||Visual Performance Management : A Case Study at Novo Nordisk, Device R&D
||Dome, Valerie M (Work, Technology and Organisation, Department of Management Engineering, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
||Møller, Niels (Work, Technology and Organisation, Department of Management Engineering, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
Ladeby, Klaes Rohde (Work, Technology and Organisation, Department of Management Engineering, Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark)
||Technical University of Denmark, DTU, DK-2800 Kgs. Lyngby, Denmark
||Project: The application of Lean philosophy, in manufacturing or in others part of companies, implies often the use of visual systems acting as control or information systems. Among others actions, the Competency Centre (CC), one Vice-President Area of Novo Nordisk Device R&D (DRD), has implemented a visual board at a team level. It is called Visual Performance Management (VPM). It consists of a physical board, that should display the tasks performed by the team members and track measures to evaluate their performance. This system is proposed to guarantee a commitment of the teams to DRD’s strategy. In other words, VPM should support the management of a team. The employees were however reluctant on using this system, as they did not see the support it could provide.
Overall Objective: Therefore, this report aims to investigate the support Visual Performance Management is providing to the management of a team. The objective is formulated as:
“How does Visual Performance Management (VPM) support the management of a team?”
Methodology: Two important notions are encompasses in the overall objective: management of a team and Visual Performance Management. The management of a team is related to the four functions of management, Planning, Organising, Leading and Controlling, performed at a team level. VPM, as its name includes the term “performance management”, could be associated to a control system. It should, therefore, influence essentially the Control functions of management. However, VPM is made visual and physical. Those aspects create more direct interactions with the team and expand to others managerial functions the support VPM is providing to the management of a team. The management of a team can be broad. Therefore, I look specifically, at the way, teams realised the goals that the CC management has when they use the system.
To answer my overall objective, I explore firstly the intentions that have motivates the CC to use VPM in teams. Then, I look at the application of those intentions in two teams belonging to the CC. From the information gathered in the two cases, I discuss the support VPM is providing to the management of a team in regards of the four managerial functions.
Findings: The VPM implemented in the CC teams supports the management of a team of different manners. In terms of Planning, VPM helps a team to select goals at their level. It also supports the Organization of the teamwork by providing an overview of tasks performed in the team. This overview allows team members to have at a glance a picture of the tasks performed and supports the organisation of the team’s daily work. As it was the case for one team, the system seems to have the potential of helping in visualisation of flow and identification of problems along this flow. This feature could have helped CC teams to anticipate the up-coming flow of tasks and to control queues better. However, it cannot be considered as a general feature of VPM because it is not applied to all the teams. It is just a potential of the system. In fact, VPM’s features rely on the involvement of the managers and the strategy selected in the team. VPM also provides a structure for regular feedbacks as the teams are meeting on a regular basis. It helps them to created more stable interrelations in their work. It also supports the structure of the group and its lines of the authority. At the same time, VPM represents an important communication channel that spread information and supports its flow. However, in order to provide efficient feedbacks and information, a small quantity of information should be given to the teams. In regards of Leading, VPM is a system that influences the motivation of employees. It can enhance a team spirit or create resistance if the system is not bringing satisfaction to the team members. There is a relation between the use of VPM and the motivation of employees. Finally, VPM is designed for being a control system but it does not provide concrete measures to gauge and improve their performance. VPM could be supportive in Control functions; however, better measures have to be defined. VPM supports also work on corrective actions to adjust their way of handling tasks and acts as a place that enhances problem-solving for adjusting performance of the teams.
It was found that the system’s features are highly dependant on the involvement of the manager, the strategy selected and the motivation employees has when they use VPM. Therefore, it is important to provide a close follow-up to the managers and for the employees when they use this system.
Originality & Value: This paper could document the use of a visual control system in R&D activities. It illustrates a specific example of visual control system. At the same time, the teams in DRD could use the analysis and findings to improve their use of VPM.
Paper type: Master thesis project, 30 ECTS points
||Technical University of Denmark (DTU) : Kgs. Lyngby, Denmark
Creation date: 2010-11-02
Update date: 2010-11-02