Sei sulla pagina 1di 20

Measuring

Performance for Results

If you don’t know where


you are going, any road
will get you there.
–Lewis Carroll
Why measure?

To Plan? What gets measured gets done.


–Peter Drucker
To Comply?
To Manage?
To Optimize?
To Innovate?
Performance is not about mandates, it’s
about management

PERFORMANCE MEASURES
ALLOW YOU TO:
STRATEGIZE
COMMUNICATE
MOTIVATE
MANAGE
Long-Term Move Towards Performance

Performance management is not a new


phenomenon—50 years of work in the making to
link resources with results
Effective Performance Measures are SMART

S PECIFIC
M EASUREABLE
A CCOUNTABLE
R ESULTS-ORIENTED (#1)
T IME-BOUND
Applying SMART

End-Outcome: Reduce smoking-related deaths, illness and


costs
Intermediate Outcome: “Reduce the number of new youth
smokers (10-18) by 2% each year”
– Results-oriented: Youth smoking is where you can stop
the habit before it takes hold and has a lasting health
impact
– Specific: “number of new youth smokers (10-18)”
– Accountable: You have the ability to make it happen
– Measurable: “reduce by 2%”
– Time-Bound: “per year”
Selecting Performance Measures:
The Doctor Analogy
Outcome Goal (End Outcome):
Achieve and Maintain Proper Health and
Quality of Life
– Measures: Dozens…Pulse, Years Lived;
Satisfaction Survey, etc.
Objective Goals (Intermediate Outcomes):
-Achieve Appropriate Fitness for Age,
Gender
-Stop Pain in Y
-Restore Function of X
– Measures: Thousands: Weight, Blood
Analyses, Scans, etc.
Performance Measure Selection Criteria

Meaningful Reports tangible and significant accomplishments


against objectives; useful for decision makers and
other stakeholders
Clear Easily understand by managers, partners, other
stakeholders; tells clear story
Legitimate Accepted or legitimated by those who must use
the data
Consistent Clear definition and data collection methodology
across populations
Reliable Captures what it purports to measure in an
unbiased fashion
Granular Able to detect performance movement
Relevant Does not become obsolete too early: sets a
pattern or baseline of performance
Performance Measure Selection Criteria

Technically Available data meets technical adequacy standards such


Adequate as accuracy, validity, timeliness
Responsible Does not have unintended and undesirable
consequences
Actionable Indicates what is good or bad, driving desired behavior
and the timing of action
Accountable Related to direct action or influence of an accountable
and attributable entity
Balanced One of set of measures providing a clear picture of the full
range of performance
Vital Measures are mutually exclusive and collectively exhaustive

Feasible Reasonable cost and accessibility of data that is not


already collected
Performance measurement is a culture shift

From
• “These measures are
To
draining valuable
• We are committed to
resources and are a data
tracking measures that
burden”
matter most.
• “I can’t measure my
• We are accountable for
outcomes I can only
delivering our outputs and
measure activities”
our intermediate outcomes.
• “I need these measures
• We are responsible for our
because my employees
end outcomes.
feel it is important”
• “You can’t measure my
program.”
Identifying Characteristics of
Effective Performance
Management Systems
8 Critical Success Factors for Effective
Performance Management Systems
1. Defining and Aligning to Enterprise Strategy
2. Developing Meaningful Performance Measures
3. Increasing Data Availability
4. Maximizing Data Integrity
5. Enhancing Performance Reporting
6. Improving Evaluation and Analysis
7. Achieving Performance Integration
8. Driving Decision-Making
#1 Defining and Aligning to
Enterprise Strategy
1.1 Has clearly defined its mission, vision and values
1.2 Has specific strategies in place to achieve
organizational results (based on a SWOT or other
strategic landscape analysis)
1.3 All structures (divisions, support functions) are fully
aligned with enterprise-wide strategies
1.4 A formal strategic plan is clearly communicated to all
employees at all levels of the organization
#2 Developing Meaningful Performance
Measures

2.1 Reliable measurement and reporting on


Outcomes
2.2 Reliable measurement and reporting on
Strategies
2.3 Organizational process metrics (Quality, Cycle
Time, Efficiency)
2.4 Goals and measures enjoy support and buy-in
from internal and external stakeholders
#3 Increasing Data Availability

3.1 Data sources are identified and readily accessible


3.2 Data burden is worth the information gleaned
#4 Maximizing Data Integrity

4.1 Data is collected, managed, and analyzed in a


uniform and consistent manner
4.2 Data is validated or verified through sampling
or independent means
#5 Enhancing Performance Reporting

5.1 Internal reporting produces information for frontline


managers and senior decision-makers on a “real
time” basis.
5.2 Has a reporting system that produces
comprehensive performance reports that include
measures, analysis, trends, suggestions for
improvement
#6 Improving Evaluation and Analysis

6.1 For process measures, benchmarks and service


levels are evaluated (1-2 year cycles)
6.2 For outcome and strategy measures, program
performance is evaluated for “cause-effect” (2-5
year cycles)
#7 Achieving Performance Integration

7.1 INTERNAL Integration: Support services’


contributions (HR, IT, Finance, etc.) to program
performance is documented and managed
7.2 EXTERNAL Integration: Performance
contributions of multiple contributors in same
measurement area are tracked and compared
#8 Driving Decision-Making

8.1 Budgets and investments are made based on clear


contributions to performance
8.2 Supply chain partners are held accountable for
products and services
8.3 Employee bonuses and pay increases are linked
to individual performance evaluations.

Potrebbero piacerti anche