The combination of obscure objectives and inefficient processes results in the loss of a great deal of money, what puts pressure on profit margins. There are many management methods that offer solutions to this problem, most of which come under the heading of Performance Management. Measurable objectives are formulated and KPIs are linked to these objectives. Individuals and departments are then rewarded on the basis of how well they perform in relation to a target. The KPIs are achieved and the department's performance improves. But there is no guarantee that this will result in a corresponding improvement in the organisation's overall performance! There is still a great deal that can go wrong in the transfer from one department to another, or on account of the fact that production processes are not operating optimally. Hence, for example, a company might reduce its stock to a minimum level to save on costs and then be unable to meet a sudden rise in demand generated by a successful campaign by its marketing department. Two KPI targets have been achieved but the company now has a lot of unsatisfied customers. An integral approach that focuses on the customer and customer-related processes offers a solution.
In 2009 QNH began working in partnership with CPM Partners. CPM Partners is the originator of Integral Performance Management, otherwise known as iPM. This approach is based on the continual improvement of customer-customer processes and it ensures that strategy is translated into these processes. As a result, the chosen strategy is translated into effective solutions that are implemented where it counts - on the work floor. This process-based approach eliminates hurdles and hold-ups in the processes. The focus then becomes one of continual improvement. QNH has adopted the iPM philosophy. Together we implement iPM within our customers' organisations often in order to resolve issues related to information supply and also to resolve business problems. When it comes to iPM, a supply of information is essential. Processes have to be measured before they can be assessed!
An organisation derives its right to exist from its customers. If people stop buying its products or services, it will quickly go under. So it is essential to ensure that you put the customer first in everything you do. It is vitally important to offer good quality at a fair price. But this often elicits the thought that higher quality costs money, which puts pressure on your profit margin or makes the product or service too expensive. However, businesses tend to overlook the fact that there is considerable room for improvement on the work floor. Existing processes are not always efficient, they are prone to error and do not always serve the customer. Organisations always start out with good intentions. They have a mission and vision and a matching strategy, which leads to the formulation of various objectives that now need to be achieved. This is where things sometimes start to go wrong, because objectives are not always translated into effective solutions for the business processes on the work floor.
