How to create targeted Performance Measures in your business
Have you ever felt that you need to check performance in your business against some yardstick?
It might be that you want to set some Key Performance Indicators for your staff, or you want to see how one branch is performing against another, or perhaps you just want to see how your business as a whole is performing against the bigger picture?
In trying to create Performance Measures for these reasons have you created a set of measures that you haven’t been too happy about? Perhaps you haven’t been sure that in achieving those Performance Measures you actually achieve an outcome!
Performance Measures are essential in your business. They are objective and quantitative, they should reflect your Vision and Mission so that they measure progress against “getting there”, and they create targets for people to work towards. However appropriate Performance Measures are crucial – don’t expect a Vision target of an empowered workforce if your Performance Measures are about ticking off procedures checklists!
This video explains how to create targeted Performance Measures that cascade from your Vision so that everything is measured against the desired outcomes, not just against outputs.
Remember, your Performance Measures should encourage people to achieve the objectives, which are quantification of the goals, which in turn are milestone aspirational positions that are on your way to your Vision. This means that the vision must cascade to your goals, which cascade to your objectives, which in turn cascade into the Performance Measures you create.
The Performance Measures need to be specific and are best formulated in the format of:-
(The description of the measure) based on (the approach used to develop the measure)
For example “Our measure of quality is number of rejects on manufacturing line A based on our daily production numbers – Less than 2% is excellent, less than 10% is good, more than 10% is unacceptable quality”.
Get over to the website and tell me how you have implemented Performance Measures in your business (please keep to the direct subject as any links and URL’s will come across as spam and may be deleted).
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