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ChangeWise Quick Read: Team Performance Drivers: Why do we Measure Things? Part 1/3

In this quick read, we ask the question; why do we measure things? Including how measuring can help us with Team Performance and Continuous Improvement.

Photo by Brett Jordan on Unsplash

So, why do we measure things?

Without measurement (or metrics), we have no accurate baseline of our business performance and no way of benchmarking ourselves against desired targets. Accurate, value-add measurements position us in the best place to ensure we can:

  • Justify our budget (we delivered an additional 20% of widgets against the target but we only met 85% of customer demand – so more budget is required)
  • Demonstrate results and show our actual performance against a target (92% of calls were answered within 30 seconds)
  • Identify opportunities for continuous improvement through measuring, monitoring and tracking progress (answer 95% of calls within 30 seconds by August)
  • Answer questions about our service or product (this is particularly vital in terms of how we compare to our competitors) 4 out of 10 widgets have quality issues when received by the customer
  • Meet obligations set by regulators, government bodies and stakeholders (we currently follow-up all complaints within 5 working days, therefore meeting our regulatory responsibilities)
  • Provide feedback for people development (Team A generate more quality issues than teams B&C)
  • Understand or mitigate risk (If we continue to produce at the current rate we will not fulfil demand and potentially miss our regulatory deadlines resulting in a loss of £85k)
  • Make informed decisions with fact-based data (Widget A is quicker and cheaper to produce compared to Widget B and it has a higher demand rate – it makes business sense to focus on Widget A)
  • Identify trends & record history (Demand for Widget A is higher January – March)
  • Predict outcomes (Widget C will be in high demand in August but the current process and quality issues suggest we will not be able to achieve the desired demand rates within improvement)

As American Professor of quality and systems thinking, W. Edwards Deming, once said:

“Let me pollute your argument with the facts”

Sounds good, but how does that help with my team’s performance?

Valuable performance measures help us to see if our department is meeting the targets required to ensure our organisation is competitive. Without them, we cannot set improvement targets at an organisational, team or individual level. Successful teams use metrics to:

  • Identify areas for improvement
  • Set priorities
  • Provide evidence-based rather than perception-based information
  • Ensure relevant and factual feedback
  • Define a level for performance (reward / incentives / PDRs / performance improvement plan)
  • Act as a guide for coaching, mentoring and training needs
  • Create a baseline
  • Ensure consistency; everyone working towards the same goal
  • Improve team building and encourage collaboration
  • Help identify High Performing Teams and High Performing Individuals
  • Drive motivation and morale
  • Initiate conversation/ideas sharing/best practise

Photo by Brooke Cagle on Unsplash

⚠️ ️!! Important Point!! If teams measure their performance in isolation – and not their process, they won’t have the information needed to make improvements that can help their individual and overall team effectiveness.

I get it…..tell me more about measurement and Continuous Improvement

Effective measurements enable an organisation to consistently and continuously track relevant operational data that can be used to improve future processes. To be ‘optimal’ we need measures that help us:

  • Identify trends and set targets
  • Set a baseline/standard
  • Monitor and track against our baseline/standard
  • Quickly identify issues or problem areas
  • Prioritise effort and investment
  • Provide visibility to the business
  • Manage and make decisions based on relevant, accurate data
  • Create role model behaviour and drive a ‘league table performance’ effect
  • Allow us to share information
  • Compare performance between individuals, teams and departments
  • React/respond early
  • Recognise the benefit from any small incremental changes
  • Identify ‘drops’ in performance compared to long-term trends
  • Pinpoints areas for further investigation

Photo by Veri Ivanova on Unsplash

Is that why I’m always collecting data and sending reports to my management team?

Hmmmm….. 🤔 That question makes me suspicious! Companies seem to love collecting data and sending reports………but it MUST be value-add. Collecting metrics without challenging their value or understanding why we need them is the exact opposite of being Lean. We need to be really careful of this or we will only add waste to the process.

What we measure must align with the customer and business drivers. We will cover this in a later QuickRead ( Team Performance Drivers: KPI’s Part 2/3).

In the meantime, here are some other points to consider when thinking about measurement:

  • Are the metrics actually being used and acted upon? Are they still relevant/required?
  • Do they truly represent the company’s vision or are they adjusted to suit the self-interests of a department/individual?
  • Are they visible to everyone? Knowledge is power…… Best Practice can only happen if the metrics are visible to all – not just the Senior Leadership Team.
  • Are your metrics fallible because a department only shares what they want to share? For example, output per hour is meaningless without understanding the quality of the output
  • Fear of failure or fear of negative outcome; metrics should never be used to reinforce a blame culture
  • Is there a follow-up process? There is no value in measuring things if we don’t embed, lead and learn from the measures. You need to ensure your metrics are not just a tick-box exercise
  • Are we rewarding the right measures? Do we reward output or quality?
  • Competition between colleagues / teams / departments
  • Make sure your data collection does not allow for manipulation of the data or outcomes

⚠️ Important Point!! Metrics are not static and need continuous review to ensure what we are measuring is still value-add.

In Summary

Having effective measures provides us with an accurate baseline of our business performance, which in turn, allows us to benchmark ourselves against our competitors and confirm what is required to bring us closer to our desired targets. What we measure should always be driven by customer need, be accurate and value-add.

Want to know more? Get in touch with the ChangeWise team at info@changewise.co.uk

ChangeWise believes employee engagement is the foundation for successful Change. Training and coaching your people to use simple continuous improvement techniques will enable your organisation to continuously adapt and stay ahead in a constantly changing and challenging environment.

 For updates and interesting Lean Change insights, connect with us on LinkedIn.

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