dmem centre for strategic manufacturing team performance measurement jill macbryde & kepa...
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Team Performance Measurement
Jill MacBryde & Kepa MendibilCentre for Strategic Manufacturing
University of Strathclyde, Scotland
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gFeedback - Australia July 2001….
• Increasingly companies in Australia are adopting team-based approaches to work
• But many companies are not achieving the benefits they thought they would get from teams
• And many people working in teams are dissatisfied• Real interest in team performance management• Companies want a simple tool that they can use at
any level of the organisation What to measure How to measure it
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gFeedback – UK 2000-2002
• The story is the same…. I don’t think we will ever get the best out of our teams - not when
the reward system is an individual one and people are shooting each other in the back!
We have a team that consistently performs well - how can we get the other teams to perform at this level ?
How can we continue to motivate staff when we have taken away so many middle management jobs ?
I want teams to manage themselves more! How do we create measures on which to base team variable pay ? How can I define performance measures for “hard to measure”
white collar jobs ? I want a system to manage my team’s performance – but if I wait
for the senior management to buy into some system then I’ll be waiting a long time!
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FUNCTIONS
Manage processes
Support processes
PR
OC
ES
SE
S
Operate processes
Confusion!
The horizontal processes pull people in one direction;
the traditional, vertical, management systems pull them in another!
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gSo why teams?
• Many people don’t seem happy with their team performance….
• So why are we using teams more?• And are teams really the way forward?
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gWhy Teams ?
• Working effectively, teams can result in: increased flexibility cost savings focus on the customer innovation and continuous improvement ownership & responsibility happier staff etc.…...
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gWhat the “consultants” fail to tell you…
• It’s not about teams; its about performance• It’s not about individuals; its about organisational
design• It’s not about structure as much as its about
management philosophy• Its not about empowerment; its about responsibility
and accountability
• …..and that’s the bits that we will try to help you sort out today….
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gWhy Teams ?
• Some examples of good team performance management: Litton Rank Zerox Dutton Engineering
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gWhy Teams ?
Litton Interconnection• teams run their own mini-business• no job is a black box• everyone receives basic manufacturing training• customers are much happier • team members are more motivated• flexibility• the team is responsible for recruiting, scheduling
etc..• shared values
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gWhy Teams ?
Rank Zerox• self managed teams• productivity up• employee satisfaction significantly up• training was important• flexibility
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gWhy Teams ?
Dutton Engineering• annual hours• effort put in when its needed• healthy competition• order fulfilment improved• employee satisfaction
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gSo what’s the success factor?
• We believe establishing a team performance measurement system is central to success
• But you first have to recognise the things that will contribute to team performance Many performance measurement systems measure the
process (output, quantity, quality etc.) But often measuring the process is not enough Some measure individuals contribution (skills, attitudes,
output etc) But often the way we measure individuals is counter-
productive to the team or process effort
• We don’t want measures that just report on the past• We want a performance measurement system that
will help the team look forward as well as back.
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gAgenda for the day
• Introduction and background to our work• Introductions – tell us about your team
***• What influences team performance?• What should we measure?• Introducing the team performance measurement
workbook***
• Using the workbook to design your own team performance measurement system
• Group presentations & discussion***
• Next steps – what you should do next• Feedback & close
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Introduction and background to our work
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gBackground to CSM
• The Centre for Strategic Manufacturing (CSM)
• Based within the University of Strathclyde, Glasgow
• Our Mission - to facilitate performance improvements in manufacturing industries
• Core areas of expertise: Business process improvement Performance measurement Strategy management
• It was whilst working with companies in these areas that the issue of team performance surfaced
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gInitial Project
• Funded by UK Government through the Engineering & Physical Sciences Research Council (EPSRC)
• 5 initial collaborators IBM
UDV
Highland Spring
Rolls Royce
Applecross Properties
• Comparative study between industrial partners and ‘best practice’ organisations
• Identifying the things that contribute to team performance
• Developing a framework of what to measure
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gInitial Findings
• We found no performance measurement system that included all critical aspects we believed to affect team performance
• Organisations told us they would like a practical tool that will help them to manage their teams
• So we set about develop such a tool • And the workbook that you have in front of you is the
output!
