A performance measurement system that helps companies achieve success not only in their own eyes but in the eyes of all the people they deal with is being launched today.

The 'Organisational Performance Measurement' (OPM®) system was designed to help with thinking and planning. It builds on many years of statistical research and collaboration between CSIRO and businesses throughout Australia.

Marksman Homes, a building company, was one of 20 businesses involved in designing the system to help organisations improve their performance. After their involvement with the OPM® pilot program they won the 1997 and 1998 NSW Quality Builder of the Year awards.

"The issue of whether or not businesses are providing value to their stakeholders can be difficult for them to determine," says CSIRO project manager, Mr Stan Dransfield.

"They need to know this so they can make necessary adjustments to ensure their success and sustainability."

Businesses from areas as diverse as pathology services, hospitals, home building, chemical manufacturing, and software engineering were involved with the development of the OPM® system.

Other organisations such as local government, consulting services and food processing and distribution, health care and ambulance services and the food services industry also took part.

Mr Dransfield says that the OPM® system allows organisations to look at themselves from an outside perspective. It can tell managers how their organisation is going both now and in the long term. It can also tell everyone in the organisation whether they are doing a good job and allows them to check their progress against their goals.

"The big advantage of this system is that it forces managers of businesses to think through the expectations of a broad range of stakeholders. Most managers think only of the customer and owner," Mr Dransfield says.

"Research has shown, for example, that staff satisfaction is directly related to customer satisfaction. Many businesses, however, tend not to think of the broader customer groups such as staff, strategic partners, and the community. Once they do, a whole range of possibilities open up - often an "ah-ha" experience."

CSIRO is now offering OPM® through consultancies, training and specially tailored in-house programs that combine both.

"We are offering to work with more organisations, large and small, public and private, over the next 6-9 months. While OPM® can provide a stand-alone approach to performance measurement and planning, it can be grafted on to existing systems," says Mr Dransfield. "We will be running further information sessions over the next few months."

John McKenna, Managing Director of homebuilding company Marksman Homes, is now one of its staunchest advocates. The awards they won have been a marketing bonus for the company.

"Prior to trying OPM®, we had problems identifying adequate measures, both which performance measures to use and how to measure them. Since OPM®, we've used performance measures including referral business as a percent of turnover and percent retention of subcontractors working for Marksman Homes for greater than 10 years," Mr McKenna says.

"OPM® was simple to understand and implement, and not too time-consuming, which is important for small to medium business."

OPM® is taught in graduate business programs at the University of Wollongong and endorsed by the Australian Quality Council (AQC).

Barry Coleman, CEO of the AQC, will speak at the OPM® launch.

"We are pleased to see OPM® being introduced as a measurement system by CSIRO," he says. "We've been adopting OPM® within the AQC so we can evaluate its appropriateness as one of the business excellence products and services we endorse."

The launch will be held at the Stamford Hotel, North Ryde, Sydney from 8-10am on Thursday 3 June.

More information:

Stan Dransfield, CSIRO, ph 02 9325 3251, or 0417 217 363,
e-mail stan.dransfield@cmis.csiro.au
or
John McKenna, Marksman Homes, ph 02 4271 5200 (from Fri 4 June)