The interdependance between planning, performance and measurement v print
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The document discusses the critical relationship between planning and measurement for enhancing organizational performance through the PDCA (Plan-Do-Check-Act) cycle. It outlines key strategies for developing effective performance measurement systems and highlights common pitfalls to avoid, such as using vague language in strategy or rushing the data collection process. The content emphasizes the importance of alignment between actions and strategic goals, advocating for a robust measurement system to facilitate continuous improvement.
The interdependance between planning, performance and measurement v print
- 1. The interdependence between planning and measurement to achieve performance improvement. PPN Forum Wellington, November 2019 MARK@MARKHOCKNELL.COM
- 4. How we learn – quality/process improvement Known as the Deming Cycle; developed by W. Edwards Deming, Total Quality Management (Image by Johannes Vietze )
- 6. Typical strategic planning questions 1. Where do we want to be in – 1, 2, 5 or 20 years? 2. What do we need to do to get there? 3. Are we there yet? Describe the future state – Outcomes, Impact and change we want to achieve Write the Plan: • Projects • Initiatives • Actions Deliver the Plan: • Projects & Initiatives - on time, on budget • Actions – done
- 9. Centre for Epidemiology and Evidence. Developing and Using Program Logic: A Guide. Evidence and Evaluation Guidance Series, Population and Public Health Division. Sydney: NSW Ministry of Health, 2017
- 10. Planned Strategy (Vision, Mission, Purpose, Intent) Prioritised Results (Results Map) Business Planning / Initiatives Informs Transformation Change Plan / Program Individual/Team Dev Plans (change/ BAU) Informs Measures / Targets (feedback on Results) Realised Strategy Outcome Performance Measurement Framework Performance Planning Framework FeedbackLoop Performance Management Framework Integrating planning, measurement, learning cycles and the implementation of strategy. Initiative Delivery Performance Reporting (to Improve Performance) 1. Plan 2. Do 3. Check 4. Act
- 11. “Effective management is based on a foundation of effective measurement, and almost everything else is based on that… Organizations are conglomerations of many systems. Measurement is actually the most fundamental system of all. When the “measurement system” works well, management tends to manage (and reward) the right things – and the desired results will occur. The measurement system – for good or ill – triggers virtually everything that happens in an organization, both strategic and tactical. This is because all the other organizational systems are ultimately based on what the measurement system is telling the other systems to do.” Dean Spitzer, Transforming Performance Measurement, (2007,pages 13-14).
- 12. Key Points (so far) • Plan-Do-Check-Act is the human process for improvement, it is how we learn, how we improve. • How we plan, design and implement - needs to leverage from the PDCA cycle. • The decisions we make during implementation are based on our measurement system (for good or for ill). • Better measurement will improve decision-making leading us toward the Realised Strategy we want.
- 13. PuMP – The Performance Measurement Process A method for measuring organisational performance
- 14. Stacey Barr and PuMP • Performance measure specialist • Creator of PuMP • Author of: – Practical Performance Measurement: Using the PuMP Blueprint for Fast, Easy, and Engaging KPIs – Prove It! How to create a high-performance culture and measurable success. • Blog at www.staceybarr.com • PuMP is used and delivered around the world through a network of PuMP Partners
- 15. • What is your biggest struggle or challenge with performance measurement..? Discuss in pairs, we’ll collect the ideas in a few minutes.
- 16. The 8 biggest performance measurement bad habits 1. Use measures to judge people’s performance 2. Write strategy with vague, weasely language 3. Use brainstorming to choose measures 4. Ask people to simply sign off on selected measures 5. Rush to get data and build dashboards 6. Compare this month to last month to assess performance 7. Use performance reports to CYRE 8. Use education, resourcing and funding as improvement initiatives
- 17. The Anatomy of a Performance Measurement Approach steps frameworks templates tools
- 18. The PuMP Performance Measure Blueprint STEP 2STEP 1 STEP 3 STEP 4 Understanding Measurement’s Purpose Fixing the focus firmly on continuous improvement as the purpose for measurement. Mapping Measurable Results Translating our strategy into clear, focused, and measurable performance results. Building Buy-In to Measures Getting ownership from our stakeholders, quickly, easily and engagingly. > > > This is our “WHY” for measuring performance. Establishing our purpose for measuring has a huge impact on culture. The WHAT to measure – how to write Results/Outcomes that are measurable. Think of these four steps as the ‘design phase’ for the measurement system.
- 19. The PuMP Performance Measure Blueprint STEP 2STEP 1 STEP 3 STEP 4 Understanding Measurement’s Purpose Fixing the focus firmly on continuous improvement as the purpose for measurement. Mapping Measurable Results Translating our strategy into clear, focused, and measurable performance results. Designing Meaningful Measures Choosing the most feasible and relevant measures that evidence our performance results. Building Buy-In to Measures Getting ownership from our stakeholders, quickly, easily and engagingly. > > > How to design and select performance measures that give us feedback on the Results/Outcomes we seek. Think of these four steps as the ‘design phase’ for the measurement system.
