202 Tips Free

202 tips for
performance
measurement
don't waste time making mistakes that
others have already learned from!
STACEY BARR
202 TIPS FOR PERFORMANCE MEASUREMENT
202 tips for performance

measurement
If you have a copy of this report without purchasing it from Staceys online store
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without receiving a copy directly from Stacey, then it is an illegal copy.
You can purchase a copy at www.staceybarr.com/pumpshop/202tips.htm or
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202 tips for performance

measurement
don't waste time making mistakes that others have already
learned from!
ISBN 1-921011-01-7
Written and published by Stacey Barr.
Stacey Barr, May 2006
For additional information about how to make your performance measurement

system a lot more usable and a lot more useful, visit www.staceybarr.com and
explore a wide range of performance measurement resources.
Contact Stacey with your feedback about this book!
No part of this book may be reproduced, transmitted, re-posted or duplicated in any form or by any means without the direct
permission of the author and self-publisher, Stacey Barr. If you wish to quote a tip from this book, you may do so providing
you acknowledge the author where you quote that tip.
Disclaimer: The information provided is for the purpose of expanding the awareness of the reader of how to effectively design,
develop and use organisational performance measures and the author accepts no responsibility for the subsequent use or
misuse of this information.
thanks!
A heartfelt thankyou to those who gave me the feedback to improve this book and
make it more useful and more usable for others!
Vanessa
Suleman
Philip
Paul
Michael
Leona
John
Andrew
contents
an introduction.........................................................................................................................6
how to use this book ........................................................................................... 6
a framework for performance measurement ....................................................... 7
phase 1 : select useful measures of performance..................................................................8

consciously adopt a performance measurement framework............................... 8
decide which outcomes are most worth measuring ............................................ 8
design measures that provide objective evidence of your outcomes ................ 10
understand the relationships between and among measures........................... 12
define your measures to specify how to bring them to life ................................ 13
phase 2 : collect data with realistic integrity..........................................................................15

understand your data requirements thoroughly ................................................ 15
manage the integrity of your data...................................................................... 16
design cost-effective data collection processes ................................................ 16
forms and questionnaires should facilitate easy, cost-effective data collection. 18
phase 3 : store your data for easy access ............................................................................19

standardise and organise your data to make it easy to find .............................. 19
integrate your data to get cross-functional use out of it..................................... 19
capture your data in a way that preserves its integrity ...................................... 20
access your data in preparation for analysis ..................................................... 20
phase 4 : analyse performance data to create information ..................................................21

know the purpose of your data analysis............................................................ 21
summarising your data first helps you get to know it......................................... 21
explore your data for patterns (thats where the real answers are) ................... 22
test to decide which patterns you can trust ....................................................... 23
phase 5 : present your performance measures ....................................................................25

design graphs to make them useful for decision making .................................. 25
decide the most useful structure and content for your performance reports ..... 27
use layout and formatting to facilitate valid and easy decision making ............. 28
ensure your reporting process and tools support decision making ................... 28
phase 6 : interpret what your measures are saying..............................................................30

know when a difference is really a difference ................................................... 30
assess if you are on target (or not) ................................................................... 32
phase 7 : apply your measures to improve performance......................................................33

use measures to review your plans................................................................... 33
be clear about the role of measures in decision making ................................... 34
make improvement stick by fixing root causes.................................................. 35
the most useful targets dont come out of thin air.............................................. 36
overall: implementing your performance measurement system ...........................................38

engage the right people in the right ways ......................................................... 38
integrate with other management processes .................................................... 39
know what success will look like ....................................................................... 39
plan it like a project ........................................................................................... 40
references for further discovery ............................................................................................41

in a bookstore ................................................................................................... 41
on the internet ................................................................................................... 45
ideas for where to next..........................................................................................................47
an introduction
how to use this book
If you are looking for some extra ideas, for a way to reflect on what you
have been doing with performance measurement or for a quick reference to
keep at the tip of your fingers, then this little book will be worth keeping on your
desk.
This book is not designed as an implementation guide for organisational
performance measurement, but as a supplement to what you already have in
place to design, build and implement your organisations performance measurement
system. If you want more specific guidelines and how to information for
organisational
performance
measurement,
let
me
know
(staceybarr@staceybarr.com) and Ill do my best to help you find what you need.
Here are some ideas for how to use this book:
If you are working on a specific aspect of performance measurement, such as
designing a report, working out data requirements, or trying to decide what to
measure, read the contents page to find the most relevant topic
and read the tips in that section to help expand or reinforce the approach you
take.
Bit by bit, build up your knowledge about what excellent performance
measurement is, by reading and reflecting on one tip per day or
randomly flick through the pages and read what jumps out at you or scan
your eyes over the highlighted summary words in each tip or open a
page and read a tip while you are waiting on hold on the telephone, for a
train or bus, or while you eat lunch.
Share the ideas with others involved in performance measurement activities, by
taking the book to your performance measurement development/implementation
team meetings or share a tip with someone you know who reports
performance measures or someone who uses them.
Make yourself a coffee or hot chocolate or herbal tea and visit one of the
internet sites listed in the references.
Read through the list of references in the back and take the book to your
favourite bookshop and have a look at the books that sound most useful or
interesting to you.
Its all about gradually growing your knowledge and wisdom about how to create
fabulous feedback that helps you and your business improve until you really shine!
I hope you have fun and really benefit from using this book. I had a great time
writing it it always feels good to reflect on your experiences and list out all the
things you learned from them!
AN INTRODUCTION
a framework for performance measurement

This book is a collection of the many mistakes and innovations and discoveries and
learnings that I have had over 10 years as an organisational performance
measurement consultant. Because there are so many of them (1001 to be exact), I
have organised them into seven chunks, each chunk being a phase in the
Performance Measurement Process, or PuMP as it is more
commonly known.
PuMP comprises 7 phases that collectively encompass every activity you can
possibly associate with performance measurement:
Selecting what to measure means being centred on the outcomes
that matter most to you and your business. Define your measures
by carefully considering what form the evidence of these outcomes
takes.
The process of collecting data is critical to its integrity and can be
2. collect
very resource intensive. Its worth giving serious consideration to
how you will go about it, so that your data can be fit for purpose.
Where and how you store your data directly determines what data
3. store
you can access, when and how quickly you can access it, how easy or
difficult it is to access and how much cross-functional use you can
get out it.
4. analyse Analysis is the process of turning raw data into information. Make
sure it is the most appropriate information by adopting the simplest
analysis approach that can produce the information in the form
required to answer your driving questions.
5. present In communicating performance information, you are influencing
which messages the audience focuses on. Take care to present
performance measures in ways that provide simple, relevant,
trustworthy and visual answers to their priority questions.
6. interpret Interpreting your performance measures means translating
messages highlighted by performance information into conclusions
about whats really going on. To turn information into implication,
you must discern which messages are real messages.
When you have worked out what is really going on with your
7. apply
organisations performance, you are ready to make some decisions
about what to improve, how much to improve it by and how to do
that improving.
1. select
Each chapter focuses on one of the above phases of PuMP, and it will begin with
some more information about that phase to set the scene for the tips that feature in
that chapter.
PAGE 7 OF 47
PHASE 1: SELECT
phase 1:
select useful measures of performance

Selecting what to measure means being centred on the outcomes that
matter most to you and your business. Define your measures by carefully
considering what form the evidence of these outcomes takes.
When it comes to selecting performance measures, many people have simply
brainstormed measures they could potentially use, looked at the data they have
available to see what they could measure, adopted measures from other
organisations in their industry or measured what others told them to measure. Non
of these approaches has ever really lead to tremendously useful performance
measures that could claim to have enhanced organisational learning and
improvement.
The SELECT phase of PuMP is about making the selection of performance
measures more conscious and deliberate with a focus on strategic direction or the
outcomes that really matter. Its topics cover:
the fundamental framework that helps to identify the types of outcomes worth
measuring
designing measures so they are linked to (and provide objective evidence of)
important outcomes
defining measures to remove ambiguity and fluff, and detailing how they will be
brought to life
consciously adopt a performance measurement framework

tip 1
When you select a performance measurement framework, check that its

underlying premises and assumptions align with the culture and
vision of your organisation. Make sure that what you measure is
motivating and meaningful for the stakeholders of your organisation.
tip 2
The Balanced Scorecard by Kaplan and Norton [ref 5] doesnt tell you HOW
to measure, it helps you decide WHAT to measure. It is only ONE of
many different frameworks for deciding what to measure. Have a
look around to see what else you have to choose from: The Performance
Prism [ref 21], OPM [ref 31], Triple Bottom Line, EFQM [ref 32], ABEF
[ref 33], Malcolm Baldrige Award [ref 34], what else can you find?
decide which outcomes are most worth measuring

tip 3
Many organisations believe performance measurement is about measuring

people. Performance management, performance appraisal and other terms
are used for the same thing. If you want a high performing organisation,
then dont measure people, measure processes and outcomes instead.
The organisation works for the people, not the other way around, as many
believe and have never questioned. Dare to test your assumptions about this
PAGE 8 OF 47
PHASE 1: SELECT
by reading books like Peter Senges The Fifth Discipline [ref 8], Tom
Coens and Mary Jenkins Abolishing Performance Appraisals [ref 1],
Margaret J. Wheatleys Leadership and the New Science [ref 16] and
Margot Cairnes Approaching the Corporate Heart [ref 4].
tip 4
tip 5
tip 6
Try to pay attention when people seem to be hesitant to

