Interpret and Use Performance Measures for Certification...  ©Stacey Barr Step 7: Interpret and

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  • ©Stacey Barr www.pumpcertification.com

    Step 7: Interpret and Use Performance Measures for Improvement

    Transcript for December 1, 2011.

  • PuMP Performance Measurement Practitioner Certification Program Step 7: Interpret and Use Performance Measures for Improvement

    Stacey Barr Pty Ltd the Performance Measure Specialist

    www.staceybarr.com info@staceybarr.com

    Page 2 of 22

    ©Stacey Barr www.pumpcertification.com

    Copyright, etc…

    No part of this Transcript may be reproduced, transmitted, re-posted or duplicated in any form or by any means without permission of the author and publisher, Stacey Barr.

    Disclaimer: The information provided is for the purpose of expanding the awareness of the reader and the author accepts no responsibility for the subsequent use or misuse of this information.

    © Stacey Barr, 1999-2011

  • PuMP Performance Measurement Practitioner Certification Program Step 7: Interpret and Use Performance Measures for Improvement

    Stacey Barr Pty Ltd the Performance Measure Specialist

    www.staceybarr.com info@staceybarr.com

    Page 3 of 22

    ©Stacey Barr www.pumpcertification.com

    Step 7: Interpret and Use Performance Measures for Improvement

    Start of transcript.

    Introduction

    Well G‟day, Stacey here and we are up to Step 7 of the PuMP® Certification Program for 2011. Step 7 is interpreting and using measures for improvement, and it's all about your new measures finally doing the very thing they were created for, and that very thing that they were created for is improving performance fundamentally. You'll be learning how to facilitate the using measures workshop for your measures teams, helping them implement that Step 7 of the PuMP® Blueprint.

    And, we have three specific objectives in Step 7 of the PuMP® Blueprint. The first one is to help your measures team to unlearn the bad habits of misinterpreting performance and other quantitative information. The second objective is to get them to adopt a simple, but sound approach to using performance measures in decision-making, an approach that focuses on performance improvement, rather than judgment -- so, improving, and rather than just judging performance. And, finally the third objective is to update the performance report that you will have had them create in Step 6, update those with XmR charts if you haven't got them using XmR charts already. XmR charts, as you'll recall from your Blueprint training are the charts that highlight the real signals in performance measures that you can track through time.

    Now, we are just so close to the end it‟s not funny. We are at the final technical step in the PuMP® Blueprint using measures to improve performance. Now we do have one more step in the Blueprint that you will facilitate your measures teams, and that's the reflection step, but we will of course talk about that when we come to Step 8, but for now this is how far you‟ve come, up to Step 7.

    Now for today the usual structure will apply. We‟ll start off looking at your PuMP® practitioner kit for the Blueprint Step Number 7. We'll also go a little bit more deeply into the process of facilitating your measures teams to implement Step 7. As we do that, of course, we'll take a closer look at most of those resources. Also, we‟re going to spend a little bit of time today talking about not only some of the challenges that can come up when you're helping people use their measures, and using XmR charts, but also some of the other things that become a little bit more relevant when you get to this end of the PuMP® Blueprint.

    One of those things is setting performance targets. I don't know why it is but a lot of people will set targets in the business planning process before they've even decided how to measure something. And to me that's so counterintuitive, it's like trying to test-drive a car down the street before you put the wheels on it, it just doesn't make any sense. Setting targets, to me, is something that happens when your measures are designed, defined, and even when you started to collect some data for them, and then it becomes a more relevant thing to set targets. We'll look at the approach that I've taken for setting performance targets, and I've got a resource kit for you to download on how to set targets. It's going to have a few things in there, the framework for setting performance targets, it's going to have an example, also a template to follow, and a one sheet guideline for how to determine whether performance has reached target or not, some real objective, indisputable rules or guidelines for doing that.

    We'll talk also, today, about integrating measurement with performance improvement, and what that really means. Like what role does performance measures play in any kind of performance improvement? And then we‟ll talk about one particular type of performance improvement that

  • PuMP Performance Measurement Practitioner Certification Program Step 7: Interpret and Use Performance Measures for Improvement

    Stacey Barr Pty Ltd the Performance Measure Specialist

    www.staceybarr.com info@staceybarr.com

    Page 4 of 22

    ©Stacey Barr www.pumpcertification.com

    happens, and that's business strategy. Really, that's what business strategy is, it is a type of performance improvement for the organization.

    Your application guide, which we generally don't spend the time looking through, because it's pretty well structured all the time, but we may if we‟ve got the time, take a closer look at the application guide today because they are some facilitation tips in the back of there about dialog versus discussion that I'd really like to draw your attention to.

    For now though, we‟ll take a quick tour through the PuMP® practitioner kit for Step 7, of course, so that you can just see it range of resources that are available for you. And I've got loads and loads of files open here; ready to show you as we go through today. So be patient with me as I try to land on the right one to show you. Now, again, I know this text or font is really quite small so if you happen to have your practitioner kit for Step 7 handy, refer to that so you can read the file names a little bit more easily, then you will be able to through this video.

    The PuMP® Practitioner Kit for Step 7

    Alright, so we have two articles for Step 7. And, they have a slightly different theme to each other, the first one is called Are You Listening to your Measures, and that article is about what a really good performance review meeting should be like. It is talking about what it means to listen to your performance measures as opposed to a lot of the things that we usually do with performance measures, which is blame something, or ignore them, or jump to the wrong conclusions, or a lot of those sorts of things. This is about really borrowing from the principles of the PuMP® using measures technique, and showing or discussing how they might look when they become manifest in a performance review discussion, a monthly performance meeting, for example.

    The second article is called Are You Reacting to Trends That Aren’t Really There is what that article‟s called, and it is very much to do with interpreting signals in your performance measures. It goes through an example, which I'm pretty sure I discussed in the Blueprint Workshop, and it is a reliability measure for an energy company, like an electricity distribution company. And, it shows a before and after, and the before is a graph of how this organization was monitoring this reliability measure using a moving average. And the after is what I did with their data, with their permission, to show them the risks of using moving averages to draw conclusions from your data. And, it talks about how easy it is to completely misinterpret what your measures are saying if you've got no idea of the right way to present those measures visually.

    There are two handouts for this session; one is our normal case study handout, the procurement department‟s case study. And that handout goes through a discussion, or the kind of process that they went through to interpret one of their performance measures. The second handout is the framework for using performance measures. So, again, it's just that one page, it's got this mind map in it -- filter out the noise, look for signals, find the causes, that model there.

    Then we have -- oh I have these ordered by type rather than a name, I'm going to reorder them by name. Then you have got your usual agenda to send to your measures teams before you have the using measures meeting with them. You've got your e-mail templates again, the FAQs the frequently asked questions that facilitators have when they are implementing PuMP®, in particular, of course, implementing Step 7. You've got the presentation that you'll be using with your measures teams and the report document to do any documentation of what you create during that meeting. That won't used to document your XmR charts; you'll instead use the spreadsheet template for XmR charts. But, you've may create with your measures team an agenda for a regular performance review meeting, and that's something that you can document in that report. You've

  • PuMP Performance Measurement Practitioner Certification Program Step 7: Interpret and Use Performance Measures for Improvement

    Stacey Barr Pty Ltd the Performance Measure Specialist

    www.staceybarr.com info@staceybarr.com

    Page 5 of 22

    ©Stacey Barr www.