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Methods and tools |

Methods and tools

Methods and tools component in Brief

Methods and tools are frequently discussed in definitions of performance management and in existing maturity models1,2,3,4,5,6,7,8,9. The methods and tools in performance management often relate to now commonly known devices such as the Balanced Scorecard, Performance Prism, Strategy Map, Activity-Based Costing, scorecards, and metrics.

This component is closely related to other components in the maturity model: for example performance can be visualized through management dashboards, and information can be shared using a variety of methods such as intranet or email. Different methods were used in the case companies, but often as something apart from performance management as the executives did not see a direct connection between one single methodology and performance management. Rather the organizations focused on supporting the business using different methods and tools. Very often the case organizations used best practices from several methods. The literature also supports this finding. For example, Chandler and van Decker10 point out that in the future organizations will increasingly combine different methods and perspectives together as they see fit.

Key capabilities and management practices

  • Recognize no single method can cover performance management
  • Use various tools and methods together with performance management initiative
  • Define, follow and measure performance management processes
  • Proactively look for new methods and tools
  • Combine various methods appropriately
  • Combine methods with measures
  • Maintain a constant development process

See also other components

Maturity levels for Methods and tools component

Level 1 Level 2 Level 3 Level 4 Level 5
Only a few methods defined; combination of spreadsheets and desktop databases (spreadmarts) Effective collection of transaction data; discussion about business intelligence and data warehousing; a formal PM method in use; operations and development plan Assortment of various methods in use; organization recognizes no single method can cover PM; standardized set of project and development methods and tools Processes are defined, followed and monitored; organization is proactively looking for new methods and tools; methods are combined appropriately; methods and metrics are becoming closer Methods and tools are critical for competitiveness; learning and development functions become a natural process; a constant development process is maintained; methods and tools are driving the improvement in effectiveness

References

  1. Geishecker et al., 2001
  2. Turban et al., 2007
  3. Davenport & Harris, 2007
  4. Davenport & Harris, 2010
  5. Marr, 2006
  6. Coveney, 2003
  7. Axson, 2007
  8. Dresner, 2007
  9. Eckerson, 2011
  10. Chandler & van Decker, 2010

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