Systemic performance and cost management: a management framework for organizational excellence

摘要

With the increasing pressure to achieve breakthrough performance improvement, the need to implement highly effective, efficient and integrated management systems is continuously increasing. The paper introduces Systemic Performance and Cost Management (SPCM) as a business system framework to foster systems thinking, communication, aligned measurement, management and planning and the deployment of methods company-wide. As a business system framework, SPCM captures vision (focus), strategy, customer relationship and product life cycles, business processes, information and resources, and the organizational deployment of the above. Additionally, the paper shows how SPCM can support the Six Sigma Breakthrough Strategy. SPCM is based on several existing and practically proven management models and approaches specifically the Balanced Scorecard (BSC) to formulate a company strategy - that are aligned and integrated into a holistic framework to support breakthrough improvement. The paper explains the objectives and high-level architecture of SPCM, the goals and elements of each level it is composed of and how these levels interrelate with the Six Sigma Breakthrough Strategy. The paper provides an overview of how SPCM enables and fosters systems thinking company-wide by building a paradigm of the business for all persons involved at the business, operational and process level of the Breakthrough Strategy. In addition, the paper provides an overview of how SPCM can serve as a conceptual framework to integrate performance and cost management systems at the various levels of a business.