There may be some resistance to the idea of financially rewarding higher production. Some people do not subscribe to the concept that more output should be rewarded. The actions you take to address that viewpoint are outside the scope of this article.
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There needs to be some element of checking in the system you establish to detect fudged, padded or downright falsified statistics. One way is to have a comparison of two or more statistics to highlight anomalies. Another is to do spot checks.
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Hard results and products (number of widgets made) are easy to see and quantify. A slightly more difficult one is the soft results that are not easily measured without surveys. Client satisfaction is one. In areas that have a short sales cycle, repeat business may be an indicator. Percentage of clients who repurchase may be an appropriate metric. If the sales cycle is a long one, a lot of damage can be done to your company's reputation by the time that shows up in the figures. In this case an after service survey can be worth more than its weight in gold to you.
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Remember that Rome wasn't built in a day. Despite your best efforts at cross checking that the measurement accurately reflects genuine and balanced progress towards your current strategic objectives, what seems to be a valid set of metrics at day one may very well need to have their definitions adjusted to suit the situations that crop up. New statistics may need to be added to measure progress towards new strategic directions of an organisation. Be prepared to tweak the wording as experience with them exposes any weakness or omission in their definitions. Always be alert for misdirection in the efforts of those striving purely to attain the numbers without delivering the full product.
If you are implementing business performance measurements from scratch, just remember to be humble. Just because we think we've got it right it doesn't mean it is right. Just ask any software programmer or tester!
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