonstration: How to determine the appropriate aggregate performance measurement to shape desired behaviors. This section includes a business goal setting and goal testing demonstration.
Driving Functional Performance: Measurements for the Leadership Team and Critical Support Team…the Executive Dashboard
	Developing a purpose for an executive dashboard
	Constructing executive dashboard basic rules
	Determining the dashboard ‘gauges’
	Determining each gauge’s priority and relative value
	Determining expected performance for each gauge
	Developing routine methods for gathering and reporting information
	Making adjustments to eliminate cost distortions atthe functional level
	Linking functional measurements back to economic profits

Driving Operational Performance: Measurements for the Technical Team and Critical Support Team
	Identifying non-value adding activities
	Accurately costing activities
	Adjustments required to eliminate cost distortions at the activity center level
	Eliminating cost distortions normally associated with traditional financial allocations
	Costing with an activity based costing (ABC) approach
	Examples of operational measurements
	Linking operational performance to the functional dashboard
	Linking operational performance to economic profits

On-Line Demonstrations: How employees can use operational measurements to self-identify, self-prioritize, and remove waste within their span of influence.
Driving Process Performance Improvement
	Identifying core business processes
	Identifying non-value adding required activities within core business processes
	Costing processes accurately
	Examples of process measurements
	Linking process performance to the operational dashboard
	Linking process performance to the functional dashboard
	Linking operational performance to economic profits

Overcoming Implementation Obstacles and Challenges
	Why there is so much resistance to changing performance measurements
	Technical, organizational, and cultural implementation obstacles
	GAAP (and accounting anomalies) versus the ‘new books’
	Keeping measurements aligned
	Aligning existing reward systems with new measurements
	Institutionalizing the use of the new measurements
	Understanding disclosure and compliance requirements

Using Incentive Compensation to Accelerate Performance
	Getting employees to act like owners
	Moving towards leveraged pay at all levels
	Implications of the ‘contractor mentality’
	Using tools to tie performance metrics to compensation policy
	Assessing the importance of evaluation instruments
	Compensating top leaders
	Compensating functional leaders and employees
	Cautions about changing compensation systems

Who Should Attend
CFO's and other senior executives responsible for dramatically improving their organization's financial and operational performance.

Special Feature
Dinner at The Athenaeum, Caltech's faculty club, is held at the conclusion of the first day of the course. This event provides an opportunity for participants and instructors to share information and insights.

Instructor: Alan G. Dunn, Matt Hepler
Fee: 2008 - $2495
Credits: 1.65 Continuing Education Units (CEUs)
CPE Credit Information
Field of Study: Management Advisory Services, Finance, Business Management and Organization, Specialized Knowledge and Applications
Program Level: Overview.
No prerequisites or advance preparation is required.
Instructional Method: Group-Live offering
Continuing Professional Education (CPE) credits: 19
Dates: September 15-16, December 15-16, 2008
Time: 8:30am - 6:00pm 1st Day; 8:00am - 5:00pm 2nd Day
Reception and Dinner: 6:15pm 1st Day
Program Coordinator: Judy Donohue, 626.395.4045

Driving Business Performance: Implementing New Metrics and Incentives - pdf brochure

The Industrial Relations Center is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org.

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