Provided is a video showing the creation of metrics that lead to the best behaviors. This video is an edit of Forrest Breyfogle’s February 9, 2023, presentation at an ASQ Phoenix, AZ, section meeting.
A summary of the ASQ section meeting presentation:
Effective Key Performance Indicator (KPI) metric management in an organization is critical; however, there are issues with traditional metric reporting and its accompanying goal-setting practices.
Current organizational goal-setting practices can lead to unhealthy, if not destructive, behaviors, as illustrated in the article “Wells Fargo under siege: Drops sales goals tied to bogus account scandal.”
Traditional KPI metrics reporting is an elephant-in-the-room problem where organizations can waste much time and resources that unnecessarily cost a lot of money and lead to much frustration.
KPI management should lead to the best actions or non-actions in an organization, but more often than not, this does not occur. This presentation describes commonplace issues with KPI management practices and how to resolve these issues with an alternative 30,000-foot-level KPI management reporting methodology.
This presentation uses the commute time from home to work (as described in a published article) to illustrate the benefits of 30,000-foot-level reporting and goal setting for addressing the issues of traditional metric reports, including red-yellow-green scorecards.
The described techniques also provide
- An input to a strategic planning session, i.e., what metric an organization desires to improve via a created organizational strategy
- A metric to improve via a Lean Six Sigma process-improvement project
- A better approach for process-output-response capabilities indices reporting
A video showing the creation of metrics that lead to the best behaviors, as described in the section meeting is:
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