A document describing the key elements of establishing process metrics including What is a Metric, Measuring the right things, creating metrics that are SMART, a 5-step process for implementation and how good are your metrics and summary.
This presentation dives deep into the critical protocols for measuring the right things, ensuring your metrics align with customer requirements, process performance, supplier standards, and employee productivity. It emphasizes the importance of creating metrics that are not only SMART, but also actionable and relevant. The document outlines common pitfalls in metric development, such as collecting incomplete data or creating overly complex metrics that are hard to explain and implement.
The presentation categorizes metrics into Performance Metrics and Diagnostic Metrics. Performance Metrics evaluate overall performance and are closely tied to customer requirements and business needs. Diagnostic Metrics, on the other hand, focus on identifying areas where processes are not meeting expectations, often requiring internal analysis and supplier input. This dual approach ensures a comprehensive understanding of both external performance and internal process efficiency.
A 5-step process for implementing these metrics is detailed, starting with understanding customer needs and ending with aligning metrics with higher-level processes. This structured approach ensures that metrics are not only relevant, but also integrated into the broader business strategy. The document also prompts critical self-assessment questions to ensure your metrics drive the desired behaviors and support long-term business goals.
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Source: Process (4) - Process Metrics PowerPoint (PPT) Presentation Slide Deck, The Highway of Change
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