Gene:
At 07:38 20/10/1997, Eugene Taurman said:
>Job rotation can be good to reducing destructive competition, if the
>rewards system does not drive in the other direction. Most often the
>rewards system drives the managers look better than their peers to get the
>next promotion or raise.
>
>Unless that is removed with a reward system that encourages working toward
>a common company goal then there is little benefit.
You and Ben have spoken of the "handcuffing" capacity of measurements.
Following is a starting point for our clients. (Gene, I believe that the
Deming list discussed the SMART acronym in recent past.):
Using Metrics for Team Work
1. The selection of the theme must involve creation of metrics of measure
for overall team success.
2. The theme must be:
7 Constrained by time
7 Have metrics a team can measure
7 Be focused narrowly enough to allow team members a higher possibility of
success
Define Metrics Based Upon Current Weakness
1. Apply weakness orientation to the team mission, requiring metrics by
which the team feels progress can be demonstrated:
7 "What obstacles are there to..."
7 "What prevents us from..."
7 "Why keep us from..."
Define Metrics Based Upon Current Weakness
1. Do NOT take the metrics as cast in concrete (metric may shift with the
concurrence of the team)
2. Narrow the scope of team work (avoid the temptation to "solve world
hunger")
3. Use proven group thinking tools to assist problem-solving
4. Meaningless data collection is destructive
5. Apply a time frame
Metrics have a way of becoming sacred cows
1. Metrics are established to gauge performance to customer and stakeholder
requirements, standards, and plans
2. "Frozen" metrics become counter-productive as the system changes
3. There's no simple algorithm for deciding when a change demands new metrics
S.M.A.R.T. - Yardstick of Improvement
1. Specific
2. Measurable
3. Achievable
4. Relevant
5. Time-constrained
And with that tip of the iceberg, you can ask bazillions of other
metrics-related questions, a few of which might be:
How do you segment customer groups to find if there are emerging industry
trends?
How do you use a thorough review of critical success factors to generate a
set of long term performance metrics and targets?
How does company-level analysis predicts customer and market effects of
operational performance?
How do you identify the key drivers of customer satisfaction, as well as
leading indicators?
How do you continuously track your performance on these measures?
Are indicators of internal quality rising?
Are your measures of error (complaints and late shipments) on the decline?
Does your analysis list and prioritize the most cost effective approaches
that the company can take to improve financial and market performance?
What ways have you constructed to measure your performance against the key
satisfiers and leading indicators for customer satisfaction?
Does the analysis of internal process capability shows how much improvement
the company is capable of, and what methods will yield that improvement?
Are processes and their respective owners accountable for process
improvements that will achieve target results?
Do you list all of your key processes, and measure their performance?
Do you make failure reports any time a revenue-producing task is not
delivered to customer specifications?
Does each process have at least two key metrics, one for results and the
other for process control?
Are processes regarded as "key" when they are primary drivers of the
customer satisfaction metrics? What other drivers mandate a "key" process?
Are key metrics for all processes maintained in real time across the
company and available at all locations to all employees?
Are financials balanced with non-financials?
Do you track sales, share, margin, operating expense and other financial
measures to assure that we are within healthy ranges on these measures and
that there are no alarming trends?
Best regards, Gordon Housworth
Intellectual Capital Group
ghidra@modulor.com
Tel: 248-626-1310
http://www.modulor.com
--Gordon Housworth <ghidra@modulor.com>
Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>