Performance Alignment using a value-based customer-centred model
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Date:
Abstract
This research purposes of investigating how performance management could be used to provide strategic decision-making that yields better product quality, client stratification and higher return of investment to an organisation. Accordingly, the study adopted a quantitative approach that will be used to asses the correlation of performance alignment and the impacting variable, including commitment, competence, clarity, cooperation, connections and circumstances. The study will also endeavour to ascertain how these impacts were relevant for achieving better ROI for the organisation and better customer satisfaction. These six Cs are critical for the management team in facilitating and improving the alignment between the actual and the expected performance as this is the only sure way of making better the ROI due to quality production and customer satisfaction. As a case study, the research model has been applied in the Netherlands- Keijsers interior is a limited liability company. In the implementation, various techniques and mathematical models including genetic K-means, analytic hierarchical processes and data envelopment analysis have been used.
Keywords: performance alignment, customer lifetime value (CLV), customer satisfaction, customer segmentation, Return on investment (ROI) customer retention, retail banking, performance management
Table of Contents
1.0 INTRODUCTION 0
1.1 Background 0
1.2 Keijsers interior Company Limited 0
1.3 Problem Statement 1
1.4 Goal of Research 3
1.5 Objectives of research 3
1.6 Main Question 4
1.7 Justification for the Study 5
1.8 Focus and scope of study 6
1.9 Limitations of study 6
REFERENCE 0
1.0 INTRODUCTION
1.1 Background
One of the biggest challenges for any company lies in achieving organisational alignment: that desired state in which the entire enterprise is working together to achieve business goals. But just like the tires on a car, if only one piece isn’t aligned with the others, there will be no forward movement. And unlike a car, creating full alignment in an organisation can’t be achieved just by tinkering around with a few key components. Instead, achieving alignment involves a top-to-bottom transformation, in which leadership communicates goals and expectations and everyone understands what is expected and what they must do to advance the organisation.
Interestingly, organisations are likely to see alignment during times of crisis. In the face of uncertainty and significant challenge, employees join in panic mode and work together to help the company overcome the difficulty. But organisations don’t—and shouldn’t—have to wait for a crisis to achieve alignment. By taking right proactive steps to set strategic priorities throughout the organisation, each employee can gain a sense of ownership and accountability, resulting in an energised entity with a clear and consistent vision.
1.2 Keijsers interior Company Limited
The keijsers interior is a limited liability company based in the Netherlands with production in Poland Bochnia that deals in the retail of customised furniture, lighting equipment, as well as household articles. It also focuses on the interior to create that satisfies client’s needs, style and expectation the company was established in the 1980s but sold in 1998 to Ton Van der Velden a prominent businessman due to lack of successor within the founder family (TRANSEQUITY NETWORK, 2017, pp 1). Under his leadership, the company has grown tremendously into a well-known interior builder located in Venray in Netherland while having a production site in Bochnia in Poland. The company currently boasts of over 25 workers in Venray and 100 workers at the production in Poland.
Due to the booming success of the firm and the esteemed reputation maintained over the years as well as the need for further growth that would serve not only the European market but also worldwide international markets the owner sought investors. In 2017 two companies invested in the company to help it expand the business from Financial Capacity level and strategic capacity as well as in its operational level, these investment targets the purchase of new machinery and expansion of staff base on both sites. This action was to accommodate the retails project line of providing the same furniture to same retail shops but now all over the world as well as the unique project line consisting of different designs and clients at various locations. However, in the implementation of this investment and expansion, the management faces issues and differences between Poland and Netherland.
1.3 Problem Statement
As earlier described, the company is in Venray in Netherland while having a production site in Bochnia in Poland, the growth on as much as it has brought expansion and diversification, issues of misalignments arise which affect productivity, organisational performance as well as the ROI resulting from low customer satisfaction. Therefore, to achieve maximum quality production and customer satisfaction in the company, there is a need to align Keijsers performance in Bochnia and Venray. The alignment will improve performance as well as address the other issues in communication and management so that the expansion can give better returns in investment against the forces acting against these changes.
The figure 1 below models the problem using a force field analysis diagram. Problem field analysis was invented in 1951 by Kurt Lewin as a method of making informed decisions for companies and organisations (Burnes, 2013, page 408). It’s a powerful and comprehensive method off having an overview before implementing change, particularly when planning for it like at this instant in Keijsers Interior. The length of the arrows describing the intensity of force for change (Swanson, 2014, 28) this analysis of the problem indicates the need for alignment and changes outweighs the pressure and challenges opposing it.
