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Measurements are more than just data. Unfortunately, many companies expend tremendous energy measuring and capturing data with very little effort spent in using that data to improve performance. Measurement with­out analysis of cause and effect is wasteful and tends to de-motivate people engaged in the measurement. Analy­sis of cause and effect and the skills required to creatively solve problems come from techniques easily taught and easily practiced by company personnel. Cause and effect will lead to action plans that result in change. Change, in turn, will motivate people and lead to more change.

Management of the performance measurement pro­cess in a way that drives change is the responsibility of leaders in a company. Their example and enthusiasm will set the tone for middle management and the workforce. By engaging people throughout the organi­zation in the pursuit of continuous improvement, se­nior management will realize sustainable bottom-line benefits not previously possible.

A team approach is required for performance man­agement to be effective. To make teamwork happen, measurements must be used directly in the management process. Measurement reports are insufficient to drive results and engage teams. Therefore, a formal review of performance specifically dedicated to driving the con­tinuous improvement culture is required. Often referred to as the monthly performance review meeting, it is within this session that the business unit leader must guide his/her team and set the example for effective per­formance management.


The process owner for each measurement is required to present the most recent results from their measure­ment activity and provide a plan of action for further improvement. Every month, the process owner and the support team establish the target rate of improvement for the subsequent month.


Information is often presented in the form of a "dash­board" which easily reveals processes or measurements that require management attention. This could imply need for improvement or need for recognition. When recognition is in order, participants in the presentation often include all members of the process improvement team rather than just the leader.


The concept of a monthly performance review is most usually applied within a single organization. Sets of measurements give a complete profile of the vital pro­cesses within that business.

   Many larger organizations have found significant ben­efit in standardization of both the process and defini­tion of performance measurement. It leads naturally to benchmarking and enhances management development where interdivisional transfer of personnel is important.

To Be Continued

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