measure something you might even hear comments like if we
measure this, it might show how bad things are or lets measure the things
we are doing well. These kinds of comments are symptomatic of a few
things, in particular a lack of appreciation that measurement is not about
proving, its about improving.
Peoples reluctance to measure things can also be symptomatic of an
unhealthy performance culture, where blame and scape-goats dominate over
curiosity and innovation. Do what you can to reinforce that performance
measures are feedback about the systems and processes and behaviours,
performance measures ARE NOT feedback about people.
If you are stuck for what to measure, try starting with listing all
the stakeholder groups of your organisation (or department or
process), then find out for each stakeholder group the 2 or 3 attributes that
are currently most important to them about your organisation (or
department or process) and are currently not performed very well by your
organisation (or department or process). Measure and improve those
attributes.
tip 7
A very clear, concise strategic direction is essential before you can expect to
develop really useful performance measures. Make sure your vision,
mission, strategies and goals are all worded in rich, descriptive,
sensory based language [ref 14] that evokes clear mental
experiences of what the future will be like when you have achieved them.
These descriptions will make it easier to select measures.
tip 8
Kaplan and Norton introduced the term strategy mapping [ref 27] which is a
method of laying out the various components of a strategic direction and
examining the relationships between them. The Balanced Scorecard [ref 5]
is their template for identifying and categorising and linking components of
strategy, but the same concept is useful even if you dont subscribe to the
Balanced Scorecard. The basic idea is to visually map all the
specific outcomes needed to bring your strategy to life,
linking them together in cause-effect and companion relationships. See an
example at
http://www.staceybarr.com/resources/downloads/OutcomesMap.pdf
tip 9
Define each outcome or result or entity before designing the

measure or expect to spend a long time debating the measure and to end
up with a measure that is not going to give you the feedback you really
need. Begin with the end in mind, and Stephen Covey [ref 23] would say.
tip 10
Stocktake your existing performance measures by placing

them in a matrix based on the level of decision making they best serve
(strategic, tactical or operational) and the stakeholder group they best
PAGE 9 OF 47
PHASE 1: SELECT
respresent (shareholders/owners, customers, employees, partners,

communities). Where are the gaps? Where is the oversaturation?
tip 11
tip 12
tip 13
tip 14
What are your organisations values? Would improving performance based

on your current performance measures mean you would be living your
values, or working in conflict against them?
If you want to measure the effectiveness of your projects or
other change initiatives, and realise that on-time and on-budget
measures do nothing to help (they only measure a couple of dimensions of
efficiency), then use tip 16 to help you develop some measures for how the
project will impact on the business, how the project is tracking against its
objectives and how well the projects strategies are working.
If you can help people understand processes and process
thinking, they will find it much easier to decide what to measure for
feedback into the operational level of decision making. They just have to
define their process and assess how it impacts on the organisations current
strategic direction.
Help people understand how their work impacts on others such
as internal or external customers, internal or external suppliers and other
stakeholders as clues for what might be important to measure.
design measures that provide objective evidence of your

outcomes
tip 15
tip 16
tip 17
tip 18
tip 19
Remember that performance measures are objective evidence of the degree

to which an outcome is occurring. How much objectivity or
subjectivity do your measures have? What kind of evidence forms that
basis of the measures values?
If you want performance measures to be owned and used, then the
people to own them MUST be involved in the processes of
choosing the measures and defining them.
If you have identified a really useful measure, make sure you also identify
which person or people will be responsible for using the
measure. Measures have to be used if they are going to lead to
improvement.
What do you do if you believe something cant be measured?
Well dont give up straight away most people dont realise you can just
follow a simple process to come up with some potential measures fairly
quickly. First, describe the outcome to measure. Secondly, make it sensory
specific detail how it would look, feel, sound if it were happening. Thirdly,
brainstorm all the different things you could count (the evidence) that would
prove the outcome was occurring. These counts are your potential measures.
Choose the most direct, objective and feasible.
Often people will say we cant measure that because we dont
have the data for it. Be warned if you dont start trying to measure
PAGE 10 OF 47
PHASE 1: SELECT
important things, you will NEVER have the data your business needs.
Performance measures are one of the ways that decision makers articulate
their data needs to the IT people who are trying to design information
systems that align with business decision making.
tip 20
Are you trying to measure too much? Any one person can really only
effectively focus on at most 72 (that is, between 5 and 9) [ref 14]
performance measure at any one time. More than that and no one measure
will likely be managed well at all.
tip 21
If like TOC (Theory of Constraints) thinking, then you might connect with
the approach to measurement that Eli Goldratt offers. It is simply based on
using three measures of business performance,
Throughput, Operating Expense and Inventory, as the basic
building blocks of management information.
tip 22
A lead indicator is a performance measure that gives you forewarning of an

impending change in another performance measure (the lag indicator).
Usually they are measures of results or outcomes of activities or steps that
occur in the early stages of a process (or chain of events) that produces the
result or outcome tracked by the lag indicator. To find useful lead
indicators, you need to flowchart or map or diagram the chain of events
that lead to your lag indicator and test which steps in this chain are the
most influential on your lag result.
tip 23
tip 24
tip 25
tip 26
To be useful, you need to track your lead indicators with

greater frequency than the lag indicator they predict.
Dont aim for a perfectly complete set of performance measures before you
start bringing them to life. Instead, adopt an action learning
process whereby you focus on a small number of measures first, bring
them to life (which will iron them out a little more) and then use them to see
if they add the value you anticipated. Learn from this entire process and use
this learning to bring to life and use another set of measures.
Its better to have an imperfect measure that captures the
essence of what you are trying to measure than not measuring it at all.
Using the action learning approach (tip 24) so you can build some
momentum and accelerate your learning.
To get a head start on selecting measures, do a little industry research to
find out other best practice organisations are

measuring things. But DO NOT adopt any measure unless it directly
supports your strategic direction! It actually helps if you have formulated
your strategic goals or objectives before doing this kind of research.
tip 27
Avoid so-called measures such as completion of plan by June 06 or new IT

system in place. These are milestones or events and not measures at all
(nothing is being counted over time and there is no real comparison to guage
change). They are not really outcomes but more the chosen means toward
the outcome. Many an IT system has been put in place and not delivered its
PAGE 11 OF 47
PHASE 1: SELECT
intended outcomes! Always measure outcomes, not events or

milestones.
tip 28
tip 29
tip 30
Whatever you do, dont rely on brainstorming as a method for

coming up with measures. Its too easy to go off track or end up listing
potential measures that are no better than any measure you have ever used
in the past. The best measures are measures that provide direct and
objective evidence of the outcomes you want to track, so use tip 16.
Involve some people from outside the area of the business you are trying to
measure to help you get a fresh perspective. Encourage them to ask
dumb questions that challenge your current thinking and reframe the
ways you look at the purpose and outcomes of that area of the business.
Criteria for deciding whether or not to take up a measure can
really help clarify the selection process. Criteria might include: strength of
alignment to strategic direction, cost-benefit of data collection, degree of
influence you have over it, level of complexity or understandability, etc
tip 31
When you choose a measure to track a particular outcome, ask the question
what kinds of behaviour could this encourage people to
choose? as a way to check that measuring the outcome wont create any
other performance problems (you know, you measure cycle time and
everyone does their best to work faster at the expense of reliability of their
work or quality of their relationships with customers or other stakeholders).
tip 32
Its becoming common knowledge now, but check that you have a balance
between measures of finanacial performance and measures of
non-financial performance. Financial measures are very lag, and
make it hard for you to anticipate problems before they eventuate.
tip 33
It is possible that you might end up with a set of measures that track your
current strategic direction AND a set of measures that track business
as usual, which are outcomes you want to maintain or keep an eye on
even though you have no current intention to improve them as part of your
strategic goals.
tip 34
Do people in your organisation have a tendency to measure the

easy stuff? You know, the number of inquiries, the number of
transactions processed, the number of calls answered, and so on? These are
activity measures, and while somewhat useful for workload management,
they are not outcome measures and thus do not drive performance
improvement. Often you have little control over them anyway.
understand the relationships between and among measures

tip 35
Map the linkages between measures used at different levels of

decision making in your organisation, to show the line of sight of
operational measures up to tactical measures and then to strategic
measures. This measurement map will be useful to see at glance what is
measured throughout the organisation and how integrated the set of
PAGE 12 OF 47
PHASE 1: SELECT
measures is. See an example at

http://www.staceybarr.com/resources/downloads/MeasurementMap.pdf
tip 36
tip 37
Your measurement map (tip 35) can act as a road map for cause
analysis and strategy implementation. If you are responsible for
a small collection of measures, then look at the relationships your measures
have to others. Which measures are counting on you to improve your
measures before they can improve? Which measures would you look to for
leverage to improve your measures? Which measures should you be wary of
inadvertantly affecting through improving your own?
Your measurement map (tip 35) can help everyone in the
organisation understand how they influence

organisational success and sustainability. By understanding
which measures they directly affect, they can follow the linkages through to
the strategic level to understand why their improvement actions matter.
define your measures to specify how to bring them to life

tip 38
Define each of your measures so that it is clear what they really

mean. Consider writing a description, their intent, who owns them, how
they are calculated, what data items are required to calculate them, how
they will be charted and reported, and what kinds of responses should be
taken depending on which signal the measure gives.
tip 39
tip 40
tip 41
tip 42
tip 43
It helps to have a single, standard, organisation-wide

template for defining performance measures. It will make it easier to
manage all the measures and more efficient to report them (see phase 5).
When you define the intent of each measure, think about what
business question you are trying to answer with it, or what action you cant
take unless you have this information.
When you define the calculation formula for each measure,
try to be as mathematical as possible to identify each data item that will be
needed. For example, [sum (satisfaction_rating) / count (respondents)] is
better than average customer satisfaction. This makes the sourcing of the
data items less ambiguous and thus less likely for your measures integrity
to be compromised.
When you define the owners of each measure, consider different
types of ownership, such as the owners of the data items, the owners of the
defintion itself and the owners of the performance area being measured
(usually the one who uses the measure).
One way to check whether to invest in a particular performance measure is
to describe exactly how it will be used and interpreted if
you cant see any action or decision being taken as a result of using the
measure, then theres probably not much point bringing it to life. The time
to do this is when you are defining the measure, after you have defined its
intent (tip 40), calculation (tip 41) and owners (tip 42).
PAGE 13 OF 47
PHASE 1: SELECT
tip 44
tip 45
tip 46
tip 47
When everyone has an opinion about the "shoulds" of a

measure as you try to define it, there's a good chance that you haven't
converged on the specific entity you need to measure.
Keep your performance measure definitions in a
dictionary so people can keep up to date on the meaning of each
measure, keep track of changes made to measures, quickly identify which
measures are currently most important and have a specification for how to
consistently calculate and report the measures.
I use a Microsoft Access database for performance measure
defintion dictionaries which I share with clients. It makes it easier to
search for specific measures, track them using a unique identifier and
produce action plans for data collection and sourcing from the data items
section in the definition.
Make a very conscious decision about where you write your
performance targets: in your performance measure definitions, in
your performance reports or in your business plans? A conscious decision
means you have a clear rationale or reason.
PAGE 14 OF 47
PHASE 5: PRESENT
phase 2:
collect data with realistic integrity

