Performance Measurement

Business leaders operate within an environment where they must satisfy both business and regulatory stakeholders.  The challenge of satisfying stakeholders can be difficult, at best, without an overarching plan to ensure performance, today, tomorrow…every day.

The overall performance of an organization is dependent upon the effectivity of the system of processes that it utilizes to achieve its mission, and upon the capability of the workforce to execute those processes competently.  An organizations’ performance plan must be built upon a foundational understanding of the quality of both people and process, with the additional understanding and clarity of performance in alignment with the organizational structure.

Organizations are built in many configurations and sizes, from entrepreneurial start-ups to globally matrixed Enterprises.  The quality of the system of processes is managed through the organizations Quality Management System.  Every organization has an organizational structure, providing ownership and responsibility for the system of processes the organization utilizes to achieve its mission.

Performance measurement for any organization, regardless of organizational structure and scale of operations, is achievable when based upon a foundation of performance measures that are capable of aggregation, from the functional group level all the way up to the Enterprise level.

Performance measurement extends beyond the status of operational performance that might be expected for management review of an individual process, and reviewed process by process, group by group, etc.  Performance measurement must be capable of being viewed from the highest level of aggregation, and being deconstructed downward to identify the highest (or most impactful) constraint, all the way down to the functional/process level, regardless of where that resides within the organization.

Performance measurement must also provide the visibility into process improvement and change management initiatives.  Why measure performance, if not to improve our constraints?

Finally, the performance measures described herein should be additive, and not in replacement of the current process measurements, for improved understanding of individual process performance as well as that of the entire system.

Some may read this and say… ’obvious’, while others will see the underlying complexity involved with a performance measurement system that can accomplish these dimensions of measurement.  Regardless, I welcome the discussion with those who are searching for a performance measurement solution that can truly enable the management of extraordinary performance within their organization.

Larry MagerMgmt-Ctrl