Measurements with Meaning – Our presentation

Measurements with Meaning
How to Focus on Success
How are you measuring success today?
•What measurements are in place currently?
For the whole company…
not just your team or department?
•So what about your team / department?
–How do you measure success at this level?
•How does this benefit the shareholders?
What about the employees?
•Do employees know if the company is successful?
–Which employees?
•Do employees know if they are successful?
•Does each employee know how their work specifically impacts the “measurements”?
So let’s recap M.E. Burdette’s Metrics
•Over 300 metrics are on the big board by the main break room.
•Who in this room reads the metrics posted?
–Every single one of them?
– No? Then which ones?
•Who thinks any employee reads them all?
•Who thinks any employee reads any of them?
•If employees read them, do they know what they mean and how they impact them?
So let’s recap M.E. Burdette’s Metrics
•Who knows where the metrics are kept on the network?
•How many of you have looked at them on the network?
NOTE: Fred needs to confess that he hasn’t looked at them on the network either.
•What’s the purpose for all these numbers if we can’t use them to measure our success and pinpoint our opportunities?
 Why are we here?
•Why does M.E. Burdette Co. exist?
•If the company doesn’t make money, how can it survive?
•Then what?
–What would M.E. Burdette Co.’s employees do?
–What would you all, the management team, do?
•So, if everyone knows why we are here, who can explain why nearly every department is sub-optimizing?
The dilemma!
 What do we do?
Business as usual? Or do we change the model?
What do the best of the best do?
•Apparently we are not the best of the best in town, much less the state, country or industry.
•To be successful, you must always look around you at both success and failure.
•Right here in town we have an example of success.
–Housholder Sprockets
–Industry leader, community leader, profitable
A tale of success
The Tape Measure
Time to start over
•Create measurements with meaning
–Structured from top to bottom within the organization.
–Everyone in the company MUST know if we are successful or not.
•A few simple measurements at each level of the company can accomplish this
–This doesn’t mean you don’t measure other things.
–The metrics you post are all linked together.
What success looks like
•Start at the top  – Key Performance Indicators
–Develop 3-4 meaningful KPIs at the top of the organization.
–Involve stakeholders, managers and employees alike.
–Everyone must understand the difference between indicators and goals.
•Top level management MUST be onboard…leading this effort!
Success – Top Down
•After KPIs are developed at the top, its time to start filtering down.
•At the next level down…
–Managers must then develop metrics to feed KPIs.
–These should be objective based and critical to success.
–There must also be some employee-based metrics that show the employee/team that they are succeeding.
–Upper level managers MUST get their team involved to develop the metrics at this level.
 Success – Top Down
•Further down the organizational chain
–At each level down, management MUST develop metrics that feed up stream towards the KPIs.
–This is what ties knowledge of success at all levels of the company together.
–Just as at the higher levels, metrics should be objective based and critical to success.
–There must also be some employee-based metrics that show the employee/team that they are succeeding.
–AND, at each level all employees MUST feel ownership in the measurements.
–Everyone in the organization MUST have their personal success directly linked to meeting these metrics!
 Developing Measurements With Meaning
Success – Bottom Up
•To truly be successful, employees MUST be engaged.
•Employees have to have ownership in the measurements if you want the effort to succeed culturally.
•There MUST be measurements at each level of the company, from bottom to top, that shows the workforce how they are doing.
•Employees have to be allowed to participate in the creation of some metrics.
Where do we start?
•At the top!
–Name the critical items or areas that should be measured that are critical to our success.
–Reduce the list to the basic measurements that we MUST know.
–Convert these to indicators, not goals.
–How often do we measure them?
•These KPIs  will guide us through the rest of our journey.
Next Steps
•At each level of the organization repeat the same exercise with these changes:
–Start by sharing the KPIs and explaining what they are and why they are important to the company’s success.
–Share the critical success metrics from the level above and explain why they are important.
–Now develop your measurements that support and feed the level above and ultimately feed the KPIs.
–How often do you measure?
–Don’t forget to create some employee-based metrics that show the team their success!
Cultural Sustainment
•Review KPIs annually for relevance
•After KPI review start the review process from top to bottom for metrics at each level.
•Celebrate success!
•Learn from Success and Failure!
–If you fail, determine why! If you succeed, determine why!
–Sustain the gains
(put controls in place and monitor the changes)
–Communicate results and knowledge obtained
–Re-evaluate and adjust (if necessary) goals and objectives to meet KPIs

About narvelltmann

Currently working first job out of college as a cost analyst for M.E. Burdette Co.
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