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Data Clean-up
Implementation of performance metrics or the alteration of an existing metrics represents change. These changes often expose previously unseen data; producing unexpected information and bringing to light both performance inefficiencies and errors in captured data. Consequently, performance reflected by the new or updated metrics may be erroneous; necessitating further investigation and possible corrective action.
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About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Because resources are always limited and there is no free lunch, too much of any one thing can be bad.
Over time, organizational performance measurement systems can grow to include hundreds if not thousands of individual metrics. While each metric contributes some value in establishing the overall picture of performance, not all metrics offer equal value in doing so. Some metrics contribute so little value that they may be more costly and distracting than their value warrants. Consequently, executives and managers should consider eliminating these measures from the overall system.
Change is difficult. Value illusive. Implementation of new organizational performance measures represents both change and sought after value, either of which can render the time and resources spent creating the new measures worthless. Consequently, it is incumbent upon those seeking to introduce the new measures to effectively test for acceptance and value contribution before committing the significant time and resources required for their development and implementation.
Just as a well-developed organizational performance measurement system helps align an organization to the efficient achievement of its goals, a misaligned performance measurement system diverts focus and resources toward non-value-adding activities. Over time, existing projects finish and new initiatives begin; requiring performance measures within the system be changed. While these alterations are intended to support continued, effective business operation, they are often performed without a holistic view of the system and may have unintended adverse impacts. Therefore, it is prudent to conduct a holistic performance measurement system evaluation with frequency that is regular enough to minimize the damage misalignment can cause without being so frequent as to become overly burdensome.
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