Progress in Performance Management Industry Insights and Case Studies On Principles Application Tools and Practice Marc Helmold

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Warda Samara
Progress in
Performance
Management
Industry Insights and Case Studies
on Principles, Application Tools,
and Practice
More information about this series at http://www.springer.com/series/10101
Marc Helmold • Warda Samara
Progress in Performance
Management
Industry Insights and Case Studies
on Principles, Application Tools,
and Practice
Marc Helmold Warda Samara
IUBH IUBH
Berlin, Germany Berlin, Germany
ISSN 2192-8096 ISSN 2192-810X (electronic)

ISBN 978-3-030-20533-1 ISBN 978-3-030-20534-8 (eBook)
https://doi.org/10.1007/978-3-030-20534-8
# Springer Nature Switzerland AG 2019

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the
material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,
broadcasting, reproduction on microfilms or in any other physical way, and transmission or information
storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology
now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this
book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, express or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.
This Springer imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
With many little strokes a large tree is felled
(Japanese proverb)
About the Book
The book Progress in Performance Management—Industry and Case Studies on

Principles, Application Tools and Practice outlines how organizations and
enterprises will achieve excellence in performance management in a systematic,
professional and effective way, thus securing long-term competitive advantages. The
book has several unique selling propositions (USPs). It is written by two experts in
performance management from industry and from academia. The book has many
practical examples and cases of performance excellence. Included are here the
practical experiences of the authors Prof. Helmold (M.B.A.) and Warda Samara
(M.L.M.) from exposures to international organizations. Performance excellence is
outlined by explaining concepts and tools along the value chain of organizations.
The book is a very good symbiosis of theoretical frameworks existing and the
application in the producing industry, the service sector and the public sector. The
tools, industry examples and cases of the book show many best practices and have
therefore significant relevance to industry and academia.
Performance management (PM) must be an integral part of any organization or
enterprise. PM activities integrate the performance measurement, performance man-
agement and the permanent performance improvement. The key questions to this
are: “What is performance management? How can I measure performance? Where
do I measure performance? How is your performance measured externally? How do
I improve my performance across the value chain?
PM is therefore described as an applied, systematic and structured approach of the
successful management of enterprises, systems, processes, employees, departments
and organizations to ensure that goals and objectives are being reached efficiently
and effectively. The book is targeting practitioners at managerial and staff level, who
contribute directly or indirectly to the value chain like procurement, operations,
marketing, sales, human resources and finance or quality management. Secondly,
lecturers and professors will be able to enhance their teaching and research. Finally,
students at bachelor’s and master’s levels in business, engineering or other
disciplines will get in-depth insights into performance management. The book
contains many practical examples and case studies.
Chapter 1 outlines the existing gap in industry and academia in PM to look at PM
from a more holistic viewpoint across the entire value chain with primary (procure-
ment, operations and marketing) and secondary functions (finance, HR, IT) and find
suitable frameworks for professional and practice-oriented international
vii
viii About the Book
negotiations. Although the market offers several books in PM, practitioners and
academics stress that these books are limited to organizational performance or
financial performance.
Chapter 2 displays how PM must be part of the corporate strategy. Strategy
phases contain the strategic analysis, choice and implementation. It is important
that PM is properly executed in line with the long-term aspiration and intent of the
organization.
Chapter 3 shows the pitfalls of quantitative and qualitative methodologies in
PM. In many cases, it is recommendable not to rely on either quantitative or
qualitative approaches as both methodologies have weaknesses in terms of data
reliability.
Chapters 4, 5 and 6 focus on the primary value chain functions like procurement,
operations, marketing and sales.
Chapter 4 outlines the upstream value chain or supply side. As organizations are
increasingly shifting non-core activities to suppliers (outsourcing), it is important
that the supply side is managed well performance wise.
In Chap. 5, PM tools in operations are explained. 5S, the elimination of waste and
the focus on value-adding processes are the key success factor for performance
excellence. The chapter ends with the description of lean principles.
PM in marketing and sales is illustrated in Chap. 6 (downstream). This function is
the interface between customers and the demand side; therefore, it is a key activity to
understand customer requirements, which can be transmitted into the organization.
Chapter 7 shows PM excellence models and concepts like the balanced score card
(BSC), quality management systems (QMS), the European Foundation for Quality
Management (EFQM), the Baldrige excellence model (BEM) or the performance to
excellence model (P2EM).
Chapter 8 illustrates important tools that are of practical relevance like macro
(PESTEL analysis) and micro (Porter´s five forces) analyses. PM tools can be used
effectively in industry and service sectors as part of improving performance.
Chapter 9 concentrates on PM in complex projects. Project management has
certain characteristics and is often executed in cross-functional teams. Projects are
time-limited and unique, so that PM plays a significant role in this context.
Chapter 10 outlines financial PM including ratios and financial tools like the P &
L account, the cash flow statement or the balance sheet. This section gives
recommendations for organizations which face financial stress.
Chapter 11 illustrates PM in non-government and non-profit organizations. The
final case study shows how performance can look like in public organizations.
Chapter 12 outlines PM in the area of the support function human resources (HR).
HR has the responsibility to create an environment in which employees and
managers can develop superior performance.
Chapter 13 describes PM in the light of industry 4.0 and artificial intelligence
(AI). The fourth industrial revolution and AI technologies have severe impacts on
global value chains, which necessitates applying specific PM aspects.
Chapter 14 is the last chapter. It describes PM in different cultures and in the
context of international environments.
About the Book ix
The book Progress in Performance Management—Industry and Case Studies on

Principles provides readers a holistic and pragmatic approach towards performance
management throughout the value chain. The book outlines how performance
management can be utilized in the optimum way and as concept to achieve a
competitive advantage and superior performance. It draws from a large number of
best practices, case studies and examples from industry. In this context, performance
management plays a fundamental role in any organization and must focus on
primary functions, such as supply, operations and sales, and secondary functions
like finance, human resources or information systems. Best practices and cases could
be derived from the experts themselves with broad industry experience, from
industry experts and from research. This book about best-in-class performance
excellence is the ideal guide for any organization to achieve competitive advantages
across all company functions and to emphasize value-adding activities.
Berlin and Hiroshima Marc Helmold

Freiburg and Palestine Warda Samara
Acknowledgements
In today’s world, people, enterprise, organizations or countries are competing with

each other and striving for excellence in performance. The book Progress in
Performance Management—Industry and Case Studies on Principles, Application
Tools and Practice has been written by two authors with different but complemen-
tary backgrounds in performance management in international organizations.
The knowledge and experience of the two authors helped to create a unique book
in performance management with numerous unique selling propositions (USPs).
Prof. Helmold had several top management positions in leading companies in
Germany, the Czech Republic, Japan and China. Currently, he teaches performance
management, supply chain management and negotiations in the international context
at the IUBH University in Berlin and other universities in the UK and China. He also
supports companies in supply, performance or project management. Warda Samara
acts as a performance management consultant in non-government (NGO) and
government excellence projects. The collaboration of different personalities with
their individual strengths has led to a unique book, which can be at present regarded
as one of the most advanced books in this field.
The book would not have been possible without the implicit and indirect support
of practitioners, academics and students at doctoral and master’s levels. For practical
relevance, the authors appreciate the input from professionals in many industries and
from public organizations. Additionally, many of the impulses come from students
of the IUBH university campus studies in Berlin. The authors hope that the book will
also contribute to understand other countries and cultures in a better way, as they are
convinced that diversity and intercultural experience in enterprises is a key success
factor in a highly competitive environment. We would like to thank our colleagues,
students and friends for giving us the impulse to write this book with many USPs.
Finally, the authors would like to thank Springer International, especially
Dr. Prashanth Mahagaonkar and Ruth Milewski, for the professional and smooth
completion of this project.
Berlin, April 2019
Marc Helmold
Warda Samara
xi
Contents
1 Performance Management (PM) Over the Entire Value Chain . . . . 1

1.1 PM Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 PM Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 PM in the Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4 The QCDT-Plus Alpha Concept in Performance Management . . 7
1.4.1 Quality Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.4.2 Cost Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.4.3 Delivery Objectives . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.4.4 Technology Objectives . . . . . . . . . . . . . . . . . . . . . . . 12
1.4.5 Alpha Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.5 Performance Management in the International Context . . . . . . . 13
1.6 Case Study: PM Audit of the Berliner Verkehrsgesellschaft
(BVG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2 PM as Integral Part of the Corporate Strategy . . . . . . . . . . . . . . . . 25
2.1 Definition of Strategic Management . . . . . . . . . . . . . . . . . . . . . 25
2.2 Strategic Triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.3 Strategic Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.4 Strategic Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.5 Strategic Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.5.1 Assessment of Suitability, Acceptability
and Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.5.2 Suitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.3 Acceptability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.4 Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.6 Strategic Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.6.1 Mission and Vision . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.6.2 Goals and Objectives . . . . . . . . . . . . . . . . . . . . . . . . 33
2.6.3 Core Competencies . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.6.4 Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.6.5 Strategic Architecture and Infrastructure . . . . . . . . . . . 34
2.6.6 Control and Execution (Actual Versus Plan) . . . . . . . . 34
xiii
xiv Contents
2.7 Strategies Must Focus on Performance . . . . . . . . . . . . . . . . . . . 35

