E V o associates, inc. Metrics & Management Building High Performance Organizations Summer 2011 eVolutionary Business Advisory Services

eVo associates, inc.

Metrics & ManagementBuilding High Performance Organizations

Summer 2011

eVolutionary Business Advisory Services

© 2009 eVo Associates, Inc. All Rights Reserved. Copy by Permission Only.Page 2Metrics & Management

Observing Extraordinary Organizations

“Successful organizations that have sustained rapid growth for years while achieving even higher levels of efficiency and quality have change woven into the very fabric of the organization. Like a school of fish these organizations are constantly moving -- they are fast, focused and extremely flexible.”

John Mathers & Bill Daniels

Change-ABLE Organization


Double Loop Learning

GOVERNINGVALUES

&ASSUMPTIONS

Primary Response to Mismatch:

CHALLENGE THE VALUESand

ASSUMPTIONS

OUTCOME:Mismatch toExpectations

ACTION

Single Loop: Change Action

In today’s business, the predominant planning method is Single-Loop Action


The Change Levers

StrategicBusiness Definition

Goal SettingPlanning

PoliticalRoles and Power

Resource AllocationDecision Making

CulturalValues

Reward CriteriaStyle

x

x

x

x

x

x

x

x

x

x

x

External–Market–Technological

Internal–Goals–Roles–Processes–People

x


Useful Model of Strategic Planning

Objectives

Programs/Projects

Resources

VisionMission

Strategy

Strategic Analysis

adapted from Below, et. al.Executive’s Guide to Strategic Planning, 1989


System of Strategic Alignment

Core Values & BeliefsPurposeMission

VISION

Performance Plans• What is Going to Be Done by Whom

by When

Work Reviews• Ahead, On Track, Behind or At Risk• Recommendations

TACTICS

STRATEGY

à Internal Assessmentà External Assessmentà Strategic Decisions & Objectives• Customers• Capabilities• Products and Services• Finance• People and Organization• Systems


•Internal Assessment¦Resources and Internal Capabilities¦Core Competencies¦Strengths and Weaknesses

•External Assessment¦Industry, Market and Technological Trends¦Competitive Analysis¦Social, Demographic and Regulatory Environment¦Key Opportunities and Threats

•Strategic Decisions¦ Customers¦ Capabilities¦ Products/Services¦ Finances¦People and Organization¦ Systems

•Strategic Objectives¦ The Vital Few

VISION

STRATEGY

TACTICS

Strategy Development


From Strategy to Results

Objectives

Programs/ProjectsResources

Vision / Mission

Organization ObjectivesFinancials

Business ObjectivesKey DeliverablesKey Enabling ProjectsCapability enhancing efforts

Priority Partners

%

Networked Performance PlansIntegrated Strategic Plan

Strategy

Strategic Analysis

Regular Work ReviewsOn Track Provide quality consulting to selected clients

• Sold time = 45%• Marketing time = 12%

• Bill• Michael• Leslie

Re-institute regular bi-weekly project meetings

Too many clients and not enough time to coordinate in person; could be trouble

0%

20%

40%

60%

80%

CumJanFebMarAprMayJunJulAugSepOctNovDec

Sold Time Plan

None


From Strategy to Results

Strategic Plan Operational Plan

• Vision • Charter• Strategic Analysis • Key Objectives• Strategy • Performance

Indicators• Long Term Objectives•Priorities• Programs • Partners• Financial Projections • Implementation

Plans• Budgets

Results Management

• Reporting Systems• Project, Department

and Individual Results• Corrective Actions• Reward and

Development

Strategy Performance Plans Work Reviews


Approaches to Organization Development

PERSONAL RELATIONSHIPS

PROCESSES

GOALS

ROLES&

RESPONSIBILITIES

TASK - ORIENTED- Focus is on an overarching goal- Assumes interdependence- Ability to perform against the

plan is the key variable.

CLASSIC- Focus is on people- Assumes independence- Satisfying relationships is

the key variable

PERSONAL RELATIONSHIPS

METHODS

GOALS


Performance Plans & Work Reviews

ORGPerformance

Plan

Objectives......

Done/Not Done...

3

3

3

Work Review

.

.

.

.

.

33

3

3

3

WorkReview


DIV

Feedback Loops: “Look Ma!”

ORG

Daily

Weekly

Weekly

Quarterly

Weekly

Monthly

Monthly


Systems Model

QualityFeedback

Output

PaceFeedback

Process

Input

CustomersInternal/External


Task Grid

Delay Tolerance

Hi

Lo Hi

Routine Projects

Trouble-Shooting

NegotiablesPre

dic

tab

ilit

y


Routine Metrics

Quantity

Timeliness

Completeness

Accuracy

Done!