The process of collecting data is critical to its integrity and can be very
resource intensive. Its worth giving serious consideration to how you will go
about it, so that your data can be fit for purpose.
Its too easy to limit your choice of performance measures just to the data you
already have available. Its a quandary, because we all know that the only way we
can get the data we really need is to ask for it. Thats why the COLLECT phase of
PuMP is so important. It provides the mechanisms for how to collect the data we
dont already have, but really, really need.
Using performance measure definitions as the starting point, the COLLECT phase
focuses on topics including:
defining very specifically and clearly the data requirements for each measure
understanding and managing data integrity
designing and implementing cost-effective processes for collecting data
designing forms and questionnaires that support data collection and preserve
integrity
understand your data requirements thoroughly

tip 48
tip 49
tip 50
tip 51
Check your performance measure definitions to see how frequently

the data items for each measure are required. Are the
measures calculated daily, weekly, monthly, quarterly or annually? Can
your data collection processes deliver data at the required frequency, or do
you need to revise the measure?
Tabulate a summary of your data item requirements by
collating them from your performance measure definitions (see tip 38). List
the data item names, descriptions, which measure(s) they are required for,
the source system (such as a database, if one exists) and whether or not
each data item is currently available and has sufficient integrity.
Where your data item requirement summary (tip 49) shows you need data
that is not currently available, you will probably want to consider
designing a data collection process to make it available. Read on for more
help!
Where your data item requirement summary (tip 49) shows you need data
that does not have sufficient integrity, you will probably want to
consider improving its data collection process to make build in more
integrity. Read on for more help!
PAGE 15 OF 47
PHASE 2: COLLECT
manage the integrity of your data

tip 52
tip 53
tip 54
tip 55
tip 56
It might help to ask users of your performance measures how

much integrity they require of the measures (not how much they
would like!). What percentage or amount of error can the measure have
before it becomes dangerous or useless? For example, is 5% too much error,
or is 10% still okay? This will depend on the importance of the decision
being made and how sensitive it is to small changes in performance levels.
Dont rely on data from volunteer surveys, like mail surveys. Response
rates of 9% (for example) can not be trusted to give you objective
information.
Just because you got a response rate that was unusually high
for this type of survey doesnt mean you got reliable data!
Good survey data can only come from a randomly selected sample.
Otherwise your data is biased. What happens if you make a decision based
on biased data? You usually get different results to what you need or expect,
and that almost always means wasted money, time and effort.
A good sample size IS NOT a particular percentage of a population. If
you have 1000 employees and you want to survey their satisfaction, a 10%
sample size is a purely arbitrary decision. Your sample SHOULD depend
more on how much variation in responses you are expecting (the more
variation, the bigger the sample size) and how reliable you want the
estimates to be (the more reliability you want, the bigger the sample size).
tip 57
tip 58
Survey statisticians and market researchers will have a formula that will
help you calculate your ideal sample size based on what you are
trying to measure through the survey.
You can actually measure the amount of integrity your
existing data has, by way of a data audit. This usually involves taking
a sample of records or data items from your database systems and checking
them against the original sources (such as people, forms or objects) for such
things as completeness (e.g. missing values), accuracy (e.g. typing errors)
and precision (e.g. the amount of detail). Ask your business or quality
auditors for advice.
design cost-effective data collection processes

tip 59
tip 60
Well designed data collection processes produce data with integrity:

relevance, reliability, representativeness and readability, realistically (or
cost-effectively). You will need to make a conscious decision about
how much you will invest in your data collection process and how
much integrity the resulting data will have.
If you are designing a new data collection process, involve the people
that will own or do the data collection in the designing. Refer also to
the data owners that might be nominated in the corresponding
performance measure definition.
PAGE 16 OF 47
PHASE 2: COLLECT
tip 61
tip 62
tip 63
tip 64
tip 65
tip 66
It is important to carefully define the scope of the population

you are collecting data from, or your data will end up being diluted or only
a partial representation of what you are trying to measure. For example, if
you want to measure the cycle time of order processing, dont just measure
one person or one team: your scope is all orders that are processed and so
your data collection should cover this entire scope (even if you just take a
random sample).
If you are finding the data collection effort for your defined scope (tip 61) is
going to be too overwhelming, then consider narrowing your
scope for a while until the data collection process becomes familiar and
bedded down. Then you might try widening the scope again. Just be sure
that when you report your performance measures, you note the scope that
the measure applies to.
Where can you automate data collection? Can a computer do what a
paper form is currently doing? Can an existing form be modified a little to
capture the new data you want?
Flowchart your data collection process(es) to understand how they

currently work, and therefore how you can modify them to improve data
integrity, data availability, data timeliness, or the impact the data collection
effort has on people who work in that process.
When your data is collected, where does it go? Straight into a database
system, or does it sit in a pile somewhere, or several piles in several places?
Data is a precious asset for any business, so take a deliberate approach to
how data is collated and captured after it is collected.
Always pilot test your data collection processes before going
live. This always surfaces things you cant anticipate, such as ambiguities
on forms or questionnaires, confusion in exactly how to collect the data,
practical constraints that prevent the data being collected in the way you
planned or that the data you collect isnt really what you need.
tip 67
When your data collection process has been designed, tested and had the
bugs ironed out of it, document it so becomes a resource to those
involved in the data collection process, which can help keep the collection
consistent as time goes by.
tip 68
If you are collecting data from stakeholders of your organisation, such as

employees, customers, shareholders, communities or strategic partners,
consider outsourcing the data collection process to help
respondents feel that they can be candid and their confidentiality wont be
compromised.
tip 69
Are you collecting more data than you need? Data collection
certainly costs time and effort and money and there are so many examples
of data collection processes that capture too much interesting information
and not enough useful information. Apply the interesting-versus-useful
test on each data item your organisation collects (not necessarily all at once,
of course).
PAGE 17 OF 47
PHASE 2: COLLECT
tip 70
tip 71
Consider (carefully, to avoid going overboard) what supplementary

data you might need in addition to the performance measure data you
are collecting. Supplementary data can be analyse to provide a context in
which to interpret your measures, by answering questions such as what
caused this change? or where is this happening the most? or is this result
the same for all customer segments?.
Who else might be already collecting the data that you need?
Another business? A government department? A market research agency?
Your suppliers? A university or business school? An industry association?
Why duplicate effort?
forms and questionnaires should facilitate easy, costeffective data collection

tip 72
tip 73
Have you looked at the design of forms used to collect data in your
organisation lately? Look for any opportunities to make them less
ambiguous, simpler, laid out in a way that is easier to navigate and use. The
design of your forms affects the integrity of your data like you wouldnt
believe!
Make sure that each field or question on your forms or questionnaires
focuses on a single construct. For example, instead of asking Are our
products exciting and useful?, ask Are our products exciting? and Are
our products useful?. This will reduce the ambiguity in your form
and thus improve the integrity of your data.
PAGE 18 OF 47
PHASE 3: STORE
phase 3:
store your data for easy access

Where and how you store your data directly determines what data you can
access, when and how quickly you can access it, how easy or difficult it is to
access and how much cross-functional use you can get out it.
PuMPs STORE phase is about how your organisation captures and retains and
manages and makes available the raw data that it captures. For performance
measurement to work well, timely access to a diverse selection of data is essential,
so data management systems need to be designed in a way that makes it easy to
find the data you need, and easy to extract it to.
The STORE phase of PuMP addresses the topics of:
standardising data items across the whole organisation
organising data into logical tables or repositories
being able to link data from different tables or repositories together, to answer
those cross functional questions
accessing data in preparation for analysis
standardise and organise your data to make it easy to find

tip 74
tip 75
tip 76
If you are collecting new data, consult with your IT person or team
before buying or building a new database system. Try to integrate with the
database systems you already have.
A data dictionary can be very useful when designing new
measures. Like a menu, it lists all the data items available in the
organisation, where they can be found, what format their values take, how
regularly they are collected, and so on. Very useful if you want to avoid
duplicating your data collection efforts.
Avoid keeping your organisations data stored in informal, independent
systems like spreadsheets or applications custom made for specific projects.
You get a much higher return on your data when it can be
shared and used around the organisation.
integrate your data to get cross-functional use out of it

tip 77
Many organisations have trouble linking data across

organisational boundaries. This is often the case when there are no
standard conventions for uniquely identifying data entities like assets,
customer orders, employees or cost items. If you wanted to know the cycle
time of processing customer orders, youd have to be sure that the code used
to name each order by the sales people who receive the order was the same
coding convention used by the people who fulfil the order. If not, you cant
PAGE 19 OF 47
PHASE 3: STORE
match up the received date with the completion date of each order without a
LOT of manual work.
tip 78
Getting access to data is equally important as capturing it. The way
that data is captured in a database system or other format (such as a

spreadsheet), limits how easy it will be to pull it out again so you can
analyse it and create the values of your performance measures.
capture your data in a way that preserves its integrity

tip 79
Data entry is one point where data integrity can be

compromised. Are there ways that you can get data entry software to
automatically detect some of the data entry errors that occur, such as values
out of range or values not in a predefined list?
tip 80
tip 81
What are your organisations protocols for protecting

confidential data? Do they prevent you from sourcing data for a
particular performance measure, or are you able to still calculate the values
of your performance measure without compromising confidentiality?
Who has access to data and who doesnt is an important to