2.8 Case Study: Siemens Strategy . . . . . . . . . . . . . . . . . . . . . . . . . 36
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3 Excellence in PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.1 Quantitative and Qualitative Performance Indicators . . . . . . . . . 39
3.1.1 Quantitative Research . . . . . . . . . . . . . . . . . . . . . . . . 39
3.1.2 Qualitative Research . . . . . . . . . . . . . . . . . . . . . . . . . 40
3.2 Definition of Key Performance Indicators . . . . . . . . . . . . . . . . . 40
3.3 Definition of Objective Key Results . . . . . . . . . . . . . . . . . . . . . 41
3.4 Case Study: Quantitative and Qualitative Data in Bombardier . . 41
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4 PM in the Upstream Value Chain . . . . . . . . . . . . . . . . . . . . . . . . . . 51
4.1 PM in the Upstream Value Chain . . . . . . . . . . . . . . . . . . . . . . . 51
4.2 Concentration on Core Competencies . . . . . . . . . . . . . . . . . . . . 52
4.3 Phases in Supply Management . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.4 PM in the Upstream Value Chain: Supply Networks . . . . . . . . . 54
4.4.1 Raw Material Suppliers . . . . . . . . . . . . . . . . . . . . . . . 55
4.4.2 Components and Parts Suppliers . . . . . . . . . . . . . . . . 56
4.4.3 Systems Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.4.4 Integrated and Keiretsu Suppliers . . . . . . . . . . . . . . . 57
4.4.5 Supplier and Commodity Segmentation . . . . . . . . . . . 58
4.5 Strategic PM in the Upstream Value Chain . . . . . . . . . . . . . . . . 58
4.5.1 Strategic Supplier Management and Segmentation . . . 58
4.5.2 Value and Competitive Advantage of Supplier
Networks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.6 Supply Management Process . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.7 Case Study: Supply Blockchains at Mercedes-Benz . . . . . . . . . . 64
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
5 PM in Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
5.1 Definition of Operations Management . . . . . . . . . . . . . . . . . . . 67
5.2 Optimizing Performance Through Lean Production . . . . . . . . . . 68
5.2.1 Value Adding Activities and Waste . . . . . . . . . . . . . . 68
5.2.2 Ishikawa Diagramme to Identify Waste . . . . . . . . . . . 69
5.2.3 Advantages and Disadvantages . . . . . . . . . . . . . . . . . 70
5.2.4 5S-System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.3 Seven Types of Waste in Operations . . . . . . . . . . . . . . . . . . . . 73
5.3.1 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.3.2 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
5.3.3 Motion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.3.4 Waiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.3.5 Overproduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
5.3.6 Over-Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
5.3.7 Defects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Contents xv
5.4 Principles of a Just-in-Time Production System . . . . . . . . . . . . . 78

5.4.1 Zero-Defect Principle . . . . . . . . . . . . . . . . . . . . . . . . 81
5.4.2 Pull Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
5.4.3 Flow Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
5.4.4 Tact Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
5.5 Innovation Versus Kaizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
5.6 Andon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
5.7 Poka Yoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
5.8 Gemba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
5.9 Shadow Boards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
5.10 Health, Safety and Environment . . . . . . . . . . . . . . . . . . . . . . . . 87
5.11 Case Study: Porsche Using Lean Principles . . . . . . . . . . . . . . . 88
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
6 PM in the Downstream Value Chain . . . . . . . . . . . . . . . . . . . . . . . . 91
6.1 Managing Performance in the Downstream . . . . . . . . . . . . . . . . 91
6.2 Marketing Mix (7 Ps) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
6.3 Incoterms 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
6.4 Vendor-Managed Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
6.5 Efficient Consumer Response . . . . . . . . . . . . . . . . . . . . . . . . . 95
6.6 Enterprise Resource Planning System . . . . . . . . . . . . . . . . . . . . 95
6.7 Case Study: Airbus and AirSupply . . . . . . . . . . . . . . . . . . . . . . 95
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
7 PM Models and Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
7.1 Balance Score Card (BSC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
7.2 Quality Management Systems (QMS) . . . . . . . . . . . . . . . . . . . . 103
7.3 European Foundation of Quality Management (EFQM) . . . . . . . 104
7.3.1 Concept of the EFQM . . . . . . . . . . . . . . . . . . . . . . . . 104
7.3.2 Continuous Process . . . . . . . . . . . . . . . . . . . . . . . . . 106
7.3.3 Self-Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
7.3.4 Application of the EFQM model . . . . . . . . . . . . . . . . 106
7.4 Baldrige Excellence Model (BEM) . . . . . . . . . . . . . . . . . . . . . . 106
7.5 Business PM Improvement Resource Model (BPIR) . . . . . . . . . 107
7.6 Performance Management to Excellence Model (PM2E) . . . . . . 108
7.7 Case Study: EFQM by BMW . . . . . . . . . . . . . . . . . . . . . . . . . 110
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
8 Tools in PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
8.1 PESTEL Analysis (Environmental Forces) . . . . . . . . . . . . . . . . 111
8.1.1 Categories of the Model . . . . . . . . . . . . . . . . . . . . . . 111
8.1.2 Benefits of the Model . . . . . . . . . . . . . . . . . . . . . . . . 113
8.2 Porter’s Five Forces (Industry Analysis) . . . . . . . . . . . . . . . . . . 114
8.2.1 Benefits of the Model . . . . . . . . . . . . . . . . . . . . . . . . 114
8.2.2 Competitive Rivalry . . . . . . . . . . . . . . . . . . . . . . . . . 114
8.2.3 Bargaining Power of Suppliers . . . . . . . . . . . . . . . . . 114
8.2.4 Bargaining Power of Buyers . . . . . . . . . . . . . . . . . . . 115
xvi Contents
8.2.5 Threat of Substitutes . . . . . . . . . . . . . . . . . . . . . . . . . 115

8.2.6 Threat of New Entrants . . . . . . . . . . . . . . . . . . . . . . . 115
8.3 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
8.4 Risk and Opportunity Analysis (ROP) . . . . . . . . . . . . . . . . . . . 116
8.5 Margin Enhancement Plan Analysis (MEP) . . . . . . . . . . . . . . . 117
8.6 5F Concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
8.7 Critical Success Factors (CSF) . . . . . . . . . . . . . . . . . . . . . . . . . 118
8.8 The 7S Model by McKinsey . . . . . . . . . . . . . . . . . . . . . . . . . . 118
8.9 Recommendations of Ideal Tools in Negotiations . . . . . . . . . . . 119
8.10 Case Study: Lufthansa Industry Analysis . . . . . . . . . . . . . . . . . 120
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
9 PM in Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
9.1 Definition und Characteristics of Projects . . . . . . . . . . . . . . . . . 123
9.2 Critical Success Criteria for Projects . . . . . . . . . . . . . . . . . . . . . 126
9.2.1 Key Criteria in Projects . . . . . . . . . . . . . . . . . . . . . . . 126
9.2.2 Integration Management . . . . . . . . . . . . . . . . . . . . . . 126
9.2.3 Performance Management . . . . . . . . . . . . . . . . . . . . . 126
9.2.4 Time Management . . . . . . . . . . . . . . . . . . . . . . . . . . 126
9.2.5 Cost Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.2.6 Quality Management . . . . . . . . . . . . . . . . . . . . . . . . 127
9.2.7 People Management . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.2.8 Communication Management . . . . . . . . . . . . . . . . . . 127
9.2.9 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.2.10 Procurement Management . . . . . . . . . . . . . . . . . . . . . 127
9.3 Recommendations for Project Negotiations . . . . . . . . . . . . . . . . 128
9.4 Case Study: CRRC Investing in US Factory . . . . . . . . . . . . . . . 128
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
10 Financial PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
10.1 Financial PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
10.1.1 Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
10.1.2 P & L Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
10.1.3 Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . 132
10.2 Financial Ratios in PM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
10.3 Financial Crisis and Symptoms . . . . . . . . . . . . . . . . . . . . . . . . 134
10.4 Restructuring and Financial Turnaround Actions . . . . . . . . . . . . 136
10.4.1 Definition of Restructuring . . . . . . . . . . . . . . . . . . . . 136
10.4.2 Strategic Restructuring . . . . . . . . . . . . . . . . . . . . . . . 137
10.4.3 Structural Restructuring . . . . . . . . . . . . . . . . . . . . . . 138
10.5 Balance Sheet, Profit and Loss and Cash Situation . . . . . . . . . . 139
10.5.1 PM Actions Affecting the Balance Sheet . . . . . . . . . . 139
10.5.2 Negotiations Affecting the Profitability:
P & L Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
10.5.3 PM Actions Affecting the Cash Situation . . . . . . . . . . 143
Contents xvii
10.6 Recommendations for the Turnaround . . . . . . . . . . . . . . . . . . . 143

10.6.1 Strategic Turnaround and Restructuring . . . . . . . . . . . 143
10.6.2 Involve a Specialist . . . . . . . . . . . . . . . . . . . . . . . . . 145
10.6.3 Taking All Financing Options Available . . . . . . . . . . 145
10.6.4 Liquidation of Unnecessary Assets . . . . . . . . . . . . . . 146
10.6.5 End Non-essential Relationships . . . . . . . . . . . . . . . . 146
10.6.6 Case Study: Tesla Financial PM . . . . . . . . . . . . . . . . 146
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
11 PM in NGO and NPO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
11.1 PM in NGOs and NPOs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
11.1.1 Definition of NPOs and NGOs . . . . . . . . . . . . . . . . . 149
11.1.2 Characteristics and Objectives of NPOs . . . . . . . . . . . 150
11.1.3 Characteristics and Objectives of NGOs . . . . . . . . . . . 151
11.2 Case Study: Bürgeramt to Excellence (Bü2E) . . . . . . . . . . . . . . 151
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
12 PM in Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.1 PM Functional Elements Human Resources . . . . . . . . . . . . . . . 155
12.2 Leadership and Management . . . . . . . . . . . . . . . . . . . . . . . . . . 155
12.3 Increasing PM in Human Resources . . . . . . . . . . . . . . . . . . . . . 157
12.4 Case Study: Google Employee PM Reviews . . . . . . . . . . . . . . . 158
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
13 Industry 4.0 and Artificial Intelligence (AI) in PM . . . . . . . . . . . . . 161
13.1 Industry 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
13.2 Artificial Intelligence (AI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
13.3 Case Study: Amazon Using AI . . . . . . . . . . . . . . . . . . . . . . . . 162
Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
14 PM in Different Cultures and Internationalization . . . . . . . . . . . . . 165
14.1 Negotiations in Different Cultures . . . . . . . . . . . . . . . . . . . . . . 165
14.2 Hofstede’s Cultural Dimensions Theory . . . . . . . . . . . . . . . . . . 167
14.2.1 Power Distance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
14.2.2 Individualism vs. Collectivism . . . . . . . . . . . . . . . . . 169
14.2.3 Masculinity vs. Femininity . . . . . . . . . . . . . . . . . . . . 169
14.2.4 Uncertainty Avoidance . . . . . . . . . . . . . . . . . . . . . . . 170
14.2.5 Long-Term Orientation . . . . . . . . . . . . . . . . . . . . . . . 170
14.2.6 Indulgence vs. Restraint . . . . . . . . . . . . . . . . . . . . . . 170
14.3 Edward Hall’s Culture Model . . . . . . . . . . . . . . . . . . . . . . . . . 171
14.3.1 Proxemics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
14.3.2 Monochromic Time vs. Polychromic Time . . . . . . . . . 171
14.3.3 High-Context Cultures vs. Low-Context Cultures . . . . 172
14.4 Internationalization Strategies . . . . . . . . . . . . . . . . . . . . . . . . . 174
14.4.1 Possibilities of Internationalization . . . . . . . . . . . . . . . 174
14.4.2 Direct Exports or Imports . . . . . . . . . . . . . . . . . . . . . 174
xviii Contents
14.4.3 Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

