Performance Model Layer

The performance model is the third step on our routemap.  It is here that the Key Performance Indicator (KPI) metrics will be selected, defined / modified for use and assigned to the appropriate place in the process model for ownership and measurement purposes.

The Biz4ge performance model, again constructed to be generic and cross-industry, is depicted in the figure below (click on it to see an enlarged version in a new window).

Business Architecture Performance Model

The figure to the left will be recognisable to many readers as being in a balanced scorecard format with its characteristic Financial, Process, Customer and People views of performance.

Next we must select or modify the KPI metrics we want to use for our organisation and add them to the correct place in the balanced scorecard to arrive at a populated performance model.

The outcome of this work will look something like the figure to your right just below (click on it to see an enlarged version in a new window).

Business Architecture Populated Performance Model

Finally, we map the numbered and colour coded KPI metrics (in the small coloured circles)  in our performance model across to the process model for purposes of ownership and measurement.

As you can see the process model we have previously constructed is aleady proving a useful tool as an integrating framework for pulling other model layers together….and there will be more of this to come!

That exercise, when completed, looks as per the following figure (click on it to see an enlarged version in a new window).

Business Architecture Mapped Performance Model

Now we can see which KPI metrics belong to which processes.  Again, we freely acknowledge that any generic, cross-industry model will not meet everyones requirements and you are again free to use these KPI metrics as-is or to modify, extend, add, delete or ignore parts until is they are what you want or need them to be.

As to other ideas for modifying our performance model to your own requirements you can also reference the very useful KPI Library site for metrics ideas for which a link is provided on our Resources page.

A final footnote as regards performance metrics……don’t go mad with them.  Choose the critical few that really matter to your organisation and industry and use them assiduously.  We have seen organisations that have created a metric for every last sub-process all the way down the process decomposition level tree.

Not only is this a great deal of work, but in practice you can never measure and react to all these KPIs without creating a monster bureaucracy which will collapse under its own weight and usually defeat its own purpose.  Use metrics sparingly, but do use the ones you choose!

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