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Introductions – tell us about your team!
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What influences team performance?
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gWhat Influences Team Performance ?
• Before we can design a team performance management system it is necessary to first look at the critical factors influencing team performance.
• We looked at the literature on teams and performance management
• We visited companies that we believed to be “best practice”
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gWhat Influences Team Performance ?
• Factors identified as being major contributors to team performance: Alignment with strategic objectives Understanding the desired outcomes The existence of a performance measurement system The skills and abilities within the team (eg. education, ability
to tackle problems etc) Organisational support & management (training &
development, keeping the team informed, rewarding, motivating etc..)
Type of team (eg. task force, project, self-directed etc.)
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Lets look at these things that contribute to team performance in more detail…
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gAlignment
• The team needs to know what the organisation is trying to achieve
• The team should also be aware of the measures that are important to the organisation
• The team should be able to see how they are helping the organisation to achieve its objectives
• In today’s workshop this is one of the first things we will do… look at what your organisation is trying to achieve look at what is being asked of the team And ask if there is alignment
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gUnderstanding the desired outcomes
• It is human nature - people to want to be appreciated• People want to know what is being asked of them -
knowing where the goalposts are!• Achieving the desired outcomes should be
celebrated and can help with affirmation of the team• In the workshop we will help you to establish what
the desired outcomes of your team process or task are…
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gThe existence of performance measures
• Its true what they say…
“What gets measured gets done!”• Measuring performance provides information to help
with training, coaching, rewarding etc..• Performance measures help to create a positive
feedback cycle• Later in the workshop we will help you to develop the
appropriate measures for your team.
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gTeam skills, behaviours etc.
• In order to successfully achieve their process objectives the team will need to develop certain competencies and capabilities… Skills Experience Team dynamics Leadership Communication Attention to quality Creativity Flexibility etc…
• Different teams will have different requirements in terms of competencies and capabilities
• In the workshop we will help you to establish what “enablers” will be crucial for your team…
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gOrganisational support and management
• The organisation needs to support the team in order for them to achieve their objectives.
• For example the team may need.. Information Access to resources Spreading best practice Trust etc…
• Different teams will have different requirements in terms of support they need from the organisation
• In the workshop we will help you to establish what organisational “enablers” will be crucial for your team…
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gType of team
• Teams come in different guises• Some of us work in one team on one process• For others we will be part of many teams that are put
together for specific purposes eg. a task force• Before we develop performance measures we need
to take the type of team into consideration
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gWhat type of team do you have?
Type of Team DescriptionWhich Type?
Simple Problem-Solving Team
Address intra-unit problems over a fixed time frame. Membership is mandated, and the team is reactive and tactical
Task Force
Composed of members from various departments or functions - brought together to research, propose, and recommend solutions to one specific functional problem
Cross-Functional Team
Similar to task forces, but implement what they propose and recommend
Self-Directed Work Team
A small group of employees who are responsible for carrying out a significant piece of work. This team is empowered to control their work environment and to strive for self-sufficiency
Virtual TeamA team where members are from different departments, organisations, or locations, or where members work in the team for different durations
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What should we measure?
- the building blocks of the team performance measurement system
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g COMPANYSTRATEGY
TEAM PERFORMANCE MEASURES
BUSINESS PROCESS PERFORMANCE MEASURES
ORGANISATIONAL PERFORMANCE MEASURES
•What do we want the process to do?•Business process objectives•Business process measures
•What does the team need to do?•Team competencies (KSA)•Team processes
•What is the team currently doing? How does this affect process performance?•Improvement action plan•Team performance measures
•Team processes and outputs•From individual and team perspectives
•What do we want the company to achieve?•Organisational goals
•What does the process need to do?•Process objectives•Requirements
•What is the process currently doing? How does this affect organisational goals?•Improvement action plan•Process performance measures
•What do we want the process to do?•Business process objectives•Business process measures
•What does the organisation need to do?•Provision of resources•Transfer ‘best practices’•Training
•What is the organisation currently doing? How does this affect process performance?•Improvement action plan•Process performance measures
•What do we want the team to do?•What does the organisation need to do?
