Organisational performance measurement system

Hệ thống đo lường hiệu suất của tổ chức Organizational Performance Measurement SystemA IntroductionDetermine the organizational performance measurement system and introduce the most common framework – BSC – applying in the context of the system.Bring up the case of Toyota, one of the most famous automotive corporations worldwide, > to illustrate the application of a balanced scorecard framework in reallife organizational performance measurement systems.B BodyGeneral brief1. Introduction1.1 Context: The global increase in competence – due to technological changes and increasement in product development > performance become a strategic and competitive requirements in most organization > In that situation, the need of performance measurement system raises1.2. Introduction1.2.1 Position: The performance measurement system is a part of controlling management and an important tool in strategic analysis 1st stage: late 1880 – emphasis on traditional financial performance measures (profit, productivity, ROI) 2nd stage: 1980s: non financial (quality,lead time,..) high level of competition > higher technology and new techniques1.2.2 Important points Set of metric: quantify Efficiency and effectiveness of actions compared to actual. The environment to evaluate: on both internal and external Types: Individual, divisional, organizational Ways to evaluate: Relative, subjective, objective measurements

Organisational Performance Measurement

System

Contents 01 Introduction of Performance Measurement System

Organisational Performance Measurement System

Performance Measurement System

Brief Information of PMS

Controlling System

Performance Measurement

System

Environment and Metrics

Approaches

1 Definition

The organization measurement system:

- A subsystem of the Performance Management System

- Indicate how the company is performing

→ Build profitable businesses in the future

2 Goals & Objectives

Goals

Provide rallying points for managers

Objectives

Directly related to goals, be clear,

concise and measurable

Balanced Scorecard

3

What are Balanced Sco recards being used for?

Phase 3

Value - based method to evaluate enterprise level

Pros & Cons

August 28, 1937Founded

635 billion Yen Capital

More than 360,000 employees

Employees

Motor vehicles, robotics financial

services, biotechnology

Features

47 factories

Factories

133 all around the world

Distributors

Kiichiro Toyoda

External Environment

Automotive industry is in the mature stage of its life cycle.

- Weak Threat of New Entry

- Weak Supplier Power

- Weak Threat of Substitutes

- Strong Buyer Power

- Very Strong Competitive Rivalry

9.6

6.9

5.6 67.6

Toyota Volkswagen General Motors Ford

Other

Internal Environment

- Core Competency: produce automobiles of great quality at best

prices, thereby providing a value for money to the customers

- Distinctive Competency: Toyota’s distinctive competence is its

production system known as the “Toyota Production System” based on Lean Manufacturing concept

Organisational Structure

Global VisionThe Toyota Way

Toyota Generic Strategy

o Minimize production costs to

attain cost leadership

o Lean manufacturing system,"

or a "Just-in-Time (JIT) system,

o Innovation: Innovation leads to

unique and attractive products

for all market segments

o Intensive growth strategy:

Long Term Objectives

✔ Transforming into a Mobility company: redesign

from a primarily manufacturing-based company into a mobility company that provides a full

spectrum of services related to mobility.

Long Term Objectives

AI

Long Term Objectives

✔ Initiatives for sustainable growth:

- Organization for Solving Sustainability

- Issues Initiatives Aligned with Global Society

- Stakeholder-oriented Management

To succeed financially, how should

we appear to our shareholders?

Financial goals

Improve cost structure

• Net profit margin

• Return on Asset • Sales volume growth

Return on Assets

Sales Volume Growth

Net Profit Margin

FINANCIAL PERIODS TOYOTA MOTORS

CORPORATION VOLKSWAGEN GROUP FY2021 (1st quarter) 3.5 -3.7 FY2020 6,87 5.6 FY2019 7.52 5.2 FY2018 7.57 5.0 FY2017 7.19 2.5 FY2016 8.06 -0.6

Customers Perspective

✔

Potential

Goals

Firm

Customers Perception

KPIs

Lexus Leadership

Market leads

❖ Different market segment

❖ Price & time themes applicant

Customers Satisfaction

Customers Ethos Ethics

Experience

Emotional

Connection

CUSTOMER FIRST AND QUALITY FIRST MEASURE

Incentives to Improve Quality

CUSTOMER FIRST AND QUALITY FIRST MEASURE

Customer First Measures

CUSTOMER FIRST AND QUALITY FIRST MEASURE

Customer First Measures

CUSTOMER FIRST AND QUALITY FIRST MEASURE

After-Sales Service Measures

+

+

=

=

Learning & Growth

Learning & Growth

Intangible Assets

Internal skills + capabilities

VALUE-CREATING PROCESSES

The framing question for this perspective is:

“How must the company learn and

improve in order to achieve its

Strategy Awareness and Motivation

THEMES

Case Study: Learning & Growth

Employee Training Program

Learning & Growth

Toyota can set up reports specifically and get an accurate ROI data from the learners

Salary

Most important aspects Common aspects

Physical skills on the shop floor Performance

Quality on the shop floor Teamwork

KAIZEN (continuous improvement) Manners

Documentation Self-awareness

Big picture view Health

Leadership Forward looking

Problem solving Focus

Cooperation with support Unbiased

Cooperation with management Wide view

Thinking out of the box Team organization

Employee Satisfaction Survey

Internal Business

Process

Internal Process

Market

Product

Human Resources & Value Chains

Toyota’s Car Production

Year Production Worldwide

2017 10,466,304

2018 10,569,303

2019 10,725,214

2020 (up to August 2020)

5,442,858

5

Summary 01 Introduction of Performance Measurement System

Organisational Performance Measurement System

02

Balanced Scorecard

03 04

Conclusion

05

Four Perspectives and Case Study – Toyota Motor Corporation