Metrics_ How to Improve Key Business Results - Martin Klubeck [53]
Improve the organization’s ability to estimate delivery schedules
Assist in improving process and procedures
Round out other data, like cost and quality
If “quality” is based on the objective measure of defects, how many defects per a thousand instances equals “quality?” Is high quality the goal? Is quality a “yes or no” decision? Quality is best described in terms of defects and rework, and like “time” it can be misused. It is not a simple way for managers to determine who should get a raise or any other human resources issue. If you abuse metrics, quality can become a weapon instead of a tool.
Ensure your metrics are used as a tool for improvement and not a weapon.
Quality, time, resource allocation, and cost are all components of Process Health and define the business view of the Investment the organization’s processes and procedures represent. Therefore, these views should only be used to improve the business—not people. Product/Service Health was exclusively from the customers’ viewpoint. Process Health is equally exclusive in its focus—and it represents the business view. The customer will most likely never see (and shouldn’t have a need to see) these metrics. These are “internal” metrics, as are the next two areas of the fourth tier.
Metrics should be used to improve the overall business, not people.
Organizational Health
Figure 5-6. The Answer Key, Quadrant 3, Organizational Health
When we look at Organizational Health (Figure 5-6), we look at the organization from the worker’s viewpoint. It takes into account the following:
Employee satisfaction
Professional development
Work environment
Reward and recognition
When we ensure that our most valuable assets are treated as such, we find that the organization improves. I normally suggest organizations address the Answer Key areas from the top down, making the Organizational Health measures third or fourth. This is in part due to political concerns. When you justify the use of metrics, it’s much easier to gain support if you first address the organization’s health from the customers’ point of view. Without customers, there won’t be a business to improve. Once you’ve tackled the customer’s view, you will need to ensure that you can afford to keep your workforce.
But in an ideal world, one in which perhaps you are the CEO, I’d argue easily that the first place to start your improvement efforts should be with your greatest assets, and then with your customers. Sound blasphemous? If you have a healthy workforce, you can work with them to better define your business model, your future, and where you want to improve.
Employee satisfaction is pretty straightforward. The more satisfied your workforce is with their situation, the organization, and the environment, the harder they will work. The more loyal they will be. The stronger your organization will become.
Along with their satisfaction, you must be concerned with developing their skills and their knowledge base. Professional development measures tell you how well you’re doing in this area. Do you have training plans for each worker? What is the level of skill development for each worker? The stronger your workforce, the more you’ll be able to do. It should be a criminal offense to first eliminate training whenever funding cuts come down. The only way to do more with less is to increase the capacity of our workforce to produce more and produce better. The best way to improve productivity is to improve the worker’s skill set.
The work environment measures are normally captured through subjective tools—like surveys. But there are plenty of objective measures available. Square footage for workspace. Air quality. Lighting.