PPMS blueprints shorten concept drafting phase

Drawing on its experience in a broad range of diverse client projects and the methodology described briefly above derived from this experience, Detecon has developed PPMS blueprints based on the Detecon telco process model.⁴ The PPMS blueprints include performance indicator systems for every process within a telecommunications company – i.e., structure, impact relationships, and performance indicator definition – as well as a detailed description of every individual performance indicator, e.g., characteristics, implementation aids, and similar information. The use of blueprints has proven to be successful because the time and expenditures for the drafting of a PPMS concept are reduced significantly.

The PPMS blueprints were created on the assumption that both internal and external customers as well as shareholders are the decisive stakeholders critical for success. The goals were there­fore derived from the requirement profiles of these stakeholders, and the allocation or development of KPIs and PDs was based on these goals. In a concrete case, the PPMS can be supplemented by any other stakeholder, or “measurement perspective”.

The figure shows the PPMS blueprint for the ”order-to-payment-processs” as an example.⁵

The performance indicators are arranged according to the stakeholder perspectives on the outside. The indicators at the level “KPIs” display the degree of goal achievement with respect to stakeholder requirements, the direct goal relationship. The PDs reveal something about the causes for the development of the KPIs. The PDs are then ­separated into the three clusters short, medium, and long as a means to show the temporal impact relationship between PD and KPI. Changes in the PDs in the cluster “short” have an immediate impact on the pertinent KPIs. In the same way, the change of PDs in the cluster “long” show a time delay in their impact on the KPIs. This clustering has proven to be meaningful in practice because it provides transparency concerning the urgency of any measures which may be required for the responsible management. Whereas, for example, changes in performance indicators in the cluster “short” require immediate attention because they impact performance quality right away, the PDs in the cluster “long” must be developed for the long term. The concentration on the development of the performance indicators in the cluster “long” must not be neglected because this is where the build-up of sustainable competitive advantages is controlled.