Service Performance and Information

In 2012 this theme will assembled and tested a performance measurement system (PMS) design process for complex service networks, the process focused on:

Specifying contractual measures that are fit for purpose in their complex service network and better reflect the value sought by both providers (including prime contractors and key suppliers) and clients (including customers and end-users).
Specifying operational measures needed to deliver these contractual measures.

Improvements are expected through improving the ‘line of sight’ and behavioural fit between business value, contractual performance and operational measures (cf. Figure 1).

Context for performance and information theme diagram

Figure 1. context for performance and information theme

To date much of the work on performance measurement and management has addressed the needs of separate organisations. As a result, current frameworks are inadequate for the highly partnered, collaborative networks required to deliver complex service solutions. These typically require partners to work together to define, share and establish common performance objectives, measures, communications and visualisations as well as meet their individual agendas.

In pursuit of this the proposed research aims to ‘build a robust methodology to support industry in specifying performance measurement systems for complex service networks - that comprise multiple providers, clients & suppliers

The design process will be developed and tested in conjunction with five organizations (through “action research” cf. Figure 2) providing increasing challenges to validate its robustness and enable Industrial exploitation

	Startup and familiarisation	Background data collection	Exploring differences and mutual understanding	Evaluating and critiquing metrics and systems	Developing change plans
Purpose	Initial familiarisation with the complex service network	To gather the necessary background information	To agree the balue propositions for the customer and provider(s)	To identify an 'ideal' set of metrics and measurement system	To develop recommendations and change plans
Activites	Semi-structured interviews with customer and provider(s) representatives	Questionnaires covering: i) value, ii) propostition and iii) existing metrics	Interview, followed by workshops to explore differences and then develop mutual understanding	Appraisal of existing metrics (contractual and operational) given agreed value propositions	Workshop to develop and agree change plans
Outputs	A summary of the complex service networks (possibly using enterprise imaging) Clearly defined boundaries for the scope of the complex service networks to be considered	Data on individual perceptions of the value proposition (both at the outset and through the contract) Clear summary of existing metrics and perception of performance management systems	Jointly agreed value propositions developed collaboratively by all actors in the complex service network	Identification of the shortfalls of existing: i) contractual metrics ii) operational metrics, iii) the surrounding performance management system	Agreed change plans highlighting what needs to be changed and how. Responsibilities for implementing change plans agreed.
Timing	Weeks 1-2	Weeks 2-4	Weeks 5-6	Weeks 7-8	Weeks 7-8

Figure 2. Drafted action research process for metrics design and deployment 2011

Prior research

The work builds on three outputs from the 2011 research programme:

Complex Service Network Framework: An empirically derived framework identifying the key characteristics of complex service networks that should be accounted for in order to drive improved specification and reporting of performance measures that underpin service Delivery, Improvement and Growth. This framework identifies aspects of service contracts that are rarely measured, yet are widely accepted to be critical to performance, for example, the degree of mutual understanding between clients and providers.

Performance Measure Framework: A framework expanding the detailed factors that must be addressed during the four stages of a PMS lifecycle (Design, Implementation, Management through measures and Refreshment), based on the output of the analysis from the first framework and the academic literature.

Visualisation Framework: A literature-based framework for assessing visualizations used to display performance measures. The visualization’s ability to support management decisions is assessed in terms of Purpose, Process and Aesthetics.

Timescales and Current Activity

The longer term aim of this research theme is to build a vision for next generation solutions for performance reporting and visualisation, which could be in commercial practice within 3 years. The Initial exploitable findings have already been delivered and, implementation and the exploitation will continue throughout the course of the project.

In 2012, this will be in the form of a documented process based on the frameworks developed in 2011 and refined through five case studies. There are likely to be three to four drafts of the process during the year, each benefiting from increasingly challenging action research cases.

The key aims for research in 2013 are to better understand data driven opportunities to create, realise and share value within Complex Service Networks by addressing:

How we identify the key data within the CSN – managing issues of access, quality, ownership and trust.
What are the pre-requisites (enablers, barriers and competences) within the CSN to facilitate the use of analytics for prediction and prescription.

The research is arranged in three steps:

1. A literature review documenting the key findings from practice and research to date on the topic of ‘exploiting data within complex service networks’ – to establish a reference point and outline frameworks designed to inform the external benchmarking and internal diagnostic studies. The outputs from this step include an interview framework for use in the external benchmarking case studies of step 2. It is expected that there will sharing of data between this theme and theme 2 – SSE.

2. To conduct case studies with firms that provide positive and negative exemplars of using data within their service networks. The aims are to identify their business models, the key aspects of value in their networks, and how data can play a role in realising and sharing that value. How is key data identified and managed in the network, with respect to issues of access, quality, ownership and trust? For those not using data – why not? What are the barriers that must be overcome and the enablers and competences to be built in order to use analytics for prediction and prescription.

3. To apply the guidance/frameworks developed from the literature review & refined through the external benchmarking to support topical partner diagnostics i.e. current challenges and / or projects that are trying to understand how to use the data within their CSN ‘to create, realise and share value’.

N.B The diagnostics will be resourced by the partners themselves, preferably with a single point of contact into the CSA; the engagement will comprise an initial workshop to hand over the guidance & framework for application within the partner firm, followed by an out-brief workshop to extract the lessons learnt

Currently the main focus is on case study planning and the literature review with a progress review with partners to share progress and enable partner contributions.

Researchers:

John Mills and Andy Neely