Page 113 - Performance Leadership

102 • Part II Operational and Analytical Dimensions

steps need to be redone. Delays in time introduce capital costs, as the
revenue associated with the activity can only be invoiced and received
later.
The answer is not in reorganizing the process and eliminating all
interfaces or creating a single process step or transaction. Business
domains exist for a reason: they consist of unique and specific processes
and activities. They may require specialist skills and training. There
most likely will be economies of scale in grouping process steps in a
separate activity, to be processed in one go or in a highly optimized
manner. Furthermore, the need for controls dictates separation of tasks;
for instance, in an insurance company a person who approves claims
cannot also pay out claims. Handover moments are crucial, and busi-
ness interface metrics are needed to manage them. See Figure 7.1.
A business interface metric shows the performance of a process or
set of activities across multiple business domains. Such a metric meas-
ures the efficiency or effectiveness of a handover point between peo-
ple in an organization. A business interface metric has multiple owners,
and their performance (and the evaluation thereof) depends on their
collaboration to make these joint targets.
This poses an interesting question. If there are two people responsi-
ble for a business interface metric, does it drive collaborative behavior
or does it violate the “shared responsibility is no responsibility” rule?
On the other hand, as we have seen, creating a single responsibility

F igur e 7.1
Business Domain and Business Interface Metrics

Business Domain Business Domain
Cost or revenue Cost or revenue
Quality Quality
Speed Speed

Business
Interface
Alignment
Cost or revenue,
quality, speed