18

Click here to load reader

1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

Embed Size (px)

Citation preview

Page 1: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 1/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR PALTEL GROUP – PALESTINE

Ahmad Hasan Maharma

Master of Engineering ManagementAn-Najah National University Nablus, Palestine

E-mail: ahmad.maharma gmail.!om

"r. #ahya $alehAssistant Professor, %ndustrial Engineering "e&artment

An-Najah National University Nablus, Palestine

E-mail: ysaleh najah.edu

ABSTRACT"ynami!ity environment of tele!ommuni!ation industry, high-level of !om&etition and in!reased!ustomers' e(&e!tations has made ne!essity of getting a)areness of attaining a !om&rehensive

&erforman!e evaluation, !onfident, trustable and fle(ible. Paltel *rou& as a mar+et leader in Palestine,should ta+e advantage of methods and &atterns !onse!utively )ith the aim of !onse!utive evaluation andim&rovement of their &erforman!e.

his study found usiness Performan!e Management is an in!redible method as it is hel&s organi ationsto &lan, monitor, analyse, and manage business more effe!tively by &roviding a !om&rehensive vie) for enter&rise. /ith a shared &ur&ose, a !onsistent data model, real-time information, easy-to-use tools, andstreamlined &ro!esses, it0s mu!h sim&ler to align o&erational &ro!edures )ith strategy.

his resear!h has !ontributed to &roviding de!ision ma+ers )ith a systemati! a&&roa!h for establishing a

visual strategy ma& )ith a !onsideration of the involved !ausal relationshi&s among 1ey Performan!e%ndi!ators 21P%0s3. Planning leadershi& team from Paltel *rou& in !oo&erate )ith the resear!her revie)and formulate Paltel *rou& $trategy to identify business strategy and !onstru!t alan!e $!ore!ard 2 $43and strategy ma& to measure finan!ial and non-finan!ial indi!ators. Pro&osed frame)or+ in this resear!h)ould be a useful and valuable referen!e to measure a!tual &erforman!e against target values, andfa!ilitate revie) and divide results to understand the &ost a!tions ta+en resulting in the !urrent &osition.

his resear!h &ro&oses a model based on the Analyti!al Hierar!hy Pro!ess 2AHP3 and $4 for evaluatingthe &erforman!e of Paltel *rou&, he analyti! hierar!hy is stru!tured by the four major &ers&e!tives of the $4 in!luding finan!ial, !ustomer, internal &ro!ess, and learning and gro)th, follo)ed by

&erforman!e indi!ators.PM dashboard designed to enable senior e(e!utives to e(e!ute strategy, manage &erforman!e, and drive

ne) or o&timal behaviours a!ross the grou&. hey are &rimarily designed to fa!ilitate monthly strategi!revie) or o&erational &lanning sessions and hel& e(e!utives !ollaborate on )ays to fi( &roblems or e(&loit o&&ortunities.

Keywords : ele!ommuni!ation industry, Performan!e Evaluation, usiness Performan!eManagement2 PM3, 1ey Performan!e %ndi!ators 21P%0s3, $trategy 5ormulation, alan!e $!ore!ard2 $43, $trategy Ma&&ing, Analyti!al Hierar!hy Pro!ess 2AHP3, PM dashboard.

International *ournal of the Analytic Hierarchy Process

6 /ashington, ".4.7une 89 7uly 8, 8;6<

Page 2: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 2/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

1. IntroductionPalestine ele!ommuni!ations 4om&any 2Paltel *rou&3 is the tele!ommuni!ations leader in Palestine=

he *rou& laun!hed its o&erations in 699> as a &ubli! shareholding !om&any. %t is &rovides fi(ed line,!ellular and data servi!es, ma+ing it the most integrated servi!e &rovider and one of the largest !om&anieso&erating in Palestine in terms of sales volume, mar+et value and finan!ial stability. he mar+et

!a&itali ation of Paltel *rou&0s $to!+, the leading share among the listed !om&anies on the PalestineE(!hange, re&resents ??.8@ of the total mar+et !a& on the E(!hange as end of 8;6?.eliability and !onsisten!y in dividends0 distribution over the &ast years )ith an u&)ard trend to rea!h

B;@ dividends &er!entage of the &ar value distributed for 8;6?, As end of 8;6?, the *rou&0s subs!riber base in all tele!om servi!es rea!hed ?.8B million !ustomers )ith a 8.>@ subs!riber gro)th rate !om&aredto end of 8;68. 2PAC EC annual re&ort, 8;;D-8;6?3.

ver the last fe) de!ades, the tele!ommuni!ation industry has &roven itself not only as an emerginge!onomi! se!tor but as a ra&idly gro)ing se!tor )ith a huge !hain of e!onomi! and so!ial im&a!t.As a result, several tele!ommuni!ations !om&anies )ere introdu!ed and started to !om&ete )ithin this!urrent mar+et. $u!h !om&etition &resents !hallenges that affe!t the business &erforman!e of the varioustele!ommuni!ation industries.

he la!+ of strategi! and !ommuni!ation me!hanisms among the !om&any verti!ally and hori ontally,e(!luding staff members from the de!ision-ma+ing &ro!esses, &oor !oordination among business unitsand fun!tional grou&s, and an evident ga& bet)een strategy and e(e!ution, have &ut Paltel *rou& under

&ressure from shareholders, sta+eholders, e(e!utives, and staff, to a!hieve standards of !or&orategovernan!e.

Paltel grou& &ursues for &erforman!e evaluation, !onfident, trustable and fle(ible, )hi!h ta+e advantageof s!ientifi! methods )ith a shared &ur&ose, a !onsistent data model, real-time information, easy-to-usetools, and streamlined &ro!esses, to align o&erational &ro!edures )ith strategy. And through in!reasedinsight, ma+e faster de!isions and boost &erforman!e to a!hieve business goals.

his study )ill bridge the e(isting ga&s bet)een strategy and then e(e!ution that im&air a!hievingstrategi! goals, by having a stru!tured business &erforman!e model. his model is endeavoring to a!hievethe follo)ing:%m&roved 4ommuni!ation by &roviding e(e!utives an effe!tive me!hanism for !ommuni!ating strategyand e(&e!tations to managers and staff at all levels of the organi ation via &lanning models and

&erforman!e metri!s joined to !or&orate goals and obje!tives.%m&roved 4ollaboration and e(!hange of ideas and information, both verti!ally bet)een levels )ithin anorgani ation and hori ontally among de&artments and grou&s )hi!h manage a shared a!tivity.%m&roved 4ontrol by enabling staff to !ontinuously adjust &lans and fi( or im&rove o&erations in a timelymanner by &roviding them )ith u&-to-date information about mar+et !onditions and the status of o&erational &ro!esses,%m&roved 4oordination among business units and fun!tional grou&s that other)ise might a!t asinde&endent segments, !onfli!ting rather than sharing resour!es and information.

