Monday, August 31, 2009

#29 Three Ways to Toss Those Time-Wasting Measures

We almost all do it: hang on to performance measures that we really don't need.

Believe me, measuring what doesn't matter does more harm than good! When you're measuring what doesn't matter, you're using up resources better spent analysing and improving, rather than reporting. And people's focus will be fractured by the sheer volume of data that's put in front of them.

So, what to do to toss those time-wasting measures away?

#1: Stop Reporting It And See What Happens

Decide, this month, to simply not include all the usual measures and statistics in the performance report that you suspect no-one refers to. You'll soon work out, by trial and error, which measures really do matter, because they'll be missed. It will help everyone else work out what really matters, too.

#2: Test Its Alignment To Strategy

Grab a flipchart page, or whiteboard, some pens, your business plan, and a list of all the measures you currently report. Along the top of the page or whiteboard, write each of the business goals. Then one goal at a time, list the measures that really, truly are fabulous evidence of the achievement of that goal. If the measure isn't fabulous evidence, then flick it.

#3: Have A Single Version Of The Truth

Don't measure the same thing in 12 different ways. Decide the one true way to calculate and report the measure, and standardise on that. I've seen immense amounts of time wasted in measuring something as straightforward as cycle time over a dozen different ways by almost as many different people, simply because no-one drew a line in the sand and said "Here's how we measure this."

Remove The Causes Of Cynicism

All the wasted time and effort and distraction from measuring anything else other than what truly matters is one of the reasons so many people are cynical about measuring performance. So go spring-clean your measure collection and everyone will be able to see what matters, much more easily.

TAKING ACTION:
If you know your measure collection needs some spring-cleaning (or severe control burning), pick one of the 3 suggestions in today's article and commit to doing it before the end of this month.

Tuesday, August 18, 2009

#28 Tackling 7 Common Objections to People Engaging in Performance Measures and KPIs

We want people to buy in to KPIs, metrics and measures, because it's through people that measuring performance becomes improving performance. But they don't buy in because it's boring, it's often used as a big stick, and it's not easy to meaningfully measure what matters.

What can you do?

Short of overhauling the culture, you can be an Assumption Smasher. Listen to what people say about measuring, note the assumption they're making, and then diplomatically smash that assumption into smithereens! (Delicately, of course.)

Here are some of the most common excuses, rebuttals and ignorant truisms that people make about measuring, and how you can identify the assumption, and get the smashing underway.

"I don't need to measure because I already know what's going on."

The assumption is that what they are getting is an unbiased, complete and detailed snapshot of current performance and enough detail to detect small but real shifts in performance. Unbiased, complete and sufficiently detailed. Can anyone really get that without data? How exactly do they know?

"I've got real work to do!"

The assumption is that everything they are doing now is more important than measuring the performance of what they are doing. Interesting. Why are we busier than we know we should be? Doing things less than optimally or doing things that don't need to be done at all are often the culprits. That's what measuring helps us diagnose and test.

"The only measure I need is the bottom line."

The assumption is that you only need to measure the end result, and not the drivers of that result. The bottom line is information that's too little, too late. What performance measures do is give you the warnings and the clues about what's likely to happen, so you can make sure the results you need are the results you create, without wasting any time or resources.

"Measuring? Ick, how boring."

The assumption is that measuring is about monotonously collecting data and compiling spreadsheets swimming with numbers, then reporting all that to someone else. But when people set a few measures of what matters to them, create some simple and clear time series graphs, and collaborate to make the line on the graph move closer to the target, they experience purpose, motivation and satisfaction in a job well done. Do they value the measures they're producing?

"But we don't have the data!"

The assumption is that the data you have is the only data you should ever need, or can ever have. Rest assured, no organisation gets the data right, first go. You get the right data when you ask the right questions. And well chosen measures are an expression of the right questions.

"It's never worked in the past."

The assumption is that the past ways of doing measurement are the only ways. Ask them what about the process failed before, and what they would have done differently in hindsight. When the causes are clear, they can be fixed.

"This measurement thing is just another management fad."

Honestly! This assumption is that measuring hasn't been around that long, and is likely to pass because it's just for fun and giggles. Um, have they heard of Noah? Measuring was one of the earliest tools developed by humans, from cubits used as a unit of measurement to track the heights of Nile floods in ancient Egypt, to motions of the planets and moon to measure time. Humans have always wanted to measure what matters because it makes work easier.

Beware What Lurks Beneath Some of These Excuses...

You need to raise and test people's assumptions about performance measurement delicately, because beneath the surface can be some touchy nerves. They may be fearful of the transparency, of losing their jobs or losing status or resources. But be prepared to test these assumptions too, if they do bubble to the surface, but tread carefully.

TAKING ACTION:
Look out for the very next time someone says something that reveals an assumption they're making, which could be holding them back from buying in to measuring performance. Practice asking respectful questions to understand their assumptions and offer them another way of thinking about it.

Tuesday, August 4, 2009

#27 Should Performance Measurement Go On The Backburner When Times Get Tough?

Measuring performance takes time, effort and money. You have to stop your "real work" to figure out what's worth measuring and set up the data capture and reporting to measure it.

So in times like these, when everyone's cutting budgets, downsizing and cancelling non-core projects, should performance measurement go on the backburner too?

Imagine that you do stop investing in performance measurement now, because times are tougher.

You've cut your training budget back, so you're not developing people's measurement skills. You've cut back staff numbers, so everyone's too busy doing real work to measure anything. You've turned your attention to doing something (anything) to adapt, and measuring feels like it's slowing you down.

Companies and organisations that think this way apparently must also think that performance measurement is not urgent, not core, and not essential to making the best of bad times. They must see measuring as a cost and not as a lever.

Here's why they're wrong:

1. In tough economic times, companies and organisations have more constraints, so they need to perform better to get the same results. Everyone knows, just like they know the sun rises in the east, that you can't improve performance unless you measure it (and measure it properly).

2. There's waste in everything, whether it's a core function or not. When times get tougher, it's the waste that has to go, not the highest costs. It's the fat that must be shed, not the muscle. Only by measuring to pinpoint the waste can you be sure you're not shedding important muscle.

3. What becomes urgent in economic downturn is the speed with which companies and organisations can adapt. The faster they can take control of performance, and identify and strip out the waste, the less they allow the downturn to take away from them. When you measure, you reach your goals faster.

TAKING ACTION:
What are your own opinions about this? Should performance measurement take a backseat until times get better, or not? Let's get some discussion going on theMeasure Up blog, leave your comment below.