In my experience, most people don’t really understand how to track quality in a performance management system. Over the years, I’ve seen the strategic objectives and KPIs for dozens of organizations; large and small, commercial and public sector, US and International. I’ve previously claimed customer satisfaction is one of the most used – and least…
An operations manager stops by your office (he’s managing by walking around) and says he has good news and bad news. The good news is that the company shipped more widgets to customers last quarter than it did the previous quarter but the bad news is that executive management thinks that we performed worse. How…
I thought the debate as to whether business intelligence (BI) and performance management (PM) were the same thing had long since been settled. Imagine my surprise when Mark Smith points out in “BI Is Not Performance Management” that the discussion is alive and well. Rather than spill more ink documenting the differences between business intelligence and…
If you weren’t convinced that dashboards have become over-hyped, these two Dilbert strips that appeared last week should be the final straw: (Click twice to enlarge the comics) The intellectual side of me would like to defend our profession and chalk these up as simply cartoons designed to elicit a laugh. Unfortunately, they are…
If you’re a performance management practitioner, you already know metrics should have both an actual and a target value. Actual is the current value of a metric while target is the value you would like it to be. (NB: I strongly prefer using the word target instead of goal because the latter can easily be…
Does the following resonate with you? “It seems that everywhere you turn, people are talking about performance management; vendors, consultants, press, public sector and commercial organizations alike. Amidst the buzz however, one troubling trend is beginning to emerge. Many performance management projects have languished, burdened by unrealistic expectations, delayed schedules, and intangible benefits. Performance management…
It seems like every few months someone tries to claim performance management is bad for organizations. The latest one comes from Phil Dourado who writes, “Target-based systems distort everything and most people’s behaviour.” Phil bases his indictment of performance management on several stories about the UK’s National Health Service in which “brilliant, dedicated people [are] pushed…
At a recent performance management conference, I attended a talk by the Manager of Strategic Business Planning at the U.S. Postal Service (USPS) who described how they used performance management concepts to dramatically improve the agency. I showed up at the talk with skeptical attitude, as the post office does not have the best reputation…
I often use a honeycomb as a metaphor for a connected and aligned organization. In Performance Alignment: Cascading Strategy, I defined cascading as a formal method for achieving alignment by explicitly connecting strategy to operations to tactics. When cascading works well, every individual understands how his/her objectives supports the corporate objectives. I frequently get asked how…
By now, most of us have read about organizations that attempted to improve their performance by deploying dashboards populated with financial and operational metrics only to discover that managing by numbers alone didn’t improve their performance. Instead, organizations must go beyond keeping score to ensure that everyone has a common understanding of both what they are trying…