Page 79 - Performance Leadership

68 • Part II Operational and Analytical Dimensions

The analytical dimension focuses on the second loop of manage-
ment. The second loop of management works offline to study
information and to aid in planning. Where the first loop of management
focuses on measuring how the performance compares to the targets, the
second loop of management looks to see if the targets are set too high
or perhaps even too low. In the second loop of management the man-
agers should, from time to time, also discuss if the right things are being
measured or if better metrics are available. Lastly, on a more strategic
level, the processes themselves should be evaluated. How does a spe-
cific process relate to the other processes in the organization? Could it
be structured more efficiently or be more aligned to other processes?
How does the process support the customer value proposition?
There’s an incredible amount of research on operational excellence,
strategy implementation, business intelligence, performance manage-
ment, and other topics related to the operational and analytical dimen-
sion. In this book, I will not attempt to summarize or synthesize;
instead, I will focus on a number of key improvements organizations
can make by looking at the operational and analytical dimensions in a
different way. See Figure 5.1.

F igur e 5.1

The Operational and Analytical Dimensions of the Performance
Leadership Framework

External Self- Self
Perception Perception

Analytical
Dimension
Social Values
Dimension Dimension
Operational
Dimension

Alignment
Management Info
Business Processes
Management Disciplines