Need Easy Performance Measures


Dennis Latimer

We are in the process of preparing processes and performance measures for various groups within our corporation. Is there a short method that is not time consuming to use? Also, for a service industry, some of the standards appear confusing and ambigious. Is there an easy method to determine which of the 20 criteria is applicable to our organization?




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As to the second question, design is not applicable for one. You look at each element and see where there's a fit. I haven't done a service industry so I'll wait and see if some others will opine first.


In terms of process and performance measures here are few points that I hope will help;

1. All measures (process/perfromance or other) should be directed towards achieving specific corporate goals. Example: At a company that I am working with we have set our corporate objectives to double the business in three 3 years (50M to 100M) and to produce costdowns of 20% over 3 years.
2. In order to support these objectives we have identified Key Performance Indicators (KPI) that have been allocated on a functional (departmental & inter-department) and individual basis. Example: Vitality index to the Commercial group. This is measured by the amount of new business divided by existing business. Purchasing dept. are required to have all production suppliers on a Kan Ban system. The intent of all of the KPI's is to achieve the corporate goals.
3. For the service industry as with any other industry the "short method" would be to identify what your corporate goals are and from that to develop measures that can contribute to achieving these goals. Do not include measures if they are of no value.
4. From my experience, if you identify goals or KPI's that are not linked to the bigger picture, they become non value added and people lose interest very quickly.
5. A key ingredient in making this all work, is the review and corrective action process. The frequency is typically company dependant, but it is a very important component.

Anyway, just some thoughts, I hope they help

John Adamek

barb butrym

Quite Involved in Discussions
Services are a bit confusing at first glance...but in reality are not much just have to be comfortable saying..nope, doesn't apply. When it doesn't. Some times it does. I have worked with some service companies, abeit small. What exactly are you looking for?

barb butrym

Quite Involved in Discussions
Actually the question is...what is the are even more industry specific than manufacturing...and how large is the operation?
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