%n a!!ordan!e )ith the above, the &ro&osed resear!h must ans)er the follo)ing Fuestions:• /hat are the e(&e!ted !hanges if a !om&any im&lements business &erforman!e management

2 PM3G• Ho) does PM hel& organi ations to align strategy )ith e(e!utionG• Ho) to identify and do!ument the strategi! 1P%s, )hi!h ultimately determine the su!!ess of

Paltel *rou&G• "oes alan!e s!ore!ard &ro&er method to align measure finan!ial and non-finan!ial &erforman!e.• "oes Analyti!al Hierar!hy Pro!ess &ro&er method to &rioriti e strategi! obje!tives and 1P%0s.

International *ournal of the Analytic Hierarchy Process

8 /ashington, ".4.7une 89 7uly 8, 8;6<

Page 3: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 3/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

2. Literature Reviewhis !ha&ter revie)s literature of relevant studies to &rovide a theoreti!al ba!+ground for the resear!h.he revie) &resents and dis!usses issues on, usiness Performan!e Management, ele!ommuni!ation,

strategy management, and &erforman!e measurement models.usiness Performan!e Management 2 PM3, !oin!ides )ith the !on!e&t of 4or&orate Performan!e

Management 24PM3 and Enter&rise Performan!e Management 2EPM3. hese !on!e&ts &rovide a system &ers&e!tive for o&timi ing the e(e!ution of business strategy, 2 allard, /hite, M!"onald, Myllyma+i,M!"o)ell, *oerli!h, and Neroda, 8;;B= 4lar+, 7ones, and Amstrong, 8;;>3. he !on!e&t of PM )asintrodu!ed to business in the 699;s by information te!hnology resear!h firms and soft)are vendors24o+ins, 8;;9= Prit!hard, 8;;D3. PM is misunderstood by many !om&anies as being a ne) !ategory todes!ribe multi&le a&&li!ations in!luding &lanning, budgeting, finan!ial !onsolidation and re&orting,fore!asting and s!enario modeling, s!ore !arding or dashboards, business intelligen!e, and +ey

&erforman!e indi!ators 21P%s3 re&orts. E!+erson 28;;<3 argues that PM is a !ommon strategi! andte!hni!al frame)or+ that &ulls these a&&li!ations together in a !ohesive and !on!erted manner )ith avie) to drive the )hole organi ation to)ard a!hievement of strategi! goals. herefore, PM is a mu!h

broader and bigger !on!e&t than &lanning, budgeting, fore!asting, re&orting, s!ore !arding, or businessintelligen!e. hese latter !on!e&ts are all tools underlying the business &erforman!e management !on!e&t.

PM defines and refines strategies, and manages them in order to enhan!e &erforman!e. %t bridges thega& bet)een strategy and e(e!ution by means of im&roved !ommuni!ation, !ollaboration, !ontrol, and!oordination 2E!+erson, 8;;<= allard et al., 8;;B3. PM enables organi ations to enhan!e the!a&abilities of business intelligen!e systems for better monitoring, measurement, and management of

business &erforman!e 24lar+ et al., 8;;>3. E!+erson &osits that PM im&roves 263 !ommuni!ation of strategy and e(&e!tations to all levels of the organi ation through &lanning models and &erforman!emetri!s that are tied to strategi! goals, 283 !ollaboration a!ross organi ation through t)o ‐)ay e(!hange of ideas and information, 2?3 !ontrol to !ontinuously adjust &lans and im&rove o&erations throughdissemination of u& ‐to‐date information about mar+et !onditions and o&erational &ro!esses, and 2<3!oordination among business units and fun!tional grou&s. E!+erson also suggests that PM hel&sorgani ations better e(&loit o&&ortunities as )ell as dete!t and re!tify o&erational &roblems before theygro) out of !ontrol.

o enhan!e the understanding of PM, the frame)or+ )ill be e(&loded. 5igure 28-63 de&i!ts theframe)or+ )hi!h !overs the four &hases.

Figure !"# Busi$ess Per%or&'$(e M'$'ge&e$) Fr'&ewor* $our!e: Ada&ted from 5roli!+ and Ariya!handra, 28;; :<?3

International *ournal of the Analytic Hierarchy Process

? /ashington, ".4.7une 89 7uly 8, 8;6<

Page 4: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 4/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

S)r')egi+e# defining the )ay to identify business strategy, the dis!overy of +ey value drivers toa!!om&lish strategy and !reate metri!s to monitor the &erforman!e, 2Ariya!handra and 5roli!+,8;;D:66<3. o be !om&etitive, one needs to stay !om&etitive. his is a!!om&lished to !hallenge the

boundaries of &erforman!e. o strategi e, o)ners or e(e!utive management of the business, revie) the &ast &erforman!e of the business and de!ide on future intent or dire!tion for the business. his is alsosu&&orted by a $/ analysis.P,'$# defining a road ma& that is follo)ed )ith s&e!ifi! &roje!ts, budgets and a!tivities to fulfill thestrategy. Planning to build a bridge from the !urrent status of the business to the to-be state. %f the goals)ere defined as &art of the strategy &ro!ess, &lanning )ill in!lude the formulation of reFuired +eyindi!ators to measure the &rogress to)ards the goals. %dentifi!ation of ga&s on measuring &oints isnormally done in this &ro!ess.Mo$i)or '$d '$',y+e# a!tual &erforman!e against target values are revie)ed and divided to understandthe &ost a!tions ta+en resulting in the !urrent &osition. Monitoring is !ontinuously measuring ho) )e aremoving to)ards the target. hin+ of the *P$ in your !ar, !ontinuously tra!+ing your move on the road,any deviations, you0ll get the )ord. he same )ith businesses, &rogress need tra!+ing and alerts toindi!ate to de!ision ma+ers the !ourse ta+en is not delivering the reFuired results or )e are on tra!+.T'*e (orre()i-e '()io$s# by understanding the status, modifi!ation )ith identifiable rea!tions to re-alignthe a!tions to a!hieve the desired &erforman!e levels. Adjusting the driving dire!tion )ill result inrea!hing your destination. Available information )ill give insight to )hat ha&&ened. Part of !orre!tivea!tions is also tra!+ing the status of the a!tion.

T.e B','$(ed S(ore('rd BSC"he best +no)n &erforman!e measurement system is undoubtedly the balan!ed s!ore!ard 2 $43,

develo&ed by 1a&lan and Norton 26998= 699 a= 699 b3. 1a&lan and Norton 2699 b3 define the $4 as Iamultidimensional frame)or+ for des!ribing, im&lementing and managing strategy at all levels of anenter&rise by lin+ing, through a logi!al stru!ture, obje!tives, initiatives, and measures to an organi ation0sstrategyJ. he $4 &rovides an enter&rise vie) of an organi ation0s overall &erforman!e: it !om&lementsthe traditional finan!ial &erforman!e measures )ith +ey &erforman!e indi!ators 21P%s3. he four building

blo!+s of the $4 are finan!ial &ers&e!tive, !ustomer &ers&e!tive, internal &ro!esses, and learning andgro)th. Having these four &ers&e!tives in mind, managers !an translate strategies into s&e!ifi! measuresthat !an monitor the overall im&a!t of the strategy on the enter&rise. he four &ers&e!tives also hel& inavoiding fo!using on short-term finan!ial results. %f an enter&rise e(e!ution )as short term biased, the

$4 )ill sho) )ee+ &erforman!e in other &ers&e!tives su!h as internal &ro!esses andK or learning andgro)th &ers&e!tive. 5igure 28-83 illustrate the four &ers&e!tives of alan!e s!ore!ard.

