{"id":2881,"date":"2017-04-12T14:30:10","date_gmt":"2017-04-12T19:30:10","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=2881"},"modified":"2020-12-18T12:46:39","modified_gmt":"2020-12-18T17:46:39","slug":"are-you-still-using-a-first-generation-performance-framework","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/are-you-still-using-a-first-generation-performance-framework\/","title":{"rendered":"Are You Still Using a First Generation Performance Framework?"},"content":{"rendered":"<p><em><strong>What is a &#8220;first&#8221; or &#8220;second&#8221; generation <a href=\"https:\/\/flevy.com\/business-toolkit\/performance-management-perf\">Performance Management and\u00a0Measurement<\/a> framework?<\/strong><\/em><\/p>\n<p>Let&#8217;s begin by defining these\u00a0concepts.<\/p>\n<p>First generation\u00a0Performance Management and Measurement frameworks derive <a href=\"https:\/\/flevy.com\/business-toolkit\/key-performance-indicators\">Key Performance Indicators (KPIs)<\/a> from strategy. \u00a0These include well known and established frameworks, such as Balanced Scorecard (BSC) and EFQM Excellence Model.<\/p>\n<p>These first generation frameworks have led organizations to increase the number and range of performance measure, but do not add the value that could be achieved.\u00a0\u00a0 These frameworks have significant weaknesses in the way that these KPIs are identified, integrated, communicated and acted upon.<\/p>\n<p>On\u00a0other hand, a second generation\u00a0Performance Management and Measurement frameworks derives KPIs from\u00a0stakeholder and organizational needs. \u00a0This concept was developed by Andrew Jack, when he observed the management and employee dissatisfaction with existing Performance Measurement and Management frameworks. \u00a0To address these issues, Andrew Jack developed the second generation framework, Value Mapping.<\/p>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/value-mapping-2659\">Value Mapping<\/a> focuses on driving true value for the organization, by deriving measures tied to <strong>Value Drivers<\/strong> and <strong>Value Outcomes:<\/strong><\/p>\n<ul>\n<li>Value Drivers are things that drive <strong>Value Creation<\/strong>.<\/li>\n<li>Value Outcomes are the desired outcomes for the stakeholders.<\/li>\n<\/ul>\n<p>The Value Mapping framework\u00a0utilizes a pictorial way of integrating the most useful performance measures, which helps employees to reconnect themselves to their performance.\u00a0 It identifies the most important value required by the stakeholders and then develops a strategy to integrate it.\u00a0 Value Mapping also focuses on effective communication and assets that can create greater value to drive performance.<\/p>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/value-mapping-2659\"><img decoding=\"async\" class=\"alignnone size-full wp-image-2882\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2017\/03\/valuemapping.gif\" alt=\"valuemapping\" width=\"1024\" height=\"768\" \/><\/a><\/p>\n<p>From the Value Mapping process visual above, we see the components of this model are:<\/p>\n<ul>\n<li>Value Needs Assessment<\/li>\n<li>Review of Strategy and Objectives<\/li>\n<li>Mapping and Integration of Objectives<\/li>\n<li>Predicted Value Outcome Mapping<\/li>\n<li>Value Drivers Assessment<\/li>\n<li>Value Driver Mapping<\/li>\n<li>Measures Development and Refinement<\/li>\n<li>Communication, Planning, and Allocation of Energy\/Resources<\/li>\n<li>Value Outcome Assessment and Reporting Value<\/li>\n<\/ul>\n<p>All organizations should be value-focused. \u00a0This is the basis to Value Mapping. \u00a0The Value Mapping model is an approach to value creation that uses the language of value to identify and structure performance measures.<\/p>\n<p>Before we can review and develop our KPIs, we need to understand the Value Outcomes that we are trying to create, which are influenced by the needs of our stakeholders.<\/p>\n<p>Value Mapping, specifically, helps management and employees reconnect with performance measures and performance management.\u00a0 Value Mapping identifies the most important stakeholder needs and uses these to measure value outcomes, as well as to develop an integrated strategy. Value Mapping approach also places great emphasis on the effective communication of the activities and assets that create value, the value drivers, and the measures of their performance. \u00a0It\u00a0is an approach that can help to structure the reporting of value for all people concerned in the success of the organization.<\/p>\n<div class=\"aside\"><strong>Are you a management consultant?<\/strong>\u00a0\u00a0You can download this and hundreds of other\u00a0<a href=\"https:\/\/flevy.com\/pro\/library\/frameworks\">consulting frameworks<\/a>\u00a0and\u00a0<a href=\"https:\/\/flevy.com\/pro\/library\/consulting\">consulting training guides<\/a>\u00a0from the FlevyPro library.<\/div>\n<p>Interested in gaining more understanding on how to implement Value Mapping? \u00a0You can learn more and download an editable PowerPoint about\u00a0<a href=\"https:\/\/flevy.com\/browse\/flevypro\/value-mapping-2659\">Value Mapping\u00a0here on the Flevy<\/a>\u00a0documents marketplace.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0<a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>.\u00a0<a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives. Here\u2019s what some have to say:<\/p>\n<blockquote><p>\u201cMy FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.\u201d<\/p>\n<p>\u2013 Bill Branson, Founder at Strategic Business Architects<\/p><\/blockquote>\n<blockquote><p>\u201cAs a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.\u201d<\/p>\n<p>\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p><\/blockquote>\n<blockquote><p>\u201cAs a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant\u2019s toolbox.\u201d<\/p>\n<p>\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p><\/blockquote>\n<blockquote><p>\u201cFlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it\u2019s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.\u201d<\/p>\n<p>\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p><\/blockquote>\n<blockquote><p>\u201cSeveral times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients\u2019 benefits.\u201d<\/p>\n<p>\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>What is a &#8220;first&#8221; or &#8220;second&#8221; generation Performance Management and\u00a0Measurement framework? Let&#8217;s begin by defining these\u00a0concepts. First generation\u00a0Performance Management and Measurement frameworks derive Key Performance Indicators (KPIs) from strategy. \u00a0These include well known and established frameworks, such as Balanced Scorecard (BSC) and EFQM Excellence Model. These first generation frameworks have led organizations to increase the&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/are-you-still-using-a-first-generation-performance-framework\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">Are You Still Using a First Generation Performance Framework?<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":2882,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[82,81],"tags":[126,1207,130,450,1199,1206,1205],"class_list":["post-2881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-operations","category-strategy","tag-balanced-scorecard","tag-efqm","tag-kpi","tag-performance-management","tag-value-creation","tag-value-drivers","tag-value-mapping"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/2881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=2881"}],"version-history":[{"count":4,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/2881\/revisions"}],"predecessor-version":[{"id":7754,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/2881\/revisions\/7754"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/2882"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=2881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=2881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=2881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}