Best Practices in Planning and Performance Management: ...

How to shorten cycle time and implement decisions:
According to David Axson, traditional planning and management reporting processes "are simply too slow, too detailed, and too disconnected for today's competitive world. Managers are seeking new decision-making processes and tools that enable them to shorten the cycle time to make and implement a decision." This book offers processes and tools to meet that need, what Axson characterizes as "the current "state of the art" practices, based on the benchmarks and client experiences of The Hackett Group of which Axson was a co-founder. As with so many other business books, this one responds to an important question, in fact to two: What is the best level of performance to be achieved? How is it to be accomplished? Axson organizes his material with three Parts. First he explains why best practices can be "a vehicle for performance improvement," then describes the best practices for "each element of the planning and management reporting process - strategic planning, operational and financial planning, management reporting, and forecasting." Finally, in Part III, he provides insights into "the steps required to design a benchmark, build a best practices process, understand the critical success factors for implementation, and the importance of effective leadership. As I read Axson's book, I felt as if I were examining the contents of a "tool kit," with the book serving as an instructions manual. Over recent years when retained by corporate clients to help them reduce cycle time while improving first-pass yield, I was frequently aware of the fact that the cycle time and first-pass yield of those initiatives were themselves "too slow, too detailed, and too disconnected for today's competitive world." I mention this because the same may be true of initiatives to identify and then implement best practices. Quite properly, Axson does not suggest which best practices to select but he offers invaluable advice as to how to ensure that their implementation is both effective and (key word) efficient. He asserts that best practices must effect a measurable improvement of performance, be applicable across a broad spectrum of comparable organizations, be proven in practice, take full advantage of proven technologies, ensure an acceptable level of control and risk management, and get the skills and capabilities of the given organization in proper alignment. It is important to note that (a) his observations and recommendations are anchored in an abundance of real-world experiences and (b) are best viewed within a continuous and integrated process rather than as separate, autonomous initiatives. On pages 19-20, Axson identifies the basic steps of best practice marketing: identify an opportunity for improvement, determine whether or not it justifies taking action, investigate the reasons for a "shortfall" in performance, identify the best practices which can be applied, and then focus on implementing the change(s) to achieve substantial improvement of the given organization's operations. To me, some of the most valuable material in this book is provided in Chapter 6, "Operational and Financial Planning: Translating Ideas into Action." He guides his reader through the step-by-step process. In this context, I am reminded of what Peter Drucker once said in an article written for the Harvard Business Review in 1963: "There is surely nothing quite so useless as doing with great efficiency what should not be done at all." Hence the importance of determining, first, which "shortfall" in performance is in greatest need of reduction, if not elimination. However, when making that determination, beware of responding to symptoms rather than to root causes. It is often helpful to use the "fishboning" technique: When discussing with associates a specific question or problem, ask "Why?" and in response to the answer, ask "Why?" again and continue to do so in this manner to each of least five subsequent responses to it. This admittedly an irritating but frequently productive process. Decision-makers in any organization (regardless of its size or nature) will benefit substantially from the information, insights, and suggestions which Axson provides in this volume. To repeat, he does not suggest which benchmarks to select but does correctly emphasize that benchmarks must meet four primary requirements. They must be objective, quantifiable, credible, and actionable. Implicit, presumably, is another requirement: that a benchmark is relevant. One final point: What is a best practice today can soon become the norm and then the "shortfall" in need of attention. In that event, Axson's book will have provided an excellent preparation to respond to it effectively.

illuminating insights:
An entertaining, insightful book - I found it useful in describing how benchmarking can be used to good effect in practise - in real situations - from someone who has definitely been there and done it. Our organization can certainly use the advice here - big time - and save ourselves a bunch of consultancy fees into the bargain!

Excellant resource; well written:
This is a very practical book that quickly gets to to best practices. I like the case study of how American Express eliminated budgets.

Best Practices to create value:
Author David Axson provides practical best practices for the company interested in solving one its most crucial bottlenecks in creating value. It provides a clear roadmap for the "integration" of strategic planning, budgeting, forecasting and reporting. In most companies today these are fragmented or disparate processes that lack synchronization. This book is an excellent reference guide with clear, concise examples. A real interesting read.

At last a reasonable definition for best practice:
What Axson does is define what a best practice is. How it does not apply only to one company or industry. How anyone can adapt an existing one or, in fact, invent a new one for the benefit of other companies and industries. Plenty of examples what companies do right and wrong and how to find the "low-hanging fruit" of common mistakes and right those mistakes using best practices.