lean-consultancy

Performance Driven Management – What Gets Measured Gets Done

The great football coach Vince Lombardi once said “Perfection is not attainable, but, if we chase perfection, we can catch EXCELLENCE.” That is the core concept of Performance Driven Management: Continuous improvement and the measurement of that improvement.

I am sure you have heard of the saying “What Gets Measured Gets Done.” The goal of Performance Driven Management is more than just this. Performance Driven Management focuses on continuous improvement by measuring results, analyzing the feedback to improve performance and repeating those results continuously and institutionalizing the process.

In order to track performance, most businesses use Key Performance Indicators (KPI’s) or metrics that measure important statics or variables of a business and its industry. Those KPI’s or metrics usually center around a process, service or function within a production line that track a critical time, quality, turnover, placement or some similar operating result.

Performance Driven Management is more than just tracking key variables, KPI’s or metrics, it is a management and team philosophy on how to operate, monitor operating performance and continuously improve performance of operations and function within a production line or even activities outside of manufacturing.

The first thing that needs to be considered in Performance Driven Management is to really determine “What to Measure?” Some examples of this would be:

Safety – Zero recordable instances of loss time due to work place injury
Quality Performance – Customer Complaints, Waste
Delivery/Customer Service – Customer Complaints
Cost Performance – Inventory levels, productivity (line efficiency)

This is commonly known as SQDC. SQDC focuses on cascading metrics that analyze strategic or organizational perspectives as well as tactical or individual perspectives. These cascading metrics will look to analyze:

Scorecard/Strategic Plans
Facility or Business Units
Area/Value Stream Tools
Individual Performance

What you measure, will determine what you’ll improve.

Struggling with SQDC metrics and performance measurement and improvement methods – we should be talking.

Nimish Dave
Www.theideasmith.com