Managing for Quality and Performance Excellence, 12th Edition

Flashcards covering key vocabulary and concepts from Chapter 13 on Measurement and Knowledge Management for Performance Excellence.

Purpose of performance measures

Drive strategies and organizational change, manage resources, and operate processes effectively and continuously improve.

Balanced Scorecard

Financial, internal, customer, and innovation and learning perspectives. Contains both leading and lagging measures and links them through logical cause-and-effect relationships.

Baldrige Criteria performance result categories

Product and process outcomes, Customer-focused outcomes, Workforce-focused outcomes, Leadership and governance outcomes, and Financial and market outcomes

Purposes of a performance measurement system

Providing a perspective of the past, present, and future; identifying trends and progress; facilitating understanding of cause-and-effect relationships; providing direction and support for continuous improvement; and allowing performance comparison to benchmarks.

Two fundamental mistakes organizations make

Not measuring key characteristics critical to company performance or customer behavior, and taking irrelevant or inappropriate measurements.

Analysis

Examination of facts and data to provide a basis for effective decisions.

Interlinking

Quantitative modeling of cause-and-effect relationships between external and internal performance measures.

Comparative data

Industry averages, competitor performance, world-class benchmarks, or performance measures of other organizations with similar product offerings.

Purpose of management review of performance results

To assess organizational success and performance relative to competitors, to understand how well progress on strategic objectives and action plans is being achieved, and to identify priorities for improvement and opportunities for innovation for products, services, and processes.

Improving the quality of information

Capturing data only once, and as close to the origin of the data as possible; eliminating human error by capturing data electronically where possible; using a single database whenever feasible; eliminating all unnecessary handling of data by intermediaries; placing accountability on the creators of data and information; ensuring proper training; and defining targets and measures of data quality.

Knowledge assets

Accumulated intellectual resources that an organization possesses.

Explicit knowledge

Information that is stored in documents or other forms of media.

Tacit knowledge

Information that is formed around intangible factors resulting from an individual’s experience, and is personal and content-specific.

Knowledge management

Process of identifying, capturing, organizing, and using knowledge assets to create and sustain competitive advantage.

Internal benchmarking

Identifying and collecting internal knowledge and best practices; sharing and understanding those practices; and adapting and applying them to new situations and bringing them up to best practice performance levels.

Rapid knowledge transfer (RKT)

Discovery, learning, creation and reuse of knowledge that eventually becomes intellectual capital—knowledge that can be converted into value and profits.