14.4.4 Franchising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
14.4.5 Third-Party Sourcing . . . . . . . . . . . . . . . . . . . . . . . . 175
14.4.6 Investments and Partnering . . . . . . . . . . . . . . . . . . . . 175
14.4.7 Joint Ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
14.4.8 International Procurement Office (IPO) . . . . . . . . . . . 175
14.4.9 Own Company with Sales and Production
Subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
14.4.10 Case Study: Jokey Group’s Global Procurement to
Excellence Initiative . . . . . . . . . . . . . . . . . . . . . . . . . 177
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
About the Authors
Marc Helmold is Professor at the International Univer-

sity of Applied Sciences (IUBH) at the campus in
Berlin. He teaches bachelor’s, master’s and M.B.A. in
performance management, supply management, general
management, strategic management and supply chain
management. From 1997 until 2017, he had several
positions in top management in the automotive and
railway industry. From 2013 until 2016, he was the
General Manager of Bombardier Transportation in
China and led the sourcing and spare parts sales
activities. Since 2016, he is Professor at the IUBH and
has his own consultancy. In this capacity, he improves
companies in performance.
Warda Samara Founder and Director General of

Logica Center for Consulting based in Palestine since
2012 working together with several partner
organizations in the UK, Germany, Belgium, Jordan
and Kuwait. She is a consultant and development expert
with several local and international organizations like
the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) and Rural Women Association
via Arab Fund Foundation for Social and Economic
Development. From 2006 to 2012, she had different
positions in leading organizations in Palestine, like
World Bank via Ministry of Education, and she gives
workshops in designing and improving projects in social
and economic development.
xix
List of Figures
Fig. 1.1 Performance management cycle. Source: Author’s own figure . . . 2

Fig. 1.2 Performance excellence. Source: Author’s own figure . . . . . . . . . . . . 4
Fig. 1.3 Value chain: input–transformation–output. Source: Author’s
own figure ............................................................... 5
Fig. 1.4 Value chain model. Source: Compiled by the Author, adopted
from Slack, Chambers, Harland, Harrison, and Johnston (1995) . . . 6
Fig. 1.5 Q-C-D-T-plus alpha concept. Source: Author’s own figure . . . . 8
Fig. 1.6 Objectives in the Q-C-D-T-plus alpha concept. Source:
Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Fig. 1.7 CSR objectives. Source: Author’s own figure . .. . .. . .. . .. . .. . .. .. . . 13
Fig. 1.8 Exports from Germany. Source: Statistical federal office in
Germany. Pressemitteilung Nr.039 vom 8. Februar 2018:
Deutsche Exporte im Jahr 2017: +6.3% zum Jahr 2016.
Exporte und Importe erreichen neue Rekordwerte.
https://www.destatis.de/DE/PresseService/Presse/Pressemitteilungen/
2018/02/PD18_039_51.html ............................................. 15
Fig. 1.9 Imports to Germany. Source: Statistical federal office in
Germany. Pressemitteilung Nr.039 vom 8. Februar 2018:
Deutsche Exporte im Jahr 2017: +6.3% zum Jahr 2016.
Exporte und Importe erreichen neue Rekordwerte.
https://www.destatis.de/DE/PresseService/Presse/Pressemitteilungen/
2018/02/PD18_039_51.html ............................................. 16
Fig. 1.10 Make or buy strategies. Source: Author’s own figure . . . . . . . . . . . . . 16
Fig. 1.11 The value chain functions. Source: Author’s own figure . . . . . . . . . . 18
Fig. 1.12 International business transactions. Source: Author’s own
figure, adopted from Dathe and Helmold (2018) . . . . . . . . . . . . . . . . . . 19
Fig. 1.13 General Manager, Dr. Helmold, and General Manager Mr. Li.
Source: Marc Helmold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Fig. 1.14 Performance audit steps. Source: Author’s own figure . . . . . . . . . . . . 22
Fig. 1.15 Radar chart: PM audit of the BVG. Source: Author’s own
figure . . . . .. . . .. . . . .. . . .. . . . .. . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . . 22
Fig. 1.16 Audit results of the BVG performance evaluation.
Source: Author’s own figure . . . . . . . . .. . . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . 23
xxi
xxii List of Figures
Fig. 2.1 Strategic triangle. Source: Compiled, by the Author, adopted

from Johnson and Scholes (1997) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Fig. 2.2 Generic strategies. Source: Author’s own figure, adopted from
Porter (1985) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Fig. 2.3 Strategic Clock from Bowman. Source: Author’s own figure,
adopted from Johnson and Scholes (1997) . . . . . . . . . . . . . . . . . . . . . . . . . 29
Fig. 2.4 Strategic pyramid. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . 32
Fig. 2.5 Generic strategies. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . 35
Fig. 3.1 NCG ratio of supplier XYZ. Source: Author’s own figure . .. . .. . . 42
Fig. 3.2 Qualitative RCA and interventionist approach. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Fig. 3.3 Quantitative and qualitative analysis with AR. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Fig. 3.4 Root cause analysis (RCA) including action research (AR).
Source: Author’s own figure . . . . . . . . .. . . . . . . . .. . . . . . . .. . . . . . . . .. . . . . . 46
Fig. 3.5 Result of analysis. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . 47
Fig. 3.6 Summary of analysis. Source: Author’s own figure . . . . . . . . . . . . . . . 48
Fig. 4.1 PM in supply management and procurement. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Fig. 4.2 Supply management process. Source: Author’s own figure . . . . . . . 54
Fig. 4.3 Supply pyramid. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . 56
Fig. 4.4 Supply strategies (preferred and alternative suppliers). Source:
Fig. 4.5 Supplier and commodity strategies. Source: Compiled by
Author, adopted from Eyholzer et al. (2002) . . . . . . . . . . . . . . . . . . . . . . . 59
Fig. 4.6 Supply strategy management process. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Fig. 5.1 Operations management as part of the value chain. Source:
Fig. 5.2 7R principle in operations management. Source: Author’s own
figure, adopted from Helmold and Terry (2017) . . . . . . . . . . . . . . . . . . . 68
Fig. 5.3 Value add and waste. Source: Author’s own figure, adopted
from Helmold and Terry (2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Fig. 5.4 Actions for value add and waste. Source: Author’s own figure . . . . 70
Fig. 5.5 Ishikawa diagramme. Source: Author’s own figure . . . . . . . . . . . . . . . 70
Fig. 5.6 Ishikawa diagramme with waste and value add. Source:
Fig. 5.7 5S-system. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Fig. 5.8 Transportation. Source: Author’s own figure . .. . .. . .. . .. . .. . .. . . .. . 74
Fig. 5.9 Inventory. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Fig. 5.10 Motion. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Fig. 5.11 Waiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Fig. 5.12 Overproduction. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . 77
List of Figures xxiii
Fig. 5.13 Over-processing. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . 77

Fig. 5.14 Defects. Source: Author’s own figure .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . 78
Fig. 5.15 TIMWOOD checklist. Source: Author’s own figure . . . . . . . . . . . . . . 79
Fig. 5.16 Just-in-Time (JIT) principles. Source: Author’s own figure,
adopted from Helmold and Terry (2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Fig. 5.17 Types of flows in operations. Source: Author’s own figure . . . . . . . 83
Fig. 5.18 Tact time and other ratios. Source: Author’s own figure . . . . . . . . . . 84
Fig. 5.19 Innovation versus Kaizen. Source: Author’s own figure, adopted
from Helmold (2010) . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . 85
Fig. 5.20 Andon. Source: Marc Helmold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Fig. 5.21 Shadow board. Source: Marc Helmold. Shadow board.
Mitsubishi Shinkanzen production in Osaka . . . . . . . . . . . . . . . . . . . . . . . 88
Fig. 5.22 Health, safety and environment. Source: Marc Helmold . . . . . . . . . . 89
Fig. 6.1 Marketing and sales in the downstream value chain. Source:
Fig. 6.2 Marketing mix. Source: Author’s own figure, adopted from
Helmold, Dathe, and Hummel, 2019 . . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . . 93
Fig. 6.3 Downstream supply chain of Airbus. Source: Author’s own
figure, adopted from SupplyOn (2019) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Fig. 6.4 AirSupply. Source: Author’s own figure, adopted from
SupplyOn (2019) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Fig. 7.1 Balance score card (BSC). Source: Author’s own figure . . . . . . . . . . 100
Fig. 7.2 Logic behind the BSC. Source: Author’s own figure . . . . . . . . . . . . . . 102
Fig. 7.3 EFQM model. Source: Author’s own figure, adjusted from
the EFQM model (EFQM, 2019) . . .. .. . .. .. . .. .. . .. . .. .. . .. .. . .. . .. . 108
Fig. 7.4 PM2E excellence model by Dr. Marc Helmold. Source:
Fig. 8.1 PESTEL analysis. Source: Compiled by the Author, adopted
from Johnson and Scholes (1997) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Fig. 8.2 Industry analysis. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . 115
Fig. 8.3 SWOT analysis. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . 116
Fig. 8.4 ROP. Source: Author’s own figure . . .. . . . . .. . . . . . .. . . . . . .. . . . . .. . . . . 117
Fig. 8.5 Seven S model by McKinsey. Source: Author’s own figure . . . . . . 119
Fig. 8.6 Lufthansa industry analysis. Source: Author’s own figure . . . . . . . . 120
Fig. 9.1 Project phases. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . 125
Fig. 9.2 Project organization. Source: Author’s own figure . . . . . . . . . . . . . . . . 125
Fig. 10.1 Balance sheet. Source: Author’s own figure. Marc Helmold . . . . . 132
Fig. 10.2 P & L account (Helmold, 2019). Source: Author’s own figure . . . . 133
Fig. 10.3 Financial PM ratios. Source: Author’s own figure . . . . . . . . . . . . . . . . . 134
Fig. 10.4 Phases to financial insolvency. Source: Helmold et al. (2019),
adapted from Müller’s four phases model. Müller (1986) . . . . . . . . 136
Fig. 10.5 Restructuring ways for financial turnaround. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
xxiv List of Figures
Fig. 10.6 Balance sheet. Source: Author’s own figure . . . . . . . . . . . . . . . . . . . . . . . 141