decision to make, in order to prevent the datas integrity from being
comprised and to manage confidentiality.
access your data in preparation for analysis

tip 82
tip 83
tip 84
How much historic data is kept before being archived is one factor that
can really the limit the quality of analysis you can do on your performance
data. Most analyses of time series data (the majority of performance
measures are of this form) require a minimum of 20 to 30 consecutive
performance values. This means for a typical monthly measure, you will
only get a good quality analysis if you have 2 to 3 years worth of data.
Sometimes the process to actually extract or source the data
for your performance measures can be too difficult or technical
without the help of an IT expert. Consider working with the experts to
create some simple macros or queries that you can easily run each time you
need to calculate the latest value for your performance measure. Better still,
how can the calculation of your performance measures be automated
entirely?
Data analysis (to create your performance measure values) almost always
requires that you take (copy, really) a chunk of data out of its source system
and put it into the analysis package you will use. Think very carefully to
understand the format you need the data in to analyse it

before you extract or pull that data out of its source systems. For example,
do you want transaction level data, or summary level data such as weekly
totals.
PAGE 20 OF 47
PHASE 4: ANALYSE
phase 4:
analyse performance data to create

information
Analysis is the process of turning raw data into information. Make sure it is
the most appropriate information by adopting the simplest analysis
approach that can produce the information in the form required to answer
your driving questions.
Raw data is virtually never useful for assessing the performance of a process,
system or organisation its just too detailed. Because of natural variation, more
information comes from patterns in datasets than from individual points of data
alone. Thats why the ANALYSE phase of PuMP is so important it is the process
that turns the raw data into the information our performance measures are
intended to provide.
There are a few important topics associated with the ANALYSE phase of PuMP:
being clear about the questions you want the measures and their analysis to
answer
understanding the different processes of analysis (summarising, exploring,
explaining and predicting) and when to use them
know the purpose of your data analysis

tip 85
Write down the questions your performance measures and

information are supposed to answer before deciding what kind of statistical
or analysis technique will be most appropriate.
tip 86
tip 87
Find out who will be the users of your performance

measures and ask them what questions they are wanting the measures
to answer.
Find out the questions that users of your performance
measures have and are expecting the measures to answer for them, and
then choose analysis and graphical methods that best answer these
questions.
summarising your data first helps you get to know it

tip 88
Before you analyse your performance data, have a closer look at it. Check
for whacky values that might be errors or typos, check that the amount of
data is typical for that period, and if you find anything weird, check it out
with the people that collect the data. This is called cleaning your
data and will help you maintain the integrity of your performance
measure.
PAGE 21 OF 47
PHASE 4: ANALYSE
tip 89
One of the first things to do in data analysis is to get to know your data by
summarising it by calculating simple statistics like its average, minimum
and maximum values, median, mode, 25th and 75th percentiles and standard
deviation. These simple statistics help you understand the shape of
your data, so you are less likely to be mislead by the mean.
explore your data for patterns (thats where the real answers
are)
tip 90
tip 91
A mean or average doesnt really tell you enough about the

level of performance. Accompany a mean with other statistics that give you
a feel for the shape of variation in the level of performance, such as the
standard deviation, the range, the mode or median, or the quartiles (the 25th
and 75th percentiles). You can find out more about these statistics in any
good business statistics book or by looking for statistics pages on the
internet.
Avoid using straight counts or tallies as the values of your
performance measures (such as the number of transactions processed).

Performance is almost always a relative thing, and thus you get more
information when you use rates or percentages or averages (such as the
number of transactions processed as a percentage of the total number of
transactions received, the number of transactions processed per employee).
tip 92
tip 93
tip 94
tip 95
Remember that performance measures are most useful when you

are tracking a specific result over time in a regular way. This
will help you understand the dynamics of performance levels, that is, how
much the level naturally varies over time, when the level is changing, and
when something abnormal happens.
Analysis of performance data is more than just computing the values of your
performance measures its also about providing a context or
explanation around your performance measures. Consider
supplementary information like a Pareto analysis of the potential causes of
a change in performance, or a breakdown of your performance measure by
some relevant classifying factor such as region, customer segment or
business process. These supplementary analyses may require you collect a
little more data (see tip 70).
If you want to explore causal relationships between measures, then
try techniques like scatter plots or correlation or regression analysis. These
analyses test the strength of the relationship between variables, but beware:
just because there is a relationship, doesnt mean it is a causal relationship!
Use your common sense and curiosity to inquire further.
Did you know that you need a bare minimum of 20 consecutive
performance values before you can even begin to do a reliable trend
analysis? In fact, youll often need even more than 20 before you can see the
big picture pattern of variation in your performance values.
PAGE 22 OF 47
PHASE 4: ANALYSE
tip 96
If you are tracking your performance measures over time, then statistical
process control charts will be really useful for you they make
it really straightforward to decide how much the level of performance
naturally varies over time, when the level is changing, and when something
abnormal happens. A little more information about SPC charts are provided
in tip 97 and .
tip 97
When you have your minimum of 20 consecutive performance values, and

they show a reasonable amount of stability over time (i.e. no big changes or
shifts), then calculate the mean (average) of these values and put a straight,
horizontal line for this mean through a time series chart (line chart) of your
performance values. This mean line is a good benchmark for
deciding when performance really is changing or not.
Dont recalculate this mean line until you see a signal. The following tips
tell you about the signals.
tip 98
If you have implemented tip 97 where you added a mean line to the time
series chart of your performance measure values, then you might like to add
some additional, useful benchmark information, called control limits. The
control limits show you how much variation you can expect
from your current level of performance, unless something
fundamentally changes (like you change the process producing that
performance). The control limits are simply calculated as 3 standard
deviations above and below your mean line.
tip 99
After getting to know your performance data (tip 89), looking for patterns is
often what happens next. To explore your data for patterns, try
analysis methods like scatter plots, line charts, bar charts, box plots and
correlation coefficients.
test to decide which patterns you can trust

tip 100 When you have found some patterns in your performance data (tip 99) that
you would like to draw some conclusions from, you can test the
significance of patterns using techniques like regression analysis,
analysis of variance, and other tests of comparions like t-tests.
tip 101 If you just cant live life without linear trend lines (I suggest you should find
a way), then always report the R2 (r-squared) statistic with

the trend line. This statistic takes a value between 0 and 1 (or 0% and
100%) and effectively tells you just how good your linear trend line is at
conveying the message in the data. The lower the R2 value, the less
confidence or trust you should place in your trend line as any kind of useful
conclusion about what performance is doing.
tip 102 If you have a theory about a potential lead indicator for a performance
measure (such as cycle time as a lead indicator of customer satisfaction, or

customer satisfaction as a lead indicator for profit), find out more about how
correlation analysis can help you test the lead indicator

strength in predicting what the performance measure will likely do in
the future.
PAGE 23 OF 47
PHASE 4: ANALYSE
tip 103 Be wary of
data mining applications. They dont replace the need for
performance measurement (well, not yet anyway). Performance

measurement needs to be a very conscious process, where you deliberately
seek the answers to business questions around the achievement of goals.
Data mining is a more exploratory method of analysis to surface potential
trends or patterns you were otherwise unaware of. These trends or patterns
may not necessarily mean anything, either.
PAGE 24 OF 47
PHASE 5: PRESENT
phase 5:
present your performance measures

In communicating performance information, you are influencing which
messages the audience focuses on. Take care to present performance
measures in ways that provide simple, relevant, trustworthy and visual
answers to their priority questions.
This phase of PuMP is about how you design graphs and visual reports that
present performance measures to their audiences. Its important to be aware of how
they will use the measures, how to make the measures easy to interpret and how to
not overload the audiences with too much detail!
The topics relevant to the PRESENT phase of PuMP include:
choosing the right graph type
formatting graphs to ensure integrity, simplicity and a focus on patterns, not
points
designing performance reports that are easy to access, easy to use and targeted
at the needs of those that use them
design graphs to make them useful for decision making

tip 104
Dont take your graph design for granted! The design of your
graphs has a HUGE impact on how well they are used, IF they are used,
and the validity of the conclusions users draw from the data they present.
tip 105 The purpose of graphs are to make huge amounts of quantitative
information more easy to digest. So, keep your graphs as simple as

possible or they wont be adding anything useful to your ability to use
your performance measures wisely and effectively.
tip 106 To keep your graphs simple, try getting rid of what Edward R. Tufte [ref
21], a visual information expert, refers to as chartjunk all the stuff on

your graph that uses ink but doesnt add useful information. Typical
chartjunk includes grid lines, extra tick marks, long titles and explanations,
self-explanatory legends, borders, kooky fill patterns (like checkers or
stripes).
tip 107 If you use gridlines in your graphs, ask yourself the question, what
purpose are do the gridlines serve? If it is to encourage users to

focus on the value of individual points of data, then why do you have the
graph? Graphs are about highlighting patterns and signals and are not
supposed to be another form of a table.
tip 108 If you must use them in your graphs, make sure your gridlines
are
very fine and light in colour so they can serve their purpose
without dominating the data.
PAGE 25 OF 47
PHASE 5: PRESENT
tip 109 Do you need that many tick
marks? Are they really helping, or are they
just cluttering up the graph?