Figure /"# T.e B','$(e S(ore('rd$our!e: Ado&ted from 1a&lan and Norton 699

International *ournal of the Analytic Hierarchy Process

< /ashington, ".4.7une 89 7uly 8, 8;6<

Page 5: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 5/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

T.e A$',y)i( 0ier'r(.y Pro(ess '$d i)s Fou$d')io$he Analyti! Hierar!hy Pro!ess 2AHP3 is a methodology for stru!turing, measurement and synthesis. he

AHP has been a&&lied to a )ide range of &roblem situations: sele!ting among !om&eting alternatives in amulti-obje!tive environment, the allo!ation of s!ar!e resour!es, and fore!asting. Although it has )idea&&li!ability, the a(iomati! foundation of the AHP !arefully delimits the s!o&e of the &roblemenvironment 2$aaty 69D 3. %t is based on the )ell-defined mathemati!al stru!ture of !onsistent matri!esand their asso!iated right-eigenve!tor's ability to generate true or a&&ro(imate )eights, Mir+in 269>93,$aaty 269D;, 699<3.

he &rime use of the AHP is the resolution of !hoi!e &roblems in a multi-!riteria environment. %n thatmode, its methodology in!ludes !om&arisons of obje!tives and alternatives in a natural, &air)ise manner.

he AHP !onverts individual &referen!es into ratio-s!ale )eights that are !ombined into linear additive)eights for the asso!iated alternatives. hese resultant )eights are used to ran+ the alternatives and, thus,assist the de!ision ma+er 2"M3 in ma+ing a !hoi!e or fore!asting an out!ome. he AHP em&loys three!ommonly agreed to de!ision ma+ing ste&s: 263 *iven i L 6, , m obje!tives, determine their res&e!tive)eights ) i, 283 5or ea!h obje!tive i, !om&are the j L 6, , n alternatives and determine their )eights ) ij

)ith res&e!t to obje!tive i, and 2?3 "etermine the final 2global3 alternative )eights 2&riorities3 / j )ithres&e!t to all the obje!tives by / j L ) 6j) 6 ) 8j) 8 ) mj) m. he alternatives are then ordered by the/ j, )ith the most &referred alternative having the largest / j. he various de!ision methodologies 2AHP,Ele!tre, Multi-Attribute Utility heory3 are differentiated by the )ay they determine the obje!tive andalternative )eights, as &res!ribed by ea!h one0s a(iomati! or rule-based stru!ture. he general validity of the AHP, and the !onfiden!e &la!ed in its ability to resolve multi-obje!tive de!ision situations, is basedon the many thousands of diverse a&&li!ations in )hi!h the AHP results )ere a!!e&ted and used by the!ogni ant de!ision ma+ers, $aaty 2699<b3.%t is our belief that the real essen!e of the AHP is not generally understood. he AHP is more than just amethodology for !hoi!e situations. %t is not just another analysis tool. he best )ay )e !an e(&lain theAHP is to des!ribe its three basi! fun!tions: 263 stru!turing !om&le(ity, 283 measuring on a ratio s!ale,and 2?3 synthesi ing. /e also dis!uss some of the !ontroversy about the AHP that has a&&eared in thea!ademi! literature. $aaty 269D;3 and 5orman and $elly 269993.%n the late 69 ;0s, homas C. $aaty, an o&erational resear!h &ioneer, )as dire!ting resear!h &roje!ts for the Arms 4ontrol and "isarmament Agen!y at the U.$. "e&artment of $tate. $aaty's resear!h agenda,and very generous budget, enabled him to re!ruit some of the )orld0s leading game and utility theoristsand e!onomists. %n s&ite of the talents of the &eo&le re!ruited 2three members of the team, *erard"ebreu, 7ohn Harsanyi, and einhard $elten, have sin!e )on the Nobel Pri e3, $aaty )as disa&&ointed inthe results of the team's efforts. $aaty 2699 3.$aaty sought a sim&le )ay to deal )ith !om&le(ity. He found one !ommon theme in the )ay humansdeal )ith !om&le(ity, that is, the hierar!hi!al stru!turing of !om&le(ity into homogeneous !lusters of fa!tors. thers have also observed the im&ortan!e of hierar!hi!al stru!turing.AHP is a multi-!riteria de!ision method that uses hierar!hi!al stru!tures to solve !om&li!ated,unstru!tured de!ision &roblems, es&e!ially in situations )here there are im&ortant Fualitative as&e!ts thatmust be !onsidered in !onjun!tion )ith various measurable Fuantitative fa!tors. A&&li!ations of AHPin!lude:6. "evelo&ing a business &erforman!e evaluation system 2Cee, 1)a+, and Han 699B3.

8. Ma+ing strategi! de!ision about eFui&ment re&la!ement 2 eltjenbruns, Colari+, and $!handi-1irs!hner 699B3

?. 4hoosing manufa!turing &lant layout 2Abdul-Hamid, 1o!hhar , and 1han 69993

<. Ma+ing management de!ision about !ontinuous im&rovement &ro!esses 2Cabib and $hah, 8;;63

B. "etermining +ey !a&abilities of a firm 2Hafee , Oahng, and Mala+ 8;;83

. $ele!ting ne(t-generation manufa!turing 2Alvi and Cabib 8;;?3

International *ournal of the Analytic Hierarchy Process

B /ashington, ".4.7une 89 7uly 8, 8;6<

Page 6: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 6/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

>. "evelo&ing a design strategy for a re-!onfigurable manufa!turing system 2Abide and Cabib 8;;?3

AHP has been demonstrated as a &o)erful and useful method for assisting managers )ith !om&li!atedand diffi!ult de!isions. AHP is founded on the follo)ing set of a(ioms for deriving a s!ale fromfundamental measurements and for hierar!hi!al !om&osition 2$aaty 69D 3.A(iom 6: e!i&ro!al

%f element A is ( times more im&ortant than element , then element is 6K( times as im&ortant thenelements A.A(iom 8: Homogeneity

nly !om&arable elements are !om&ared. Homogeneity is essential for !om&aring similar things, as errorsin judgment be!ome large )hen !om&aring )idely dis&arate elements.A(iom ?: %nde&enden!e

he relative im&ortan!e of elements at any level does not de&end on )hat elements are in!luded at alo)er level.A(iom <: E(&e!tation

he hierar!hy must be !om&lete and in!lude all the !riteria and alternatives in the subje!t being studied. No !riteria and alternatives are left out and no e(!ess !riteria and alternatives are in!luded

he AHP method !onsists of three levels of hierar!hy. he first hierar!hy level is the goal of the

de!ision ma+ing, the se!ond level of hierar!hy is ho) ea!h of the e(isting !riteria !ontributes to the goala!hievement, and the last level of hierar!hy is to find out ho) ea!h of the alternatives !ontributes to ea!hof the !riteria.

