Performance Measurement
Successful performance measurement consists of four primary elements: methods and metrics of measurement (collecting/collection); a baseline or current measure for comparison; an actual measure to assess status (comparing/comparison); and a means of communicating measurement (reporting/reports) for assessing conditions providing information for actions based upon those conditions (acting/action). At each level within an organization whether it’s the customer, the business, the process or the people, performance measurement exists, whether it’s formal or informal. The best case exists when the performance measures are linked, related, consistent and utilized to improve performance.
Strategic – Operational – Tactical
In every organization, there tends to exist three specific layers. At the top tier, the leadership layer is often referred to as the strategic level. The middle tier, often the management level, is frequently where organization operations functions. And the base layer, or referred to as the people level, is where the work and tactical actions and activities reside. By focusing on all three levels simultaneously and concurrently, performance improvement and performance excellence can be realized. Although there are different tools and techniques required at each level, change and transformation can be achieved through efforts linking all three tiers.
Tools and Toolboxes
There are numerous toolboxes available today for creating Performance Excellence. The most popular toolboxes focus on quality, lean, Six Sigma, leadership and management. Two of the most traditionally fashionable are the Seven Quality Tools Toolbox and the Seven Management Planning Toolbox. Over the past 20 years, the Lean Toolbox and Six Sigma Toolbox (combined as the Lean Six Sigma Toolbox) have gained popularity for process change and transformation efforts, and have emerged as preferred methods for continuous improvement. In addition, and finally, a multitude of leadership and management toolboxes exist for focus on strategy, structure, systems, project management and people development. All of these toolboxes can be applied to achieve Performance Excellence.