Sharing Excellence

Topics (1)
Nada Abdallah
“What gets measured… gets done”
16.09.2009
12th Oct, 2009
 Content…
• Metrics Vs. Report
• Performance Measurement is to manage
processes, not results
• The goal of an effective metric
• Principles of effective Metrics
• Communication of Effective Metrics
• Benefits
• Q&A
16.09.2009
 Metrics Vs. Report
• What is a Metrics?
 A collection of measurements over time;
 The foundation of a Performance Measurement
System (PMS);
 PMS consists of collecting, measuring, and
comparing output data for a process to a target
Metrics relate to a process and it drives behavior,
whereas reports show results
Example: KPIs in ITD

16.09.2009
 Performance Measurement is to
manage processes, not results
• To improve performance, identify the underlying
process. Then measure the processes
• What is a process?
– A series of operations performed in the making of a
product / service
– A series of actions, changes, or functions bringing about a
result

16.09.2009
 The goal of an effective metric is to :

Determin
e the Drive Reduce
Reduce Reduce Reduce
sources effective variabiliti
of process cost time money
actions es
variability

 Who can decide what metrics to use?

Anyone measuring the progress against goals

16.09.2009
 Principles of effective Metrics:
Aligned with Enterprise,
Division, Business, and
Team goals;

Understood and owned Appropriate to the

by the team group’s needs;

Provide guidance for

Easy to measure;
effective actions;

Reflect performance in a
timely manner; “5Why’s
and Pareto Analysis”
16.09.2009
 Communication of Effective Metrics
• Share it with the team to get the buy in;
• Present it in tables, graphs and charts;
• Add historical, forecast, or benchmark
figures to put the current data in
context.. Keep it simple

16.09.2009
 Benefits…
• “What gets measured, gets done”; Metrics are a key
tool for continuous improvement;
• Higher customer service levels at lower costs with
fewer inventories;
• Reduced rework;
• Reduced variation;
• Higher productivity;
• Higher stock price

16.09.2009
 Q&A
Thank You

16.09. 2009