The Most Important Things Are Unmeasurable! Nonfinancial Measurement of Company Health


Barr, John H.   (1997, ASQ)   Xerox Quality Services, Rochester, NY

Annual Quality Congress, Orlando, FL    Vol. 51    No. 0
QICID: 10616    May 1997    pp. 725-736
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Article Abstract

The Xerox Management Model integrates financial and non-financial measurements. The Model is based on the Malcolm Baldrige National Quality Award, but the Xerox Model focuses on the customer. The categories of the Xerox Management Model are: leadership; human resource management; business process management; customer and market focus; information utilization and quality tools; and results. For each category the model provides an introduction, definition, and its desired state. For example, the desired state of the leadership category requires, in part, that Xerox demonstrate customer focus, role model behavior, and an empowered environment. The categories consist of 31 elements. Each element in the Model has a desired state, core measurements, and potential business metrics. This paper gives an example for one element under each of the categories. These sample elements are: managing for results; total compensation and recognition; operational processes; customer feedback; benchmarking; and financial. Core measurements for these elements include: understanding of objectives; recognition effectiveness; linkage of daily work activities with core operational processes; implementation of measurable action plans; benchmark comparisons; and earnings per share. Potential metrics include: employee motivation and satisfaction; base pay versus market analysis; R&D effectiveness index; post install surveys; demonstrated improvements from benchmarking; and cash flow.


Customer focus,Employees,Measurement and control,Malcolm Baldrige National Quality Award (MBNQA),Financial industry,Motivation,Metrics

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