Framework for identifying systemic environmental factors causing underperformance in business processes

Swanepoel, Leon D. (2013-12)

Thesis (MEng)-- Stellenbosch University, 2013.

Thesis

ENGLISH ABSTRACT: Performance management systems are integral to many organisations. On all levels of management such performance measurements are used to drive a desired behaviour and business units, departments, as well as individuals are rewarded for meeting or exceeding set targets. In large silo-structured organisations, divisions are particularly focused on their own targets and responsibilities. This may result in a diminished view of the effect their strategies and processes may have on overall stakeholder value. These divisions execute strategies to enhance the achievement of their own goal. The execution of these strategies sometimes hampers other divisions in meeting their goals. The net effect of this hampering may result in reduced stakeholder value. A mechanism is needed through which organisational divisions can evaluate the systemic environment, in order to identify hampering processes. The case may be that their processes are hampering other divisions, or that their processes as such are being hampered. The main objective of this research study was to develop such a mechanism. This mechanism emerged through a framework which can be used during investigations of hampering processes. Such investigation is conducted by following six predefined steps to guide the investigator in identifying the hampering factors. This framework was developed by combining primarily three disciplines: Systems thinking, Performance evaluation and Supplier perceived value. The evaluation framework was validated through three case studies. In all of the cases the framework delivered the expected result. It is thus concluded that organisations can apply the framework to help identify systemic environmental factors that may hamper business processes.

AFRIKAANSE OPSOMMING: Prestasiebestuurstelsels maak ʼn integrale deel uit van die meeste organisasies. Prestasiebeoordeling word op alle vlakke van bestuur ingespan om die verlangde gedrag aan te moedig. Sake-eenhede, departemente en individue word vergoed indien hulle die gestelde doelwitte haal of oorskry. In groot silo-gedrewe organisasies is afdelings grootliks gefokus op hulle eie verantwoordelikhede en om hulle eie doelwitte te bereik. Gevolglik verminder dit soms die uitwerking wat die uitkomste van hulle strategieë en prosesse het op die belanghebbendes van die organisasie. Hierdie afdelings voer dus strategieë uit om hulle eie doelwitte te behaal. Soms verhinder hierdie strategieë ander afdelings om hulle doelwitte te bereik. Die basiese effek hiervan kan wees dat minder waarde aan die belanghebbendes deurgegee word. ‘n Organisasie het dus ʼn meganisme nodig om die sistemiese omgewing mee te evalueer en sodoende prosesse te identifiseer wat belemmer is of wat belemmering kan veroorsaak. Die hoofdoel van hierdie navorsingstudie was om so ʼn meganisme te ontwikkel. Hierdie meganisme het na vore gekom in ʼn raamwerk wat tydens ondersoeke gebruik kan word om belemmering te identifiseer. Die raamwerk is ontwikkel deur hoofsaaklik drie dissiplines in gedagte te hou: Sistemiese Benadering, Prestasie-beoordeling en die Begrip van verskafferwaarde. Die raamwerk is aan die hand van drie gevallestudies getoets en in al drie gevalle het die raamwerk die verwagte resultate opgelewer. Die gevolgtrekking is dus gemaak dat organisasies wel die raamwerk kan toegepas kan om die sistemiese omgewing te evalueer en sodoende die belemmering van prosesse op mikrovlak uit te wys.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/85792
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