- 20. The PuMP Performance Measure Blueprint STEP 5 STEP 6 Implementing Measures Documenting in detail the data, analysis and reporting requirements for each of our measures. Interpreting Signals from Measures Focusing ourselves on gaps between as-is and to-be performance. > Defining the measure is the first thing we need to do to bring a measure to life. We must ensure we can interpret signals from measures consistently.
- 21. The PuMP Performance Measure Blueprint STEP 5 STEP 6 STEP 7 STEP 8 Implementing Measures Documenting in detail the data, analysis and reporting requirements for each of our measures. Interpreting Signals from Measures Focusing ourselves on gaps between as-is and to-be performance. Reporting Performance Measures Creating useful and usable performance reports that inspire us to action. Reaching Performance Targets Improving business processes to move as-is performance toward to-be. > > > Our dashboards must be useful and useable to the user. Plus describe, what performance is doing, why it is doing that, and the next best action to take (if any).
- 22. The PuMP Performance Measure Blueprint STEP 5 STEP 6 STEP 7 STEP 8 Implementing Measures Documenting in detail the data, analysis and reporting requirements for each of our measures. Interpreting Signals from Measures Focusing ourselves on gaps between as-is and to-be performance. Reporting Performance Measures Creating useful and usable performance reports that inspire us to action. Reaching Performance Targets Improving business processes to move as-is performance toward to-be. > > > Systems and process thinking. Continuous improvement.
- 23. The interdependence between planning and measurement to achieve performance improvement. 1. Macro level 2. Micro level
- 24. Planned Strategy (Vision, Mission, Purpose, Intent) Prioritised Results (Results Map) Business Planning / Initiatives Informs Transformation Change Plan / Program Individual/Team Dev Plans (change/ BAU) Informs Measures / Targets (feedback on Results) Realised Strategy Outcome Performance Measurement Framework Performance Planning Framework FeedbackLoop Performance Management Framework Integrating planning, measurement, learning cycles and the implementation of strategy. Initiative Delivery Performance Reporting (to Improve Performance) 1. Plan 2. Do 3. Check 4. Act
- 25. Typical strategic planning questions 1. Where do we want to be in – 1, 2, 5 or 20 years? 2. What do we need to do to get there? 3. Are we there yet? Describe the future state – Outcomes, Impact and change we want to achieve Write the Plan: • Projects • Initiatives • Actions Deliver the Plan: • Projects & Initiatives - on time, on budget • Actions – done
- 26. Alternate strategic approach 1. Where do we want to be in – 1, 2, 5 or 20 years? Articulate the Results we want to achieve. Build a causal map of Results. Design and Select Performance Measures for the Results. Set Targets - on measures, selected for improvement effort. Root cause analysis. Develop a solution. Implement. Use the measure to check for the impact of the solution. a) What have we learned? b) Repeat the process. 1. Plan 2. Do 3. Check 4. Act
- 27. The PuMP Performance Measure Blueprint STEP 2STEP 1 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 Understanding Measurement’s Purpose Fixing the focus firmly on continuous improvement as the purpose for measurement. Mapping Measurable Results Translating our strategy into clear, focused, and measurable performance results. Designing Meaningful Measures Choosing the most feasible and relevant measures that evidence our performance results. Building Buy-In to Measures Getting ownership from our stakeholders, quickly, easily and engagingly. Implementing Measures Documenting in detail the data, analysis and reporting requirements for each of our measures. Interpreting Signals from Measures Focusing ourselves on gaps between as-is and to-be performance. Reporting Performance Measures Creating useful and usable performance reports that inspire us to action. Reaching Performance Targets Improving business processes to move as-is performance toward to-be. > > > > > >
- 28. Two points for your consideration (what I feel are too massive lost opportunities)
- 29. 1. There is an opportunity to motivate through how we use performance measures. “Of all the things that can boost inner work life, the most important is making progress in meaningful work.” The Progress Principle Teresa Amabile and Steven Kramer, The Power of Small Wins, Harvard Business Review May 2011
- 30. 1. There is an opportunity to motivate through how we use performance measures. "...the simplest and most effective way you can enhance the inherent motivation of any project, process or work (is) by making progress visible. " Jason Fox 2014, The Game Changer, page 95
- 31. The plight of the flight controllers who failed… 2. Performance improvement opportunities like this are (most likely) lurking within your processes. Reducing average days from 67 to 23 saved $500,000 on a $12,000 investment
- 32. What might be the ROI of investing in improving your performance measurement system..? Consider: • What is the benefit to you of having people in your organisation see the alignment of their activity with strategy..? • What is the benefit of not reacting to false signals from measures..? • How much time can be saved in meetings when we stop arguing about measures, and focus on what performance is actually doing..?
- 33. What next... • Visit: www.staceybarr.com - heaps of free resources • Sign up for Stacey’s “Measure Up” email • Blueprint Workshops held regularly: Auckland February 2020 Wellington June 2020 Brisbane March 2020 Melbourne May 2020 • In-house workshops on request Scrap using the old bad habits. Adopt good measurement system practice to support your planning journey to improved performance. Let’s connect
- 34. THANK YOU.