Redwood Consulting & Training
Performance Metrics
The old saying "what gets measured gets done" is so often a true one.
However, it must not be overlooked that any performance
information
needs to be understood and owned by those who can impact its
improvement.
It's also important for the performance
metrics to reflect the critical factors affecting each area of the business - for example one side of the business could be highly
innovative and introducing new products where the time to market has become critical if the initial profit gains are to be achieved.
Whilst another side to the business could be producing an older product thats reaching the end of its life cycle and its cost becomes
an improtant performance factor.
Hence, one measure fits all does not necessarily apply.
However, it must not be overlooked that any performance information
- Performance metrics workshop - this looks at the various approaches and in doing so highlights during the session what's currently being measured and how improvements could be made.
- Facilitate the development of new performance metrics and supportive systems to collate and report information.
Some effective approaches to performance metrics would include:
- The balanced scorecard - as this can ensure organisations are taking
a rounded set of measures that consider the Customer, Financials, People and Operational factors. It could be said that
many of these are interdepent - as being strong operationally can help to deliver high efficiency (impacting
financials) as well as quality/service (impacting client satisfaction). Whilst a well trained and involved team of people should
impact operational capability(more flexible team), efficiency, service and financial performance.
- The performance pyramid - this provides
a more structured approach to linking business unit performance metrics to the market position of its products/services and how these
can be grouped under three areas of Customer - Flexibility and Cost. This ensures a close link between the business unit
metrics and its strategy - which can then be emphasised at an operational level.
Making performance metrics work for you
