"The most successful businessman is the man who holds onto the old just as long as it is good, and grabs the new just as soon as it is better."
— Robert P. Vanderpoe
Following are brief definitions of terms typically associated with performance improvement and strategic management:
Based Costing A
cost planning system that combines tasks into significant activities
allowing cost to be assigned efficiently.
Benchmark An achievement
that is a recognized and measurable standard of excellence.
process of obtaining the benchmarks, best practices, and enablers
from the best-in-class and applying them.
recognized as top performers in a given subject area.
Best Practices Those
practices used by the best-in-class that contribute most to
Break-Even Time The
time from the start of an innovation until the product profit
equals its investment and development costs.
total development time from the start of the development phase
to the manufacturing release.
Change Curve A pattern
of organizational behavior which can be identified and used
to manage the change process.
Cost-Time Management A
technology developed by the Westinghouse Productivity and Quality
Center to measure process cost, cycle time and value-added
Customer Relationship Managemenrt Those
aspects of a business strategy which relate to techniques and
methods for attracting and retaining customers
Cycle Time The total
(elapsed) time required to perform an activity or process.
characteristics of the best-in-class that enable them to effectively
apply the best practices and less, achieve measurable benchmark
Intellectual Capital Consists
of indirect assets – organizational
knowledge, customer satisfaction, product innovation, employee
morale, patents, and trademarks – that never appear in
its financial reports.
Invisible Inventory The
investment and knowledge and information that fuels white-collar
art of identifying and understanding customer needs and coming
up with solutions that satisfy them.
Delivery Delivering the product or service on
or before the promised date.
Organization Profiling A technology which analyses an organizations work processes
and activities across the enterprise. Work profiles quantify employee allocations across product lines, and depict their true costs; measures
value-added, essential and non-essential activity; level of difficulty; and span of control to target areas for dramatic improvement.
Paradigm The framework,
model or pattern which influences our perceptions and affects
our judgment and decision making.
Pareto Principle 80
percent of results flow from just 20 percent of our efforts.
Span of Control The ratio
of management to subordinates.
Time Elasticity of Demand The
relation between changes in a product or services delivery
time and changes in customer demand and effects on what the
customer is willing to pay for.
Value-Added Activity Activities
which increase the product or services from a customers point