Page 126 - Managing Change in Organizations

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Techniques for a value-added organization

Techniques for a value-added organization

These are as follows:
■ Assessing the value added.
■ Process redesign – mapping the value flow to enhance value added.
■ The balanced scorecard.
■ Activity-based costing and customer satisfaction analysis.
■ The 360° appraisal.
■ Competence models.
Figure 7.1 provides an overall structure for this activity. In essence any organization
represents a flow of value-adding activities. We can seek to assess the value added

Value-adding
A1.1 A1.2 A1.3 A1.4
activities

Value-added
profile 1
VAP 2 VAP 3 VAP 4
V 1 V 2 V 3

Financial stability
Cash flow
e.g. success Sales growth
investment Unit share
asset utilization
Customer On-time delivery
New product/service Customer satisfaction
Responsiveness

Satisfaction Response times
Balanced Customer retention % repeat business
scorecard
Efficiency
Business technological edge Unit costs
Logistics
Yields
Innovation % of services = 80% of sales
Time to service development Time to market
Innovation lead times
Employee skills and flexibility

Business performance metric

Figure 7.1 Business performance metric
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