posted 28 May 1999 02:06 PM               

Thanks,

posted 01 June 1999 10:17 PM               

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