Fig. 10.7 P & L account with improvement actions. Source: Author’s
own figure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Fig. 10.8 Profit improvements. Source: Author’s own figure . . . . . . . . . . . . . . . . 143
Fig. 11.1 Performance evaluation of the Bürgeramt. Source:
Samara (2018) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
Fig. 12.1 Tasks in human resources. Source: Author’s own figure . . . . . . . . . . 156
Fig. 12.2 Leadership styles according to Tannenbaum and Schmidt.
Source: Marc Helmold, adjusted from Tannenbaum and
Schmidt . . . . .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 157
Fig. 13.1 Industry 4.0 evolution. Source: Compiled figure by the Author,
adopted from Helmold and Terry (2017) . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Fig. 14.1 Strategic approach for intercultural negotiations . . . . . . . . . . . . . . . . . . . 166
Fig. 14.2 Schein’s three levels of culture (interpretation by Dathe).
Source: Dathe and Helmold (2018) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Fig. 14.3 Hall’s concept for interpersonal distance (horizontal). Source:
Compiled by the Author, adopted from Dathe and Helmold
(2018) . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . .. . . . . .. . . . . .. . . . . .. . . . .. . . . . 172
Fig. 14.4 Internationalization strategies. Source: Own source by the
Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Fig. 14.5 Ann Sun and Dr. Marc Helmold in Japan, Tokyo. Source:
Marc Helmold . . .. . . .. . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . 177
List of Tables
Table 1.1 Quality management systems (QMS) .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . 10

Table 1.2 The 10 most impacting trends in international trade . . . . . . . . . . . . . 20
Table 1.3 Audit types and categories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Table 2.1 Elements in the strategic analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Table 6.1 International commercial terms 2010
(Incoterms) . . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . .. . . . . .. . . . .. . . . .. . . . .. . . 94
Table 8.1 Risks and opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Table 8.2 Action to improve productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
Table 8.3 The 5F concept for successful negotiations . . . . . . . . . . . . . . . . . . . . . . . 118
Table 8.4 Recommendations and summary of tools for
negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Table 9.1 Project criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Table 9.2 Negotiations in project management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Table 10.1 Cost reduction initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Table 10.2 Revenue increase initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Table 14.1 The importance of context: communication with
the Brits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
xxv
List of Acronyms and Abbreviations
AR Action research
BSC Balanced score card
BME Bundesverband Materialwirtschaft, Einkauf und Logistik
BT Bombardier Transportation
BVG Berliner Verkehrsbetriebe
CIF Cost, insurance, freight
EFQM European Foundation for Quality Management
FAS Free alongside ship
FOB Free on board
IPO International Procurement Organization
ISO International Standardization Organization
IUBH International University Bad Honnef
JIT Just in time
JV Joint venture
MB Mercedes-Benz
M.B.A. Master of Business Administration
MEP Margin enhancement plan
NCG Non-conformity goods
NGO Non-government organization
NPO Non-profit organization
OET Offer evaluation tool
PESTEL Political, economic, social, technological, environmental, legal aspects
PM2E Performance management to excellence
PO Purchase order
PROF Professor
QCD Quality, cost, delivery
QCDT Quality, cost, delivery, technology
QMS Quality management system
RFQ Request for quotation
ROP Risks and opportunities
SCM Supply chain management
SME Small and medium-sized enterprises
SWOT Strengths, Weaknesses, Opportunities, Threats
xxvii
xxviii List of Acronyms and Abbreviations
TÜV Technischer Überwachungsverein

USP Unique selling proposition
VMI Vendor-managed inventory
VW Volkswagen
WFOE Wholly foreign owned enterprise
WTO World Trade Organization
ZomA Zone of mutual agreement
A-6 Negotiation concept by Dr. Marc Helmold
3R Retention, related sales and referrals
5S Seiri, Seiton, Seiso, Seiketsu, Shitsuke
7P Product, price, place, promotion, physical evidence, people, process
Performance Management (PM) Over
the Entire Value Chain 1
Marc Helmold and Warda Samara
Logic will get you from A to B. Imagination will take you

everywhere.
Albert Einstein (1879–1955)
1.1 PM Definition
Performance management (PM) is a subject which is an integral part of any

enterprise and organization. Performance management integrates performance mea-
surement, management and performance improvement as illustrated in the perfor-
mance management cycle in Fig. 1.1. PM is a basic and efficient methodology. It
portrays the administration of enterprises, processes, HR, divisions and associations
to ensure that objectives and destinations are being reached. The objectives and
destinations are obtained from client’s desires which are the bases of the key mission
and vision in an endeavour. Performance measurement and the administration must
be executed over the whole value chain and applies to all functions and department.
PM reaches from the upstream value chain over the operation to the downstream
supply chain management. Performance management involves defining what effec-
tive performance looks like, as developing the tools and procedures necessary to
measure performance. The overall goal of performance management is to ensure
that the organization and all of its subsystems (processes, departments, teams,
employees, etc.) are working together in an optimum fashion to achieve the results
desired by the organization.
Performance management can be done externally (e.g. measurement by
customers, by shareholders or analysts, measurement of supply base) and internally
(management of organization). PM must include the entire value chain and all
elements including USCM, Operations, DSCM and support functions like finance,
logistics, human resources (HR) or information technology (IT). Purely financial PM
is not successful, so that all stakeholders and functions have to integrate and
# Springer Nature Switzerland AG 2019 1

M. Helmold, W. Samara, Progress in Performance Management, Management for
Professionals, https://doi.org/10.1007/978-3-030-20534-8_1
2 1 Performance Management (PM) Over the Entire Value Chain
Fig. 1.1 Performance

management cycle. Source:
Author’s own figure
Performance Performance
Improvement Measurement
Performance
Management
collaborate in order to achieve the excellent performance. The key questions related
to performance management are:
– What is performance management?

– Where do I measure performance?
– What do I measure?
– How can I measure performance?
– When do I measure performance?
– How can I improve the performance?
Enterprises must aim for PM excellence. Permanent measurement and

improvements are crucial activities by top management. PM is a core activity and
must be pursued by all departments. In addition, there are certain characteristics of
PM that can be described as follows:
1. PM has to be executed over the entire value chain from the upstream over the
operation to the downstream supply chain management.
2. PM is a structural and systematic approach in enterprises and organizations.
3. PM must be coordinated and implemented by top management.
4. PM deals with enterprises, processes, employees, departments and
organizations.
5. PM is using tools, mechanics and procedures necessary to measure performance
(BSC, Audits or EFQM).
6. PM goals and objectives to perform efficiently and effectively.
7. PM goals are relevant to customer and stakeholder expectations.
8. PM goals and objectives are derived from customer’s (and stakeholder)
expectations which are the bases of the strategic mission and vision.
1.2 PM Excellence 3
9. PM uses qualitative and quantitative measurables and key performance

indicators (KPI).
10. PM strives for excellence and permanent improvements.
1.2 PM Excellence
Performance excellence can be defined as achieving and maintaining outstanding

and superior levels of performance that meet and exceed the expectations of the
stakeholders (Helmold, 2019). There are a huge number of stakeholders for any
business or enterprise, and to be assessed as excellent, these enterprises have to be
achieving an outstanding level of performance for all of their different stakeholders:
employees, customers, shareholders, owners and the wider community. To achieve
sustained and superior levels of excellence, it is mandatory for enterprises and
organizations to permanently assess the situation and to strive for improvement by
initiating continuous improvement programmes like the Toyota production system
or excellence models.
Excellence model allows the management of enterprises and organizations to
understand the cause and effect relationships between what their organization does
(actual performance), the enablers and the results it achieves in comparison to set
objectives (plan). The model comprises three integrated components. Fundamental
excellence concepts underlie principles that form the foundation for achieving
sustainable excellence in any organization. These principles can be described as:
Adding value for customers

Creating a sustainable future
Harnessing creativity and innovation
Managing with agility
Developing organizational capability
Leading with vision, inspiration and integrity
Succeeding through the talent of people
Sustaining outstanding results
The goal of any excellence initiative and programme must therefore be to achieve
world-class excellence as illustrated in Fig. 1.2. The system, developed by Dr. Marc
Helmold, is similar to the German school grading system (1 ¼ very good, 5 ¼ failed).
Companies usually start as so-called laggards (Level 5) (Helmold, 2019). A laggard
can be defined as organization that falls behind similar companies in the same
industry. The next level is a ‘standard’ performance (Level 4). Standard means in
this context that enterprises have an average performance level in a certain sector.
The next level is ‘maturity’ in performance including some best practices (Level 3).
After the maturity organizations will achieve the ‘industry excellence’ (Level 2)
level. In this level, performance is outstanding within the industry. The last and
highest level is the world-class excellence level, in which organizations are
benchmarks in terms of excellence on a global scale (Level 1) (Helmold, 2019).
4 1 Performance Management (PM) Over the Entire Value Chain
Word class
excellence (1)
Industry
excellence (2)
Industry maturity and
best practice (3)
Industry
standard (4)
Industry
laggard (5)
Fig. 1.2 Performance excellence. Source: Author’s own figure
1.3 PM in the Value Chain
Performance measurement and management must be pursued throughout the value

chain and in all business transactions. The value chain contains inputs, the transfor-
mation and outputs as illustrated in Fig. 1.1. Inputs are used up in the process of
creating goods or services. To distinguish between these, input resources are usually
classified as:
Transformed resources
Transforming resources
Transformed resources are those elements that are transformed throughout the
operation and organization to produce the goods or services that are its outputs. Cars
are transforming components into final vehicles, or goods are used to produce
consumer goods. Transforming resources are everything that are used to perform
the transformation process. Machines, knowledge or personnel are transforming
elements in this context. Many people think of operations as being mainly about
the transformation of materials or components into finished products, as when
limestone and sand are transformed into glass or an automobile is assembled from
its various parts. But all organizations that produce goods or services transform
resources: many are concerned mainly with the transformation of information
(e.g. consultancy firms or accountants) or the transformation of customers
(e.g. hairdressing or hospitals). The two types of transforming resource are staff
(the people involved directly in the transformation process or supporting it) and
facilities (land, buildings, machines and equipment). The staff involved in the
transformation process includes both people who are directly employed by the
1.3 PM in the Value Chain 5
organization and those contracted to supply services to it. A transformation process

is any activity or group of activities that takes one or more inputs, transforms and
adds value to them and provides outputs for customers or clients. Where the inputs
are raw materials, it is relatively easy to identify the transformation involved, as
when milk is transformed into cheese and butter. Where the inputs are information or
people, the nature of the transformation may be less obvious. For example, a hospital
transforms ill patients (the input) into healthy patients (the output). The transforma-
tion processes include:
Changes in the physical characteristics of materials or customers

Changes in the location of materials, information or customers
Changes in the ownership of materials or information
Storage or accommodation of materials, information or customers
Changes in the purpose or form of information
Changes in the physiological or psychological state of customers
Many transformation processes produce both goods and services. For example, a
restaurant provides a service, but also produces goods such as food and drinks.
Transformation processes may result in some undesirable outputs (such as nuclear
waste in the example above) as well as the goods and services they are designed to
deliver. An important aspect of operations management in some organizations is
minimizing the environmental impact of waste over the entire life cycle of their
products, up to the point of final disposal. Protecting the health and safety of
employees and of the local community is thus also the responsibility of operations
management. Outputs are the result of the input resources and the transformation
(Helmold, Dathe, & Hummel, 2019). The output types are tangible elements like
products or intangible elements like knowledge or services that will describe the
special requirements in performance management in the service industry. The input–
transformation–output model can therefore be regarded in relation to the key
functions of an enterprise including input, procurement; transformation, operations;
and output, marketing as illustrated in Fig. 1.3. Input factors come from in many
companies and suppliers, so that this part can be named as procurement. The
Input-transformation-output
Supply Demand
side side
Input Transformation Output
Information
technology
Finance and (IT)
accounting
Human
resources Support functions
Fig. 1.3 Value chain: input–transformation–output. Source: Author’s own figure

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north. This town is the sansan, or gathering place for their armies,
and is mostly inhabited by the slaves of the great in Soccatoo, who
have all houses here, and their slaves, who are employed in raising
grain, and tending the cattle, mostly reside here, and in the villages
around. The swampy plain, the river, and the lakes, extend about six
miles to the westward, below Magaria; and from its situation in the
gap of the hills must be very unhealthy, from the north-east winds
driving the vapours right through the town, which, in fact, is situated
on the borders of the swamp.
Morning clear. At 7 left Magaria, the Gadado and sultan having
sent to me the evening before, to say, if I wished to go to Soccatoo
and remain there, until they joined me, I might do so; as they
intended to stay for some days in Magaria, to see if the enemy was
disposed to make an attack on them. I availed myself of this
permission; indeed I had met with nothing but losses and difficulties
since I had joined the Fellata army. I therefore set out, and passed
over a fertile country. Every spot capable of cultivation was planted
with millet and dourra, which was in fine condition. In this district,
they had a scarcity last year, and the year before, and many of the
people had perished for want.
After crossing the hills, which were composed of loose pieces of
iron clay-stone, covered with sand, to the depth of a foot, I arrived at
the river which runs close to the foot of the ridge or hill on which
Soccatoo stands. The banks were crowded with people fishing. Their
nets were formed like a bag, having a border of two small wands,
which they held on each hand, to open the bag. The fish they caught
were small white ones, which are usually carried to the market fried
in butter, and sold at two cowries a-piece.
At 3 I entered Soccatoo, and took possession of the same house I
formerly inhabited; the Gadado having sent a messenger before me,
to make every thing ready for my reception, and to provide for all my
wants.
FOOTNOTES:
[1]It does not appear that he ever recovered them—hence the

hiatus in the journal.
CHAPTER VI.
RESIDENCE AT SOCCATOO, TILL THE DEATH OF THE AUTHOR.
Shortly after my arrival at Soccatoo, I was visited by all the

Arabs of the place, who began to pay me a great many compliments,
and after that, to beg every thing they saw in my possession. They
immediately recollected my servant, Mahomed El Siekis, who was
formerly a slave of Bukhaloom, and the only one of his army who
brought off the flag of the bashaw of Tripoli, at the battle with the
Fellatas at Musfeia; and the same man who restored Major Denham
his horse, when he thought he had lost it in that action. I had found
this man a slave to a Fellata, in the town of Korfu, and bought him for
25,700 cowries, and gave him his liberty. These villains of Arabs now
advised him to leave me, because I was a Christian; telling him that
they would maintain him. I told him he was at full liberty to go, when
and where he pleased; that he was now free, and no longer a slave:
but I advised him not to go away like a thief and abscond, but to
leave me boldly and openly; at the same time I desired him only to
look at the dirty and ragged tobes of his advisers, poor rascals, who
were not able to buy soap to wash themselves or keep their clothes
clean, still less to give him food, wages, and clothes as I did.
On taking a survey of Soccatoo, I was not able to see much, if
any, alteration in its buildings, though I understand it was nearly
consumed by fire last winter, said to be the work of the rebels of
Goobur; who, as the morning breezes at day-break come strong
from the north-east, set fire to one house in that quarter, which
spread rapidly, and consumed nearly two-thirds of the town before it
could be stopped. It is now rebuilt just as it was before. There are at
present eleven gates into Soccatoo; seven having been built up
since the breaking out of the rebellion.
There are ten cadies or judges, who, with old Ben Gumso, an
Arab living here, whenever the sultan leaves the city, keep watch at
the gates day and night, with their people, until his return. Each
takes a gate, and has a temporary house of matting, built close
inside to live in. Ben Gumso, on my arrival, sent to tell me where he
was stationed, and that he could not come and see me, until the
sultan should return, as the punishment for leaving his post would be
death. I accordingly went to see him. He was standing at the door of
his house; he had seven crazy Arab muskets, some of them without
flint or ramrod; but, notwithstanding all this, his post, on account of
the muskets, was considered impregnable.
Tuesday, 24th.—In the afternoon a messenger arrived from the
sultan and the Gadado, to inform me that, as the rebels were daily
expected near Magaria, they did not know when they would be able
to return to Soccatoo. They therefore wished me to return to that
place, and remain with them, and sent two camels to carry my
baggage, and a horse for myself. The report here is, that the
inhabitants of the neighbouring villages near Magaria have all fled,
and taken up their quarters there.
Wednesday, 25th.—I did not start for Magaria to-day, as I had to
lay in a stock of rice, bread, dried meat, and flour, as these articles
are much dearer in Magaria, and bread not known. Magaria is in the
province of Adir, which is also called Tadela, containing a great
number of towns. The inhabitants are for the greatest part negroes.
The rest are a half breed between the Tuarics and their slaves. The
country is full of low rocky hills, and is well watered by lakes and
streams.
Thursday, 26th.—Morning cool and clear. At 8 A.M. I left Soccatoo
for Magaria. I was ill with a severe cold, caught by my own
carelessness, in throwing off my cloth trousers and worsted
stockings on my arrival at Soccatoo. The sun being very hot, I was
quite feverish. I halted at a village till 3 P.M., when I started again,
and arrived at Magaria at 6 P.M., where a house had been prepared
for me. I had messages from the sultan and Gadado, to inquire after
my health. My spleen was considerably increased in one day; but I
went to bed without tasting food: had a fire made at my bed-side,
which procured me a good sweat, and I soon found myself better;
though not lessening the swelling in my side, it eased the pain, as
also the pain in my head and bones.
Friday, 27th.—Cool and clear. I found myself much relieved; and
the Gadado, paying me an early visit, said, if I was able, the sultan
would receive his majesty’s letters and presents. I immediately
dressed in my uniform, and the presents being ready packed in
separate parcels, the time-piece, watch, &c. taken out of the tin
cases, and all just as they had left the maker’s hands, I went,
accompanied by the Gadado, my servants and the servants of the
Gadado carrying the presents, consisting of red silk umbrella, silver
mounted; a message cane, silver mounted; twelve yards red
damask; twelve yards sky blue; twelve yards red silk; twelve yards
blue silk; twenty-four yards cambric; two pounds cloves; a fowling-
piece, brass mountings, single barrel; a plain fowling-piece, double
barrel; a pair of pistols for his eldest son; two short swords; two
boxes of rockets; a quantity of powder, balls, flints, and small shot;
one ream of English foolscap paper; two bundles of black lead
pencils; coloured prints of the royal family, battles, and a plain journal
book; a small ditto; a dozen pair white cotton stockings; a dozen pair
white cotton gloves; a time-piece by Rigby; gold watch by ditto; a
Bramah pen; a pistol, detonating lock; two gilt chains; four clasp
knives; a dressing-case complete; a magnifying looking-glass; two
English bridles; a quantity of medicines; two empty trunks; the New
Testament in Arabic; that part of the Old Testament which was
translated; the Koran in Arabic; Euclid’s Elements in ditto; Ebn
Senna in ditto; History of the Tartars under Tamerlane; Psalms of
David; several chapters of the Bible, with a number of other books in
Arabic. To the Gadado a smaller collection of the same kind of
articles.
Saturday, 28th.—I was visited this morning by Sidi Sheik, Bello’s
doctor, and one of his secretaries, who said he had a message from
the sultan for me, which, on his delivery, certainly surprised me not a
little, though I was cautious not to show him that I considered it as
any thing but a thing of course. It was this, that the sultan had sent
him to inform me that, by whatever road I might choose to return to
England, he would send me, were it even by Bornou, if I should
prefer that road; but that I should consider well before I decided upon
that road, as he had to inform me that, when I was here two years
ago, the Sheik of Bornou had written to him, advising him to put me
to death; as, if the English should meet with too great
encouragement, they would come into Soudan, one after another,
until they got strong enough to seize on the country, and dispossess
him, as they had done with regard to India, which they had wrested
from the hands of the Mahometans: that Bello, however, had said, in
reply, it would be a most disgraceful thing in him to cause an
unprotected man to be put to death, and could only account for such
conduct, on the part of the Sheik, after he himself had placed me
under Bello’s protection, to seek a quarrel between him and the
Sultan Bello.
I observed to Sidi Sheik, that it was certainly very extraordinary to
me, that the Sheik El Kanemi should have written in such a manner;
as he had ever behaved to me with the greatest kindness, both
before I came to Soudan and on my return; and that, when I left
Bornou for England, he had dismissed me with a handsome present,
and the strongest expressions of friendship and regard. I added, that
I must insist on seeing this extraordinary letter, and have a copy of it;
but he said that Bello had sent the letter to Gondo, to his cousin
Abdallah. I must positively see it, I rejoined; and also be allowed to
take a copy of it before I leave this place; for I had a letter and
presents from the king of England for the Sheik. I then asked him
what other path the sultan proposed. He replied that he would place
me under the protection of a maraboot, or holy man, who would
safely conduct me to the sultan of Borgoo, and from thence I might
pass to the northward, as far as the borders of the desert, and
proceed along it until I came near to Foutoo Tora, from whence I
could turn to the southward into a country that belonged to Bello, and
which was inhabited by Fellatas, and not far from one of the English
settlements. I told him it was a matter of serious consideration to me,
as I had a sick servant at Kano, who was unable to travel; but, at all
events, I must have the letter the Sheik of Bornou had sent to Bello.
I was very ill all day; but in the afternoon I paid a visit to Atego,
Bello’s brother, and made him a present of a gilt chain and a pair of
scissors, and a few cloves. His house being at some distance, I was
so much fatigued I thought I should not live until the morning.
Sunday, 29th.—Saw the sultan this morning, who was sitting in
the inner apartment of his house, with the Arabic copy of Euclid
before him, which I had given to him as a present. He said that his
family had a copy of Euclid brought by one of their relations, who
had procured it in Mecca; that it was destroyed when part of his
house was burnt down last year; and he observed, that he could not
but feel very much obliged to the king of England for sending him so
valuable a present. After a few general questions, I retired with the
Gadado; and when we arrived at his house, and were seated, I again
expressed my anxious desire that he would give me a copy of the
letter which had been sent from the Sheik of Bornou, as it was of
some importance to me to be guided as to my choice of the road I
was to take on my return home. The Gadado said he was not aware
of any letter having been sent; that it was very wrong in Sidi Sheik to
have told me such a story; said he must have made a mistake; but,
to relieve me from any uneasiness on that score, he would inquire
into the truth, and let me know to-morrow.
Monday, 30th.—I had been so ill all night with the pain in my side
that I had no rest whatever. At noon the Gadado came to say that he
would go with me to the sultan. Though very ill, I went; and we were
immediately shown into the apartment of the sultan, who was
reading: but when we entered, he laid down his book, and began of
his own accord about the letter. He observed, that a letter had
certainly come to him, but not with the Sheik’s signature; that it
appeared, however, the letter had been written, with the Sheik’s
sanction, by that holy man Hadgi Mohamed Bootabli; and that he
was desired to say I was a spy, and that he would not allow me to go
beyond Soccatoo; hinting, at the same time, that it would be better I
should die, as the English had taken possession of all India by first
going there by ones and twos, until we got strong enough to seize
upon the whole country. And thus ended our interview.
Tuesday, 31st.—I was much better this morning, and the swelling
and pain in my side much less, a dose of calomel I took having done
its duty; but I thought it advisable not to stir out all day. The sultan
and Gadado sent to me to know how I was.
Wednesday, Nov. 1st.—Clear. Magaria is now increasing to a
town of considerable size. Before, it was without shape or form; now,
all the people from the villages, for a considerable distance around,
have been ordered to live here; and the houses being properly
arranged, each man’s cluster of huts being fenced round with
matting, nearly all the vacant places are filled up with houses or
enclosures for cattle. A new wall has been built, according to the
present Goobur mode of fortifying a town; which is, to build a low
wall, with a deep ditch outside, and to erect on the wall a stockade of
rough stakes, firmly fixed in an upright posture, through the openings
of which the people inside are enabled to shoot their arrows and fire
muskets, when they have any. This new wall was not quite
completed when I arrived; but as every man having a house in the
town was to bear his part in the work, and every man of
consideration who held office under the sultan was to superintend
that part of it next to his residence, as well as to employ his slaves
and servants in bringing wood and materials, the progress advanced
rapidly.
This evening we had a courier from the nearest town in the
province of Zamfra, bringing intelligence that Aleva, the rebel sultan
of Goobur, had died by an arrow wound in his side, which he
received when we made the attack. Whether this will have any effect
in bringing about a reconciliation with Bello and them I know not.
Thursday, 2d.—Warm, with light flying clouds. The Juma, or place
of worship, in Magaria, is only a temporary one. I have had several
opportunities of seeing them at prayers, being only a square
enclosure of matting, supported by stakes, and open on one side,
which is to the east. The Iman, or priest, a head man, stands at a
little distance in front, on his mat; the rest of the people in rows
behind him. He repeats the prayer, and those behind him also
repeating inwardly at the same time, and with the greatest regularity,
in a kneeling posture, with their heads inclined.
I had a long visit from Prince Atego this morning, who was
amazingly civil: at last it came out that he was afflicted with a
disorder which he represented as being very common in this country.
I recommended him to drink rice water in plenty, to refrain from
pepper and strong spices, and not to visit his ladies too often, and to
wear a hat when he rode out. I also gave him a dose of calomel,
recommending him to use natron in his food.
The henna or salli, with whose leaves they stain their hands and
toes, is made of pounded leaves, mixed with water to the
consistence of a poultice, which is laid on thick, and bound with
gourd leaves to keep it on. To see a person in this state, without
knowing that he was sacrificing comfort to make himself look
beautiful, would be apt to excite pity for the poor man, and to
imagine that he had fallen from some height, and bruised his hands
and feet so badly as to require their being poulticed to reduce the
inflammation. Some great people go so far as to have themselves
stained every three nights.
Friday, 3d.—The negroes and most of the Arabs are great
gamblers, though it is strictly prohibited by the Fellata laws. Their
principal game is called cha-cha, and is played by any number of
persons at a time, with cowries. Night is the usual time for this game;
and so eager are they in it, that they will frequently stake their
breeches and every part of their dress. I should never have known of
its existence, had not one of my servants, named Micama, a native
of Zinder in Bornou, come home last night with the loss of his tobe;
and on my insisting this morning that he should not enter the house
in such a state, he pleaded the heat of the weather, and made other
excuses, which I could not allow: the other servants then told me
what he had been at, and said he was an expert hand, and could not
refrain from playing when he saw others play. I advanced him money
to buy another tobe, telling him if I ever knew him to play again, I
should give him up to the Fellatas, who punish all caught at such a
game with death, or something approaching it. In the afternoon I took
leave of the sultan, who breaks up in the night, and proceeds to
Soccatoo.
Saturday, 4th.—Morning cool and clear. The sultan did not leave
last night, but to-day at 3 P.M. I had to go and see the chronometer
carefully put up to bear carriage without injury: it is considered the
most valuable part of his property, and numbers come from a great
distance to hear it strike. One of the gold watches he has already
spoiled, and I have had to give his brother Atego my silver watch for
it in return, but I have got the worse bargain. If the sultan had not
asked me I should never have done it, as it has the new patent key,
and kept a regular rate from England.
Sunday, 5th.—I did not start this morning, as I had been very
unwell all night: got a new camel, and employed a Tuarick to buy me
another, as they are nearly 2000 cowries cheaper here than they are
at Kano.
Monday, 6th.—Cool and clear. At 6 A.M. left Magaria. I rode my
new camel, as his load was light, and I had no horse. At 11 A.M.
halted at a spring for an hour, and started again at 2. Arrived at
Soccatoo.
Tuesday, 7th.—This day I visited the sultan about noon, and, at
his request, taught a man, one of his servants, how to wind up the
time-piece, which is one of eight days. In the afternoon I was visited
by three Fellatas, Hadji Omer from Foota Tora, Malem Mahomed
from Timbuctoo, and the third from a neighbouring town to
Timbuctoo. Malem Mahomed says the whole of the district called
Timbuctoo is at present under the authority of the Tuaricks; that the
principal town is called Timbuctoo; and that their gold comes from
Ashantee, Gonga, and Bambarra, where they exchange it for salt to
the Tuaricks, and cloths to the inhabitants of Fez, Ghadamis, and
Tripoli; that Timbuctoo produces no gold, it being only the great
market where all the gaffles from the north and east meet those of
the south and west; that few Arabs now come from Fez and
Morocco, owing, he says, to the Arabs, called Waled Dleim, cutting
off the caravans.
Hadji Omar, who was an intelligent man, told me that forty men
arrived at Sego with the late Mungo Park. That, out of the forty,
thirty-five had died of sickness, and that five only embarked in the
canoe given to him by the sultan of Sego. That they were repeatedly
attacked by the Tuaricks, of whom they killed a great number.
Whether any, or how many, of those belonging to the canoe were
killed, he could not say. The Hadji had just returned from Mecca, and
wished to go there again, if he could get an opportunity; but, as he
said the sultan of Baghermi and his subjects had been driven into
the mountains to the south of that kingdom by the Sheik el Kanemi,
there was no passing through that country, as it was now only
inhabited by wandering Arabs, who plunder all that fall into their
hands, otherwise it was the best road to the east from Adamowa, by
the way of Baghermi.
Friday, 10th.—For the two last days I have found myself very ill,
with an enlargement of the spleen. Soccatoo was built by Sheik
Othman, usually known by the name of Danfodio, or the learned son
of Fodio. He was a good linguist; and knew most of the languages of
the interior, which he spoke fluently, and also all the dialects of the
Arabic. He knew all the learning of the Arabs; and, what was of the
greatest importance to him, was firmly believed to be a prophet; and
the belief continues, getting stronger as the Fellatas get stronger. He
came out of the woods of Ader, or Tadela, and settled, and built a
town in the province of Goobur, where the Fellatas began to gather
around him; he soon began to interfere with the affairs of the sultan
of Goobur, saying this was proper to be done, and such a thing was
improper. This not pleasing either the people of Goobur or the sultan,
he was ordered out of the country, he and his people. This order he
did not obey; and the people of Goobur rose and drove them out;
when he again settled in Ader, not in the woods, as formerly, but built
a town. Fellatas gathering round him from all the different countries,
he divided them under different chiefs, giving each chief a white flag,
telling them to go and conquer in the name of God and the prophet,
as God had given the Fellatas the lands and the riches of all the
Kaffirs, as they, the Fellatas, were the only true believers. In addition
to the white flag, the Fellatas were to wear a white tobe, as an
emblem of their purity, and their war-cry was to be Allahu Akber! or,
God is great! That every one who was wounded, or fell in battle, was
sure to gain paradise. Their belief in him as a prophet, their own
poverty, numbers, and the apparent wealth of the blacks, who had
been lulled into a fatal security, made the latter fall an easy prey to
their conquerors. Kano submitted without a blow. The next was
Goobur; the people of which had taken the alarm, and attempted to
turn Danfodio out of his town in Ader, but they were driven back, and
the wily old chief then attacked them, overran their country, and
killed the sultan. After this the whole of Houssa, with Cubbé, Youri,
and part of Nyffé, fell under their dominion. The whole of the interior,
from east to west, was terror-struck. Bornou, in the east, was
attacked with success, as was also Yourriba, in the west. Here they
found more resistance than any where else, as they (the people of
Yourriba) could not be made to believe in his doctrine or prophecy,
as they were confirmed Kaffers, who, on the invasion of the Fellatas,
put all the Mahometans to death, whether natives, or in caravans
trafficking; quite denying the plea that God had given to the faithful
their lands and houses, and their wives and children to be slaves.
Notwithstanding, they took Rakah, Elora or Affaga, besides a great
number of other towns, reaching to the sea coast, in their
expeditions; and once entered Eyeo, or Katunga, the capital, a great
part of which they burnt down, giving liberty to all the Mahometan
slaves, and encouraging others to kill their pagan masters and join
them. After they had fairly settled themselves, the Arabs from the
east and west came to congratulate Danfodio on his newly acquired
territory. Numbers of his countrymen came from the west to settle in
Houssa. These he located principally in the province of Zegzeg,
where he gave the lands and houses of the negroes who had fled to
the mountains and inaccessible parts of that province lying to the
south. To the Arabs of Tripoli and Fezzan he made large presents of
slaves and camels, sending none away empty-handed. The news of
his fame spread every way. Arabs, in shoals, came and passed with
him as sherifs, and would seldom go away under a hundred slaves,
with camels and provisions.
Before he gathered the Foulahs, or Fellatas, under his
government, they did not live in towns, but were scattered over the
greater part of Soudan, attending to their herds and flocks, living in
temporary huts, generally in the midst of unfrequented woods,
seldom visiting the towns. This business they left to the women, who
attended the markets, and sold the produce of their cattle. The men
were reported to live a religious and harmless life, spending a great
part of their time in reading the Koran and other religious books. Now
and then a few of their learned men would come forth, and engage
themselves for a few years with the Mahometan sultans and
governors, until they had collected a little money, with which they
purchased a few cattle, and then returned to the woods to their
countrymen, who moved about from one province to another,
according to the seasons, and the nature and quantity of pasture and
water; contented with building temporary huts of straw and rushes,
and to be left in peace. No one indeed thought of disturbing them, or
interfering with their pursuits, they being probably considered as too
contemptible and insignificant to excite any fear. Thus dispersed, no
one but themselves knew or could guess at their numbers. Melli, or
the petty kingdoms of Foota-Torra, Foota-Bonda, and Foota-Jella,
were the places from whence they spread themselves eastward,
until they became very considerable, in point of numbers, in all the
countries between the above-mentioned places and Wady. Many of
them had performed their pilgrimage to Mecca, and others had
visited the empires of Turkey and Morocco, as also Algiers, Tunis,
and Tripoli, bringing back with them all the Arabic books they were
able to beg or buy.
In the year of the Hegira 1218, the old Mallem Sheik Othman
Danfodio, Sheik of the Koran, became religiously mad, and is said to
have died some years afterwards in that state. This Foulah or Fellata
conqueror was styled Sheik of the Koran from his being perfect
master of that book, not only being able to read it, and all the
commentaries upon it, but also to repeat any part, and explain it,
from memory. The laws of the Koran were in his time, and indeed
continue to be, so strictly put in force, not only among the Fellatas,
but the negroes and Arabs, and the whole country, when not in a
state of war, was so well regulated, that it was a common saying,
that a woman might travel with a casket of gold upon her head from
one end of the Fellata dominions to the other.
His madness took a very unhappy turn. In the midst of a
paroxysm, he would constantly call out that he should go to hell, for
having put so many good Mussulmen to death. The Arabs used to
take advantage of this, and tell him he was sure to be damned,
unless he made amends by giving them presents to assuage the
manes of their friends. Not so with the Fellatas. These people had so
great a veneration for their chief that, when his head was shaving,
the hairs were carefully collected, and preserved by them in cases of
gold and silver, and they used to come from all parts of the interior to
get a sight of him, negroes as well as Fellatas.
After his death, his son Mohamed Bello, the present sultan,
governed the kingdom which his father had conquered; but that part
of the country to the westward of Houssa he left to his brother’s son,
Mohamed Ben Abdallah, while the eldest, Mohammed Bello, had
Haussa, with all the countries to the south and east. Atego, the
brother of Mohammed Bello, both by father and mother, attempted to
usurp the government of the latter, at the death of the Sheik Othman;
but his brother put him down, and confined him to his house for
twelve months; and they are now as good friends as before.
Bello extended the walls of Soccatoo, which is now the largest
and most populous town in the interior that I have seen. Within these
walls live all the children which Danfodio had by his different wives
and concubines, very quietly and without splendour, except Atego,
who is a mean fellow, but keeps a large establishment. At the death
of Danfodio, in the year of the Hegira 1232 (in 1816 of ours), the
province of the Goobur, Zamfra, part of Kashna, and Zegzeg, threw
off the yoke of the Fellatas, and put the whole of them to death that
they could lay their hands on. Since that time, Bello has retaken the
greater part of Goobur; part of Zamfra, and Guari, the southern part
of Kashna, have made their peace, as also part of Cubbé; but on this
condition, that they shall be ruled by their native chiefs, and the
Fellatas not to interfere with them. Since my arrival, he has also got
back the greater part of Nyffé. Youri has, since 1822, joined in the
rebellion, being forced by the people of Zamfra, who at all times can
command that province, if not supported by Cubbé or Soccatoo. The
governor is to be hereditary, not like most of the other provinces and
kingdoms in the interior, where the oldest relation always succeeds.
The city of Soccatoo stands on the top of a low hill, or rising
ground, having a river passing at a short distance from the northern
wall. It is formed of the united branches of the several streams,
which take their rise to the south of Kashna, and flow past Zirmie.
Having passed Soccatoo, it crosses the district of Cubbé in a south-
westerly direction, and at the distance of four days’ journey enters
the Quorra. It is well stored with fish, which afford the poor people of
Soccatoo a very considerable part of their food. The city is
surrounded by a wall, about twenty-four feet high, and a dry ditch.
The wall is kept in good repair, and there are eleven gates; seven
having been built up at the breaking out of the rebellion. The clay
walls which surround all African towns, clusters of huts, and even
single coozies, give a deadly dull appearance to them all, whether
negro or Mahometan. The only appearance of animation is given by
the great number of slaves and others moving to and fro, or
lounging, or lying in the shade at the doors of great men. A great part
of the town within the walls might be taken for a number of ill-
enclosed gardens.
The house of the sultan is surrounded by a clay wall, about twenty
feet high, having two low tower-like entrances, one on the east, the
other on the west. The eastern one is entirely guarded by eunuchs,
of whom he has a great number, I suppose because the harem is on
the eastern side. The whole of his house forms, as it were, a little
town of itself; for in it there are five square towers, a small mosque, a
great number of huts, and a garden, besides a house, which consists
of one single room, used as the place for his receiving and hearing
complaints, receiving visitors, and giving audiences to strangers.
This room or house is nothing more than what we should call in our
country a shed. Two large pillars support a beam, or bundle of long
rods, plastered over with clay. These support the rafters, which are of
the branches of the palm-tree; on the back part is an imitation of a
fire-place, with a fire-screen before it; and on each side are two
chairs, which are also plastered with clay, and coloured like
mahogany. The ornament or figure on the back of these is the same
as those seen on a number of chairs in England, and corresponds
with that on the fire-screen. The walls are ornamented partly in the
European and partly in the African fashion. There are two doors, one
in the front towards the right, and the other in the left end of the
house, and which leads through a small street of huts to a large hut,
with two doors: passing through and within a few yards of it stands a
large square clay tower, with an entrance in the west side. The
interior of this is common in most of the great men’s houses in
Houssa. It is in the shape of a dome, formed of eight arches
springing from the ground; in the centre of which is a large bright
brass basin, acting as it were in the place of a key-stone to the
arches, which are turned by branches plastered over with clay. If I
had not seen them constructing the arches and pillars of a mosque, I
should have supposed them to be formed entirely of clay, as the
wood in no part appears. The clay serves to keep the white ants
from destroying the wood; they are ornamented in their fashion while
the clay is wet, an operation performed with the fingers and a small
square stick. From the arches, about one-third up, runs a gallery
quite round the interior building, having a railing with pillars of wood,
covered and ornamented with clay. There are three steps leading up
to this gallery, from which every thing in the dome may be seen or
heard. Passages also lead from it into small rooms, having each one
small window, or square hole, some appearing to be used as store-
rooms, and others as sleeping-rooms. The floor of the dome was
covered with clean white sand. The height might be, from the floor to
the brass basin in the centre of the arches, from thirty-five to forty
feet. The air inside of this dome was cool and pleasant; and Bello
told me he often used it as a place to read in during the heat of the
day. These two apartments are the only two I have seen deserving
remark within his enclosure. One night that he sent for me, when it
was rather late, I was led by the hand by an old woman through
several apartments before I arrived at the one in which he was. As
there was no light, I could only judge by the stooping, and ascending
and descending through doors and galleries, that I passed through
some large rooms, out of one into another.
The houses of the other great men, and those of his brothers, are
nearly the same, but on a much smaller scale. A great number of the
poorer sort are fenced round with matting, or the stalk of dourra or
millet. Before the west front of the sultan’s enclosure is a large open
space, of an irregular form, on the west side of which stands the
principal mosque. In this space is also the prison, a building of about
eighty feet long, and nearly the same in breadth, covered at top with
a flat clay roof, overlaid with boughs. Inside is a deep pit, where
those who have committed the greatest crimes are confined. No
person is put in prison for debt; only thieves, prisoners of war (taken
singly), such as spies, and disobedient slaves, who, on a complaint
to the sultan that they will not work, are sent to prison. Their only
food is the bran or husks of millet and dourra, with water; but their
friends are allowed to give them food, if they have any. It is a filthy
place, and the terror of the men-slaves of Soccatoo. The prisoners
are taken out, two and two, every day to work at the walls, or any
laborious work which may occur.
Another house and the tomb of the sultan is further to the west of
the mosque, on the north side of a broad street, which leads to the
western gate. It is occupied by his widows, concubines, and
youngest son, called Abedelgader, who is not arrived at a proper age
to have a house for himself. The sheik’s tent is inside of the square
enclosure, behind the room he generally occupied when living. It is
visited as a holy place by all Mahometan strangers, from which they
afterwards hope to enjoy the good things of this world, and that of
their world to come.
The ordinary occupations of the higher, and indeed I may say of
all classes of the Fellatas is, they rise at day-break, wash and say
their prayers, count their beads for about half an hour, and then
chew a gora nut, if they have any; which done, they sip a quantity of
senkie, or furro-furrocoo. These articles are a preparation of half-
boiled dourra flowers, made into balls of about one pound, mixed up
with dry flour. Senkie is one of these balls, bruised and mixed with
milk; furro-furrocoo is the same kind of ball mixed with water. About
10 A.M. they have rice boiled, which they eat with a little melted
butter. After this they pay visits, or lounge in the shade, hear the
news, say prayers, count their beads, which employ them till sunset,
when they have a meal of pudding, with a little stewed meat and
gravy, or a few small fish; they then retire to rest.
During the spring and harvest the proprietors of estates ride out to
their different slave villages to look after their grain, cotton, indigo,
&c.; or to the place where they have their cattle. The occupations of
the poorer class, who are not engaged in trade, are much the same
as those of their superiors; their food is somewhat different, being
principally confined to furro-furrocoo. The wives of the principal
people, of whom they all appear to keep up the number allowed by
the Koran, which is four, with concubines as many as they can get or
are able to keep, are occupied in directing the female slaves in their
work, cooking their husband’s food, cleaning and spinning cotton,
and dressing their hair, teeth, eye-brows and eye-lashes, which take
up no little time. They also take charge of sending the female slaves
to market to sell their spare cotton, grain, furro-furrocoo, millet, cakes
fried in butter, fried fish, which are usually caught by the younger
male slaves; in receiving or paying visits, for they are great gossips.
They are allowed more liberty than the generality of Mahometan
women.
The dress of the men is a red cap, with a blue tassel of silk, a
white turban, part of which, or a fold, shades the brow and eyes;
another fold is taken over the nose, which covers mouth and chin,
hanging down on the breast; a white shirt, close at the breast and
short in the skirts, a large white tobe, and white trousers, trimmed
with red or green silk, and a pair of sandals or boots: this is the dress
of the greater part of the wealthy inhabitants. When travelling, they
wear, over the turban, a broad-brimmed straw hat, with a round low
crown. Some who do not affect great sanctity or learning wear check
tobes and blue turbans over the forehead, with the end hanging
down behind; the poorer, a white check tobe, white cap and trousers,
and sandals. Some are content with the straw hat only, but all wear a
sword, which is carried over the left shoulder. The women have a
cloth striped with blue, white, and red, falling as low as the ankles;
silver rings in the ear, about an inch and a half in diameter, bracelets
of horn, glass, brass, copper, and silver, according to the quality of
the wearer; round the neck, beads, and strings of glass, or coral;
round the ankles, brass, copper, or silver, and sometimes rings on
the toes as well as fingers. The fashionable ornament is a Spanish
dollar soldered fast to a ring. The poor women have pewter, brass,
and copper rings. The hair is generally turned up like a crest on the
top of the head, with something like a pig’s tail hanging down from
each extremity, a little before the ears.
Some of the Fellata women have the hair frizzed out at the ends,
all round the head; others have the hair plaited in four small plaits,
going round the head like a riband or bandeau. This, and all the
plaited parts, are well smeared over with indigo or shumri. The razor
is applied to smooth all uneven places, and give a high and fine arch
to the forehead; they thin the eye-brows to a fine line, which, with the
eye-lashes, are rubbed over with pounded lead ore, and done by
drawing a small pen that has been dipped in this ore. The teeth are
then dyed with the gora nut, and a root of a shining red colour; the
hands and feet, the toe and finger nails, are stained red with henna.
A lady thus equipped is fit to appear in the best society. The looking-
glass is a circular piece of metal, about an inch and a half in
diameter, set in a small skin box, and is often applied to. The young
girls of the better sort of people dress much in the same manner as
their mothers, after they arrive at the age of nine or ten; before that,
they have very little dress, except the binta or apron, scolloped or
vandyked round with red cloth, with two long broad strings vandyked
round in the same manner, hanging down as low as the heels
behind. This is the dress of the poorer sort of people, until fit for
marriage, as also of a great many of the virgin female slaves.
Their marriages are celebrated without any pomp or noise. The
bride, as far as I was informed, is always consulted by her parents;
but a refusal on her part is unknown. The poorer class of people
make up matters much in the same way; that is, after having got the
consent of one another, they ask their father and mother. The dowry
given by a man of good condition, with regard to riches, may be said
to consist of young female slaves, carved and mounted calabashes
or gourds, filled with millet, dourra and rice, cloths for the loins,
bracelets, and the equipage of her toilet, and one or two large
wooden mortars for beating corn, &c. and stones for grinding, &c.;
even these are carried in procession on the heads of her female
slaves, when she first goes to her husband’s house.
It is said that, in the event of the husband sleeping or having
connexion with any of the female slaves given as dower to the wife,
he must give her in lieu a virgin slave of equal value the next day.
This never causes any dispute between the parties.
Their mode of burial I have never seen; but I understand they
always bury their dead behind the house which the deceased
occupied while living. The following day all the friends and relations
of the deceased visit the head of the family, and sit a while with him
or her. If the husband dies, the widow returns to the house of her
parents, with the property she brought with her.
The domestic slaves are generally well treated. The males who
have arrived at the age of eighteen or nineteen are given a wife, and
sent to live at their villages and farms in the country, where they build
a hut, and until the harvest are fed by their owners. When the time
for cultivating the ground and sowing the seed comes on, the owner
points out what he requires, and what is to be sown on it. The slave
is then allowed to enclose a part for himself and family. The hours of
labour, for his master, are from daylight till mid-day; the remainder of
the day is employed on his own, or in any other way he may think
proper. At the time of harvest, when they cut and tie up the grain,
each slave gets a bundle of the different sorts of grain, about a
bushel of our measure, for himself. The grain on his own ground is
entirely left for his own use, and he may dispose of it as he thinks
proper. At the vacant seasons of the year he must attend to the calls
of his master, whether to accompany him on a journey, or go to war,
if so ordered.
The children of a slave are also slaves, and when able are usually
sent out to attend the goats and sheep, and, at a more advanced
age, the bullocks and larger cattle; they are soon afterwards taken
home to the master’s house, to look after his horse or his domestic
concerns, as long as they remain single. The domestic slaves are
fed the same as the rest of the family, with whom they appear to be
on an equality of footing.
The children of slaves, whether dwelling in the house or on the
farm, are never sold, unless their behaviour is such that, after
repeated punishment, they continue unmanageable, so that the
master is compelled to part with them. The slaves that are sold are
those taken from the enemy, or newly purchased, who, on trial, do
not suit the purchaser. When a male or female slave dies unmarried,
his property goes to the owner. The children of the slaves are

