Why would I use Key Performance Measurement?
One of your tasks as a manager is to always know how you and your team are performing against company goals and targets.
To do this, you must measure the various processes in your department.
Based on the long-term plan you have received and the output you require to meet demand it is possible to put in place simple measurements to obtain the feedback you require.
If you are not so fortunate to have guidelines or standards to work with you can still put the measurement in place.
When do you know performance measurement is necessary?
Some managers will measure anything that moves but still achieve the same result.
It is therefore critical that you plan your performance measurement process as well if not better than anything else you are responsible for.
Performance should be in place from when a new process is started so that you can monitor the process and ensure that is working according to plan.
In this case, we presume that we are looking at a process that was started or a person who was employed without thinking it through.
Most managers will start measurement when they have no other solution and killing fires does not help any longer.
Let's just say some start measurement when the situation becomes unmanageable.
Where do I start my performance management?
Operationally certain signs are initiators for starting immediate performance management and these are:
- Process failures that result in loss of income or time.
- People's performance affects the effectiveness of processes and controls.
- Stoppages due to equipment or machinery failure.
This is the only way to get more information that will assist in finding solutions to your problem.
It will also enable you to set standards against which you can measure new observations.
If you had done this from the start the situation could have been avoided by means of early deviation detection.
How will I know what to measure?
In any organization, there are basically three inputs for work processes and these are:
- People
- Machinery & Equipment
- Money
It is, therefore, logical to split your process into these three and start measuring each separately to see how it impacts the process as a whole.
Once you start measuring you will soon detect patterns and be able to establish standards.
The feedback you receive from the information will assist in your future decision-making. It will also be easier to rectify and re-align deviations.
Remember you are not just collecting information but you are also building your verifiable knowledge of your business and the processes that make it work.
Also coming soon is our blog post on "How to identify Key Performance Indicators". Don't miss it.
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