Exercise—Performance Measures

Situation A

1.    The teams’ measures are volume; therefore, to meet their volume requirements, they are concentrating on the work that can be done the fastest. The teams are giving management what it is asking for—large numbers of items. But the customer is asking for timely deposit.

2.    The teams’ measures should focus on the time that lapses between arrival in the office and deposit. If they concentrate on getting the items processed as quickly as possible, the volume will follow.

Situation B

1.    The measures allow this team to gauge whether they are living up to their mission. Both measures tell the team whether they are meeting their on-time, every-time goal.

2.    The team needs to add a measure of the ...

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