december 10, 2007 denise shields shields resource group h&hs performance measurements evaluating...

December 10, 2007December 10, 2007

Denise Shields

Shields Resource Group

H&HS Performance MeasurementsH&HS Performance Measurements

Evaluating and Aligning Existing Metrics Evaluating and Aligning Existing Metrics

Definitions

I. Why Measure?

II. Identifying Key Measures

III. Integrating Measures

ContentContent

Shields Resource Group. Solutions for Better Business Results. PeriodShields Resource Group. Solutions for Better Business Results. Period

Performance Measures: Metrics that providefact based numerical information that quantifiesinput, output, and performance dimensions of products and services relevant to key strategies.

Scorecard: A balanced performance measurementsystem that provides broad view of key and harmonizedresults.

I. I. DefinitionsDefinitions


Scorecard = DashboardScorecard = Dashboard


II. Why Measure?II. Why Measure?


To ensure a balance between the needs and requirements of our campus, customers, partners and team members

•To factually determine how well an individual and their organization did in progressing toward achievement of their mission and vision

•Aligns mission, vision, strategy, budget, workflow and personnel

•Provides team members with a clear understanding of what the organization values

•Identifies and quantifies opportunities for improvement or advancement

Why Measure?Why Measure?


Improvement can not be made without measure


III. Identifying Key III. Identifying Key MeasuresMeasures


Common Problems with Most Measurement Systems

•Too much data

•All financial

•Lack of external comparison

•Measures driving wrong performance

•Lack of balance


Measures Vary•Hard: Production, IT downtime, vacancy

•Soft: Employee satisfaction, absenteeism, injury rates

•Leading: Drivers such as future income, new leads, referral rate, intent to re-purchase

•Lagging: Outcomes such as expenses, grades in school, customer satisfaction, profit


Key Measurement Systems Key Measurement Systems

Scorecard Measures should include…

• a link to Mission, Vision, and Strategies

• a mix of 18-25 key measures

• goals, actual results, benchmark comparisons, prior year results


Components to Components to Measurement SystemsMeasurement Systems

•People (Customers and Employees)

•Processes (Improved business processes, learning and innovation)

•Financial (financial management)


Balance Balance

PeoplePeople

ProcessesProcesses

FinancialFinancial


Sample Metrics

People (Customers and Employees)•Customers

•Satisfaction (could be 3-5 key measures)•Return rates

•Employees•Satisfaction•Productivity•Retention/Promotions•Training/Education•Recognition


Sample Metrics

Processes:•Work orders completed•Telephone hold times•Wait time for housing•Number of supplies delivered on time Financial:•Performance to budget•Expense control•Financial ratios•Cost per meal served


IV. Integrating MeasuresIV. Integrating Measures


To integrate Measures, linkage to To integrate Measures, linkage to Strategy is Key.Strategy is Key.


6

P. Angelis

SLT

Managers

All the way to the people who do real work!

The Leadership Shadow


Aligning Your Organization

Individual ProjectsNon-Aligned Department

Objectives= Standstill= Standstill

Company Direction Setbut no Mechanism to align

organization= Some Movement= Some Movement

Fully Aligned Linkageto achieve Company

Goals

Pre-Scorecard Organizational Scorecard

Workgroup and Individual Scorecard


Cascading Dashboard System

H&HSMission/ Vision

Statement

Strategic Objective

# 1

Strategic Objective

# 2

Strategic Objective

# 3

Dashboard Measures

Dashboard Measures

Dashboard Measures

ManagersOperational Goals



Individual Goals

Individual Goals

Individual Goals

Individual Goals

Cascading Goals


Guidelines for Development:

•Verify or develop Mission and VisionVerify or develop Mission and Vision•Verify strategiesVerify strategies•Develop key metricsDevelop key metrics•Verify or develop strategic plan linkageVerify or develop strategic plan linkage•Develop deployment planDevelop deployment plan•Develop collection planDevelop collection plan•Assign ownershipAssign ownership•Communicate throughout organizationCommunicate throughout organization


Good Luck!!Good Luck!!


december 10, 2007 denise shields shields resource group h&hs performance measurements evaluating...

Documents

better business results

profitshields resource

measureshields resource

actual results

period scorecard

period improvement

period measures varyhard

period components