View
297
Download
0
Category
Preview:
Citation preview
Measure What Ma+ers Steve Stanton, Managing Director
Webinar August 26, 2015
For more informa8on, go to fcbpartners.com or call Lindsay Field 617.245.0265
1 ©2015 FCB Partners. All rights reserved.
One Underlying Issue
“We measure far too much and get far too li9le for what we measure because we never
ar<culated what we need to get be9er at and our measures aren’t <ed together to support higher-‐
level business goals.”
We measure the visible, the easy, the familiar, and the intui8ve, rather than the important
2 ©2015 FCB Partners. All rights reserved.
Why Is Process Measurement so Difficult?
Requires Deep Insight
how this process creates value what this process’s customers really want how this process serves the organiza8on’s strategy how this process connects with other processes intui8on and history are no longer enough In Addi8on the environmental trifecta of complexity, novelty, and speed digi8za8on provides even more opportuni8es we’re now entering the age of data-‐driven decision making
3 ©2015 FCB Partners. All rights reserved.
Principles of Process Measurement
The primary goal of measurement is not to measure, but to improve business performance
Measurement must be driven by an understanding of causality and focused on what you can control
Processes are where strategy becomes opera8onal
Measure as liQle as possible and pilot metrics before ins8tu8onalizing
Metrics are how importance is communicated
4 ©2015 FCB Partners. All rights reserved.
A Quote to Remember
“If results aren’t improving, then you must be measuring the wrong things.”
In the footsteps of W.L Bateman
5 ©2015 FCB Partners. All rights reserved.
Measurement Language
The Process Scorecard defini8on – the few vital measures needed to assess performance, progress, and opportuni8es for improvement Key Terms lagging indicators that tell you where you’ve been, generally outcome metrics used for repor8ng
leading indicators that tell you where you may be going, generally in-‐process metrics that illuminate improvement opportuni8es
key metric – the performance aspect worthy of measurement
baseline – current performance
target – desired performance
6 ©2015 FCB Partners. All rights reserved.
The Process Scorecard
Roughly 7 key measures (plus/minus 2) plus or minus 2 requires serious discipline
Mix of leading and lagging err on the side of leading
One or two per cri8cal stakeholder and manage tradeoffs
Updated frequently and communicated oSen
7 ©2015 FCB Partners. All rights reserved.
APA Scorecard DPS PC Scorecard Page 3 Region NReg Zone Nor-E Site Durham Name Vaughn Report Period Mar99
Current Actual Current Perf Current Performance Req'd for S2 Rating Yearend Performance Required for
S1 S2 S3 S4 Customer Service
%Customer Svc Orders On-time Site 98% 95% 4 94% 95% 97% 98% %Repeat Customer Service Work Site 10% 16% 3 18% 16% 12% 10%
Reliability & Integrity %SMEI Inspect Comp vs Plan Region 110% 93% 4 90% 93% 97% 100%
Business Expansion
Cost Routine Outages $/outage Region 277 226 0 232 226 212 206
Customer Premise $/Order Region 57.58 31.21 0 31.82 31.21 29.99 28.76
Bus Expansion $/Cust Add Region 1,769
1,975 4 2,033 1,975 1,897 1,839
Workforce Effectiveness Lost & Restricted Work Days Region - 56 4 300 225 175 100
SUMMARY - CURRENT SCORECARD PERFORMANCE 2.7
The Scorecard
8 ©2015 FCB Partners. All rights reserved.
Hil8’s Measurement System Began with a set of strategic business objec8ves derived from the corporate strategic plan
Iden8fied 11 enterprise KPI’s related to strategic objec8ves customer sa8sfac8on, profit per employee, perfect orders, repair cycle 8me, etc. some process-‐specific, some cross-‐process
Translated these into 60 performance drivers drivers of KPI’s or more detailed outcomes all associated with specific processes e.g., complaint solu8on finding 8me, complaint solu8on execu8on 8me, open complaints, number of orders per customer, etc.
Managing process around these drivers cockpits, design, rewards
Source: Hil<
9 ©2015 FCB Partners. All rights reserved.
Summary: CSF’s of Process Metrics Focus on end-‐to-‐end outcomes and performance transcending boundaries
Rigorously derive from customer needs and enterprise goals via causal model
Encompass mul8-‐dimensional performance goals the world is not a simple place
Avoid being distracted by sub-‐measures the case of the airline pilot
Create universal understanding and awareness to focus people’s aQen8on
Align rewards with metrics to reinforce them
Use to monitor performance, shape behavior, and drive change making abstrac8ons concrete
10 ©2015 FCB Partners. All rights reserved.
FCB Fall 2015 Courses
Event Descrip8on
Process Redesign Hammer Cer<fica<on Course Boston, MA September 15-‐18
Reengineering Innova8on Advanced Cer<fica<on Course Boston, MA September 16-‐18
Process Owners in Ac8on Advanced Cer<fica<on Course Boston, September 16-‐18
Power of Process Hammer Cer<fica<on Course Boston, MA November 16-‐17
Leading Transforma8on Hammer Cer<fica<on Course Boston, MA November 18-‐20
Measurement Excellence Master Class Boston, MA November 18
For more informa8on go to fcbpartners.com or call Lindsay Field 617.245.0265
11 ©2015 FCB Partners. All rights reserved.
For More Informa8on FCB Partners
Lindsay Field, Program Director
617 245 0265 lfield@fcbpartners.com
Recommended