» » next post - Steve Spear: Measure outputs generated by pathways of connected activities
« « previous post - Tracey Richardson: Group leaders have to compute their team’s productivity standards
Jean Cunningham

Jean Cunningham: 4 criteria for good metrics

By Jean Cunningham, - Last updated: Sunday, January 27, 2013 - Save & Share - Leave a comment
What great input from the other bloggers on this question.  And here is what I have learned:
  1. If you ask 3 people how a metric is calculated and you get 3 answers, it isn’t a good metric. The metric needs to be simple to understand and to measure, because it’s purpose is to drive problem solving.
  2. If all your metrics are outcome metrics (sales per person, inventory turns, shipments per hour) then add some process metrics. (how often was a sales order entered with incomplete information, number of times with unplanned downtime on the line, orders not entered within 2 hours)  Measuring the process shows you if the experiments you are trying are being sustained; the outcome metrics indicate if the experiments are having impact on True North.
  3. Metrics are the message from management to workers about what is important so that they can focus their problem solving.  This is very different from our normal way of using metrics which has been to tell management what is happening. With management engaged in operations, that is less important. More important to help focus workers on what is most important.  Is scrap more important that overtime? Is shipping on time more important than quality? Is keeping constraint machine more important that scrap?
  4. You will be adjusting your metrics frequently. Get started. Do not wait to get it perfect.  Start small and use the metrics to drive problem solving.

Post to Twitter

Share this post...Tweet about this on TwitterShare on Google+Share on LinkedInBuffer this pageShare on FacebookEmail this to someonePin on PinterestShare on Tumblr
Posted in Uncategorized • Tags: , , , , , Top Of Page

Write a comment

*