Sustaining performance in turbulent times: Identifying, developing, and expanding core activities

Based on the assumption that it is quite impossible to manage what we do not know and cannot measure, this paper develops meaningful metrics, helping drive organizational performance, so as to make informed decisions. The analytical framework described hereafter allows the measurement of both the positioning and sustainability of different units within the same organization, as illustrated in our case study, but can also be implemented to assess the competitive advantage of a company over its competitors. The concept of positioning focuses on measuring unit performance and benchmarking it, so as to rank units as best, good, or low performers. The concept of sustainability considers the dynamic of performance over time and ranks it as eroded, improved, or maintained. Based on these two measures, it is then possible to provide specific recommendations for each unit regarding the improvement of its performance. Using data to support decision making and foster development is valuable only if the primary purpose of such analytics remains the improvement of the way organizations do business, by providing quantitative techniques that help solve business problems correctly and achieve business impact. To do this, analytics has to be built upon business priorities and more explicitly business rules. However, it is the most effective and timely way to provide relevant prescriptions based on available data regarding the course of action that aims at improving organization's performance. Working with business rules means the adoption of a process orientation to better understand the tasks that comprise a business model and investigates the performance of the overall process and its components. Having a process approach facilitates the presentation of organizational priorities by identifying core business activities and developing and expanding those that contribute the most to the positioning and sustainability of each unit. The use of quantitative analytics helps in identifying the areas that are or are not performing well and focusing on those that sustain performance, especially in difficult times. Indeed, if each unit is profitable in its main activities, a business impact can be expected that benefits the organization as well.