Part of the value of our measures is they tell us what has changed. The next step is for us to interpret the measures and determine what to do with them. What meaning do we make of the data? Thorough analysis is critical as it leads us to appropriate action. Just like riding a bike, as the leader of the organization, I watch the road ahead of me, position of other bikers, cars, and potholes and adjust accordingly. I carry tools to tune and fix my bike if I am going on a long trip. Measuring and adjusting is for business what steering is for bicycling. I would not consider riding blindfolded in traffic.
The final element is action. Action can mean refining our approach or creating a new plan or direction. In changing times the idea that we "plan the work and work the plan" still applies as long as the plan still makes sense. If we execute an obsolete plan with absolute precision, we still end up at a destination that does not work for us.
I worked with a client implementing an Enterprise Resource Planning system (ERP). As with all major software implementations, this one required changes in how people did their jobs. Continuing the old process would lead to serious business disruption . We started measuring the new behavior well before the system went live and reported it weekly in the leadership team meetings (there would be a very high impact for failure hence high level meeting discussions). we began to see behavior changes rather quickly when the business unit President was in the review meetings. As we monitored the changes over about a month we began to see significant variation. The statistics were telling us that the lead people had changed behavior but the people who performed this key role as back-ups had not been trained properly. We were able to quickly take corrective action in the form of training and the numbers reflected the improved results. The final outcome was the new behavior took hold before the implementation and there were no disruptions.
Measures can range from looking at what has happened like our performance against plan or anticipating what needs to change and measuring and monitoring tests or pilots of new solutions.
What are you measuring? Does your analysis drive to quick and appropriate action? Is there an opportunity to improve your dynamic steering?
Photo credit by: blank2industrial
Maureen,Id love to hear your take on the Einstein quote that “Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.”Theres a balance here of course, your thoughts?
Posted by: Jim Canterucci | September 3, 2009 at 06:38 AM
Hey Jim,Great comment. I recall a situation where we were testing our use of graphs and created tracking reports. People changed behaviors - this was a bad thing. It was funny to see how some people respond to winning even if the measures are silly.Much of the real value comes in the art of interpretation of the data. Upon investigation it can reveal many different and interrelated trends.In performance management as in other areas of life the measures are often too complex to really capture. We create a balance of reports that can be measured easily and with reasonable cost and yet promote appropriate action. Reporting can become very expensive and time consuming.It seems in some areas we try to measure everything and yet absent ESP - it is not possible. I am pretty happy that I get to keep some thoughts private:) So after lots of words, I absolutely agree with Einstein who is one of my all time favorite thinkers.
Posted by: Maureen Metcalf | September 3, 2009 at 08:33 AM
That was inspiring,
Some great advice!
Thanks for writing about it
Posted by: software development in london | January 4, 2010 at 02:10 AM