tip 110 Graphs are
not a canvas for artwork, they are a canvas for patterns
and signals in quantitative information. Little piles of coins dont make

useful bars in your barchart of revenue or expenses.
tip 111
Avoid using 3-dimensional charts as they have a tendency to

confuse the eye with the addition of sloped lines to produce the 3-D effect.
Nice straight horizontal and vertical lines are the best for visual
comparisons.
tip 112 There are some
useful things to include in your graphs to help
users interpret and understand what they are looking at, like a title or axis
labels that clearly explain the measure being charted, a legend if you are
reporting more than one variable, a footnote that clarifies the scope or
exclusions of your measure and sometimes even the source of the
information or data is helpful.
chop out the middle or chop off the bottom of your

scale on the vertical axis? So instead of starting at 0, you have your axis
starting from something like 350 (for example)? This practice over
exaggerates any patterns or signals in your data, and may lead users to
draw invalid conclusions.
tip 113 Do you ever
tip 114
tip 115
Avoid using pie charts to report performance. Pie charts are

very good for prettying up your annual reports or marketing material, and
sort of good for showing how big a single part is relative to its logical whole,
but are pretty much awful at helping you make performance improvement
decisions.
Bar charts work best with between 5 and 9 bars and for the
purpose of comparing the size of elements to one another. Avoid using bar
charts for time series data they just look like mountain range sillouettes,
not trend information.
tip 116 If you have charts that have stacked bars, grouped bars, area charts or line
charts with more than 3 lines on them, you have information overload. It
will take users quite a while to figure out what the chart is trying to
achieve, and they will be forced to look at individual numbers to figure out
trends or patterns. One chart per performance measure.
make your statistical process control charts look a little

less cluttered, try making your mean line light grey and solid, and your
tip 117 To
control limit lines light grey and dashed, both without symbols. The line for
your performance measure values can then take pride of place by using
colour and symbols to your liking.
tip 118 Consider designing
a standard graph template for each graph
type you will use to display your measures. A standard look and feel helps
the stengthen the focus on the information, and minimise the distraction of
formatting differences. Standards like these can be applied corporately.
PAGE 26 OF 47
PHASE 5: PRESENT
decide the most useful structure and content for your

performance reports
tip 119 How do you report your performance measures? Have you taken a conscious
approach to designing how performance measures are collated and arranged

and narrated in performance reports? What is your rationale for how
performance measures should be reported or displayed to their
users?
tip 120
Design the contents page of your performance reports
before you design anything else this will help you set up a useful and
usable structure for the report before you get lost in the detail.
tip 121
Identify all the users of your performance measures before
designing your performance report you may need different formats of the
report depending on the type of user.
tip 122 Interview users of your performance measures to find
out what needs
the performance report has to satisfy, such as how frequently
they need it, what they need it for, how much time they want to commit to
using it, what specific questions they are wanting it to answer, what format
best suits them (see tip 135) and so on.
tip 123 Dont succumb to all the needs of the users of your performance measures
report design is not all art, its a science as well. If you want
it to still be useful, avoid including someones idea just to avoid hurting
them or being politically correct. The best thing you can do for such people is
help them make the best use of their information.
tip 124 Decide the theme of your performance report. Dont just lump a whole lot of
measures together without thinking about the decision process that it

should serve. Consciously decide your rationale for which
measures to include and which to exclude.
tip 125 If the commentaries in your performance reports consist mainly of
explanations about why targets werent met or why this month is worse or
better than last month, then they are not too far from useless. Managing
performance means managing the trends and patterns, not events. How
could you put more information about the trends and
patterns in your reports, and less of the ad hoc trivia that suggests
you never need to, or are able to, do anything to improve performance?
tip 126 Put
a contact name with each measure in the performance report
so users can follow up if they want more information. This might be the
owner of the measure, as documented in the measures definition (see tip
38).
tip 127 Consider if it would be useful to include
with each measure in the

performance report its description, as documented in the
measures definition (see tip 38), to remind users what the meaning of the
measure is, so they are less likely to jump to the wrong conclusions.
PAGE 27 OF 47
PHASE 5: PRESENT
use layout and formatting to facilitate valid and easy decision

making
tip 128
Colour can really help information jump off the page in

your performance reports. Red can strongly communicate unacceptable
performance, green for improving or acceptable performance and orange for
early warnings about likely future results.
tip 129 Some of the more useful
types of information to include in a
performance report include the graphs of the measures, brief comments

about any patterns or signals the graph is giving, what the causes of the
patterns or signals are and comments about what is being done to respond
to the patterns or signals (if a response is required).
design the page layout to give a consistent look

and feel throughout your performance report. Consider where you will
tip 130 Carefully
place graphs, interpretation comments, cause analysis, action updates and

so on. This helps people navigate through the report and find the
information they are looking for.
tip 131 At your local library or bookshop, look
for books on graphic
design and layout to get ideas and example for making your
performance reports professional, simple and incredible usable. A good one
is The Non-Designers Design Book [ref 18] by Robin Williams (no, not the
actor).
tip 132 Try designing your
performance reports with one page per
measure and include the title of the measure, a graph, a simple comment
interpreting the graph, and a brief cause analysis. This way you can pull
together different collections of performance measures for different users.
interpretation flags, little icons that symbolise

visually and rapidly what each performance measure is doing. For example,
can mean that performance is in balance and where it should be, can
mean that performance is headed in the wrong direction and needs
immediate attention,
can flag if there is an early warning of poor
performance and can symbolise improvement.
tip 133 Play around with
tip 134 Keep your performance reports
as visual as possible, avoiding lots
of text. This is time consuming and often doesnt tell the user much that
they really want to know, or couldnt find out by talking to someone if they
felt they needed to. Focus on graphs, interpretation, cause identification and
action progress.
ensure your reporting process and tools support decision

making
tip 135 However you choose to disseminate your performance reports, be conscious
of how people will want to and be able to access them.

Convenience, literacy, technology and location all have a bearing on this.
PAGE 28 OF 47
PHASE 5: PRESENT
tip 136 Remember that performance
reports are not all paper based
documents! They can be wall charts, web pages, pdf files, PowerPoint
slide shows, flipchart story boards anything that works for their users!
tip 137 Electronic reports, such as pdf or html based reports, enable hyperlinking.
And with hyperlinking you can automate the links between

your performance measures to make cause analysis a little faster.
Use the linkages on your measurement map (tip 35) as the specification for
how to set up the hyperlinks in your reports.
tip 138 If you use the latest in
Business Intelligence software to report
your measures, you still need to apply the thinking in the above tips most
BI applications I have seen are more about flashy things to do with clicking
and linking and drilling down, and have very limited capability to encourage
really good cause analysis (see tip 168) and valid interpretation of
information ( see tip 140 to tip 149).
tip 139
Flowchart your reporting process, linking together all the steps

needed to source, analyse and present the data and measures to their
audiences. Define who does what, and when it needs to happen.
PAGE 29 OF 47
PHASE 6: INTERPRET
phase 6:
interpret what your measures are saying

Interpreting your performance measures means translating messages
highlighted by performance information into conclusions about whats really
going on. To turn information into implication, you must discern which
messages are real messages.
The INTERPRET phase of PuMP is about translating what the numbers are
saying quantitatively, into our everyday verbal language. Its a step that the vast
majority of decision makers dont even know they are doing, and thus, dont do very
well. As a consequence, many decisions have been made which lead to inappropriate
or ineffective results.
The topics covered in phase 6 of PuMP are:
traditional approaches to interpreting data and their limitations
more effective approaches to interpreting data and their advantages
how the interpretation of data is important in assessing if targets have been met
or not
know when a difference is really a difference

tip 140 Just because your spreadsheet or charting software can draw a
trend
line through your data points, doesnt always mean there is a
real trend there. Often there can be too much variation to be sure, or
another non-linear pattern might better explain the change over time (such
as a step change). If your R2 value (see analyse chapter) is less than 80% (or
so), you have to question how what the trend line really saying to you about
performance.
tip 141
Understanding variation is a very important (no,

essential) skill in interpreting performance measures. And it doesnt
mean using statistics like percent variation from budget either. Find out
about Donald Wheeler [ref 30] and his book Understanding Variation: the
key to managing chaos to discover why this is so important and what it
really means.
tip 142
Beware of rolling averages or moving averages. They were

really designed to smooth variation (such as seasonal variation) out of a
time series. But because they mask this variation, you simply cant tell if a
real change has occured (until much later) or when it actually occured.
Looking at overall long term trends doesnt help us respond when we need
to in order to keep performance tracking in the direction we need.
tip 143 In her book Leadership and the New Science [ref 16], Margaret Wheatley
has a chapter called The Creative Energy of the Universe Information.

In this chapter, she addresses the issue of interpretation of data from a very
PAGE 30 OF 47
PHASE 6: INTERPRET
non-measurement and non-statistical perspective. She mentions that the

greater the ability to process information, the greater the level of
intelligence that the organisation will have. Valid interpretation of
measures is vitally important since it is an essential part of the ability to
process information. Valid interpretation is an essential condition
for organisational intelligence.
if users are reacting to individual points of

data instead of looking for real trends and real changes in
tip 144 What do you do
performance? Ask them how do they know that last month (or the same
month last year, or last year, or whatever the benchmark they are
comparing against) was typical, and thus a reliable benchmark?
tip 145 If you have implemented tip 97 where you added a mean line to the time
series chart of your performance measure values, then if you see seven or
more points in a row (or 12 out of 14 in a row) above the mean line, or seven
or more points in a row (or 12 out of 14 in a row) below the mean line, you
have a signal that performance has suddently shifted!
Calculate a new mean line from the series of points that you found on the
one side of the mean line. Thats your new overall level of performance.
Dont recalculate this new mean line until you see another signal.
tip 146 If you have implemented tip 97 where you added a mean line to the time
series chart of your performance measure values, then if you see seven or
more points in a row (or 12 out of 14 in a row) consecutively increasign or
consecutively decreasing, you have a signal that performance has
gradually shifted! Calculate a new mean line from the first seven
points you get AFTER the series of points that you found consecutively
increasing or decreasing. Thats your new overall level of performance. Dont
recalculate this new mean line until you see another signal.
tip 147 If you have implemented tip 98 where you added control limit lines to the
time series chart of your performance measure values (that is, you have a
proper statistical process control chart), then if you see a point fall outside
the control limit lines, you have a signal that an abnormal event
occurred. This is not indicative of any change in performance, just the
result of a single event having a temporary effect.
tip 148 If you have implemented tip 98 where you added control limit lines to the
time series chart of your performance measure values (that is, you have a
proper statistical process control chart), then if you see several or many
points fall outside the control limit lines, you have a signal that
performance is chaotic. This is indicative of lack of control or
stability in the process or system that produces your performance result..
tip 149 Survey results are used by many, many organisations, but they are often
not used properly. Do you know what a confidence interval is

