Chapter 3: The Key Elements of the PIHoQ Framework

It is important for people to have a deeper understanding of the various elements of the PIHoQ prior to moving to Chapter 4 which steps through the process to develop a Performance Indicator House of Quality (PIHoQ). Thus, this chapter defines and describes the essential components of the performance indicator house of quality or PIHoQ framework. The PIHoQ includes 10 components in total. These are depicted in Fig. 2 and are numbered in the order they are developed. The elements of the traditional House of Quality (HoQ) include the voice of the customer (VoC), technical requirements (TRs), relationship matrices (including the TR matrix and the VoC and TR matrix), competitive rankings, and deployable TRs. As mentioned towards the end of Chapter 2, the PIHoQ enhances the traditional HOQ with the replacement of the competitive ranking with importance and satisfaction ratings and also includes a critical decision element and two categories of performance indicators (outputs and outcomes). This chapter defines these components and explains their relationship with each other. The chapter also covers the selection of performance indicators; an important aspect for government bodies to consider when selecting output and outcome-based performance indicators for their service or facility. To clearly understand the various components of the PIHoQ, practical examples are provided throughout this chapter – some are provided in breakout boxes for illustrative purposes and others woven into the discussion. Core examples provided in this chapter, particularly the illustrated PIHoQ examples, are sourced from recent research on cultural precinct operations by the authors, and these are used to demonstrate the elements of the PIHoQ and how they work together. Other examples provided relate to various areas of public administration to further elaborate on components of the PIHoQ.