Measuring and Managing Team Performance

1. Measuring and Managing Team Performance Measuring and Managing Team Performance Researcher: Kepa Mendibil Telleria Supervisor: Dr Jillian MacBryde DMEM Research Presentation Day 24 January 2002

2. Contents Contents • Research area & background • Research Objectives • Framework for TPM • Case Study • Contribution

3. Research area & background Center for Strategic Manufacturing Research area & background • Research conducted as part of a EPSRC programme • 1st phase: exploratory research - 4 industrial collaborators • 2nd phase: Industrial secondment - Highland Spring

4. Research area & background £ SMWG Business process teams Cellular manufacturing order in £ product out Research area & background • ‘A team concept is central to the development of process-based management and it is one of the few means by which large business processes can be integrated ‘ (Teare et al) • Over have of the Fortune 1000 are implementing self-directed teams Implications: • Increase empowerment • Increased accountability • Increased emphasise on measuring and managing team performance

5. Common Problem FUNCTIONS Manage processes • Conflicts between departmental and • processes managers PROCESSES Operate processes Support processes • Employees have a lack of the • company’s vision worsening of • employee participation Common Problem • PROBLEMS: • Business Process objectives are • not aligned with company’s strategy • Employee performance measurement • is not aligned with process performance • and organisational objectives • Lack of understanding on how to • measure team performance

6. Research area & background Research area & background • ‘Traditional ways of measuring performance, determine compensation, provide training, and even organize facilities are tailored to vertical units, not processes, and to individuals, not teams’ (Hammer & Stanton, 1999) Thus, there is a need to: • Improve the link between company strategy and process/team management • Develop a better understanding of process/team performance measurement • Create a systematic approach to process/team performance management

7. Research objectives Research objectives • To investigate critical factors affecting the management and measurement of team performance • To explore the evolution of performance measurement systems, and the application of PMS in the context of teams • To analyse the validity of current methodologies for designing and implementing PMS in the context of teams • To develop and discuss the validity of a framework for designing and managing team performance measurement systems • Assess the socio-economic impact of such an approach in the performance of organisations

8. Team management process Team management process • A process/team management process should include: • Strategy deployment process • Critical team success factors • Team processes • Knowledge, Skills and Attitudes (KSA) requirements • Integrated Performance Measurement System • Improvement Action Plan

9. The framework The framework • Integrates four main elements: • Strategy Deployment • Business Process Management • Team Performance Management • Organisational Performance Management • Defines a deployment path including five considerations: • Expectations (company, process and team) • Requirements (process, team, organisation) • As-is analysis (current performance vs. desired) • Improvement Action Plan • Performance Measurement

10. The framework Business process Input Company Strategy Output Process Performance measures ‘Setting the right environment to ensure that the team and the process perform as expected’ How process How process generic How process long term Organisational Performance Measures specific short term autonomy Team Performance measures The framework

11. The framework - Team Management Business process Input Output Business Process Process Performance measures Strategy Process performance measures How process generic long term specific short term autonomy Team Performance Measures The framework - Team Management (1) What do we want the process to do? (2) What does the team need to do? -Team Competencies (Knowledge, Skills, Attitudes) -Team processes (3) What is currently the team doing? How does this affect process performance? (4) Improvement Action plan (5) Team Performance Measures Organisational Performance measures Team Performance measures

12. The framework - Organisational Performance ‘Setting the right environment to ensure that the team and the process perform as expected’ Business Process Strategy Process performance measures Organisational Performance Measures How process generic long term specific short term autonomy Team Performance measures The framework - Organisational Performance (1) How do we want the team to behave? (2) What does organisation need to do? -Give direction, empower -Educate, training -Motivate, Reward (3) What is currently the company doing? How does this affect the team performance? (4) Improvement Action Plan (5) How to measure them Organisational Performance measures Team Performance measures

13. Case Study Case Study Objective - ‘To enhance the cross-functional integration of the manufacturing process team through the development and implementation of a team based performance measurement system.

14. Product Manufacturing Team Quality Assurance Good Inwards Filling & Packaging Warehouse Blowmoulding Laboratory Engineering Material flow Service flow Product Manufacturing Process Product Manufacturing Process CUSTOMER SUPPLIER • Look at company and departmental strategy • Define objectives and measures for the process • Align training to competency requirements • Define other organisational issues required to maximise team performance

15. Case Study Outcomes - (1) Lower standard costs; more efficient production from machinery and labour (2) Enhance employee satisfaction by; skill sharing, multiskilling, improving participation and decision taking (3) Embed continuous improvement culture through performance measurement and efficient teamworking (4) Increase capability for strategic thinking at all levels Case Study

16. Contribution Contribution • Improve the understanding of the implications of BPR into team performance management and measurement • Further develop the understanding of performance measurement in the context of teams by integrating critical factors affecting team performance • Identify the limitations of current methodologies for measuring team performance • Develop a methodology that facilitates organisations to assess and manage their teams in a way that maximises their contribution towards business success

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