Essay On Chip Conley

I chose the topic of performance management to research because I currently work in a performance based environment as a customer service representative for Toyota Financial Services. I came across a lot of articles and information on this topic and due to the nature of my job, this topic was very interesting for me. Performance Management means managing the performance of an organization or individual. It is an assessment of employees, progress and other factors that are geared towards company goals. It is the process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with organizational goals. Performance management can be the key to creating an employee, team, company and/or

The Performance Measurement is a way to either measure or give a understandable value to what has been done compared to what was supposed to be done. It applies to all aspects in the working environment, such as procedures, critical activities and processes. In other words, first you set pre-defined goals and give away tasks and responsibilities to other workers, then at the deadline you can compare the achieved results to what the original goal was at the beginning. It is also useful to evaluate not only the final result, but even all the actions taken to get that particular results and the way the actions have been taken as well.

Therefore, organizations that develop successful performance management systems must evaluate the current level of performance, and then use management innovation to establish new performance goals for the future (Walker, Damanpour, & Devece, 2011, p. 372).

As mentioned in the video, Chip Conley managed to change a small hotel-restaurant in San Francisco into Joie de Vivre- the world second largest boutique hotel chain by providing new superior value to customers. The first thing contribute to Chip Conley’s success is his belief in the Maslow’s hierarchy of needs. Chip Conley built a strong foundation for his hotel by providing good services satisfying consumer’s basic needs, such as: comfortable beds and clean rooms, security guards, locks, responsive staff service. Then, he elevated his hotel value and provided excellent experience for the people, including the customers and staffs. Joie de Vivre’s business model is based on understanding the needs and demands of the existing consumers and future consumers and establishing changes to the model in order to meet and surpass their expectation. Chip Conley’s business model doesn’t just revolve around customers but it also concerns employees as well. During the recession, Chip Conley and the management level took some countermeasures

Performance management is about creating a culture that encourages the continuous improvement of business processes and of individuals’ skills, behaviour and contribution. It is a repetitive process that is continually reviewed and is both strategic and integrated. It is about broad issues and long-term goals and integrated by linking various aspects of the business, people management, individuals and teams to delivering successful results in organisations. It does this by improving performance and developing the capabilities of teams and individuals.

Employees are as important as the business it’s self and should be regarded as important. Both articles advocate for health and customer relations. It is thus significant for businesses to relate well with their man power as they can influence purchases depending on how they produce quality and market the business. It is not fair for any business to be so profitable at the expense to their employees. Certainly, experience is also important and institutions should support their members who need to increase knowledge to enhance quality within their business. Chipotle use this skill to combine aspects from two other companies to come up with one unique product that was highly appreciated by their

For an organization to thrive, a clear vision, mission, and set of core values must be developed and instituted. To a certain extent, employees at all levels of the organization should be involved in the process. Solely having upper-level management develop such organizational identities does not accurately reflect the entire organization. Also, having employees contribute to the process allows them to align their own ideologies with that of the company. Studies have found that “workers in the most profitable companies have directly linked their own values, abilities, goals, personalities and interests to what they perceive are the values, abilities, goals, personalities and interests of the companies for which they work.” Consequently, the involvement of the employees results in greater job satisfaction.

Thanks for your informative post. You stated “one positive of compesation philosophy is it will retain and manner that best satisfies workers by offering this perks to employees whether be entitlement or performance philosophy.” I agree with your statement. Employees will continue working with an organization if they receive perks and

Our research and experience validates that in order to achieve an effective Performance Management system, it must be inclusive of the organization’s objectives, Mission Statement, goals and core values. It must gain “buy in” and approval from all stakeholders, it must be clear, measurable and provide an opportunity for effective

Secondly, the only long-term sustainable source of uniqueness lies within the personality of the organization, in particular with knowledge. The author stresses the intangible resources, stating that “Determining whether one is winning or losing end product battles is more difficult because measures of product market share do not necessarily reflect various companies underlying competitiveness” (Prahalad and Hamel, 1990). Hall (1992) also agrees that the analysis of company’s intangible resources contributes to the strategic management

Performance management systems (PMS) framework acts as a research tool in depicting the structure and operation of PMS of an organization in a more holistic way (Otley, 2009). It was developed based on Otley’s (1999) performance management framework and Simon’s (1995) levers of control framework. Performance management framework proposed by Otley emphasizes five central issues which he contends are necessary to be taken into consideration as part of the process in developing the PMS structure. The five central issues relate to the key organizational objectives, strategies and plans for the accomplishment of the organizational objectives, target-setting, rewards systems and finally the information feedback loops (Otley, 1999).

Management accounting researchers (Otley, 1999; Norreklit, 2000) have criticized depending exclusively on financial measures. As referred by Cumby and Conrod (2001), sustainable shareholder value and competitiveness advantages are actually driven by non-financial factors such as employee satisfaction, customer loyalty, internal processes and innovation. As a result, companies started to include non-financial measurements within their PAMs to gain better knowledge about the overall company situation (Ittner and Larcker, 2001; Speckbacher et al, 2003).

In today’s corporate world, we get to see that no longer a company’s worth can be measured by simply looking at its physical resources only. These days, intellectual capital plays a huge role and we need to account for that, as intangibles have become one of the crucial drivers for the economic performances of most companies. However measuring the value of an intangible asset with accuracy and treating it correctly for the preparation of financial statements has been found to be quite difficult. In fact, one of the most contested areas of accounting lies with the treatment of internally generated intangibles assets – Research and Development.

“As more and more companies see innovation at the heart of their growth strategy, it is not surprising that more and more companies also seek to identify ways to measure the impact of their innovation activity. The critical questions are, what to measure and how?” (Stamm, 2003,

For instance, organizations can now understand how business models, strategies and resource allocation affect financial, human, intellectual, manufacturing and social capital. In a certain engineering company in South Africa, the use of integrated reporting helped in understanding how customer loyalty transforms finances in the long term (IIRC, 2013). The increased understanding on how organizations create or destroy value has enabled many organizations to change their business management model in order to create maximum value (Eccles & Krzus, 2010).