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Blog 14: Does the iPM method work in my organization?
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Blog 14: Does the iPM method work in my organization?

After the publication of the book ‘Winning with the right KPIs we have received many positive responses from readers who recognize themselves in the issue. Organizations are siloed, and the applied KPIs further reinforce the siloing.

Readers are excited about customer chain thinking, but wonder if the “iPM method” can also be applied to their organization. The simple and straightforward answer to this question is YES. The iPM method works in your organization too!

Experience has shown that the iPM method is successfully applied in all sectors, from public organizations (education, healthcare, municipalities, charitable organizations, culture, water boards, etc.) to private organizations ranging from scale-ups to listed multinationals. Whether the customer is a citizen, resident, patient, student, client, customer or consumer, collaboration in the chain is necessary to deliver the right performance with the right effort and costs. By also placing the customer at the center of your management (not just on the website) and adjusting your KPIs and meeting structure accordingly, the customer is better served, employees are happier, and your organization achieves better results. A win-win-win situation.

Practice has shown that the iPM method is successfully applied in all sectors.

Peter Geelen

The iPM method in the public sector

As an example of applying the iPM method, we take a random municipality. Municipalities provide products and services to citizens. As previously mentioned in our blogs, these products and services form the basis for identifying the customer chains. The expectations of customers (in this case, citizens or other stakeholders) and the expectations of the municipality itself are leading in designing and managing (including KPIs) these customer chains. However, a municipality is an organization with a wide range of products and services, and designing a separate customer chain for each individual product or service is not practical. It is essential to name the customer chains at the right level of abstraction (a collection of products/services). Therefore, no distinction should be made in management between “providing and enforcing environmental permits” and other types of permits, but all permit types should be part of the same customer chain. Specific details can be added at a lower level of abstraction if the execution is different, but this is not necessary for management.

Similarly, in the public and social domain within a municipality, a number of customer chains can be identified. For example, labour participation, which involves maximizing the participation of welfare recipients in the labour market. By setting the appropriate KPIs at that chosen level of abstraction, such as participation rate and claims reduction, all involved chain partners (links in the chain) in this customer chain are linked to the overarching customer chain-KPIs. From there, it is easy to determine the contribution of each chain partner. From this, KPIs are derived that they can influence to achieve the joint customer chain KPIs. From there, it is easy to determine the contribution of each partner in the chain. Based on this, KPIs are derived that each partner can influence to achieve the joint customer chain KPIs.

A well-defined KPI tree emerges in which all chain partners work with the municipality towards the same result. By adjusting the meeting structure so that these chain partners and municipalities meet in an encouraging performance dialogue, insights can be shared and the cooperation can be continuously improved through ongoing learning. This stimulates collaboration between ‘’legal entities’’, which is beneficial for the citizen, government funds, and parties that play a social role in this issue.

The iPM method in de private sector

We also encounter complex organizational structures in the private sector where organizations are in various locations or even different countries, with different business units, shared service centers and sometimes even matrix-like organizational forms. The organization consists of a variety of entities that have a role in achieving the organization’s strategy and ambition. The crux then is to make sense of this governance. It has great influence on the design of chains and where the responsibilities will lie for chain control.

It would go too far to dig into this subject completely, but you could start with the following starting question: who determines strategy? You will answer this, that management determines it. This management will most likely also have responsibility for the design of the chain organization.

In large organizations, set-up and execution are often split up which means that the same work is done at multiple locations. It is then important to ask the question of whether this should be unified or not. Depending on the answer, customer chains will be set up and managed the same or differently, and result responsibility will be assigned differently. This ‘’exercise’’ is not complex, but needs the right questions to arrive at a proper set-up of the iPM method and to get to chain steering.

The iPM implementation approach

In the coming weeks, we would like to take you through the questions and changes we encounter in practice during the implementation of iPM at our clients. Do you want to learn about how to steer on KPIs within different organizational levels? Read it in our next blog. Topics will include:

Introduction of iPM

  1. From planning & control to iPM
  2. Ready for take-off
  3. Setting the right targets
  4. Which customer chains does my organisation have?
  5. Division of roles: hierarchy versus chain
  6. Tactics of the chain in focus
  7. Customer journey versus customer chains
  8. How to determine the right KPIs
  9. Getting your KPIs right in 10 days
  10. Consultation structure in iPM organisation
  11. Effective performance dialogue and the usefulness of BRV
  12. Leader and team development
  13. Encouragement as a style to get more out of teams
  14. iPM in complex organizations
  15. Tips for implementation

Curious? Get in touch with us!

We outline what we often see in the traditionally driven organization and outline what that looks like when you apply iPM. Want to know more about healthy performance management? We lard that with situations and examples we find in practice. Contact us and we will help your organization move forward!

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