Figure 1"# A0P .ier'r(.y Le-e,s$our!e: 2s.s!ribd.!omKdo!K89;D<; KModul- -Analyti!-Hierar!hy-Pro!essK86 7uni 8;;93

*oal

4riteria

$ub!riteria

Alternatives

3. Hypotheses/ !"ectiveshis resear!h aims to a!hieve the follo)ing obje!tives:evie) of !urrent &erforman!e management &ro!esses to identify ga&s, then suggest more effi!ient and

effe!tive &ro!esses for &erforman!e management, 4ondu!t a !om&rehensive investigation on alan!ed$!ore!ard and strategy ma& &ra!ti!es in tele!om industry to ma& the strategy for Paltel *rou&,re!ommend a methodology to &rioriti e Paltel *rou& strategi! obje!tives )hi!h a!hieve high level of !onsensus and !onsisten!y, determine ho) the &ro&osed PM model im&roves the grou& de!ision

-ma+ing &ro!ess and business out!omes, and &lan to develo& a &erforman!e measurement model )hi!h!an be a&&lied in tele!om industry in grou& level, estimate the grou& a!!om&lishments, and dis!over the!ausal-effe!t relationshi& among obje!tives and &ers&e!tives.

International *ournal of the Analytic Hierarchy Process

/ashington, ".4.7une 89 7uly 8, 8;6<

Page 7: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 7/18

Page 8: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 8/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

Cus)o&er Pers2e()i-e$in!e no)adays being !ustomer oriented is be!oming more and more im&ortant for business su!!ess, the

&ur&ose of defining !ustomer-related 1P%s is to get information about business &erforman!e from!ustomers0 &oint of vie) in order to im&rove their business. 5rom a )ell-formulated and im&lementedstrategy, ele!ommuni!ation industry has evolved and its !ustomers use their mobile &hones not only to

!all but also to a!!ess the internet, )at!h television, &lay musi! and ta+e &i!tures. Paltel *rou& hasfo!used on !ustomer value enhan!ement to maintain their loyalty and trust. he follo)ing indi!ators aresignifi!ant for Paltel *rou&0s !ustomer &ers&e!tive:

• 4ustomers0 4hurn ate• 4ustomer $atisfa!tion %nde(• Number of $ubs!ribers• Penetration ate• Average Minutes of Usage &er User &er Month 2M U3

I$)er$', Pro(ess Pers2e()i-e%nternal &ro!ess enables Paltel *rou& to meet t)o obje!tives, deliver value &ro&ositions of !ustomers in

targeted mar+et segments and satisfy sto!+holders e(&e!tations of e(!ellent finan!ial returns. hemeasures should fo!us on !riti!al &ro!esses to a!hieve !ustomer satisfa!tion and organi ational finan!ialobje!tives. Measures in!lude !ost &er subs!riber, mar+eting e(&ense &er !ustomer, time to mar+et, servi!e!overage and !om&laint ratio as illustrated belo):

• 4ost &er $ubs!riber • Mar+eting E(&ense &er $ubs!riber• ime to Mar+et 2 M3• $ervi!e 4overage• $ubs!riber0s 4om&laint atio

Le'r$i$g '$d Grow). Pers2e()i-ehis &ers&e!tive is !on!erned )ith identifying the infrastru!ture that Paltel *rou& needs for a long-term

business im&rovement and gro)th, and to a!hieve a&&ro&riate !ombination of s+ills and reFuired tools for a!tive atmos&here for sustainable im&rovements to meet demands of !ustomers and attaining the desiredfinan!ial effi!ien!ies. Cearning and gro)th is aiming to fill the ga& bet)een the e(isting !a&abilities of

&eo&le, information systems and organi ational &ro!edures, and )hat )ill be reFuired to a!hieve thefurther obje!tives= the ga& is identified through finan!ial, !ustomer and business &ro!ess &ers&e!tives.

herefore, the measures are fo!used on the follo)ing indi!ators:• raining E(&ense &er Em&loyee• 5ull ime EFuivalent 25 E3• urnover ate• e)ard &er Em&loyee

International *ournal of the Analytic Hierarchy Process

D /ashington, ".4.7une 89 7uly 8, 8;6<

Page 9: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 9/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

(. $ata/&ode' Ana'ysishis !ha&ter &resents the a&&li!ation of the AHP method in ran+ing the overall &erforman!e management

and &rovides &erforman!e inde( for the grou&.

D')' Co,,e()io$

4onsidering the number of sta+eholders in Paltel *rou&, &erforman!e management !ommittee )asformulated heading by 4E , to analy e the !urrent situation and to !oo&erate )ith resear!her to develo&the &ro&osed model. he resear!her )or+ed )ith the !ommittee to identify strategi! goals through $4 tomeasure the overall &erforman!e. he !ommittee !onsisted of 6B em&loyees, three general managers, si(dire!tors, four managers and t)o offi!ers. he !ommittee met to &rioriti e ea!h &ers&e!tive of $4, and1P%0s using AHP methodology.

he study ma+es an e(tensive use of both &rimary and se!ondary sour!es of information from the!ommittee of Paltel *rou&. he &rimary sour!es of data in!lude information )hi!h )ere gathered fromthe field. he se!ondary sour!es of data in!lude Paltel *rou&0s annual re&orts and bro!hures. "ata on the

&rofile and o&erations of the Paltel *rou&, resour!e base of the !om&any, te!hnologi!al advan!ement as)ell as o&erational !hallenges and administrative res&onses of the !om&any )ere gathered frommanagement and staff of Paltel *rou&. he &ro&osed methodologi!al frame)or+ for !ondu!ting the study

!ould be summari ed by literature revie), "ata 4olle!tion e!hniFues, %ntervie)s, bservations, 5o!usgrou&s, Em&iri!al $urvey a Fuestionnaire is designed )ith a !onventional AHP Fuestionnaire format2nine-&oint s!ale and &air)ise !om&arison3 based on the hierar!hy. 5ifteen Fuestionnaires )eredistributed to &erforman!e management !ommittee of Paltel *rou&.

