Topic 4 - The Pizza Business Performance Management Exercises

Over the next two classes you will work in small groups on multiple discussion exercises in the classroom
to further develop your pizza business. In our discussion of Performance Management we will cover
the following concepts:
1. Performance Management Overview (Session 13)
2. Performance Management Core Elements
A. Process Management (Session 13)
B. Business Assessment (Session 13)
C. Business Improvement (Session 14)
3. Risk Management (session 14)

Session 13 Discussion Exercises:

First Exercise Process Mapping (10 minutes)

Use the template in the pizza business exercise materials to create a Process Map for
processing an order for a pizza for your pizza business

Second Exercise Well-Dressed Measure (10 minutes)

Pick one of your Strategic Objectives identified in the Topic 2 Pizza Business Exercises
(Session 4) and develop a well-dressed measure to track your performance against that
objective.
Is your measure Well-Dressed?
Evaluate the measure you designed against the Well-Dressed Measure criteria on the
previous two lecture slides and make improvements to the design of your measure as
needed

Session 14 Discussion Exercise: (10 minutes)

Using the 6 types of risk as a reference, identify the 3 greatest risks facing your pizza
business
Refer to the 10 principles of risk management What actions should you take to prevent or
mitigate the impact of these risks?

Session 13 Work Template

First Exercise - Process Mapping (10 Minutes)

Use the template below to create a Process Map for the process of making a pizza for your pizza
business

Kwame Ampadu-Nyarkoh
Ruid- 153000027
Monday/Thursday- 8:30-9:50 class

Session 13 Work Template

Second Exercise Well Dressed Measure (10 Minutes)

Which Strategic Objective from Session 4 did you choose to measure? (Describe here)
o I chose to use Achieving Lower overall costs than rivals as a strategic objective to
measure.

Sketch the design of your measure for this objective below (refer to the sample measure in the
lecture slides for guidance):
o Clear Description- Are we providing the lowest cost pizza to our customers better than
our rivals?
o Provides Comparisons- we look at the sales of our rivals compared to us, then compare
the amount of customers we have at the end of the monthly period and see if our prices
need to be lower or if we are actually achieving our goal in the most cost efficient way
o Identifies the owner- The manager should constantly keep a check upon the sales and
cost compared to our rivals
o Indicates the date- When was the last time we compared our costs to our rivals
o Current Performance Status- As of last period are our cots lower than our compeptiors.
If so can we keep this going?
If not, what can we do to change this leading into the next period.

Session 13 Work Template

Second Exercise Well Dressed Measure (10 Minutes)
Continued

Evaluate your Measure Design against the Well-Dressed Measure Criteria below:

Well-Dressed Measure
Criteria
Clear description of the outcome being measured with link to
strategic objective

Meets
Criteria

Doesnt Meet
Criteria

All axes and data are clearly labeled

Provides comparisons to: prior periods, goals, and benchmarks
(including competitors, if available)
Identifies the owner of the measure (person responsible for
preparing/updating)
Indicates the date of the last update
Indicates any current improvement initiatives specifically
directed at improving this result and projected timing and
impact
Clearly states the current performance status and provides
comments on the results shown in this measure

Revise your measure design to fully meet the criteria for a Well-Dressed Measure

Session 14 Work Template

Risk Management (10 Minutes)
Using the 6 types of risk as a reference, identify potential risks facing your pizza business related to
each category. Refer to the BCG article in your textbook for more information about each type of risk.
Types of Risk
1. Operational Risks
(technology, process,
org.)

2. Financial Risks
(profitability, funding,
liquidity)

3. Strategic Risks
(general, supply chain,
projects)

4. Market Risks
(macroeconomic,
market development)

5. Geopolitical Risks
(sociopolitical, legal,
infrastructure)

Potential Risks for our Pizza Business

6. Catastrophic Risks
(environmental,
manmade, violence)

Session 14 Work Template

Risk Management (10 Minutes)
Continued
From the list on the previous page identify and select the 3 most likely and greatest risks that your
business faces
List these three risks below and for each risk identify actions your business could take to prevent or
mitigate those risks

Business Risk Description

Management Action

1.

2.

3.

Pick one of these risks and discuss how its occurrence could actually be a potential opportunity for
your business. List key points from that discussion below: