**2. Methodology foundations**

This chapter draws upon three main research topics: Operational Performance Management, Design Thinking and Data Analytics. These topics are briefly addressed hereinafter, as they lay the foundation for the proposed methodology.

#### **2.1 Operational performance management**

Drawing upon different Performance Management (PM) literature reviews [5–8], this subject area has been progressively developed throughout the twentieth and twenty-first centuries. Its evolution can be summarized into four major periods. The progressive phases had different objectives and perspectives over what issues should PM address. They constructed the current understanding of an ever-changing and multi-dimensional performance management discipline, with applications on a wider variety of contexts (e.g. small vs. large organizational dimensions, fixed-teams vs. collaborative environments, operational vs. marketing performance) and with a broader scope of objectives (e.g. flexibility, agility, sustainability) [7]. Subsequently, most PM's researchers recognize the lack of consensus around PM systems' designing and applicability [5, 6, 9, 10]. Nevertheless, they adopt open and suggestive frameworks for PM's characteristics and future considerations.

Altogether, these researchers point future directions to contemplate network performance along internal structure (i.e. collaborative teams) and external environment (i.e. supply chain); dynamic and learning systems for performance management to comply with the disruptive and transformational change on

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**Figure 1.**

*A Hybrid Human-Data Methodology for the Conception of Operational Performance…*

Focusing on the operational environment, Operational Performance Management Systems (OPMS) need to follow these trends in order to create effective and agile management systems which can cope with the dynamicity of the real

Traditionally, operation managers relied on report-centric performance management in which, within a regular periodicity (e.g. monthly, weekly, daily), managers analyzed the compliance of performance indicators meeting their targets for the various operation's key functions and proposed changes based on the perceived causes for the target deviation [11]. Conversely, on the more recent years, more dynamic and informative methods have been utilized to provide a faster, simpler and more helpful way of portraying the correct information for a proper operational performance management [12]. These methods comprise the use of dashboards and interactive Business Intelligence tools which take advantage of the current ICT developments to portray the information needed, at the right time, for

Additionally, in order to know the crucial information that needs to be portrayed to operation managers, there must be a deep knowledge about the specific operational environment and how it connects with the rest of the organization's efforts, so the overall business performance can be optimized. Subsequently, [13] took a design-led approach to link strategic and operational activities to enhance the dissemination of KPI's management and accountability and change the way PM is

Therefore, the diagram on **Figure 1** illustrates the three main points operation

business trends; and much focus on measuring the intangible and social aspects as organizations are progressively depending on knowledge and multi-department

*DOI: http://dx.doi.org/10.5772/intechopen.93631*

managers to analyze it.

teaming for thriving on the competitive business world.

perceived and integrated within an organization.

*OPMS key ideas to retain for its development and management.*

managers should focus when developing and managing an OPMS.

world and help on enhancing the daily operational performance.

#### *A Hybrid Human-Data Methodology for the Conception of Operational Performance… DOI: http://dx.doi.org/10.5772/intechopen.93631*

business trends; and much focus on measuring the intangible and social aspects as organizations are progressively depending on knowledge and multi-department teaming for thriving on the competitive business world.

Focusing on the operational environment, Operational Performance Management Systems (OPMS) need to follow these trends in order to create effective and agile management systems which can cope with the dynamicity of the real world and help on enhancing the daily operational performance.

Traditionally, operation managers relied on report-centric performance management in which, within a regular periodicity (e.g. monthly, weekly, daily), managers analyzed the compliance of performance indicators meeting their targets for the various operation's key functions and proposed changes based on the perceived causes for the target deviation [11]. Conversely, on the more recent years, more dynamic and informative methods have been utilized to provide a faster, simpler and more helpful way of portraying the correct information for a proper operational performance management [12]. These methods comprise the use of dashboards and interactive Business Intelligence tools which take advantage of the current ICT developments to portray the information needed, at the right time, for managers to analyze it.

Additionally, in order to know the crucial information that needs to be portrayed to operation managers, there must be a deep knowledge about the specific operational environment and how it connects with the rest of the organization's efforts, so the overall business performance can be optimized. Subsequently, [13] took a design-led approach to link strategic and operational activities to enhance the dissemination of KPI's management and accountability and change the way PM is perceived and integrated within an organization.

Therefore, the diagram on **Figure 1** illustrates the three main points operation managers should focus when developing and managing an OPMS.

**Figure 1.** *OPMS key ideas to retain for its development and management.*

*Concepts, Applications and Emerging Opportunities in Industrial Engineering*

the rigorous and objective perspective of data science.

ideation within a collaborative environment;

environment;

traditional companies.

**2. Methodology foundations**

this methodology for the intended purposes.

**2.1 Operational performance management**

This double-sided story shows us both a hard part (described from an objective transformation of the real world into data) and soft part (where humans and their different perspectives of the real world are considered). However, there is little research combining 'soft' and 'hard' methodologies to tackle problems or develop new products or services which gather the emphatic human-centric approach with

Thus, the author's objective is to propose a new hybrid methodology which uses a Design Thinking approach to an unknown problem environment and develops analytic-based solutions to create OPMS tools. This is intended to provide:

• a broad but clear definition of the problem-space to have a common basis for

The proposed methodology was tested under real-life conditions by performing a case study investigation methodology on a Baggage Handling System (BHS) company, within a European airport. This allowed to test various tools and the overall procedure and is able to critically assess the advantages and limitations of

This chapter draws upon three main research topics: Operational Performance

Drawing upon different Performance Management (PM) literature reviews [5–8], this subject area has been progressively developed throughout the twentieth and twenty-first centuries. Its evolution can be summarized into four major periods. The progressive phases had different objectives and perspectives over what issues should PM address. They constructed the current understanding of an ever-changing and multi-dimensional performance management discipline, with applications on a wider variety of contexts (e.g. small vs. large organizational dimensions, fixed-teams vs. collaborative environments, operational vs. marketing performance) and with a broader scope of objectives (e.g. flexibility, agility, sustainability) [7]. Subsequently, most PM's researchers recognize the lack of consensus around PM systems' designing and applicability [5, 6, 9, 10]. Nevertheless, they adopt open and suggestive frameworks for PM's characteristics and future

Altogether, these researchers point future directions to contemplate network performance along internal structure (i.e. collaborative teams) and external environment (i.e. supply chain); dynamic and learning systems for performance management to comply with the disruptive and transformational change on

Management, Design Thinking and Data Analytics. These topics are briefly addressed hereinafter, as they lay the foundation for the proposed methodology.

• the full picture of the operational context within a multi-stakeholder

• digital solutions for managers to control effectively their operations;

• confirm DT outputs which might seem too intuitive and subjective to

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considerations.

Firstly, there is an obvious need for a deep knowledge about the specific operational environment, with a systemic approach over the intertwined processes between internal and external boundaries, and the various interactions between people, machines, and people and machines. On the other hand, there is also the necessity for connecting the strategic and operational performance objectives, with a holistic and integrated view of the whole business. Finally, the operation managers can and should leverage the ICT developments to help reduce unfounded and biased decision-making and provide an automatic integration of the various performance systems to make up a systemic OPMS composed by function-specific operational performance management sub-systems.
