Are we heading in the right direction ? Good Performance Measurements are key !

Defining and using the correct Key Performance Indicators, better known as KPIs,  is vital to the success of any organization.    It is impossible to run a Lean Six Sigma program in your company without defining and using the correct KPIs.

The right KPIs are ‘the compass’ that shows you if you are heading in the correct direction as an organization.

I was recently introduced to someone who understands this better than anyone.  She is an author and thought leader in the field of Performance Measurement, and her name is Stacey Barr.

Stacey’s new book is well worth a read for any company attempting a Lean Six Sigma transformation.

Practical Performance Measurement: Using the PuMP Blueprint for fast, easy, and engaging KPIs ( 2014).

So I asked Stacey what are her tips for defining and using the correct KPIs ?

This is what she says:

1.   Avoid the BAD HABITS of Performance measurement:

  • measuring activity rather than results (and using milestones rather than true measures of performance)
  • writing objectives and goals with vague, weasely words like effective, efficient, sustainable, reliable, quality, and so on
  • filling reports with overly complex gauges, dials, and graphs, and tables and commentary that contains more information than is necessary to get the point across.
  • interpreting performance by comparing this month to last month

2.   Implement your 8 Step strategy for Performance measures:

STEP 1: Understanding Measurement’s Purpose in your organization
STEP 2: Mapping Measurable Results
STEP 3: Designing Meaningful Measures
STEP 4: Building Buy-in to Measures
STEP 5: Implementing Measures
STEP 6: Reporting Performance Measures
STEP 7: Interpreting Signals from Measures
STEP 8: Reaching Performance Targets

Stacey Barr is a specialist in organisational performance measurement and creator of PuMP, the refreshingly practical, step-by-step performance measurement methodology designed to overcome people’s biggest struggles with KPIs and measures. Learn about the bad habits that cause these struggles, and how to stop them, by taking Stacey’s free online course “The 10 Secrets to KPI Success” atwww.staceybarr.com/the10secretstokpisuccess.


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