How can you see what needs to be improved if there is no measurement? You need to measure what is relevant and represents the actual performance.
Office or service activities are not visible, making it difficult to see if you have responded to the customer on time, and at the expected quality level.
That’s why it is necessary to establish performance measures. Performance measures let you know if the organization is meeting customer requirements while allowing you to identify areas of improvement.
Only visible measures show everyone how they are performing and what needs to be done to improve to better serve the customer.
But performance measurement is not about posting graphics or Excel spreadsheets on the wall. Performance measurement is about engaging every team in measuring what is relevant for monitoring and managing their activities.
These measures can vary over time, according to the specific problems and issues, but they always relate to quality (are we doing it right the first time?), delivery (lead time and on time response), cost (measuring productivity), safety (near misses), and morale (how good do we feel). We could also add risk or compliance metrics where this is relevant.
The key is to move away from lagging indicators (just too late!) to leading indicators (we can act on these).
5 principles are essential in performance measurements
- Measure the right things that will drive to results
- Create on time measurement
- Every team should have direct measures of their performance
- Measures must make problems visible and drive to action
- Metrics should be visible.
Build a performance management system
The organization will grow only if every team at its level measures what is important to reach overall performance goals, and if a system is created to ensure real-time performance review.
When company goals are clear and cascaded throughout the organization (Hoshin Kanri), measuring and knowing where you are and what needs to be done to improve becomes obvious to all.
We will help you define relevant metrics at each level and in each department and create review routines, that allow you to build a solid performance management system that drives behaviors to achieve organizational targets.
Improve customer service, increase sales, increase your marketing efforts, improve productivity, and increase your employee satisfaction through an effective performance management system!