and how to use it? Effectively it tells you how reliable the survey result
is that it relates to. As one example, imagine that employee satisfaction this
year is 4.5 and last year it was 4.0, giving a difference of 0.5 (an
improvement). This difference of 0.5 would have a confidence interval, and
PAGE 31 OF 47
PHASE 6: INTERPRET
just say its 95% confidence interval was 0.5 0.6 which is represented as [0.1,1.1]. While 0.5 looks like a nice improvement, theres a 95% chance that
there was no improvement at all, since the confidence interval contains zero
in its range.
assess if you are on target (or not)

tip 150 Knowing
whether or not your performance has met a target
or not is really about knowing whether the process or system that produces
that performance result is capable of continuing to produce that result.
Dont rely on a comparison of year-to-date with an annual target, or last
month with a monthly target to decide if your system or process is capable.
Remember that variation is the key to understanding changes in
performance (see tip 141).
tip 151 If you use statistical process control charts (see tip 96) then decide
what
exactly you should be comparing with your target. If your
target is to improve the average level of performance, then use the

meanline, or if your target is to set a maximum level, then use the upper
control limit, or if your target is to set a minimum level, then use the lower
control limit, or if your target is for a range, then use both the control limits.
keep monitoring performance even after the

target has been met make sure the improvement you implemented
tip 152 Dont forget to
to reach the target is sustainable before taking the measure off your radar.
PAGE 32 OF 47
PHASE 7: APPLY
phase 7:
apply your measures to improve

performance
When you have worked out what is really going on with your organisations
performance, you are ready to make some decisions about what to improve,
how much to improve it by and how to do that improving.
We all know that performance measurement for measurements sake is a waste of
time and effort. Putting performance measures to use to improve the business is
what phase 7 of PuMP, APPLY, is all about. How to get from interpretation to
action.
The APPLY phase of PuMP covers topics such as:
the role of measures in decision making, plan review and improvement
root cause analysis
setting performance targets
use measures to review your plans

tip 153 If your performance measures were selected in line with your business plans
(see phase 1), then your measures are an indication of the degree to which
you have achieved your plan. It might, therefore, be useful to refer to
your business plans when you are reviewing your performance
measures.
tip 154 When you report performance measures (see the tips for tip 103), also
report information about improvement actions that are being

taken in response to the signals (see the tips for phase 6) those measures
have given.
tip 155 Organisational learning is a process that permeates every business activity,
and that includes performance management. Learning happens when you
check to see if your decisions and improvement actions

worked. In other words, as a result of your decisions and improvement
actions, did your performance measures achieve their targets without any
unintended consequences?
tip 156 Do your measures indicate that you achieved your business plan? If so, then
you may now be ready to review your business plan and also
your selection of performance measures. But dont forget to
ensure the improvements you made are now business as usual and not
temporary.
tip 157 One very important application
of performance measures is in
regular plan review. Strategic performance measures should be used

PAGE 33 OF 47
PHASE 7: APPLY
by senior managers to regularly review progress of performance relative to

strategic goals. Likewise for tactical and operational goals. Performance
measures are the feedback loop between the planning process and the
improvement process to help us monitor the gaps between as is
performance and should be performance.
be clear about the role of measures in decision making

tip 158 One of the most basic capabilities any decision making team will need to
effectively use performance measures is the skill of dialogue [ref 8].

Dialogue is not just talking, its engaging in a process of balanced listening,
enquiry, observation and reflection that results in deeper understanding,
expanded mental models and more possibilities.
tip 159 Do you know
who to hold accountable for performance
results? This usually means that if a performance measure is trending in

the wrong direction, or not achieving target, a particular person is dragged
over the coals or given the sack. Businesses are getting more and more
complex and as a consequence, performance results are being influence by
so many different things. NO ONE person should ever be held accountable
for performance results. See tip 160.
tip 160 When it comes to performance measurement and management, the ideas
things to hold people accountable for include regularly
monitoring the performance measure, validly interpreting the measures

results, identifying root causes, initiating improvement actions, evaluating
if those improvement actions worked, and learning from the evaluation on
the organisations behalf.
decision making process that uses performance

measures has distinct steps, which include: prioritising which results to
tip 161 The
respond to, describing the desired outcome or results to achieve,

understanding the current capability of the system producing the outcome,
exploring any unintended consequences of taking action, developing
strategies, implementing the strategies and finally, checking if it all worked.
tip 162
Benchmarking with other organisations (either in your
industry or not) is a great way to share learnings and gather ideas for
improvement. Go ahead and compare your performance measure results but
be aware that they may define their measures differently, be operating in a
different context and put a different priority on their measures. Focus more
on dialogue and sharing ideas about improvement.
tip 163 When you sit down to review your performance measures, and you identify a
list of improvement opportunities, how do prioritise them? Or do you

try to do them all? To borrow from Stephen Covey [ref 22], which are the big
stones and which are the pebbles?
tip 164 Before you decide on any improvement activities, you will save heaps of time
and drama if you clearly define the results you want to create
first. Use sensory-based language [ref 14]to paint a verbal picture of the
outcomes you want as a result of improvement activity.
PAGE 34 OF 47
PHASE 7: APPLY
tip 165 Newtons Third Law states that for every action, there is an equal and
opposite reaction. If you make a change to your business to improve it,

where is the reaction going to come from? Is it a reaction you
want or one you dont want? Is it a reaction you can manage, or one better
avoided? How can you improve performance in a way that minimises the
inevitable unintended consequences?
tip 166 Unless your organisation checks to see if decisions made and actions taken
have the desired effect on performance, your organisation will miss out on
creating some very valuable knowledge about its own

performance dynamics. Often the root causes of one performance
area are the same root causes of other areas if you find out how to fix
them, this knowledge can be used elsewhere.
make improvement stick by fixing root causes

tip 167 If you want to find
performance improvements that stick, then
you will need to do some root cause analysis. This means thinking beneath
the symptoms of poor performance that are so obvious, and digging down
until you find the fundamental causes of these symptoms. Try using Peter
Senges the five whys technique [ref 7]: keep asking why until to find the
action that, if changed or corrected, will prevent the symptoms from
returning.
causal loop diagrams is also a useful strategy for

understanding the dynamics producing a particular (unwanted) symptoms.
These diagrams consist of loops that show the causal relationships between
various results or outcomes which collectively produce the symptoms your
performance measure might be showing you. Pegasus Communications
website is a great resource for tools like this, so visit
http://www.pegasuscom.com/cld.html to find out how to draw causal loop
diagrams.
tip 168 Drawing
understand the
factors limiting the current capability of the system
tip 169 Process mapping and analysis is a great way to
creating your performance results. It helps greatly to define the system you
intend to improve, before you try to improve it. Just type in process
mapping and analysis in your web browser and go prospecting for
resources!
tip 170 If you use statistical process control charts, then the current range indicated
by the upper and lower control limits (the voice of the process or limits of
natural variation) compared to your target range is an indicator of
your systems current capability. If the current control limits are
within the target range, your system is capable, but if the current control
limits are wider than the target range, your system is not capable. Unless
something changes, you will continue to get performance results that
randomly vary within your current control limits and thus some will fall
outside your target limits. You will know when capability has changed when
these control limits change.
PAGE 35 OF 47
PHASE 7: APPLY
a range of improvement options and evaluate

their feasibility without judgement before making the final choice for
tip 171 Always develop
what improvement actions to implement. Start wide, then get narrow. Its
much harder to start narrow,then get wider when you discover your solution
ideas just wont cut it.
tip 172 There are many improvement methodologies available, and one in
particular has proven itself: six sigma. Made famous my Motorola, six
sigma is a very structured and disciplined method of
improvement which requires a very dedicated champion. Not for the
light hearted. More for those serious about real improvement.
tip 173 If you
involve the people who work in the process or area
that you want to improve when you are designing improvement solutions (or
get them to do it themselves), you will get more ownership of the change.
People hate having things done to them, we all like to be consulted and even
better, involved.
tip 174 After deciding to implement a particular improvement action in response to
a performance measure signal, you may like to go back to phase 1 of the

performance measurement process (select) and develop one or two new
measures to provide regular feedback about how your

improvement actions or strategies are going.
the most useful targets dont come out of thin air

tip 175 Before you
set a target for a performance measure, first identify
what the root causes are that are holding performance at the unacceptable
level and evaluate the resources you have available to manage these root
causes. What amount of change can you afford? What amount of
improvement can you achieve with that investment? Using this as your
starting point for the target means everyone will be able to see it is possible
to reach it and be more motivated.
a useful source of information that can help

you set targets for your performance measures. What is industry or
tip 176 Benchmarking is
worlds best practice for the process or result you want to set the target for?
Does it make sense in the context of your industry or organisation?
tip 177 Never set a target without being able to
describe how the target
will be able to be reached by the people responsible for reaching it.

