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Always measure inputs. The decision to measure process or outputs depends upon the following:
Technically feasible to monitor and measure process?
Do we understand cause and effect?
Desired level of innovation?
If impossible to measure process or outputs, then control inputs (e.g., professionalization)
Which components to control? Freedom to innovate is desired Cause & Effect is understood Cause & Effect is not well understood Standardization is critical for quality Quality/safety is important Cost of measuring is low Cost of monitoring is low Cost of input is high Outputs can be observed & measured Processes can be observed & measured It is impossible to monitor others Control Outputs When : Control Processes When : Control Inputs When :
A low-probability, high impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, and well as by belief that decisions must be made swiftly.