Alignment
And
Change
NEED FOR INCREASED RETURNS
DECLINING MOTIVATION
Lose of good cheap labour
Management problems
Communication Problems
Cultural differences
Political and leadership difference
Economic & salary differences
Education and Training cost
Figure 1. A force field analysis diagram of Problem statement
1.4 Goal of Research
Product quality, client stratification and higher return of investment are strategic goals for Keijsers interiors, and in order to meet this goal Keijsers interiors has to align the performance of both company locations in Venray- Netherlands and Bochnia-Poland where competitive advantage of Keijsers interiors is to produce a quality product in Poland and selling in the Netherlands. (Tubbs, M. E. 1986 page 474)
Therefore, the goal of this research intends to answer questions regarding the disparities between the Netherlands and Poland that have affected the performance and output of the Keijsers Interior company. (Locke, E. A., & Latham, G. P. 2002 page 705).
1.5 Objectives of the research
The primary objective of the study is to investigate how Performance Alignment using a value-based customer-centred model could be used to improve product quality, client stratification and higher return of investment for Keijsers interiors. The study, therefore, developed the following secondary objectives to aid the main research goal.
To investigate the differences in culture, economy, process controls, salaries, causing the disparity between performance in the Keijsers Poland and Keijsers Netherlands.
To assess the difficulties in the communication between the two companies due to the cultural and political differences between the mentality and ideology in the regions.
To establish the disparity in salaries between employees in Netherland and Poland and how the stability of the economy affects the people as well as the output of the company.
1.6 Main Question
Based on the goals and objectives of this research and problem field analysis, the main research question is:
How could the performance of the Keijsers Interior in Poland be aligned with that of Netherlands to give good returns of the investment and ensure premier product quality and high client satisfaction?
The alignment of the performance of the Keijsers Interior Company in Poland with that of Netherlands will give good returns of the investment made in expanding the company through staff as well as the use of modern machinery in production. This study will prompt the research to investigate the critical factors of performance of the Keijsers Interior company which include its competitive advantage of producing in Poland and selling in the Netherlands, the Business model as well as its management. The following sub-question aims at investigating how other factors such as culture, political and leadership difference, salary disparities, education and training level as well as economic position of workers in Poland against those in the Netherlands could affect motivation levels to work which causes loss of useful labour as well as changing the performance of the Keijsers company as a whole. These sub-questions include;
How do culture difference, language, norms, beliefs and way of the people of Poland and Netherland affect work relations and working environment of the Multi-national Keijsers company?
How do leadership approaches in Poland and Netherlands affect the correlation of Keijsers Poland and Keijsers Netherlands company?
How does the political stability of Poland differ from that of Netherlands currently and how this could have an impact on business and investments such as Keijsers Bochnia as well as affecting ability to obtain the cheap labour from Poland?
Is there a salaries disparity between the Netherlands and Poland and how these could motivate the performance of Keijsers company in both countries for a better return on investment?
What is the economic positioning and stability of Poland and Netherlands as well as other factors that challenge the smooth management of Keijsers company as a whole?
What is the difference in Average Educational levels as well as tertiary between Poland and Netherlands and how this disparity could cause the flow of communication between the two-causing misalignment of performance?
1.7 Justification for the Study
According to researchers at McKinsey & Co., there is a clear relationship between a company’s organisational performance management and its financial performance. And with labour, typically the most substantial investment a company makes, financial wellbeing is dependent on employee productivity exceeding the cost of a salary. By achieving a state in which each employee is working to full potential, as an individual contributor and as part of the group, the organisation will see the return on its labour investment. But although money may be the metric upon which a company measures its performance, the same doesn’t hold for employees. Compensation alone is not enough to drive sustained high performance. That is why companies spend significant resources on sourcing talent and providing ongoing training and motivation.
Key to alignment is ensuring that employees of Keijsers interior Company Limited understand the relevance of their contributions and taking the appropriate measures to ensure they remain engaged.
1.8 Focus and scope of the study
The study will be limited to analysis of Keijsers interior Company Limited with little or no consideration to other organisations. The research will also focus on the European context and not any other jurisdiction.
1.9 Limitations of the study
The study was limited in terms of time and budget. However, the researcher will try to work with the available resources to deliver the desired project variables within the schedule and the budget. Access to relevant information was also a limiting factor.
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