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Transforming Performance Measurement

Book Description

It's no secret that you can't improve your organization's performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system.

So you'd better make sure you're doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement.

Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization.

Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His "socialization of measurement" process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions?

Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization's success. This book shows you how to design that technical-social balance into your measurement system.

While it is urgent to start taking action now, transforming your organization's performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more "transformational" and mature measurement system.

The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and "emergent" measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away.

In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it--and in what context--to make a truly transformational difference in your enterprise.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Dedication Page
  5. Contents
  6. Acknowledgments
  7. Introduction
    1. The Elusive Search for the Secret of Success
    2. Changing the Paradigm
    3. A Surprising Truth about Performance Measurement
    4. The Purpose of this Book
    5. The Transformational Measurement Questionnaire
  8. Chapter 1: Why Measurement is so Powerful
    1. The Pervasiveness of Measurement
    2. The Challenge of Organizational Measurement
    3. The Power of Measurement
    4. Performance Measurement Promotes Effective Management
    5. The Functions of Performance Measurement
  9. Chapter 2: When Measurement Goes Bad
    1. The Problem of Measurement Dysfunction
    2. A Major Cause of Measurement Dysfunction
    3. How Rewards Increase the Potential for Measurement Dysfunction
    4. Fear also Induces Measurement Dysfunction
    5. Measuring the Wrong Things
    6. Measuring “Looking Good” Rather than “Being Good”
    7. Suboptimization
    8. Cheating
    9. Measuring too Much
    10. Dysfunctional Measurement and Employees
  10. Chapter 3: Why Measurement Goes Bad
    1. Motive and Opportunity
    2. How People Experience Measurement
    3. Employees' Attitudes toward Measurement at Work
    4. The Context of Measurement
    5. Confusing Measurement and Evaluation
    6. Purpose
    7. Disempowerment
    8. The “Motivational” Use of Measurement
    9. Distrust
    10. Negative Accountability
    11. Resistance to Measurement
    12. Opportunity and Motive Revisited
    13. The Challenge Ahead
  11. Chapter 4: Beginning the Transformation
    1. The Transformational Vision
    2. How to Realize the Vision: The Four Keys
    3. A Roadmap to Success
  12. Chapter 5: Creating A Positive Context of Measurement
    1. The Context of Measurement
    2. The Formal Aspects of the Performance Measurement System
    3. The Human Factor
    4. The Context of Measurement Continuum
    5. A Sure-Fire Indicator of Positive Context of Measurement Change
    6. Snapshots from the New Performance Measurement Paradigm
    7. The Ongoing Transforming Power of Context
  13. Chapter 6: The Focus of Measurement
    1. The Importance of Focus
    2. Selecting the Right Measures
    3. Effectiveness First
    4. How Value is Created and Destroyed
    5. Business Models and Strategy
    6. Measuring what Matters Most
    7. Measuring Intangible Assets
    8. High-Leverage Measuring
    9. Emergent Measures
    10. New Customer Measures
    11. Don't Expect Perfection
    12. The Next Step
  14. Chapter 7: The Integration of Measurement
    1. The Importance of Measurement Integration
    2. The Dis-Integrated Organization
    3. Dis-Integrated Measurement
    4. Dis-Integrated Data
    5. Strategic Measurement
    6. The Balanced Scorecard
    7. The Value of Measurement Frameworks
    8. Measurement Frameworks and Trade-Offs
    9. Developing Measurement Frameworks
    10. The Need for a CMO
    11. The Next Step
  15. Chapter 8: The Interactivity of Measurement
    1. The Importance of Interactivity
    2. Data, Information, Knowledge, and Wisdom
    3. The Data-to-Wisdom Conversion Process
    4. Examples of Interactivity to Generate Wisdom
    5. The Performance Measurement Cycle
    6. Dialogue: The Key to Measurement Interactivity
    7. Assessing an Organization's Measurement Capabilities
    8. The Challenge of Interactivity Today
    9. The Tendency to View Technology as the Panacea
    10. Making Progress
  16. Chapter 9: Measurement Leadership
    1. The Importance of Measurement Leadership
    2. Why Measurement Leadership Doesn't Happen
    3. The Tension between Intuition and Measurement
    4. What Happens in the Absence of Measurement Leadership?
    5. Routine vs. Transformational Measurement
    6. The Challenges of Changing Measurement
    7. Leading Transformational Performance Measurement
    8. Establishing an Environment Conducive to Change
    9. Making the Transformation Happen
    10. Measurement Leaders
    11. Needed: The Role of Chief Measurement Officer (CMO)
  17. Chapter 10: Learning about and from Measurement
    1. Transformational Learning
    2. The Process of Learning
    3. The Learning Loop
    4. Transformational Measurement and Double-Loop Learning
    5. Organizational Learning
    6. Why Smart People Do Dumb Things
    7. How Performance Measurement can Help
    8. Learning New Ways of Thinking about Performance Measurement
    9. The Keys to Transformational Learning
    10. How Well Does your Organization Learn about and from Measurement?
  18. Chapter 11: The Uses and Abuses of Measurement Technology
    1. In Search of a Quick Fix and a Technology Breakthrough
    2. Technology Infatuation
    3. The Human Factor
    4. The Proper Role of Technology in Performance Measurement
    5. Business and Social Architecture
    6. Failure to Address the Social Issues
    7. Critical Issues in Adopting Measurement Technology
    8. Scorecards and Dashboards
    9. Adopting and Implementing Measurement Technology
    10. Steps for Successful Technology Investment
  19. Chapter 12: Performance Measurement Maturity
    1. The Concept of Maturity
    2. Assessing Transformational Performance Measurement Maturity
    3. Levels of Performance Measurement Maturity
    4. The Transformational Measurement Maturity Assessment
  20. Chapter 13: Transformational Measures
    1. Defining Transformational Measurement
    2. From Exploration to Transformation
    3. Traditional vs. Transformational Thinking
    4. Taking the Lead in Transformational Measurement
    5. The Transformational Lens
    6. An Experimental Attitude is Essential
    7. The Challenge of Measuring Intangibles
    8. Transformational Measurement of Intangibles
    9. Introducing the Transformational Measurement Action Plans
    10. Don't Get Discouraged
  21. Chapter 14: Transformational Measurement Action Plans
    1. 1. Customer Experience
    2. 2. Customer Engagement
    3. 3. Customer Delight
    4. 4. Customer Loyalty
    5. 5. Customer Relationship
    6. 6. Voice of the Customer
    7. 7. Customer Profitability
    8. 8. Customer Lifetime Value
    9. 9. Service Quality
    10. 10. Brand Equity
    11. 11. Intellectual Capital
    12. 12. Strategic Readiness of Intangibles
    13. 13. Innovation Climate
    14. 14. Reputation
    15. 15. Organizational Trust
    16. 16. Partner Relationships
    17. 17. Collaboration
    18. 18. Productivity
    19. 19. Organizational Agility
    20. 20. Waste
    21. 21. Inventory
    22. 22. Total Cost of Ownership
    23. 23. Activity-Based Costing
    24. 24. Economic Value Added
    25. 25. Organizational Intangible Value
    26. 26. Project Scheduling
    27. 27. Employee Engagement
    28. 28. Emotional Intelligence
    29. 29. Employee Safety
    30. 30. Employee Presenteeism
    31. 31. Learning Effectiveness
    32. 32. Information Orientation
    33. 33. Information Proficiency
    34. 34. Knowledge Flow
  22. Epilogue: How to Begin Transforming Performance Measurement in your Organization
  23. Notes
  24. Bibliography
  25. Index