A$',y)i(', 0ier'r(.y Pro(ess"ata analysis )as done by using AHP method using E(!el sheet develo&ed by 1laus ". *oe&el,htt&:KKb&msg.!om. he )eight for !al!ulation in AHP method is attained from the Fuestionnaires thathave been filled by res&ondents.

he &ro!edures of AHP to measure business &erforman!e involve si( essential ste&s 4heng, 6999= Cee,1ang, and /ang, 8;; = Cee, in &ress= Murta a, 8;;?= Oahedi, 69D 3:

S)e2!# De%i$e ).e u$s)ru()ured 2ro3,e& '$d s)')e (,e'r,y ).e o34e()i-es '$d ou)(o&es5he goal is to measure Paltel *rou& business &erforman!e. $o, this goal is &la!ed at the to& of the

hierar!hy. he hierar!hy des!ends from the more general !riteria in the se!ond level )hi!h are the four &ers&e!tive of balan!e s!ore!ard )hi!h are finan!e, !ustomer, internal &ro!ess, and learning. %t isim&ortant to identify those !riteria that are absolutely ne!essary to adeFuately define all relevant andim&ortant as&e!ts of the goal. hen, )e define 1P%0s for ea!h !luster based on its inherit &ers&e!tive, asdes!ribed in the able 263:T'3,e !"# BSC Pers2e()i-es '$d KPI6sGo',# Me'sure P',)e, Grou2 3usi$ess 2er%or&'$(e

F 5inan!ial &ers&e!tive 56 Annual evenue Per User 2A PU358 eturn n assets 2 A35? eturn n EFuity 2 E35< Net Profit Margin 2NPM35B 4urrent atio 24 3

C 4ustomer Pers&e!tive 46 4ustomer 4hurn48 $atisfied 4ustomer %nde(4? Penetration ate4< Minutes of Usage4B Number of $ubs!ribers

International *ournal of the Analytic Hierarchy Process

9 /ashington, ".4.7une 89 7uly 8, 8;6<

Page 10: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 10/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

P %nternal Pro!ess Pers&e!tive P6 ime to Mar+etP8 4ost &er !ustomer P? Mar+et e(&ense &er !ustomer P< $ervi!e !overagePB 4ustomer !om&laint ratio

L Cearning and *ro)thPers&e!tive

C6 Em&loyees turnover

C8 raining e(&ense &er em&loyeeC? e)ards e(&ense &er em&loyeeC< 5ull ime EFuivalent

S)e2/# De(o&2ose ).e 2ro3,e& i$)o ' .ier'r(.i(', s)ru()ure wi). de(isio$ e,e&e$)s e5g57 (ri)eri''$d ',)er$')i-es"5/hen relationshi&s be!ome too numerous or !om&le( for the human mind to intuitively gras&, it may

be!ome ne!essary to organi e the relationshi&s into a gra&hi!al re&resentation 2$aaty, homas 8;;D3. 5or these reasons, !onstru!tion of the hierar!hy is the most !riti!al as&e!t in the AHP./ith the hierar!hy of the &roblem, a&&ro&riately de!om&osed into a!tionable elements lin+ed to thehighest level goals, it is ne!essary to gather information as to the im&a!t of the relationshi&s bet)een thevarious levels. his a!tion &erformed by PM4 through fo!us grou&s )ith the resear!her )hi!h aims of

&rioriti ation matri( )hi!h re&resent the im&ortan!e values of organi ation drivers and relationshi&matri( that gives the ma&&ing bet)een the a!tionable items in different levels of the de!om&ositionhierar!hy.Figure 8"# A0P ,e-e,s %or P',)e, Grou2

International *ournal of the Analytic Hierarchy Process

6; /ashington, ".4.7une 89 7uly 8, 8;6<

Page 11: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 11/18

Page 12: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 12/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

Fi$'$(e Cus)o&er I$)er$',Pro(ess

Le'r$i$g'$d

Grow).

6 8 ? <

Fi$'$(e 6 6.;9 6.< 6. 9

Cus)o&er 8 ;.96 6.6< 6.D6

I$)er$', Pro(ess ? ;.>8 ;.DD 6.

Le'r$i$g '$d Grow). < ;.B9 ;.BB ;. ?

S)e28# Use ).e eige$-',ue &e).od )o es)i&')e ).e re,')i-e weig.)s o% ).e de(isio$ e,e&e$)s5Pair )ise !om&arisons among n elements in ea!h level lead to an a&&ro(imation of ea!h a i0;. i /. 0 )hi!h isthe ratio of the )eight of element i to element 0. he estimated )eight ve!tor . is found by solving thefollo)ing eigenve!tor &roblem: A.;< ma . , )here the matri( A !onsists of a i0=s, and <ma is the &rin!i&aleigenvalue of A. %f there is no in!onsisten!y bet)een a &air of elements, then a i0 is eFual to 6K a i0 for any iand 0. he result is that <ma L n and )e have, A.;n. , )here n is the number of elements in ea!h ro).

o !al!ulate the ) ve!tor 2also !alled the eigenve!tor3 ea!h !olumn of A is first normali ed and thenaveraged over its ro)s. his ve!tor is used to find the relative im&ortan!e of ea!h element. bserve thatsin!e small !hanges in a i0 im&ly a small !hange in <ma , the deviation of the latter from n 2the number of elements in a ro)3 is a measure of !onsisten!y.Priorities p i in ea!h in&ut sheet are !al!ulated using the ro) geometri! mean method 2 *MM3. /ith the

&air)ise > > !om&arison matri( A L a i0

4al!ulated y:

Normali ed y:

T'3,e 8"# Co$so,id')ed Eige$-',ue B','$(e s(ore('rd Balance scorecard Perspective Weight Rank

5inan!e ?;.D 6

4ustomer 8D.< 8

%nternal Pro!ess 8<.< ?

Cearning and *ro)th 6 .< <

S)e29# C.e(* ).e (o$sis)e$(y 2ro2er)y o% &')ri(es )o e$sure ).') ).e 4udg&e$)s o% de(isio$ &'*ers're (o$sis)e$)5

he !onsisten!y of a set of &air)ise !om&arisons !onsidered before )e a!!e&t the )eights generated bythis &ro!ess. 4onsider the situation &ro&osed earlier )here the !ommittee assessed fa!tor one as four times as im&ortant as fa!tor t)o. %f the de!ision ma+er !onsidered fa!tor t)o t)i!e as im&ortant as fa!tor three, then fa!tor one should be &referred eight times over fa!tor three. his is an e(am&le of &erfe!t

International *ournal of the Analytic Hierarchy Process

68 /ashington, ".4.7une 89 7uly 8, 8;6<

Page 13: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 13/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

!onsisten!y )ith res&e!t to strength of &referen!e, but &erfe!t !onsisten!y is not guaranteed due to thehuman as&e!t of the &ro!ess.A!!ording to aylor %%% 28;;8: ?>93, 4onsisten!y %nde( 24%3 !an be !al!ulated by using belo) formula:

his is a suitable eFuation for measuring the a!!ura!y for t)o reasons. 5irst, small !hanges to non-diagonal elements in a &ositive re!i&ro!al matri( )ill lead to only small !hanges in the eigenvalues.$e!ond, the n eigenvalues of an n n matri( )ith diagonal entries of one )ill al)ays sum to n. hus, themore !onsistent a matri( is, the less the aij entries )ill deviate from their a!tual values and the !loser )ill

be to n. 5or different values of n, $aaty and others have !om&uted the 4onsisten!y %nde( for a largenumber of matri!es )ith random entries and averaged these results to &rodu!e the andom %nde( 2 %3.$aaty defines the !onsisten!y ratio for a matri( as eFuation belo):

A matri( )ith a 4 value less than ;.6 is !onsidered by $aaty to have a!!e&table !onsisten!y.andom 4onsisten!y %nde( 2 %3 !an be observed in able 2B3 as follo)s:

T'3,e 9"# R'$do& Co$sis)e$(y I$de:$ 6 8 ? < B > D 9 6;

