Measurement Answers the Question: Are Your Strategy and Processes Working?

Without proper performance measurement, there's no way to know. That's why we need to measure performance. Yet the question persists:  Does the cost of measurement pay for the value?  My response is a classic one … it depends.  It depends on who's asking you to measure…and why?

For example, if you feel that your process is not working and want to validate a new one, then yes, by all means … measure your performance!  You need to remember, though, a measurement program takes commitment, resources, and time. First, you have to know what to measure and always keep in front of you WHY you are measuring…what your objectives are, and what you are going to do with the information once obtained. Then, assuming you have the support and the resources, you’ll need a measurement model to be consistent in the planning, collection, and analysis of your measures.

Developing Performance Measures

While there is general agreement that “you can’t manage what you can’t measure,” the actual measurements themselves can prove to be a source of conflict. What will you measure and why? What’s the connection between the performance measures we collect regarding individuals and their tasks and the ultimate performance of the company—if any?

Measures are the easy part—knowing what you want to measure, and why, is hard.  Therefore, following a structured process helps to develop less fuzzy measures, while engaging a wide variety of the people who actually do the work in the process prevents the chosen measures from diverging too far from reality or ease-of-use.

There is no single set of measures that universally applies to all companies. The appropriate set of measures depends on the organization’s strategy, technology, and the particular industry and environment in which they compete. Like any aspect of any “living company,” measures cannot be static: they cannot be chosen once and locked into place. Along with strategy, they evolve and are refined as the organization becomes more focused on and skilled at meeting strategic goals.

Again, if you commit to a measurement program, you will need to have appropriate sponsorship and know what your ultimate objectives are; you’ll need a model to begin implementing. The PEMARI model (Planning; Establishing Measures; Measuring; Analyzing; Reporting, Improving) has proven to work well in dozens of organizations. (This model is discussed in more detail in our white paper here.)

Pilot your program using this model.  Show success and value to the organization, and then expand the program to a larger audience.  Performance measurement can transform your organization and reap huge rewards when done properly.  Basically, I’m an advocate.  My only advice is, don’t start it if you can’t finish it.  And, if it is a politically sensitive area, bring in external staff to facilitate so that there is no perception of an “agenda” from the stakeholders or senior management.

What have been your experiences--good and bad--with implementing measurement programs?