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3a Values and Metrics PDF
3a Values and Metrics PDF
Overview
Once the mission of the organization has been defined it's time to work towards defining the
vision of the organization… but in order to do this correctly we must first assess the values
and metrics of the organization.
Every organization will have unique situations and approaches to this but there are few
activities we strongly encourage all organizations look at.
The first thing we'd encourage you to look at are the values of the organization which strongly
influence the way associates work on a day to day basis.
Let's look at an example. Ford's values are focused on People, Products, and Profits. For
example, Ford states that their people are the source of our strength. They provide our
corporate intelligence and determine our reputation and vitality. Involvement and teamwork
are our core human values.
Now, obviously, every organization will have their own set of values and care should be taken
to ensure these values are most than just words on paper… instead they should truly
represent how each and every associate in the company works on a day to day basis.
Most companies discuss and update values at the same time they look at the mission. And, it's
important to note that it's definitely acceptable to examine the values of the organization
before you look a the mission… you see the hoshin planning process is extremely fluid and
flexible so while we provide a roadmap it's OK to make the process your own.
Metrics
Next, the metrics of an organization are also
extremely important to understand prior to
defining the vision of the organization.
And while these financial metrics are important it should be noted that they are almost always
lagging in nature meaning they are poor predictors of future performance.
These types of metrics are more leading in nature allowing the company to better gauge
future performance. So, it's important for companies to critically evaluate the metrics they're
tracking on a regular basis.
Next, assessing the current state of the company obviously involves evaluating the
performance of the key metrics we just discussed. And while many organizations like to
compare metrics against the previous year's performance we'd also encourage you to use
tools like Control Charts on a monthly basis as this is a far more powerful approach to
assessing the health of the organization.
As long time Gemba Academy customers know we cover Control Charts in our 7 QC Tools
and Practical Problem Solving courses so please be sure to review those courses if you haven't
already. Additionally, we'd also encourage you to read the book called Understanding
Variation by Donald Wheeler if you'd like to learn more about Control Charts.
STEEP Factors
Finally, to wrap this module up we'd like to share some
powerful analysis techniques that can be used to better
understand the state of the company prior to defining the
vision.
For example, when a new President or leader of a country is about to take office companies
should assess the impact this might have.
Additionally, changes in technology can play a major role in the success or failure of a
company. As those in North America has seen companies such as Netflix and Redbox have
changed the way consumers watch home video.
To be sure, STEEP analysis is as much an art as it is science but is still an extremely important
aspect of strategic management.
There are many ways to perform a SWOT analysis including managers meeting with
employees one on one in order to determine what the employee believes to be the
organizations strengths, weaknesses, opportunities, and threats.
This should be an honest discussion with the employee feeling at ease to speak openly with
their manager. If a manager does this with all their employees and begins to group common
themes together it's possible to learn a lot about the current state of affairs.