Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success

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AMACOM Div American Mgmt Assn, 2007 - Business & Economics - 288 pages
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It's no secret that you can't improve your organization's performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system.

So you'd better make sure you're doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement.

Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization.

Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His ""socialization of measurement"" process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions?

Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization's success. This book shows you how to design that technical-social balance into your measurement system.

While it is urgent to start taking action now, transforming your organization's performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more "transformational" and mature measurement system.

The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and "emergent" measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away.

In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it -- and in what context -- to make a truly transformational difference in your enterprise.

 

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Contents

Routine vs Transformational Measurement
126
The Challenges of Changing Measurement
127
Leading Transformational Performance Measurement
128
Making the Transformation Happen
132
Measurement Leaders
134
The Role of Chief Measurement Officer CMO
139
Learning About and from Measurement
140
The Learning Loop
142

A Major Cause of Measurement Dysfunction
23
Fear Also Induces Measurement Dysfunction
26
Measuring the Wrong Things
29
Measuring Looking Good Rather Than Being Good
30
Suboptimization
31
Cheating
33
Measuring Too Much
34
Dysfunctional Measurement and Employees
35
Why Measurement Goes Bad
36
How People Experience Measurement
38
Employees Attitudes Toward Measurement at Work
39
The Context of Measurement
40
Confusing Measurement and Evaluation
41
Purpose
42
Disempowerment
43
The Motivational Use of Measurement
44
Distrust
45
Resistance to Measurement
46
The Challenge Ahead
47
Beginning the Transformation
48
The Four Keys
51
A Roadmap to Success
55
Creating a Positive Context of Measurement
56
The Formal Aspects of the Performance Measurement System
59
The Human Factor
60
The Context of Measurement Continuum
61
A SureFire Indicator of Positive Context of Measurement Change
62
Snapshots from the New Performance Measurement Paradigm
63
The Ongoing Transforming Power of Context
67
The Focus of Measurement
68
Selecting the Right Measures
69
Effectiveness First
71
How Value Is Created and Destroyed
72
Business Models and Strategy
74
Measuring What Matters Most
76
Measuring Intangible Assets
78
HighLeverage Measuring
79
Emergent Measures
81
New Customer Measures
82
Dont Expect Perfection
84
The Next Step
85
The Integration of Measurement
86
The DisIntegrated Organization
87
DisIntegrated Measurement
89
DisIntegrated Data
90
The Balanced Scorecard
91
The Value of Measurement Frameworks
93
Measurement Frameworks and TradeOffs
96
Developing Measurement Frameworks
97
The Need for a CMO
102
The Interactivity of Measurement
103
The Importance of Interactivity
104
Data Information Knowledge and Wisdom
105
The DatatoWisdom Conversion Process
108
Examples of Interactivity to Generate Wisdom
109
The Performance Measurement Cycle
110
The Key to Measurement Interactivity
115
Assessing an Organizations Measurement Capabilities
116
The Challenge of Interactivity Today
118
The Tendency to View Technology as the Panacea
119
Making Progress
120
Measurement Leadership
121
Why Measurement Leadership Doesnt Happen
122
What Happens in the Absence of Measurement Leadership?
123
Transformational Measurement and DoubleLoop Learning
144
Organizational Learning
145
Why Smart People Do Dumb Things
147
How Performance Measurement Can Help
148
Learning New Ways of Thinking About Performance Measurement
149
The Keys to Transformational Learning
150
How Well Does Your Organization Learn About and from Measurement?
159
The Uses and Abuses of Measurement Technology
160
Technology Infatuation
161
The Human Factor
162
The Proper Role of Technology in Performance Measurement
163
Business and Social Architecture
164
Failure to Address the Social Issues
166
Scorecards and Dashboards
168
Adopting and Implementing Measurement Technology
171
Steps for Successful Technology Investment
174
Performance Measurement Maturity
177
Assessing Transformational Performance Measurement Maturity
180
Levels of Performance Measurement Maturity
188
The Transformational Measurement Maturity Assessment
191
Transformational Measures
196
From Exploration to Transformation
197
Taking the Lead in Transformational Measurement
199
The Transformational Lens
201
Transformational Measurement of Intangibles
204
Introducing the Transformational Measurement Action Plans
211
Dont Get Discouraged
213
Transformational Measurement Action Plans
214
2 Customer Engagement
215
3 Customer Delight
216
4 Customer Loyalty
217
5 Customer Relationship
218
6 Voice of the Customer
219
7 Customer Profitability
221
8 Customer Lifetime Value
222
10 Brand Equity
223
11 Intellectual Capital
225
12 Strategic Readiness of Intangibles
226
13 Innovation Climate
227
14 Reputation
228
15 Organizational Trust
229
16 Partner Relationships
232
17 Collaboration
233
18 Productivity
234
19 Organizational Agility
235
20 Waste
237
21 Inventory
238
22 Total Cost of Ownership
240
24 Economic Value Added
242
25 Organizational Intangible Value
243
26 Project Scheduling
244
27 Employee Engagement
245
28 Emotional Intelligence
247
29 Employee Safety
249
30 Employee Presenteeism
250
31 Learning Effectiveness
251
32 Information Orientation
252
33 Information Proficiency
253
34 Knowledge Flow
255
How to Begin Transforming Performance Measurement in Your Organization
257
Notes
262
Bibliography
271
Index
277
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About the author (2007)

Dean R. Spitzer, Ph.D., has more than 30 years of experience helping organizations worldwide achieve superior performance. He is currently a senior researcher, consultant, and performance measurement thought leader with IBM Corporation, where he is doing groundbreaking research on "the socialization of measurement" and on identifying innovative measurement models. The author of six other books and more than 150 articles, Dr. Spitzer is a much sought-after consultant and conference presenter. He lives in Melbourne, Florida.

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