What strategies will increase current capability to the desired level of
capability? How will these strategies be implemented and resourced?
tip 178 Remember that target setting has the
risk of driving behaviour
toward achieving the target (funny, that). So make sure that

achieving the target is only going to be good for your organisation and not
cause significant unintended consequences.
PAGE 36 OF 47
PHASE 7: APPLY
tip 179
When you are setting a target, involve the people that will
participate in achieving it. When we help create something, we care about it
more.
tip 180 If you are writing
goal or objective statements, a good recipe is:
the direction + the measure (optional: + the current level) + the target +
timeframe. For example, decrease average debt recovery cycle time (from 69
days) to 29 days by June 2005.
tip 181 There is no reason to set a single, large-step target for your measures. It can
often be more motivating if you set a series of staged targets that

give you more managable milestones to achieve which collectively work up
to the ultimate target. For example, you might look for a reduction in
average debt recovery cycle time of 5 days in the next 3 months, working up
to a 10 days after 6 months, and then 40 days by 12 months.
PAGE 37 OF 47
OVERALL
overall:
implementing your performance

measurement system
Putting it all together is just like any other change project: you need to
coordinate activities and times, prepare and involve people and integrate
systems and processes
engage the right people in the right ways
the person who will champion your performance
measurement system development journey. They will need to be
tip 182 Find
someone who believes deeply in the philosophy of performance

measurement, has influence at all levels in your organisation, has the time
to be such a champion, and wants to be the champion.
tip 183 Identify the various people you will need to bring together to form the
performance measurement system design &

implementation team. They will probably be a cross-functional group
of people with collective skills including strategic and business planning,
data collection and management, data analysis and reporting, decision
making, performance improvement, communications, change management
and project management.
tip 184 Make sure you define THE
BIG WHY to help others in the organisation
feel that performance measurement is worthwhile enough for them to give

their time, energy and attention to. Start with their WIIFM (whats in it for
me?).
tip 185 Because performance measurement is actually quite a big task, youll get
greater gains if you assign an owner of your performance

measurement system, someone who will facilitate the design and
evolution and deployment of that system for your organisation as a whole.
tip 186 Performance measures are essentially feedback, which people are inherently
uncomfortable with (especially if it is honest feedback). To encourage

people to be comfortable about feedback, it needs to be made
compelling (they desperately want to use it because in some way it links to
what really matters to them), it needs to be safe to use and discuss it (such
as no blame!), and they need to have the skills to use it effectively (such as
valid interpretation and root cause analysis).
tip 187 If your organisation struggles with a blame culture (a common obstacle to
effective performance measurement and management), one idea is to find a

core group of people that can role model the behaviours of a nonblame culture. Help them define those behaviours (they may not be
PAGE 38 OF 47
OVERALL
conscious of them straight away) and explore how to role model those
behaviours and who to role model them for.
integrate with other management processes

space in your strategic, tactical and operational
planning processes for the development and use of performance
tip 188 Check there
measures to take an overt and deliberate role. The best performance

measures are developed when they are developed in conjunction with
strategy formulation. Likewise, the best strategy is developed when when it
is developed in conjunction with performance measures. The iterative
process clarifies and concretises both strategy and measures.
tip 189
Documenting your performance measurement process,
that is, all the key steps associated with how your organisation selects,
reports and uses performance measures in decision making, can bring
consistency and efficiency to your performance measurement efforts.
tip 190 Check the degree to which people understand
how measures play a
role in management in your organisation. You need much more

understanding than just doing measurement because the KPI column in
your strategic plan needs to be filled in. Practice how you would describe to
people the role that performance measurement takes in decision making,
and what they as decision makers should be doing.
know what success will look like

tip 191 If your organisations performance measurement system was a
scorching
success, how would you know? Define the differences you are
intending performance meausrement to make in your organisation. Think
about how you might measure the impact or outcomes that your
performance measurement sytem has on your organisation. Refer to tip 192
through to tip 196 for ideas.
tip 192 List
what people would be doing, or saying or feeling about
it, if your organisations performance measurement system was successful.

This will help you recognise what impact your performance measurement
system is having on people, and whether or not you need to manage that
impact.
tip 193 List
what skills or knowledge people would have in relation to
performance measurement, if your organisations performance

measurement system was successful. This will help you recognise what kind
of training might be required to ensure your performance measurement
system actually will be used properly.
tip 194 List
what people would be doing differently in relation to
performance management, if your organisations performance measurement

system was successful. This will help you recognise what kind of what kinds
of behaviour you want your performance measurement system to drive or
encourage (and to not drive and not encourage).
PAGE 39 OF 47
OVERALL
what impacts it would have on business success or

sustainability if your organisations performance measurement system
tip 195 List
was successful. Identify which processes could be more efficient or effective

(such as decision making, strategic planning, performance improvement,
and so on).
tip 196 Describe what
kind of return on investment you would
expect it to deliver, if your organisations performance measurement
system was successful. Forecast or target the value it would create relative
to the costs of implementing and maintaining it.
plan it like a project

the review or design of your organisations
performance measurement system as a project, and use the
tip 197 Treat
phases of PuMP as a backbone for the project schedule.

tip 198 Set realistic timeframes for designing and implementing your performance
measurement system. It can take as much as one or two years

to get your organisation equipped with a useful and usable performance
measurement system.
tip 199 Performance measurement is a process of feedback, and feedback takes a
pivotal role in becoming a learning organisation. Integrate into

your performance measurement project some of the strategies associated
with becoming a learning organisation, such as shifting mental models,
developing shared vision, encouraging team learning, the skill of seeing the
big picture as well as the detail, looking for patterns and root causes (as
opposed to just symptoms) and so on. Peter Senge expands on these in his
book, The Fifth Discipline [ref 8].
collecting the data you need

for any indicators of success you might have designed (see tip 191
tip 200 Establish systems and processes for
to tip 196). Dovetail these systems and processes into project activities so
you dont forget to collect the data.
tip 201 Regularly (at least monthly)
evaluate how the implementation is
going, using any indicators of success you might have designed (see tip
191 to tip 196).
tip 202 Give time and space to really, truly learn from the feedback you collect
during implementation, to improve subsequent implementation. In other

words, live the process! What credibility does a performance
measurement implementation have, if it isnt designed and managed using
the very principles and techniques it espouses?
PAGE 40 OF 47
references for further discovery

in a bookstore
I have added my own descriptions to each book listed here, and just want to
reinforce that they are my own personal perspectives. I love virtually all of these
books, and provide the descriptions as a way to help you see the relevance the books
have to the tips that refer to them.
[ref 1] Abolishing Performance Appraisals: Why They Backfire and What to do
Instead
Tom Coens and Mary Jenkins, Berrett-Koehler Publishers, Inc., 2002
Performance appraisal is a system based on many assumptions and the
fundamental dynamic that organisations are designed on a paternalistic
model. Tom and Mary raise these assumptions one by one, discuss their
limitations and relevance in todays world, and offer alternative assumptions
about people and performance.
[ref 2] Accelerated Learning
Colin Rose, Dell Publishing, 1985
Accelerated learning is a field based on leading edge discoveries about how the
brain works and the application of these discoveries to the processes of
learning. Many of the techniques are equally useful for how information can be
communicated to make it more easily understandable, memorable and
actionable.
[ref 3] Analysis and control of variation
John McConnell, The Delaware Group, 1987
This is a thorough discussion of the meaning of variation, specifically in the
context of business process improvement. Includes techniques such as
Statistical Process Control charts.
[ref 4] Approaching the Corporate Heart: Breaking Through to New Horizons of
Personal and Professional Success
Margot Cairnes, Simon & Schuster Australia, 1998
As a leadership expert, Margot puts forward in this book a new way of
thinking about personal and business success. She discusses and compares the
two leadership approaches of the Hero and the Warrior and lays a path
forward for the Heros Journey of compassion, awareness, soul, support and
love (among other things).
[ref 5] The Balanced Scorecard: Translating Strategy Into Action,
Robert S. Kaplan and David P. Norton, Harvard Business School Press, 1996
The famous book that marked the revolution of organisational performance
measurement in the 1990s.
[ref 6] Basic Business Statistics - concepts and applications 7th Ed.
Mark L. Berenson and David M. Levine, Prentice Hall Inc., 1998
This book goes into the theory of statistics in so far as it could apply in the
business world. Specifically, it covers topics such as data collecting,
PAGE 41 OF 47
REFERENCES
summarising and presenting, probability distributions, sampling, estimation,

hypothesis testing, analysis of variance, regression and forecasting.
Recommended as a practical book about the technical subject of mathematical
statistics.
[ref 7] The Cartoon Guide to Statistics
Larry Gonick & Woollcott Smith, HarperResource, 1993
A book that actually makes learning and applying statistics entertaining and
interesting and engaging! Dont be daunted by the idea of cartoons the book
very successfully explains and demonstrates statistical concepts such as
probability, sampling, confidence intervals, hypothesis testing and regression.
[ref 8] Dialogue: And the Art of Thinking Together
William Isaacs, Doubleday, 1999
Without true dialogue (different to discussion and debate), its virtually
impossible to reach the best outcome for everyone, particularly for such
contentious issues as performance. Dialogue means going beyond win-win, to
something higher and more valuable to everyone involved. William provides
some really practical perspectives on how to have great dialogue, including
topics such as listening, respecting, suspending, voicing, traps to look out for,
and considerations in creating the time and space for dialogue.
[ref 9] The Fifth Discipline: The Art & Practice of the Learning Organisation
Peter M. Senge, Random House Australia, 1992
Systems thinking permeates this entire book. It is filled with concepts and
techniques that enhance the capability of an organisation to think
systemically, and to continually learn. Performance measurement is one of an
organisations feedback mechanisms, and thus takes a pivotal role in the
learning process. This book, although not explicitly, helps to set performance
measurement into the broader context of organisational learning.
[ref 10] The Fifth Discipline Fieldbook
Peter Senge, Art Kleiner, Charlotte Roberts, Richard B. Ross, Bryan J. Smith,
Nicholas Brealey Publishing, 1996
This takes the ideas from Peter Senges book The Fifth Discipline and shows
practical ways of applying them. Many of them are great to use in developing
performance measures.
[ref 11] Graphing Statistics and Data: Creating Better Charts
Anders Wallgren, Britt Wallgren, Rolf Persson, Ulf Jorner, Jan-Aage Haaland,
SAGE Publications, 1996
A more technical and specific and detailed look at graphs than is this book. A
wider variety of charts are presented, which will help to expand your choices in
presenting your data.
[ref 12] The Haystack Syndrome: sifting information out of the data ocean
Eliyahu Goldratt, North River Press, Inc., 1990
This book describes a simple framework for measuring the success of any
business through three key concept measures of Throughput, Operating
Expense and Inventory. These concept measures can apply to much more than
just production line businesses.
PAGE 42 OF 47
REFERENCES
[ref 13] How to Lie With Statistics

