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Sustainable Enterprise Performance: A Comprehensive Evaluation Method

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Sustainable Enterprise Performance: A Comprehensive Evaluation Method

Jean-Louis Leignel, Emmanuel Menager, Serge Yablonski

ISBN: 978-1-119-61827-0 April 2019 Wiley-ISTE 236 Pages

Description

Sustainable Enterprise Performance details a method for evaluating an enterprise’s readiness and progress toward sustainable performance through a comprehensive set of qualitative and quantitative indicators.

These indicators cover enterprise strategy for meeting both the impact of the enterprise within the framework of corporate social responsibility and the expectations of stakeholders, evolving and monitoring the product and service offerings and business processes.

The second half of the book focuses more closely on fundamental determinants of performance, such as digital transformation and artificial intelligence, corporate culture, ethics and compliance, branding and e-reputation and best-practice Lean management, and provides practical measures against which companies may assess the maturity of their sustainable performance.

Foreword xi

Acknowledgements xiii

Introduction xv

Part 1: A Global Framework for the Governance Process and Indicators of Sustainable Performance 1

Chapter 1. The Governance Process 3

1.1. Enterprise governance 3

1.2. Strategic business development 8

1.2.1. The global environment 8

1.2.2. Stakeholders 14

1.2.3. The structuring forces of companies 16

1.2.4. Strategic analysis 23

1.2.5. Actors 28

1.3. Taking into account corporate social responsibility: the governance process 28

1.3.1. CSR: a sustainable performance lever for enterprises 28

1.3.2. Companies are more and more concerned 30

1.3.3. The challenge of CSR for enterprises 31

1.3.4. The opportunities of CSR for enterprises 33

1.4. Translation of strategic objectives at the level of operational processes 36

1.4.1. Management by processes 36

1.4.2. Projects for improvement and resource mobilization 40

1.4.3. Human resource, skill and talent management 43

1.5. Monitoring objective achievement and risk control 44

1.5.1. The “balanced scorecard” 44

1.5.2. Risk mapping and the COSO framework 47

1.5.3. Compliance 51

1.6. The role of decision-makers in the governance process 52

1.6.1. Executives: what are they for? 53

1.6.2. The Executive 54

1.7. Case studies: assessing the maturity of the governance process 58

1.7.1. Gexpertise Group: assessing the maturity of the governance process without CSR 58

1.7.2. L’Oréal: assessing the maturity of the governance process with CSR 62

Chapter 2. The Process of Creating Product Offerings 67

2.1. Introduction 67

2.2. The business’ economic environment and its ecosystem or “humus” 73

2.2.1. Innovation and start-up 75

2.2.2. Economic intelligence 78

2.2.3. Strategic marketing (or “upstream” marketing) 80

2.3. Exploitation of the business’ key assets or “roots” 83

2.3.1. Identification and evaluation of competencies and key assets: use a methodology 85

2.3.2. The value of informational assets 88

2.4. Best practice in operations involved in the process or the “trunk” 90

2.4.1. Product design: defining the product offering 93

2.4.2. The business model 94

2.4.3. Industrialization 96

2.4.4. Start of production 100

2.4.5. Launch on the market 101

2.4.6. Appraisal 103

2.4.7. Best practice in executing the process of creating product offerings 103

2.5. Case study: assessing the maturity of the offer creation process 105

2.5.1. Safran Group 105

2.6. Indicators of the performance of the offer creation process 109

Chapter 3. The Process of Product and Service Production 111

3.1. The strategic importance of the “supply chain” within digital development 111

3.2. Description of the “supply chain” process 113

3.3. Good practices and performance indicators for operations involved in the production process 115

3.3.1. Result indicators 117

3.3.2. Activity indicators 118

3.4. The economic performance of the processes 120

3.4.1. ABB–ABC–ABM: a management tool to help make decisions under certain conditions 120

3.4.2. ABB–ABC–ABM: the logical sequence of implementation (ABB, then ABC, and then ABM) 121

3.4.3. Using ABB–ABC–ABM as a tool for “operational management control” 124

3.4.4. Approach to implementation and traps to avoid 125

3.4.5. Links with processes 127

3.5. The big picture of performance in the “supply chain” process 129

3.6. Case study: assessing the maturity of the supply chain process 131

3.6.1. Air France 131

Part 2: Focus on Medium- to Long-term Performance Levers 135

Chapter 4. Digital Transformation 137

4.1. The importance of managing issues concerning the “digital transformation” 137

4.1.1. How can we digitize while accounting for field realities? 139

4.1.2. How does the enterprise integrate changes in its environment into its organization? 139

4.1.3. What impacts do decisions have on the environment and stakeholders? 140

4.1.4. What measures are taken to ensure that offers conform to customers’ emotions and expectations? 141

4.1.5. How can we measure the operational performance of different lines of products and services? 142

4.2. The importance of monitoring digital developments. 142

4.3. Artificial intelligence and robotization 143

4.4. Case study: assessing the maturity of digital transformation 145

4.4.1. Lise Charmel 145

Chapter 5. Enterprise Culture 147

5.1. The importance of enterprise culture for performance 147

5.1.1. New criteria for enterprise performance 148

5.1.2. A key factor in performance 148

5.1.3. Can an enterprise’s culture stifle progress and innovation? 149

5.1.4. Enterprise culture: a sustainable resource and a competitive advantage 149

5.2. Case study: assessing the maturity of enterprise culture 150

5.2.1. H30 150

Chapter 6. Ethics and Compliance 153

6.1. The importance of ethics and compliance issues for performance 153

6.2. Case study: assessing the maturity of ethics and compliance aspects 155

6.2.1. iXBlue 155

Chapter 7. Brand Image and Reputation 157

7.1. The importance of brand image and reputation management for performance 157

7.1.1. Brand image 157

7.1.2. Brand image measurement criteria 158

7.1.3. Anticipation analysis 158

7.1.4. Reputation 158

7.1.5. Means 159

7.1.6. Communicating values 159

7.1.7. The enterprise’s attractiveness 160

7.1.8. Brand image deterioration 161

7.1.9. Rumors and e-reputation. 162

7.1.10. Performance and sustainability 163

7.1.11. Conclusion 164

7.2. Case study: assessing the maturity of brand image management 164

7.2.1. L’Oréal 164

Chapter 8. Lean Management 167

8.1. The importance of “Lean management” concepts for performance 167

8.1.1. Toyota: the birthplace of Lean management 167

8.1.2. Exceptional performance through original practices 168

8.2. Measures of Lean performance 169

8.3. Lean management in the IT industry or IT departments of enterprises 172

8.3.1. The problems inherent in traditional computer systems 172

8.3.2. The best practices of Lean IT 174

8.4. Lean management in the service industries 174

8.5. What is a “Lean start-up”? 176

8.5.1. The motivation for performance in a Lean start-up 177

8.6. Conclusion 179

8.7. Case study: assessing the maturity of Lean management practices 180

Appendix 183

Glossary 187

References 197

Index 199