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Performance Improvement: Methods, What They Mean, and First

The format should be 12-point, double-spaced, "Geneva" font The current competitive business environment has resulted in a performance improvement methods becoming popular. An analysis of some these methods will show some similar characteristics. Two of these characteristics are an increasing focus on the customer and an emphasis building relationships. These two characteristics are recognized as success factors for an organization. A discussion of these two success factors shows that an change internally to focus on these two success factors. This involves implementing a balanced scorecard that measures these factors, linking to employee evaluation and reward, training all employees in effective relationship building and creating an internally cooperatively These changes create an underlying culture that supports a focus on customer and on building relationships. This underlying culture can built upon to adapt to changing times and to continue improving INTRODUCTION 1CONCEPTS OF PERFORMANCE IMPROVEMENT 1


While SERVQUAL is based on service industries it applies equally to any organization that has contact with the customer. In "Ideas That Will Shape the Future of Management Practice" (Bohl, Luthans, Hodgetts & Slocum, 1996, p. In this way, it gives direction to all employees and ensures they are focused on the goals of the company. The first step in developing a performance measurement system is determining what needs to be measured. CONCEPTS OF PERFORMANCE IMPROVEMENTThe Best Value Approach The best value approach is based on two things, continuous improvement and customer service. The current strategy starts with the organization and ends with the customer. The partnership does not exist through only one person in the organization but is accepted by all. It has been said that "one way of discovering customers' demands is to systematize customer contacts" (Hornell, 1992, p. The culture needs to change from one that is self-centered to one that puts the customer first and strives to be collaborative, not competitive. x Use the five characteristics of SERVQUAL to measure customer satisfaction. This is where the balanced scorecard can be used, with customer satisfaction and relationship measurements forming part of the scorecard. x Internal business perspective - cycle time, yield, design productivity. An example is a computer manufacturer, the core of the business is the computer systems they provide. By studying customer's perception of service quality across a number of industries, five dimensions to service quality have been identified.

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