Darrell Huff, Penguin Books, 1991
A tongue-in-cheek discussion about the ways to abuse statistics to attain
devious ends is the entertaining approach taken by this book. It contains lots
of examples and is easy to read.
[ref 14] Introduction to the Practice of Statistics second edition
David S. Moore & George P. McCabe, W. H. Freeman and Company, 1993
A fairly straightforward guide to the most commonly used statistical
techniques for summarizing, exploring, explaining and predicting with
performance data.
[ref 15] Introducing Neuro-Linguistic Programming
Joseph OConnor & John Seymour, Aquarian, 1990
Neuro-Linguistic Programming is a set of ideas and techniques that describe
patterns of excellence. Many of these are incredibly useful in developing
performance measures, as well as simply becoming a better communicator and
learner.
[ref 16] Leadership and the New Science: Discovering Order in a Chaotic World
Margaret J. Wheatley, Berret-Koehler Publishers, Inc., 1999
Margaret has a very impressive background in many fields, particularly
management consulting and change management. In this book she draws on
ideas from quantum theory (yes, the physics topic of quantum theory) to open
up our thinking to simpler and more effective ways of leadership that emulate
the natural order of things around us.
[ref 17] The Makeover Book
Roger C. Parker, Ventana Press, Inc., 1989
The focus of this book is about designing the layout of documents and such, but
beware of the section on graphs and charts: the emphasis is on visual interest
as opposed to decision making and problem solving.
[ref 18] Making Graphs Useful
Stacey Barr, self published e-book available at
http://http://www.staceybarr.com/pumpshop/mgu.htm
Introduces five principles that make graphs useful for decision making and
demonstrates the application of those principles with illustrated before and
after examples and many specific tips to apply when creating or redesigning
graphs.
[ref 19] The Mind Map Book
Tony Buzan with Barry Buzan, Dutton
Mind mapping is a concept of how to organize information visually and
spatially to enhance its usefulness to our brains. Doesnt this sound like useful
knowledge for the design of performance reports?
[ref 20] The Non-Designers Design Book
Robin Williams, Peachpit Press Inc., 1994
Lean about designing documents, books, newsletters, memos, letters,
advertising, computer printouts (and perhaps even graphs) by following four
PAGE 43 OF 47
REFERENCES
basic principles for visual presentation. This book is strongly recommended for
taking your graphs and performance reports to a heightened level of
professionalism.
[ref 21] The Performance Prism
Andy Neely, Chris Adams and Mike Kennerley, Prentice Hall, 2002
Beyond the Balanced Scorecard is this new framework for deciding what to
measure. It is based on the premise of managing stakeholder relationships has
five perspectives: Stakeholder Satisfaction, Stakeholder Contribution,
Strategies, Processes and Capabilities.
[ref 22] The Rise of Statistical Thinking 1820 to 1900
Theodore M. Porter, Princeton University Press
If you are fast developing a fascination or even obsession with statistical
mathematics, then dont pass this book by! It is an interesting tale of the
history of statistics and statistical thinking, exploring its mathematical
evolution from its roots in social science. Not a technique book, more an
interesting insight into where the field of statistics came from and why.
[ref 23] The Seven Habits of Highly Effective People
Stephen Covey, The Business Library, 1989
This book is likely to offer some great insights into what aspects of
organisational performance are of most importance to us and other people, to
make performance measurement more human and less obligatory.
[ref 24] Statistics for Management 7th edition
Richard I Levin, Prentice Hall International, 1997
Statistical methods for management contexts, including tables and graphs,
frequency distributions, variability, probability, sampling, estimation,
hypothesis testing, etc.
[ref 25] Statman One: average and range charts
Alan Long, Statman Publishing, 1989
A cartoon guide for how to construct and use process control charts, one of the
best tools for analyzing, presenting and interpreting performance measures.
Great book.
[ref 26] Statman Two: process capability
Alan Long, Statman Publishing, 1990
A cartoon guide for extending the application of process control charts to
measuring and improving process capability. Also a great book.
[ref 27] The Strategy Focused Organisation
Robert S. Kaplan and David P. Norton, Harvard Business School Press, 2000
Extending on their original work with the Balanced Scorecard [ref 5], Kaplan
and Norton expand more on strategy formulation in this book. They discuss
strategy mapping, which is a great concept for mapping out the outcomes you
need to measure.
[ref 28] Understanding Variation: They Key to Managing Chaos
Donald Wheeler, SPC Press, Inc., 1993
PAGE 44 OF 47
REFERENCES
An excellent, excellent book for explaining the consequences of not

understanding variation in the business world. Dr Wheeler uses many
examples familiar to all of us to explain what variation is and why it matters
in interpreting business performance particularly trends. Please read this
book!
[ref 29] The Visual Display of Quantitative Information
Edward R. Tufte, Graphics Press, 1983
Edward Tuftes rich and entertaining approach to demonstrating techniques of
visual display is astounding. When you have finished using this book as an
essential guide to designing graphs and performance reports, dont put it back
in the bookshelf put it on the coffee table for all to enjoy.
[ref 30] Visual Explanations
Edward R. Tufte, Graphics Press, 1997
I love Edward Tuftes books. They are brilliant almanacs of the use of visual
techniques to communicate quantitative information. He discusses in an early
chapter of this book displays of evidence for making decisions, very useful
background information if you are designing reports that decision makers will
use.
on the internet
[ref 31] OPM A System for Organisational Performance Improvement
A.F. Chennell, S. B. Dransfield, J. B. Field , N. I. Fisher, I. W. Saunders & D.
E. Shaw
http://www.cmis.csiro.au/opm/publications/PDF/Cambridgefinal2000.pdf
This is an article that explains how OPM, one of the newer organisational
performance measurement frameworks, works. It is based on the premise of
delivering value to stakeholders.
[ref 32] EFQM Excellence Model
European Foundation for Quality Management
http://www.efqm.org/model_awards/model/excellence_model.htm
Many organisations use this framework as a model for measurement. Try also
the Australian Business Excellence Framework or the Malcolm Baldrige
Award framework.
[ref 33] ABEF: the Australian Business Excellence Framework
Business Excellence Australia
http://www.aqc.org.au/GROUPS/ABEF/
the EFQM Excellence Model or the Malcolm Baldrige Award framework.
[ref 34] Malcolm Baldrige Award framework
National Institute of Standards & Technology
http://www.quality.nist.gov/Criteria.htm
the EFQM Excellence Model or the Australian Business Excellence
Framework.
PAGE 45 OF 47
REFERENCES
[ref 35] Pegasus Communications

http://www.pegasuscom.com
For loads of tools and techniques that support the learning organisation and
systems thinking, such as causal loop diagrams, shared vision, mental models
and team learning, this is a great site to visit. Many of these tools and
techniques make performance measurement more meaningful to people, and
even bring a bit more commonsense into the process.
PAGE 46 OF 47
ideas for where to next

If you are still looking for more about how to measure organisational performance,
find out more at:
on-line products:
http://www.staceybarr.com/pumpshop
services:
http://www.staceybarr.com/productsandservices
e-mail:
staceybarr@staceybarr.com
post:
PO Box 109
Everton Park, Qld 4053
Australia
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202 tips for

202 TIPS FOR PERFORMANCE MEASUREMENT

202 tips for performance

202 TIPS FOR PERFORMANCE MEASUREMENT

202 tips for performance

For additional information about how to make your performance measurement

202 TIPS FOR PERFORMANCE MEASUREMENT

202 TIPS FOR PERFORMANCE MEASUREMENT

phase 1 : select useful measures of performance..................................................................8

phase 2 : collect data with realistic integrity..........................................................................15

phase 3 : store your data for easy access ............................................................................19

phase 4 : analyse performance data to create information ..................................................21

phase 5 : present your performance measures ....................................................................25

phase 6 : interpret what your measures are saying..............................................................30

phase 7 : apply your measures to improve performance......................................................33

overall: implementing your performance measurement system ...........................................38

references for further discovery ............................................................................................41

ideas for where to next..........................................................................................................47

202 TIPS FOR PERFORMANCE MEASUREMENT

a framework for performance measurement

202 TIPS FOR PERFORMANCE MEASUREMENT

select useful measures of performance

consciously adopt a performance measurement framework

When you select a performance measurement framework, check that its

decide which outcomes are most worth measuring

Many organisations believe performance measurement is about measuring

202 TIPS FOR PERFORMANCE MEASUREMENT

Try to pay attention when people seem to be hesitant to

Define each outcome or result or entity before designing the

Stocktake your existing performance measures by placing

202 TIPS FOR PERFORMANCE MEASUREMENT

respresent (shareholders/owners, customers, employees, partners,

What are your organisations values? Would improving performance based

design measures that provide objective evidence of your

Remember that performance measures are objective evidence of the degree

202 TIPS FOR PERFORMANCE MEASUREMENT

A lead indicator is a performance measure that gives you forewarning of an

To be useful, you need to track your lead indicators with

find out other best practice organisations are

Avoid so-called measures such as completion of plan by June 06 or new IT

202 TIPS FOR PERFORMANCE MEASUREMENT

intended outcomes! Always measure outcomes, not events or

Whatever you do, dont rely on brainstorming as a method for

Do people in your organisation have a tendency to measure the

understand the relationships between and among measures

Map the linkages between measures used at different levels of

202 TIPS FOR PERFORMANCE MEASUREMENT

measures is. See an example at

organisation understand how they influence

define your measures to specify how to bring them to life

Define each of your measures so that it is clear what they really

It helps to have a single, standard, organisation-wide

202 TIPS FOR PERFORMANCE MEASUREMENT

When everyone has an opinion about the "shoulds" of a

202 TIPS FOR PERFORMANCE MEASUREMENT

collect data with realistic integrity

understand your data requirements thoroughly

Check your performance measure definitions to see how frequently

202 TIPS FOR PERFORMANCE MEASUREMENT

manage the integrity of your data

It might help to ask users of your performance measures how

A good sample size IS NOT a particular percentage of a population. If

design cost-effective data collection processes

Well designed data collection processes produce data with integrity: