“If we establish a standard set of performance measures, then we can compare practice performance, but establishing this standard requires specialized skills, understanding, and executive buy-in. ”
When trying to manage and improve practices, the measures you focus on will have a significant impact on behavior.
If performance measurement is focused on speed, then the practice’s speed will increase. If that is the only measure or the most heavily focused upon area, the improvements may come at the expense of the overall practice. Typically, when practices speed up, quality of the deliverables goes down.
By uploading practices into the CPI Performance Measure Framework, we can ensure that the measures needed to identify constraints, potential bottlenecks, and areas for improvement are easily identified.
There are many performance measures that should be monitored and are part of the performance measure framework, but the performance scorecard looks at 5 key performance measures that when used appropriately can quickly and accurately diagnose performance issues and practical solutions.
Each of these measures can help to identify issues whether they occur upstream, downstream, or within the practice:
Adoption monitors the percent of the time that people are following this practice to achieve the process objective. Often additional training, awareness, and communication activities are required to get better adoption of the practice.
Input Quality issues typically indicate an issue with the upstream practice, whether it is inferior quality or misidentified requirements on its deliverable.
Latency helps to monitor how efficiently resources are able leverage templates and assets to quickly complete the practice.
Throughput and Latency issues could be caused by lack of training, or too many unnecessary steps or overhead.
Capability Index is used to measure the output of the practice and can help identify quality issues.
There are many different constraints that can be identified that are tied to a combination of one or more of these measures. The performance scorecard helps to monitor and visualize these constraints.
In the Fast-Service™, we use the CPI Performance Measure Framework to instrument the practices with performance measures that will drive the desired behavior. The Performance Scorecard is a tool that will help to establish a performance baseline for the newly implemented practice, and can also be used for continuous performance improvement in the future.