RI ;.;; ;.;; ;.BD ;.9; 6.68 6.8< 6.?8 6.<6 6.<B 6.<9CG I ;.?6 ;.?B ;.?> ;.?> ;.?> ;.?> ;.?> ;.?>

Source: http://...'people're oledu'com/ ardi/tutorial/AHP/inde 'html

%f 4 Q 6;@, the data a!Fuired is in!onsistent%f 4 R 6;@, the data a!Fuired is !onsistent

he test of !onsisten!y result )ill be very useful in the AHP method. %f the test result is in!onsistent 24 Q 6;@3, then the result from the AHP method )ill be of no use in de!ision ma+ing.*eometri! !onsisten!y inde( *4% is !al!ulated using belo) eFuation:

*4%

"es!ri&tion:n L Amount of items !om&ared)i L /eight!i L $um of !olumn4 L 4onsisten!y atio4% L 4onsisten!y %nde(

% L andom 4onsisten!y %nde(*4% L *eometri! !onsisten!y inde(

T'3,e ;"# Co$sis)e$(y r')io B','$(e s(ore('rd '$d 2ers2e()i-es

International *ournal of the Analytic Hierarchy Process

6? /ashington, ".4.7une 89 7uly 8, 8;6<

?I

(I (? =

Page 14: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 14/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

α Lambda GCI CR

alan!e s!ore!ard ;.6 <.;;> ;.;6 ;.?

5inan!e ;.6 B.;<? ;.;< 6.;

4ustomer ;.6 B.;69 ;.;8 ;.<

%nternal Pro!ess ;.6 B.;? ;.;? ;.D

Cearning and *ro)th ;.6 <.;8D ;.;< 6.;

S)e2;# Aggreg')e ).e re,')i-e weig.)s o% de(isio$ e,e&e$)s )o o3)'i$ '$ o-er',, r')i$g %or ).e',)er$')i-es5

PM dashboard designed to enable senior e(e!utives to e(e!ute strategy, manage &erforman!e, and drivene) or o&timal behaviors a!ross the grou&. hey are &rimarily designed to fa!ilitate monthly strategi!revie) or o&erational &lanning sessions and hel& e(e!utives !ollaborate on )ays to fi( &roblems or e(&loit o&&ortunities. PM dashboard fo!uses on hel&ing Paltel *rou& to !hart a ne) strategi! dire!tion.Performan!e targets have time frames, )hi!h affe!ts ho) 1P%0s are !al!ulated and dis&layed. Establish

annual targets for +ey &ro!esses and initiatives, to +ee& em&loyees on tra!+ to a!hieve those long-termtargets, Paltel *rou& !an divide time frames into intervals that are measured on a more freFuent basis.argeted im&rovement ea!h Fuarter affe!ted by season su!h as summer as number of visitors in!reased

during this &eriod, grou&s may ba!+-)eight the targets to)ard the end of the year.he goals asso!iated )ith 1P%s are +no)n as targets be!ause they s&e!ify a measurable out!ome rather

than a !on!e&tual destination. %deally, through AHP and !ollaboration )ith buy-in !an attain morea!!urate targets. argets !an also be set by a 1P% team !harged )ith translating strategi! obje!tives into a

&erforman!e &lan.he &ro&osed dashboards enables the Paltel grou& to evaluate &erforman!e differen!e in ea!h &eriod

se&arately. $in!e the measures used in the model are in different +inds it is nearly im&ossible to evaluatethe observe &erforman!e )ith ea!h other. ut in the model, ea!h observed value is normali ed a!!ordingto the goals so that a &erforman!e s!ore is !al!ulated )hi!h !an be used to !om&arison. bserve the

im&rovements that ta+e &la!e bet)een the measurement &eriods. Moreover, the !a&ability to !al!ulate asingle &erforman!e level )hi!h indi!ates the overall &erforman!e.able 2>3 sho)s Priorities $4 &ers&e!tives and 1P%0s based on AHP, in!lude &ro&osed Model.

International *ournal of the Analytic Hierarchy Process

6< /ashington, ".4.7une 89 7uly 8, 8;6<

Page 15: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 15/18

ISAHP Aricle: Maharma, Seleh/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#,$ashin%ton &'(', )'S'A'

International *ournal of the Analytic Hierarchy Process

6B /ashington, ".4.7une 89 7uly 8, 8;6<

T'3,e <"# Busi$ess Per%or&'$(e M'$'ge&e$) d's.3o'rd %or P',)e, Grou2

Go',# Me'sure P',)e, Grou2 3usi$ess 2er%or&'$(e

Main criteria Global Weight

Sign Sub criteria Local Weight

inal !eight

Rank "arget #ctual Per$ormance Result

#chievemnt

F Fi$'$(i',2ers2e()i-e

1=5>? F! Annual evenue Per User 2A PU3 ;.88? .DB@ ? 6;; 9< .< @ 9<.;;@F/ eturn n assets 2 A3 ;.8;6 .6>@ > ;.6D> ;.6B <.9>@ D;.86@F1 eturn n EFuity 2 E3 ;.8?9 >.?<@ 8 ;.8B ;.8?D >.;6@ 9B.8;@F8 Net Profit Margin 2NPM3 ;.866 .<D@ < ;.8? ;.88;< .8?@ 9B.D?@F9 4urrent atio 24 3 ;.68 ?.D>@ 6 6.B 6. <.6<@ 6; . >@

Fi$'$(e 2er%or&'$(e I$de: is# />5>=? @159=?C Cus)o&er

Pers2e()i-e/>58? C! 4ustomer 4hurn ;.6DD B.?<@ 9 ;.89 ;.?< <.BB@ DB.89@

C/ $atisfied 4ustomer %nde( ;.88D .<D@ B ;.> ;. B .;6@ 98.D @C1 Penetration ate ;.8 ; >.?D@ 6 ;.>8 ;.> >.6D@ 9>.88@C8 Minutes of Usage ;.68D ?. <@ 6> ;.D ;. < 8.96@ D;.;;@C9 Number of $ubs!ribers ;.69 B.B>@ D 8.> 8. B B.< @ 9D.6B@

Cus)o&er 2er%or&'$(e I$de: is# /;5!/? @!5@;?P I$)er$', Pro(ess

Pers2e()i-e/858? P! ime to Mar+et ;.8 < .<<@ 6? 6<8 .6>@ 9B.>>@

P/ 4ost &er !ustomer ;.86? B.8;@ 66 99 68< <.6B@ >9.D<@P1 Mar+et e(&ense &er !ustomer ;.6DB <.B6@ 6? <6 B8 ?.B @ >D.DB@P8 $ervi!e !overage ;.6 ; ?.9;@ 6B ;.9B ;.9B ?.9;@ 6;;.;;@P9 4ustomer !om&laint ratio ;.6>D <.?<@ 6< ;.;>8 ;.; ;D ?. >@ D<.<<@

I$)er$', Pro(ess 2er%or&'$(e I$de: is# /!589? ><5@!?L Le'r$i$g '$d

Grow).Pers2e()i-e

!;58? L! Em&loyees turnover ;.8;B ?.?D@ 6D ;.;< ;.;?> ?. ?@ 6;D.66@L/ raining e(&ense &er em&loyee ;.6DB ?.;B@ 69 D;; >?6 8.>>@ 96.?D@L1 e)ard e(&ense &er em&loyee ;.?8< B.?>@ 6; 8;<B8 69 B; B.B?@ 6;<.;D@L8 5ull ime EFuivalent ;.8D <.>8@ 68 86; ?8< ?.;<@ <.D6@

Le'r$i$g '$d Grow). 2er%or&'$(e I$de: is# !85@>? @!511?P',)e, Grou2 3usi$ess 2er%or&'$(e I$de: is# @!518?

