Business Basics
Home Page


Who is Bill Gaw?
And why should we
listen to him?

 

lean manufacturing principles and techniques training

4- training tools that make cost-effective,
DIY, company training a reality?

Lean Manufacturing Transformation

Want to add pizzazz to your in-house Manufacturing Training Program.
Lean Manufacturing Simulation Game

Performance Management Basics
Part 7 of 8


privacy policy

To review our training
packages, simply click
on any of the links below:

Training Materials and Options

Lean Manufacturing Solutions

Lean Manufacturing Toolbox

Performance Measurement Training

Poka-Yoke and
Process Improvement Training

Lean Manufacturing -
Small and Medium
Sized Businesses

Supply Chain
Inventory Management

Lean Six Sigma
Implementation

Strategic Planning Training

World Class Manufacturing

Continuous Process Improvement

Kaizen Training

Kaizen Blitz Event

Thinking-Outside-
the-Box

Best-In-Class Manufacturers

Best of Gaw Lean Management Articles

Golf Training Program

PERFORMANCE MANAGEMENT

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

For balance of this article, click on the below link:

Lean Manufacturing Articles and click on Series 13


STAY CONNECTED

To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course. 

 

First Name:
Your E-Mail:

 Your personal information will never 
be disclosed to any third party.


privacy policy

Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC


"Back to Basics" Training for anyone ... anywhere ... anytime

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2001-2009 Business Basics, LLC