Actionable Performance Measurement: A Key to Success (Howell, 2006)

Measurement is absolutely essential for any organization or company, functional area, department, business unit, project, or individual. Companies must know how their processes are performing, how well they are meeting customers’ needs, how targeted improvements are being achieved, and how management is doing.

Accurate performance measures tell companies where they are, and to take action if they are not on track or if performance does not meet expectations.

Actionable Performance Measurement presents many different methods to help readers develop metrics and performance measures.

To aid in corporate measures development and strategic, tactical and/or business planning, a quick and effective method of identifying specific key results areas is outlined and explained.

Both customer and employee focuses are presented: how to measure each, and how to develop good surveys. In addition, Howell explains several methods for setting realistic-but-stretch targets are also presented, as well as a technique for measuring “apples and oranges.”

Readers will be able to measure employee and customer satisfaction, and be prepared to capably lead or be a member of a corporate or business unit measurement team to assess existing performance indicators effectiveness.

Benefits: Included on an accompanying CD-ROM is a student workbook to be used as a teaching tool in conjunction with the book, as well as the book's five appendices.

p.1 A good metric will tell you how things are going. If the indicator is showing better performance, then the performance actually is better and vice versa.

p.2 A metric is a measurement, taken over time, that communicates vital information about a process or activity. The major requirement for being a metric versus an indicator is that a metric must drive appropriate action. In other words, if you are off target, the metric shows you that and enables you to start action to get back on target.

p.3-4 Without metrics or performance indicators, you do not know how your process is performing, how well you are doing your job, and how well your organization is achieving its mission.

Metrics

Provide early warning of problems or bottlenecks.
Enable us to manage our processes, jobs, and organization.
Provide basis for continuous improvement.
Facilitate communications throughout the organization.
Keep score on items of importance such as goals attainment.

p.8 Almost anything can be measured.

p.15 A measurement adds value only when it is important, monitored, and corrected if not trending as desired.

p.27 Strategies are the specific initiatives used to achieve the objectives and impact favorably the corporate measures.

p.45 Developing metrics is an art, not a science.

p.50 few, if any, books on measurement provide the readers with "how to develop a new indicator." Normally, those books deal with traditional indicators or suggest that new ones just appear once you decide you need one. Unfortunately, this appearance act never happens unless a lot of thought and effort is put forth.

p.137 If you understand your process, developing the measures becomes relatively simple... Measurement to include data collection takes time and possibly other resources. Do measure if it provides information that enables you to properly manage your process.

p.139 Often in a process there [are] one or more activities that, when they receive increased focus (increase the target and develop actions to achieve it), the performance is increased (jump-started). These activities are key to the process's success.

They should always be measured, tracked, and reviewed and corrective action should be taken if needed. Targets or standards provide the emphasis.

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