Page 16: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 16/18

ISAHP Article: Mu, Saaty/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

). Li*itationshe main limitations for this resear!h !an be summari ed by the follo)ing &oints:

• $am&le si e: $tatisti!al tests normally reFuire a larger sam&le si e to ensure a fairly !om&letere&resentation of a &o&ulation.

• Ca!+ of available andKor reliable data: la!+ of data or of reliable data )ill li+ely restri!t this

resear!h.• A!!ess: as the &ro&osed resear!h may !ontain !onfidential data, the a!!ess is denied or other)ise

limited. %t )ill be !om&li!ated to gain data from sta+eholders, Paltel *rou&, or a!!ess todo!uments.

• $oft)are !a&abilities to handle AHP

+. Conc'usionshis 4ha&ter !overs the final refle!tions of this thesis. he final result of the analysis &resented )ith

res&e!t to the data !olle!ted from the !om&any and &ro&osed !orre!tive a!tions. Also, !on!lusions andre!ommendations in!luded in this !ha&ter.

he relative )eights for ea!h &erforman!e measure !onstru!ted in &revious 4ha&ter fa!ilitate thedevelo&ment of an inde( to tra!+ the *rou&0s &rogress in e(e!ution its strategy. 5rom the relative )eightof ea!h &erforman!e measure to the *rou&0s overall goal, )e !an assess the relative effe!t of the !hangein a &erforman!e measure from one &eriod to the ne(t on the *rou&0s overall &erforman!e. y tra!+ingea!h &erforman!e measure individually, from &eriod to &eriod, and then !olle!tively Fuantifying therelative effe!t of the !hange in ea!h &erforman!e measure, )e !an !onstru!t an inde( to monitor thefirm0s &rogress against its mission.

he final )eights and &riorities obtained from the above a&&li!ation for the sele!ted indi!ators have been &rovided in the able 2>3. %n addition, based on the obtained results from this resear!h, the ran+ing of

$4 &ers&e!tives are &resented in able 2>3. he results of the main !riteria in $4 - ran+ing indi!atesthe first ran+ for the I5inan!e &ers&e!tiveJ )ith ?;.D@, the se!ond for I4ustomer &ers&e!tiveJ )ith8D.<@, the third ran+ for I%nternal &ro!ess &ers&e!tiveJ )ith 8<.<@ and the fourth ran+ is ICearning andgro)th &ers&e!tiveJ )ith 6 .<@.%t should be noted that after o&inion &oll )ith the Paltel *rou&0s !ommittee to &rioriti e 1P%0s based on

able 2>3 using verbal s!ales of 4heng #ung and Hu)ang 269993, ea!h &erforman!e indi!ator is given aFuantitative value. hen for ea!h !riteria )e determine the target and a!tual &erforman!e value andmulti&ly ea!h 1P% value )ith final )eight, )e then aggregate all values for all indi!ators and &ers&e!tivesto !al!ulate the overall &erforman!e value for Paltel *rou& and then the business &erforman!e inde( is:96.<@.

herefore, by using the &ro&osed model grou&, !an identify the a!hievements level for ea!h &ers&e!tive,in able 2>3 Paltel *rou&0s a!hieved in finan!e, !ustomer, internal &ro!ess and Cearning and *ro)th

&ers&e!tives for ea!h by order, 9?.B@, 98.;<@, D>.99@, and 96.<8@ res&e!tively."ynami!ity environment of tele!ommuni!ation industry, high-level of !om&etition and in!reased!ustomers' e(&e!tations has made ne!essity of getting a)areness of attaining a !om&rehensive

&erforman!e evaluation, !onfident, trustable and fle(ible. Paltel *rou& as a mar+et leader in Palestine,should ta+e advantage of methods and &atterns !onse!utively )ith the aim of !onse!utive evaluation andim&rovement of their &erforman!e.

his study found PM in!redible method as it is hel&s organi ations to &lan, monitor, analyse, andmanage business more effe!tively by &roviding a !om&rehensive vie) for enter&rise. /ith a shared

&ur&ose, a !onsistent data model, real-time information, easy-to-use tools, and streamlined &ro!esses, it0smu!h sim&ler to align o&erational &ro!edures )ith strategy. And through in!reased insight, ma+e faster de!isions and boost &erforman!e to a!hieve business goals.

International *ournal of the Analytic Hierarchy Process

6 /ashington, ".4.7une 89 7uly 8, 8;6<

Page 17: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 17/18

I*AHP Article: Mu, Saaty/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

PM !an hel& an organi ation to fo!us on the +ey drivers of value as they relate to !or&orate strategy ands&e!ifi! organi ational &ro!esses. PM &rovides fa!t-based guidan!e for value-based de!ision ma+ing.Even more im&ortant, it enables a !onsistent &ro!ess and frame)or+ for evaluating trade-offs related toinvestment by offering an integrated &ers&e!tive of &ast, &resent, and future &erforman!e. y lin+ing

&lanning and fore!asting to &redi!tive and dynami! resour!e allo!ation, a !om&any !an de&loy resour!esmore effe!tively. PM is a +ey tool for ensuring that the )or+ em&loyees do every day translates !learlyinto strategi! value. %n addition, if a !om&any has a reliable measure of its &erforman!e, its e(e!utives !aneasily ma& that result against the &erforman!e of its !om&etitors in the mar+et&la!e and Fui!+ly and!onfidently res&ond.

his resear!h has !ontributed to &roviding de!ision ma+ers )ith a systemati! a&&roa!h for establishing avisual strategy ma& )ith a !onsideration of the involved !ausal relationshi&s among 1P%s. he $4strategy ma& !onstru!tion frame)or+ &ro&osed in this resear!h )ould be a useful and valuable referen!efor other organi ations, as $4 vary from organi ation to organi ation. $trategi! analysis is &erformed to!reate logi!al lin+s bet)een the 1P%s based on the !ontent of the $4 evaluation !riteria that are mosta&&ro&riate for tele!om industry &erforman!e.

ased on our resear!h, )e !an see that strategy ma& )hi!h )e built )ill solve some &roblems )hi!h have been e(isting in Paltel *rou&. herefore )e thin+ $4 and strategy ma& should )or+ together to hel&!om&any to a!hieve the strategy goals, and use them in a !om&lementary )ay.

