Systems Thinking and Performance Measurement

Course Description

This course is designed to create an awareness of systems thinking in such a way that it guides and influences the optimization of organizations. Students will learn how to collect relevant data and apply performance measurement tools as a means to improve organizational performance. Topics include introduction of systems thinking; tools for measuring organizational performance; organizational performance and measurement systems; data management and analysis (budgeting, forecasting, and cost-benefit analysis); results implementation: decisions, improvement, and growth; and continuous measurement and monitoring for organizational improvement.

Topics and Objectives

Introduction of Systems Thinking

• Define "Systems Thinking" as it applies to any organization.
• Analyze various applications of systems thinking.
• Determine the applications of performance measurement to systems thinking.

Tools for Measuring Organizational Performance

• Identify the appropriate tools for performance measurement.
• Evaluate the appropriate tools for measuring organizational performance in a specific context.
• Determine internal and external resources for measuring organizational performance.

Organizational Performance and Measurement Systems

• Analyze the use of metrics in measuring organizational performance.
• Compare and contrast applications of metrics in public sector, private sector, for-profit, and non-profit organizations.
• Select appropriate metrics to create a "Balanced Scorecard."
• Review the use of budgets as planning and control documents.

Data Management and Analysis

• Identify and evaluate sources of data (e.g., financial, economic, quality, productivity, and staffing).
• Analyze key organizational data against established standards for measuring organizational success (e.g., published industry standards).
• Develop strategies for managing to the selected standards and correcting for variations.

Results Implementation - - Decisions, Improvement, and Growth

• Develop project selection criteria based on organizational needs and constraints.
• Prepare a feasibility study (compelling business case) for a selected project.
• Construct an implementation plan.

Continuous Measurement and Monitoring for Organizational Improvement

• Develop a process to measure and monitor organizational performance.
• Evaluate and plan for the readiness of the organization's culture when implementing a system of continuous improvement.