Metrics_ How to Improve Key Business Results - Martin Klubeck [56]
As you have read, I translate these into “effectiveness” and “efficiency” respectively. While Marr gives a list of questions for each type, the reasoning for their delineation is not explained, and they don’t match mine. Marr’s examples actually span all four viewpoints I offer in the Answer Key, not just customer and business views. Interestingly, more than one of his questions shows up in both categories in his own book.
I hope using his questions as a basis allows you to not only practice classifying them against the Answer Key, but to also see that you don’t have to believe what is offered (by any author, including myself)—you should try it out for yourself.
Review each question in Table 5-1, and using the viewpoint, determine where the question fits on the Answer Key by placing an X in the corresponding column
Hopefully you found that there were examples that fit in each of the categories. You may also find that you marked more than one column for a question (yes, this is allowed). If we remember that it depends on the viewpoint, this is easy to understand.
One question that could fit into more than one category was the final one, “How well are we building new competencies?” This could be a business viewpoint, if we want to know how well our training program is working. If we look at it from the worker’s viewpoint—concerned with the training of our workers—it could be an Organizational Health question. If we look at it from the point of view of leadership wanting to know if we will be ready to deal with future requirements, it could fit Future Health. When you are dealing with your questions, you’ll know (or ask) whose viewpoint is intended.
So, now, if you are like me, you’re looking for the “book” answers to the exercise above. In Table 5-2, I give you my answers—with the caveat that there are no “right” answers.
The idea is to use the Answer Key to determine whether your measures are doing what they are supposed to do—that they are aligned and comprehensive. Remember that aligned means that they help answer the root question (if you find that the measures you’re using don’t align on the Answer Key, then they don’t answer the same root question); and comprehensive means that together, you have confidence that they will answer the question (there are no missing data points).
Recap
The Answer Key can help you check the quality of your work and ensure that you’re on the right track. And if or when you get stumped and you don’t know which direction to go, it can help you get on track.
Most metrics you design, if they fall on the Answer Key, will most likely start at the third tier and belong to one of the following four viewpoints:
The customers’ viewpoint (effectiveness)
The business’s viewpoint (efficiency)
The workers’ viewpoint
The leadership’s viewpoint
As you move from left to right on the Answer Key, you move from the strategic to the tactical. Another way to look at this is that you move from the root question toward data.
Regardless of where your metric (or root question) falls, you’ll have to move to the right to find the measures and data you need to answer the question. At the fourth tier we found the following:
Return vs. Investment Product/Service Health—Customer View
Process Health—Business View
State of the Union Organizational Health—Employee View
Future Health—Leadership View
The fourth tier is the most frequently used by my clients. It is far enough left that root questions starting here are worthy of metrics to answer, and far enough right that they are easy for most organizations to comprehend their use in improving the organization.