his resear!h &ro&oses an a&&roa!h based on the AHP and $4 for evaluating the &erforman!e of Paltel*rou&, he analyti! hierar!hy is stru!tured by the four major &ers&e!tives of the $4 in!luding finan!ial,!ustomer, internal business &ro!ess, and learning and gro)th, follo)ed by &erforman!e indi!ators.

e!ause human de!ision-ma+ing &ro!ess usually !ontains fu iness and vagueness, the AHP is ado&tedto solve the &roblem.A )ell-organi ed AHP information system is !onstru!ted to fa!ilitate the solving &ro!ess. %t is our belief that AHP has rea!hed the !om&romise and )ill be useful for many other !ases as it has been in the &ast.%n &arti!ular, AHP has bro+en through the a!ademi! !ommunity to be )idely used by &ra!titioners. his)ides&read use is !ertainly due to its ease of a&&li!ability and the stru!ture of AHP )hi!h follo)s theintuitive )ay in )hi!h managers solve &roblems. he hierar!hi!al modelling of the &roblem, the

&ossibility to ado&t verbal judgment and the verifi!ation of the !onsisten!y are its major assets.%n this resear!h )e re!ommend to establish usiness Performan!e Management ffi!e, )hi!h a!tivelyguide Paltel *rou& of strategy management or in organi ing strategi! &lanning a!tivities, and indevelo&ing &lans, obje!tives and &erforman!e measures to ensure e(e!ution. he main res&onsibility of this offi!e is to &re&are and animate strategi! &lanning )or+sho&s, a!!ounting for and managing thee(&e!tations of multi&le sta+eholders involved in the &lanning &ro!ess, )hile ensuring alignment of Paltel*rou&0s dire!tion )ith business se!tor and su&&ort unit &riorities, identifying strategi! obje!tives, +ey

&erforman!e indi!ators, targets, and develo&ing &erforman!e dashboards, Effe!tively monitoring theintegrity of results re&orted, and Pre&aring and &resenting &erforman!e dashboards and other strategi!

&erforman!e !ommuni!ations tools, both internally and e(ternally.

,. -ey Re erences!5 Abran, A., uglione, C., 8;;?. A multidimensional &erforman!e model for !onsolidating alan!ed

$!ore!ards. Advan!es in Engineering $oft)are/5 Algera, 7.A., "e Haas, M., 8;;8. Performan!e management at different organi ational levels. %n:

Prit!hard ."., Holling H., Cammers 5., 4lar+ .". 2Eds.3, 8;;8. %m&roving organisational &erforman!e )ith the &rodu!tivity measurement and enhan!ement system: an international!ollaboration, Nova $!ien!e, Ne) #or+.

International Symposium ofthe Analytic Hierarchy

Process

6> /ashington, ". 4.7une 89 7uly 8, 8;6<

Page 18: 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

8/9/2019 1-DEVELOPING A BUSINESS PERFORMANCE MANAGEMENT MODEL FOR.pdf

http://slidepdf.com/reader/full/1-developing-a-business-performance-management-model-forpdf 18/18

I*AHP Article: Mu, Saaty/A Style Guide for Paper Proposals To Be Submitted to the International Symposium of the Analytic Hierarchy Process !"#, $ashin%ton &'(', )'S'A'

15 est Pra!ti!es in Planning and Performan!e Management: adi!ally ethin+ing Management for aSolatile /orld 2/iley est Pra!ti!es3 by "avid A. 7. A(son 2Aug 8, 8;6;3

85 eyond Performan!e Management: /hy, /hen, and Ho) to Use <; ools and est Pra!ti!es for $u&erior usiness Performan!e by 7eremy Ho&e and $teve Player 25eb >, 8;683

95 itit!i, U.$, urner, ., egemann, 4., 8;;;. "ynami!s of Performan!e Measurement $ystems,%nternational 7ournal of &erations and Produ!tion Management.

;5 ourne, M., Mills, 7., /il!o(, M., Neely, A."., 8;;;. "esigning, %m&lementing and u&datingPerforman!e Measurement $ystems, %nternational 7ournal of &erations and Produ!tionsManagement.

<5 ourne, M., Neely, A."., 8;;?. %m&lementing Performan!e Measurement $ystems: a literaturerevie). %nternational 7ournal of usiness Performan!e Management.

>5 rodjonegoro, ambang P.$ 269983. Analyti!al Hierar!hy Pro!ess, Pusat Antar Universitas $tudiE+onomi Universitas %ndonesia 2un&ublished3

@5 4or&orate Performan!e Management: Ho) to build a better organi ation through measurement-driven, strategi! alignment 2%m&roving Human Performan!e3 by "avid /ade and on e!ardo 27un89, 8;;63

!=5 "amodaran, As)ath 28;;83. %nvestment Saluation: ools and e!hniFues for "etermining the Salueof Any Asset 2$e!ond edition3. Ne) #or+: 7ohn /iley and $ons, %n!.

!!5 E!+erson, /. 2Mar!h 8;;<3. est &ra!ti!es in business &erforman!e management: usiness andte!hni!al strategies. "/% he "ata /arehousing %nstitute e&ort $eries, 6 ?6.

!/5 5ive 1ey Prin!i&les of 4or&orate Performan!e Management by ob Paladino 27an 88, 8;;>3!15 Harvard usiness Essentials: Performan!e Management: Measure and %m&rove the Effe!tiveness of

#our Em&loyees by i!hard Cue!+e 2A&r 6, 8;; 3!85 %nvestigating the relationshi& bet)een the business &erforman!e management frame)or+ and the

Mal!olm aldrige National Tuality A)ard frame)or+.!95 7ones. 4harles P. et al 28;;93. %nvestment: Analysis and Management 2An %ndonesian Ada&tation3.

$inga&ore: 7ohn /iley and $ons 2Asia3 Pte. Ctd.!;5 Ciedt+a, $te&hen C. 28;;B3. he Analyti! Hierar!hy Pro!ess and Multi-4riteria Performan!e

Management $ystems. ))).mdm.g)u.edu . 8; 7uni 8;;9!<5 PAC EC annual re&ort, 8;;D-8;6? 2))).&altelgrou&.&s 3!>5 Performan!e Management 28nd Edition3 by Herman Aguinis 27an 8>, 8;;D3!@5Performan!e Management: %ntegrating $trategy E(e!ution, Methodologies, is+, and Analyti!s

2/iley and $A$ usiness3 by *ary 4o+ins 2A&r , 8;;93/=5 $e&utro, Hery. 28;;D3. 2s.s!ribd.!omKdo!K89;D<; KModul- -Analyti!-Hierar!hy-Pro!essK "o)nload

"ate: 86 7uni 8;;93/!5 $trategi! management: !on!e&ts and !ases K 5red . "avid. 6?th ed, 8;66.//5 Hein /eihri!h, I he /$ Matri(: A ool for $ituational Analysis,J Cong ange Planning 6B, no.

8 2A&ril 69D83: 6. Note: Although "r. /eihri!h first modified $/ analysis to form the /$matri(, the a!ronym $/ is mu!h more )idely used than /$ in &ra!ti!e.

International Symposium ofthe Analytic Hierarchy

Process

6D /ashington, ". 4.7une 89 7uly 8, 8;6<