•Leadership, give direction, empower•Education, training•Motivate, reward
•What is the organisation currently doing? How does this affect team performance?•Improvement action plan•Organisational performance measures
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2“SETTING THE RIGHT
ENVIRONMENT TO ENSURETHAT THE TEAM AND THEPROCESS PERFORM AS
EXPECTED”
STRATEGYDEPLOYMENT
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gThe process we will follow
2. The Team Enablers2.1 understand what the team needs to do to achieve the process objectives2.2 identify team objectives2.3 establish the appropriate measures to check performance against objectives
1. The Process1.1understand what the outputs of the team task or process are1.2 identify process objectives1.3 establish the appropriate measures to check performance against objectives
3. The Organisational Enablers 3.1 understand what the organisation needs to do to help the team to achieve its process and team objectives3.2 identify organisational objectives3.3 establish the appropriate measures to check performance against objectives
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g1. Identifying Process Objectives
• The first thing we have to establish is the objectives of the process that the team is responsible for
• What we mean by a business process is a series of linked activities, with a clear output that adds value to the business or to internal stakeholders
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gQuestions we need to ask…
• Who are the “customers” of the team ?• What does the process team deliver to the
“customer” ?• What performance criteria are the “customers” using• What is the organisation really paying this team to
achieve?
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g2. Identifying team objectives
• Having established the process objectives we now need to ask: what does the team need to do to achieve these
objectives What sort of competencies and capabilities will they need Can we set objectives for the team to gain these
competencies and exhibit these capabilities
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gQuestions we need to ask….
• What sort of behaviour is required to achieve the process goals ?
• What are the values you want the team to share ?• Are there any procedures or processes you want the
team to adhere to ?• What level of teaming is required ?• How crucial is communication amongst the team ?• What competencies are important ?
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gCritical success factors – team enablers
Type of Team critical success factors (TEAM)
Simple Problem-Solving Team
- Members should have the expertise to focus on the problem and solve it- The team should be highly committed to the task- Employees need to have initiative- Employees need to be willing to accept responsibility
Task Force
- Innovation should be encouraged- Team members need the relevant skills and expertise to complete the task- The team needs to have good co-operation and little conflict- Team members need to be flexible
Cross-Functional Team
- As Task Forces
Self-Directed Work Team
- Innovation should be encouraged- The team focus should be on the customer and performance- The team culture should be highly participative- Employees should be willing to work under flexible working rules- A highly skilled workforce is required
Virtual Team- Team members should have the communication skills to work in a virtual environment
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g3. Identifying organisational objectives
• The team will need to be supported by the organisation
• We now need to establish what the organisation can do to support the team in achieving its process and team objectives
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gQuestions we will ask…
• What knowledge does the organisation need to provide the team with ?
• What technology does the team need ?• What other resources are required ?
