New Performance Measures

New Performance Measures

Why Are New Performance Measures Needed?

Customers Expect More
Changes in Management Methods
Long-Term Goals-Short-Term Measures
Measures Must Lead People in the Right Direction
Providing Results to Keep the Accountants Happy
The Move Towards Simplicity
We Need New Performance Measures

Characteristics of the New Performance Measures

Direct Relation to Business Strategy
Nonfinancial Measures
Variation Among Locations
- Teams
- The Team Champion
Changes Over Time
Simplicity and Ease of Use
Fast Feedback of Information
Fostering Improvement Rather Than Merely Monitoring It

Examples of New Performance Measures at Work

Delivery Performance and Customer Service
- Measures of Customer Satisfaction
- Obtaining Direct Feedback
Process Time
- Short Process Times
- Customer Service Time
- Measuring Process Times
- Measuring by Sampling
- Measuring Service and Support Processes
Innovation
- Measuring Innovation
- Employee Suggestion Systems
Productivity
- Product and Service Measures
- Financial Measures
Flexibility
- Flexible Production
- Measuring Flexibility
- Measuring Modularity
Quality
- Building Quality into the Production Process
- Measuring Quality
  - Certifying Suppliers
  - Reject Rate
  - Customer Satisfaction
  - Inventory Accuracy
  - Bill of Material Accuracy and Routing Accuracy
  - Forecast Accuracy
- Financial Performance Measures
  - Scrap Rate
  - Inventory Turns
  - Value-Added Analysis
  - Product Cost
- Social Issues
  - Measuring Morale and Teamwork
  - Measuring Leadership
  - Measuring Safety and the Environment

Implementing New Performance Measurement

Is This Decision Good for My Organization?
How Big a Change Is This for My Organization?
Getting Ready to Change Performance Measures
- Make a Team
- Train the Team
- Understand the Politics
- Make a Communications Plan
- Make a Project Plan
Steps to Implementing New Performance Measurement
- Step 1: Write a Strategy
  - Manufacturing Strategy
  - Marketing Strategy
  - Writing
- Step 2: List the Key Strategic Areas
- Step 3: Validate the Key Strategic Areas
- Step 4: Develop the Measures
  - Reporting Measures
    - Step 5: Pilot the New Performance Measures
    - Step 6: Expand the Measures to the Whole Plant or Company
A Spur to Action
Notes
About the Author

Keywords:

“The greatest danger in times of turbulence is not turbulence; it is to act with yesterday’s logic”. — Peter Drucker

The shift from manual workers who do as they are being told — either by the task or by the boss — to knowledge workers who have to manage themselves ↓ profoundly challenges social structure …

“Managing Oneself is a REVOLUTION in human affairs.” … “It also requires an almost 180-degree change in the knowledge workers’ thoughts and actions from what most of us—even of the younger generation—still take for granted as the way to think and the way to act.” …

… “Managing Oneself is based on the very opposite realities: Workers are likely to outlive organizations (and therefore, employers can’t be depended on for designing your life), and the knowledge worker has mobility.” ← in a context

These pages are attention directing tools for navigating a world moving toward unimagined futures.

It’s up to you to figure out what to harvest and calendarize
— working something out in time (1915, 1940, 1970 … 2040 … the outer limit of your concern) — nobody is going to do it for you.

It may be a step forward to actively reject something (rather than just passively ignoring) and then figure out a coping plan for what you’ve rejected.

Your future is between your ears and our future is between our collective ears — it can’t be otherwise. A site exploration starting point

Google

To create a rlaexp.com site search, go to Google’s site ↓

Type the following in their search box ↓

your search text site:rlaexp.com

intelligence-instructions

Donations: Please click the button below to make a donation through PayPal.