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Progress in Performance Management

Industry Insights and Case Studies on

Computational Network Application Tools for Performance

Beach Management Tools - Concepts, Methodologies and

Management Practices in Asia Case Studies on Market

Developing Global Leaders: Insights from African Case

Designing for older adults. Case studies, methods, and

Improving Human Performance in Dynamic Tasks

International Case Studies in Event Management

Project Management Case Studies Harold Kerzner

ISSN 2192-8096 ISSN 2192-810X (electronic)

# Springer Nature Switzerland AG 2019

The book Progress in Performance Management—Industry and Case Studies on

The book Progress in Performance Management—Industry and Case Studies on

Berlin and Hiroshima Marc Helmold

In today’s world, people, enterprise, organizations or countries are competing with

1 Performance Management (PM) Over the Entire Value Chain . . . . 1

2.7 Strategies Must Focus on Performance . . . . . . . . . . . . . . . . . . . 35

5.4 Principles of a Just-in-Time Production System . . . . . . . . . . . . . 78

8.2.5 Threat of Substitutes . . . . . . . . . . . . . . . . . . . . . . . . . 115

10.6 Recommendations for the Turnaround . . . . . . . . . . . . . . . . . . . 143

14.4.3 Licensing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

Marc Helmold is Professor at the International Univer-

Warda Samara Founder and Director General of

Fig. 1.1 Performance management cycle. Source: Author’s own ﬁgure . . . 2

Fig. 2.1 Strategic triangle. Source: Compiled, by the Author, adopted

Fig. 5.13 Over-processing. Source: Author’s own ﬁgure . . . . . . . . . . . . . . . . . . . . 77

Fig. 10.6 Balance sheet. Source: Author’s own ﬁgure . . . . . . . . . . . . . . . . . . . . . . . 141

Table 1.1 Quality management systems (QMS) .. .. . .. .. . .. .. . .. .. . .. .. . .. .. . 10

TÜV Technischer Überwachungsverein

Logic will get you from A to B. Imagination will take you

Performance management (PM) is a subject which is an integral part of any

# Springer Nature Switzerland AG 2019 1

Fig. 1.1 Performance

– What is performance management?

Enterprises must aim for PM excellence. Permanent measurement and

9. PM uses qualitative and quantitative measurables and key performance

Performance excellence can be deﬁned as achieving and maintaining outstanding

Adding value for customers

Fig. 1.2 Performance excellence. Source: Author’s own ﬁgure

1.3 PM in the Value Chain

Performance measurement and management must be pursued throughout the value

organization and those contracted to supply services to it. A transformation process

Changes in the physical characteristics of materials or customers

Fig. 1.3 Value chain: input–transformation–output. Source: Author’s own ﬁgure

[1]It does not appear that he ever recovered them—hence the

RESIDENCE AT SOCCATOO, TILL THE DEATH OF THE AUTHOR.

Shortly after my arrival at Soccatoo, I was visited by all the

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