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gCritical success factors – organisational enablersType of Team critical success factors (organisational resources - process)
Simple Problem-Solving Team
- Management should be involved on an on-going basis- Investment in training is needed to encourage commitment from employees- Decision making should be decentralised- There should be a participative, communicative culture- Significant training is required to ensure team success
Task Force
- The team needs to be given time to plan the project effectively- The team need training in the following areas - business planning, performance management, team design and development, and process consultation- The team require substantial organisational support
Cross-Functional Team
- As Task Forces
Self-Directed Work Team
- There should be no barriers to communication and co-operation- Significant training of employees to help them complete their tasks is vital- The organisation should be adaptable to change to accommodate the team
Virtual Team
- Team members should be aware of any cultural differences and act to avoid damage to productivity- Technology should be in place to allow effective information sharing
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Introducing the team performance measurement workbook
- how to build your own measurement system
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gUsing the workbook to set objectives
• The workbook will help you to look your own team and the context within which the team is working
• It will help you to set objectives each of the three areas (building blocks) Process objectives Team Objectives Organisational Objectives
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gMeasuring performance against objectives
• Having established objectives in the three areas we then need to think about how we measure: How the process is performing against the process
objectives How the team is performing against the team objectives How the organisation is performing in terms of the support it
is giving the team
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gCreate Measures
• Not everything can be measured with numbers• Good measures are those that can be observed and
verified by someone else• Measures are the yardstick used to judge how well
you have performed on each result• General Measures
quantity quality cost timeliness
• Specific Measures numeric measures descriptive measures
• In the workshop we are going to use the catalogue of measures developed by the Centre for Business Performance at Cranfield University.
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gProvide Feedback
• Need to give both positive and negative feedback• Effective tracking systems are:
relevant frequent immediate specific
• Data Collection Decisions what data to collect when to collect it who should collect it who should receive it how to collect it
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Questions ?
……lets go do it!
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gAgenda for the workshop
• Understanding the process the team is responsible for• Setting process objectives• Establishing appropriate process performance measures
***• Understanding what is needed from the team• Setting team objectives• Establishing appropriate team performance measures
***• Understanding what the organisation needs to do to support
the team• Setting organisational objectives in relation to the team• Establishing appropriate organisational performance measures
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Next Steps
What you can go and do next…
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gWeight the Objectives
• Weight is a percentage that describes the relative importance of a result
• Weights can help the team prioritise and manage their time
• Weights help the team member prioritise both team and individual results
• Lack of priorities can cause problems: confusion about what is important lack of shared vision people will complain about their “lack of credit” for their
contribution
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gLinking Team and Individual Objectives
• Human nature - people want to be recognised for their individual contribution
• Evaluating individual performance provides information to help with training, coaching, rewarding etc..
• Rewarding outstanding contribution may be valuable - even in a loosing team
• The problem is, how do we make sure the team and individual measures don’t conflict ?
• You might want to draw up a matrix• This may help team members to understand how the
team’s objectives/deliverables fit with their own priorities
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gLinking Individual & Process Objectives
Process Objective 1
Process Objective 2
Process Objective 3
Team Member 1
Team Member 2
Team Member 3
Process ObjectivesT
eam
Mem
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gTeam Measures Matrix
Team Individual
Process Performance
Measures
eg. output, waste, productivity, lead-time etc.
eg. parts made, calls handled, reports collated etc.
Teaming Performance
Measures
eg. absenteeism, decision making, problem solving etc.
eg. behavioural aspects (trust, supportive behaviour, collaboration etc)
Team Management
Measures
eg. transfer of best practice, alignmnent, balance etc.
NA
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gObjective-Performance Matrix
Objective/
Weighting
Performance
Standards
Actual Performance
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gTo conclude
• Hopefully you are leaving today’s workshop with a better understanding of team performance management
• You should have the basis of a team performance measurement system which has been designed to suit your own team situation
• You know what you should be measuring • And you have discussed which measures are
appropriate to your team, taking into account: the company strategy the type of team the process or task objectives (process objectives) the team competencies and capabilities (team objectives) the organisational support needed (organisational
objectives issues surrounding data collection
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gStill to do…
• Back at work you might consider weighting the objectives – to help the team prioritise and manage their time and resources
• And you may choose to link the team objectives and measures to individual objectives, measures and rewards
• But the main thing is to put your team performance measurement system in place – and start collecting the data – so that you can start to see the areas where performance needs to be improved
• And don’t forget to review the measures you are using on a regular basis!
• Good luck….
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Questions?
We welcome feedback….
…. and let us know how you get on!