Metrics: Routine

Completeness AccuracyTimelinessQuantity

To continue to process 98% of 24 semimonthly payrolls 2 days prior to each payroll data, with less than 0.5% adjustment due to employee complaint in 20__.

Say how much of output is to be done

State timeframe in which output will be done

Tell how thoroughly each output will be done

Specify the precision required for each output

Goal Sample


Project Metrics

Change

Implement

Deadline

1995


Metrics: Project

Goal Sample

Change Implementation Deadline

Describe what change will be made

Define who will use the change

State the deadline

To implement the new information retrieval system for all field service representatives in Milwaukee, according to the design specification of proposal #4 dated March 14, 20__.


Trouble-Shooting Metrics

Response Time

Average Solution Time

First Pass Success

Manner


Metrics: Trouble Shooting

Response Time AverageSolution Time

First-PassSuccess

Manner

Specify how quickly a problem is to be acknowldeged.

State average time in which most problems are resolved

State % of problems to be solved the first time done

Describe personal communication behavior desired

Be on site with emergency maintenance calls in 15 minutes and complete 80% of repairs in 90 minutes well enough so same problem does not recur in six months; stay calm and report work to operators and their supervisor/s.

Goal Sample


Negotiable Metrics

Becomes ... Trouble-Shooting or Project Standard


Metrics: Negotiable

If the task occurs frequently, use a Trouble Shooting standard. If it occurs infrequently, commit to performing it according to Project goals set at that time.

Standard Sample

To acknowledge special-request cost-studies on same day of receipt and to complete such studies within 2 weeks sufficiently enough to avoid any reward in 95% of cases.

In all cases, to complete special-request cost-studies according to the formats, deadlines, and expenses agreed upon with the recipient at the time of initiation.

Goal Sample


Self-Monitored Feedback

Requirement: Immediate, self-validating, simple and informal

Routine: Batching inputs & outputs, Tally sheets, Checklists

Project: Gantt charts, To Do lists, Event checklists

Unpredictables: 30 second reports, Checklists, War stories, Rehearsals, Advertising your database


Work Reviews - Individual Performer

Purpose: Develop agreement on projects and routine activities Establish INFORMAL self-monitoring feedback system Resolve resource needs quickly

Action: Negotiate projects or routine activities with milestones or

measures Specify TO DOs list for the next four weeks At the end of the week, individual performer reviews:

What has been done What has not been done Actions/resources required for correction What TO DO for next week

At month end, plan outcomes for the next month


Work Review Individual: Done/Not Done

This Week:

1. Develop RTO plan

2. Design front-end

3. Test front-end

4. Initiate back-end

Next Week:

1.

2.

3.

3

3

3

Plan for this week

What was done this week

What wasn’t done

What to do about what wasn’t done this week

What is planned for next week


Work Reviews - Team Leads

Purpose: Regular (i.e., weekly) part of the staff meeting Focus on actions toward predefined objectives or standards Support individual in aligning resources and dealing with

performance issues Provide peer review opportunities for growth, resource

support and input

Action: Review objectives and critical metrics or milestones State “on target” or not Specify Corrective Action and Resource Requirements Complete in five minutes or less


Work Review Team Projects

Intel

W1 W2 W3 M1 M2 Q1 Q2 Q3 Q4 Tasks

D1

D2

D3

D4

D5

D6

D7

D8

D9

D10

D11

Time

Week 2 – Jan 2009 To Do Week 2 – Jan 2009 To Do

Mon

Tues

Wed

Thurs

Fri

Sun

Sat

Done/Not Done Meeting


Work Review Manager/Team Lead

Work Review Joe TeamleadConsulting Manager

Nov 3, 1995

On Track Provide quality consulting to selected clients

• Sold time = 45%• Marketing time = 12%

• Bill• Michael• Leslie

Re-institute regular bi-weekly project meetings

Too many clients and not enough time to coordinate in person; could be trouble

0%

20%

40%

60%

80%

CumJanFebMarAprMayJun JulAugSepOctNovDec

Sold Time Plan

None


Change = continuous re-engineering

Intro

Case for Change

Redesign

Parallel Processing

Manage Improved Performance

@ Copyright American Consulting & Training, Inc. 1993. All rights reserved.

Breakthrough Systems

Sharing The Case

Communications

Implement

ACT

START

Re-START

Documents

E V o associates, inc. Metrics & Management Building High Performance Organizations Summer 2011 eVolutionary Business Advisory Services