An enhanced performance metrics template for scorecard reporting is available through the Integrated Enterprise Excellence (IEE) Business Management System. With the IEE system, predictive analytic performance metrics are integrated with the processes that created them through an IEE value chain.
The described IEE performance metric enhanced reporting methodology provides predictive performance measurements with big-picture, long-lasting improvements.
Enhanced Performance Metrics Template Considerations
Performance measurement is the collection and reporting of information relative to individual, group, or organizational performance. Performance metrics are important, as noted in the cliché, “What gets measured gets done;” however, often determining what to measure in an organization and how to report this information leave much to subjectivity.
Aspects often related to performance measurements include:
- Performance measurement can involve examining processes and strategies to determine whether outcomes are consistent with what was intended or should have been achieved.
- Good performance is the criterion whereby an organization determines its capability to prevail.
- Performance measurement estimates the parameters under which investments, programs, and acquisitions are reaching the targeted results.
- Statistical modeling is to be used to determine performance results.
- To evaluate performance, there is a need to determine what is to be accomplished.
- One aspect of process performance evaluation is benchmarking.
- Performance measures establish a control to make sure that subordinates are doing the right thing.
- Performance measures assess how well budgets are being achieved.
- Efficiency is determined by observing performance measures.
- People motivation through the setting of goals, and then assessment of how well the goals were met.
- To improve, organizations need to determine what should be done differently.
- A basis for establishing accountability needs to be established.
- The implementation and effectiveness of an organization’s strategies needs to be monitored.
These various points of view for performance measurements can be very important; however, care must be exercised to use a process for integrating performance metrics with a reporting system so that the enterprise as a whole benefits.
Enhanced Performance Metrics Template: Selection and Reporting
For a given organization, would it be reasonable to expect that there could be a difference of opinion
- Relative to which performance measures are selected?
- How performance measurement goals are set?
After setting performance goals:
- How is it known that achievement of the goal will help the business as a whole?
- Will an apparent improved performance measurement shift in the future maintain its current improved level of performance?
These are very important issues that need to be structurally addressed to ensure that decisions and goals are set so that there is a whole-system enterprise benefit. These types of decisions need to be based on the results of structured data analytics; however, this often does not occur.
An approach to address these issues is the Integrated Enterprise Excellence (IEE) business management system. The IEE system provides the framework for an enhanced performance metrics template in its 9-steps system:
In IEE, the whole business is assessed when selecting performance metrics for functions via an organizational value chain (step 2 of IEE 9-step system). An example value chain is:
An IEE value chain can be clickable through Enterprise Performance Reporting System (EPRS) software.
In an IEE value chain:
- Functions and processes are rectangular boxes: The primary functions are connected by arrows. The support functions are not. Clicking a box with EPRS software will lead to process details.
- Performance metrics are oblong boxes: Clicking a box with EPRS software will provide an automatically updated a predictive analytics 30,000-foot-level report-out
When creating an organizational value-chain, functional performance metrics are determined by asking what are good metrics relative to quality, cost, and time.
- Performance measures are reported using a system that first uses analytics to assess predictability and then provides a prediction statement, if the process is currently stable.
- As a whole, the enterprise value chain is assessed to determine which performance measures improvement needs would benefit the overall big-picture financials the most.
- Metric improvement needs for the organization as a whole create a pull for improvement projects by the process owners who own the performance metric.
- Evidence and quantification of the amount of improvement that was made is evidenced by the process’ 30,000-foot-level predictive scorecard transitioning to an enhanced level of performance.
The IEE system addresses the common place business scorecard and improvement issues that are described in a 1-minute video:
An overview of the IEE system is provided in the article “Positive Metrics, Poor Business Performance: How Does this Happen?”
The IEE system with its performance metrics template and business improvement techniques is described in a 5 book set:
More Information about Performance Measurements Enhanced Methodology
For additional information about Integrated Enterprise Excellence (IEE) and how it can be a performance measurement methodology see:
- Performance measurements enhanced methodology: Articles, Videos, Books
- Executives challenges and their resolution through performance measurements enhanced methodology
- Transitioning historical reported dashboards to predictive reporting (8 illustrations)
- Enhanced business management system for a performance measurements enhanced methodology
- BPM integration with a performance measurements enhanced methodology
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an Integrated Enterprise Excellence (IEE) Business Process Management System and its enhanced performance metrics template.