Book contents
- Frontmatter
- Dedication
- Contents
- List of exhibits
- Preface
- Acknowledgments
- 1 How’s your due diligence?
- 2 Introduction to the system
- 3 A framework for performance measurement
- 4 What is Stakeholder Value?
- 5 Adding Value for Customers
- 6 Adding Value for People
- 7 Adding Value for Partners
- 8 Adding Value for the Community
- 9 Adding Value for the Owners
- 10 What to report and how to report it
- 11 How to get started . . .
- 12 The Performance Measurement Framework: Assessment and adoption
- 13 Practical aspects of managing Stakeholder Value
- 14 Performance measurement for Small and Medium Enterprises
- Appendix Don’t be fooled by statistics
- References
- Index
14 - Performance measurement for Small and Medium Enterprises
Published online by Cambridge University Press: 05 December 2013
- Frontmatter
- Dedication
- Contents
- List of exhibits
- Preface
- Acknowledgments
- 1 How’s your due diligence?
- 2 Introduction to the system
- 3 A framework for performance measurement
- 4 What is Stakeholder Value?
- 5 Adding Value for Customers
- 6 Adding Value for People
- 7 Adding Value for Partners
- 8 Adding Value for the Community
- 9 Adding Value for the Owners
- 10 What to report and how to report it
- 11 How to get started . . .
- 12 The Performance Measurement Framework: Assessment and adoption
- 13 Practical aspects of managing Stakeholder Value
- 14 Performance measurement for Small and Medium Enterprises
- Appendix Don’t be fooled by statistics
- References
- Index
Summary
Small and Medium Enterprises (SMEs) need performance measurement systems too! Indeed, the Performance Measurement Framework described in Chapter 2 was developed initially in the context of seeking to assist SMEs with a widespread weakness in the way they conducted business. And this weakness continues: for example, Antonio Lerro comments
Despite companies increasingly recognising the relevance of a stakeholder value-based approach to their business, often they still do not clearly identify their key stakeholders and the related wants and needs, and consequently their value propositions as well as the value creation mechanisms and the impact of the value creation dynamics on the different stakeholders. This is particularly the case of the small and medium enterprises (SMEs) which generally manage implicitly their strategic value positioning. In addition, it is important to stress that although value-based approaches are recognised as being fundamental to organizational success, the tools for identifying, assessing and measuring organizational value for key stakeholders and the impact on the economic and social systems are still inadequate.
For an SME, adopting a performance measurement system is rather simpler than for a larger enterprise.
The starting point is the stakeholder analysis described in Section 11.3: who are the principal parties (sub-groups) in each stakeholder group, and what are their main issues (e.g. Exhibit 11.2)?
Given your current business issues, where do you need to focus attention first – Customers? People? Partners? Community? – and which sub-groups of these?
For an SME, the number of customers, or the number of people employed, may be too small to warrant full surveys. However, Focus Groups can certainly be conducted to ascertain the key Attributes of the Value drivers, and then the same (and possibly additional) Focus Groups used to gather some basic data on the relative importance of the various Value drivers, and of how your enterprise is rated, relative to your competitors. That should provide a reasonable basis for setting priorities to improve your business.
- Type
- Chapter
- Information
- Analytics for LeadersA Performance Measurement System for Business Success, pp. 197 - 198Publisher: Cambridge University PressPrint publication year: 2013