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Better Metrics Æ Better Results: Featuring Mark Graham Brown

Mark Graham brown is A leading expert on performance measurement, balanced scorecards, and the Baldrige model scorecards. He will discuss the top 10 "stupid" measurement mistakes and how to Develop analytic metrics.

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Adam Ray
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56 views

Better Metrics Æ Better Results: Featuring Mark Graham Brown

Mark Graham brown is A leading expert on performance measurement, balanced scorecards, and the Baldrige model scorecards. He will discuss the top 10 "stupid" measurement mistakes and how to Develop analytic metrics.

Uploaded by

Adam Ray
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Better Metrics

Better Results

Featuring Mark Graham Brown


2009 ActiveStrategy, Inc.

Our Singular Focus: Driving Results through Performance Management & Measurement
Consulting & Facilitation
Strategy Development/ Refinement Metric/KPI Development and Cascading Scorecard & Measure Development Development, Evaluation, Cascading Initiative Prioritization and Alignment Employee Personal Goal Alignment Breakthrough Improvement Coaching B siness Review Coaching Business Re ie Process Improvement Training & Consulting Baldrige Assessment & Consulting
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Software & Implementation


Dynamic Strategy Maps Metric/KPI management with drilldowns & ownership Scorecard & Dashboard automation, automation linking, cascading, deployment Initiative, Task, Program Group Alignment and Management Personal Goal Scorecards Performance Improvement, Six Sigma support Briefing Books Dashboards Books, Process Management Storyboards Support for all seven Baldrige categories

Best of Both Worlds Co-Founders


Jack Steele, CEO
Thought-leading Performance Excellence and Strategy Execution practitioner Has helped countless organizations drive major results and even win Baldrige, Deming, and other quality awards

Jeff Bunting, President


Leading thinker in technology-enabled performance management & measurement Among first to apply technology to improve Performance Excellence methodologies Unparalleled implementation expertise
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A Sampling of Our Clients

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Our Newest Strategic Consulting Partner: Mark Graham Brown


Has been helping organizations improve performance since 1979 f Has worked with organizations in th U S i the U.S. and in 16 other countries di th ti A leading expert on performance measurement, Balanced Scorecards, and the Baldrige model Scorecards Has written numerous books on these topics Frequent presenter f th I tit t f F t t for the Institute for Management Studies & the California Council for Excellence
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Presentation Overview
Evaluate your existing scorecard and metrics Avoid the top 10 "stupid" measurement mistakes Develop analytic metrics Obtain ideas on how to measure difficult aspects of performance Use metrics to align employees

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Types of Data Needed to Manage Performance P f


Observation Asking Questions Conducting Studies Reviewing Performance Statistics (Balanced Scorecard)

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10 Stupid Measurement Practices


1. Trying to link all metrics to a vague vision 2. Annual metrics 3. Single question surveys 4. Superstitious process metrics 5. No 5 N measures of ethics/governance f thi /

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10 Stupid Measurement Practices


6. 7. 8. 9. Arbitrary targets Scorecards only for senior management No external metrics Worthless HR metrics

10. Measures that d i wrong behavior 10 M th t drive b h i

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Characteristics of Level 4 Scorecards


Most metrics are analytic (vs. singular) Equal # of metrics for performance E l f ti f f dimensions Scorecards linked to strategic plan and mission Use of scorecard software Definition of links between metrics Scorecards for all employees Good mix of past, present, future metrics past present
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Singular vs. Analytic Metrics g y


Singular Metrics Easy to cheat on Easier to collect Provides a singular number Simplistic analysis but greater risk Requires many q y metrics Analytic Metrics Hard to cheat on Better data on performance Provides more information Decreases risk and improves analysis A few key metrics
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2009 ActiveStrategy, Inc.

Example Analytic Metrics


Your Credit Score
Payment history, amount of debt, age of credit lines, frequency of opening new credit lines

RealAge.com
Factors in genetics, current health statistics, lifestyle, etc. to estimate overall health

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Poll Question 1
How many "analytic metrics" are on your toplevel scorecard?
None 1 or 2 3 or more o oe I dont know

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APQC Study of Scorecard Best Practices P ti


Majority have scorecards with some nonnon financial measures Best scorecards found at: Bank of America America, Saturn, Crown Castle, Jet Blue, L.L. Bean Best were level 3 most level 2 3, Many problems even in best scorecards

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Strategic Metrics
Linked to Vision Assess progress on major strategies 2-4 Key metrics Change as vision and strategies change

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People Analytics
Employee Engagement/Satisfaction Safety and Health Intellectual Capital/Knowledge and Skills

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External Metrics
Like weather for a pilot Supplier/partner performance Political factors Economic factors Prices of raw materials Pi f t i l Consumer/customer trends Competitor success/failures

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Major Information Missing From Most S M t Scorecards d


How much do we aggravate our customers? How much do we aggravate our employees & suppliers/partners? What is going on in the world that could devastate our organization?

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What Managers Need to Know


Level Actual versus Target Trend Performance/Time Analysis Why is this happening? Action Plan What are we doing to improve/maintain?

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Poll Question 2
How are you currently reviewing performance metrics?
In Excel, PowerPoint, other desktop tools In ActiveStrategy Enterprise software In other spec a ed so t a e ( ot e specialized software (ERP, BI, financial , , a ca tools, etc.) g y y y We arent reviewing them systematically today I dont know

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Accessible & Actionable Data


Level Trend

Analysis Action Plan

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Enabling Effective Metric Management


Hierarchy View i h i

Stoplight Chart View

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Link Metrics to Strategic Plan & Mission


Scorecard Dashboard View Strategy Map View

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Deploy All the Way to Employee Level


Employee PGM Scorecards with Action Plans for Personal Improvement

Directly linked to organizational metrics

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Poll Question 3
How aligned is your scorecard with related systems and processes (strategic planning, compensation, etc.)? Rate from 1 to 5:
5 completely aligned 4 very aligned 3 somewhat aligned 2 minimally aligned 1 not at all aligned

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Summary
Most organizations struggle with metrics Most scorecards still include lagging singular metrics Trend toward more simplistic measures is dangerous Analytics provide more data without more metrics Deployment is critical Must be aligned to other systems (compensation, financial, etc.)
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ActiveStrategy Can Help You No Matter Where You Are Today


Management consulting
Topics like: Baldrige-based Assessments, Building Scorecards, Scorecard Cascading Workshops, etc.

ActiveStrategy software
Enterprise and Online versions to enable widespread deployment & results

Combination of the above


Customized based on your stage in the journey

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Additional Resources Available


Recording & PDF of this presentation Other a ailable eco dings Othe available recordings
Balanced Scorecard Fundamentals Cascading Balanced Scorecards C di B l dS d How ActiveStrategy Accelerates Baldrige Journeys Case Study webinars d b

www.activestrategy.com/webinar or [email protected] for f more information i f ti


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Next Steps
Interested in getting help from Mark Graham Brown at your organization?
Email: [email protected] Phone: 310.545.2417

Want to learn more about how to successfully automate scorecards & deploy metrics?
Email: [email protected] Phone: 484.690.0700
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Thank you for attending!


Live Q&A

Additional Questions?

Email: [email protected]
2009 ActiveStrategy, Inc. p. 30

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