Setting measurable performance expectations; involves using a methodology and : 1 Ensuring the outcome/result is written so it can be measured 2 Measures are designed for the result 3 Targets are set sensible

1. Establishing measurable
performance expectations
Planning, Measuring and Strengthening
Outcomes Based Approaches
Criterion Conferecnes, Darling Harbour
February 2019MARK@MARKHOCKNELL.COM

2. Overview
• The context for performance
expectations
• The current problems with the way we
set performance expectations
• How to define and measure strategic
goals

3. Overview
• The context for performance
expectations
• The current problems with the way we
set performance expectations
• How to define and measure strategic
goals

4. Planned
Strategy
(Vision, Mission,
Purpose, Intent)
Prioritised
Results
(Results Map)
Business Planning
/ Initiatives
Informs
Transformation Change
Plan / Program
Individual/Team
Dev Plans
(change/ BAU)
Informs
Measures /
Targets
(feedback on
Results)
Realised
Strategy
Outcome
Performance Measurement Framework
Performance Planning
Framework
FeedbackLoop
Performance Management Framework
Integrating planning, measurement, learning cycles and the implementation of strategy.
Initiative Delivery
Performance
Reporting
(to Improve
Performance)
1. Design 2. Deliver
3. Monitor
4. Adapt

5. What are we trying to achieve..?
• Leaders ‘give’ KPIs to team members
(a KPI here is a performance measure and a target/goal)
5
The team member has four choices:
1. I can manipulate the measure to get the target
2. I can manipulate the system to get the target
3. I can improve the system to progress towards the
target
4. I can ignore it and hope there are no adverse
consequences

6. Overview
• The context for performance
expectations
• The current problems with the way we
set performance expectations
• How to define and measure strategic
goals

7. “I can manipulate the measure to get the target”
Customer Service example
Performance
Expectation =
90% of calls are answered within 60 seconds
Calculation =
• Total number of calls
• Total number of calls answered
• Time in seconds to answer each call
• Average time to answer calls within each time
period
• The percentage of calls answered within 60
seconds, for each time period
There are two
targets in this KPI...
Manipulate the measure by
reducing number of calls,
varying the time periods

8. Intended
Outcome..? =
• Our customers can access our service
• We are easy to do business with
“I can manipulate the measure to get the target”
Customer Service example
Performance
Expectation =
90% of calls are answered within 60 seconds
Initial performance expectation does not
articulate what it is we want to achieve…

9. “I can manipulate the system to get the target”
Student Claims example
Performance
Expectation =
90% of student claims are processed within 40
days by the June 30
Calculation =
(what the team
did)
• Total number of student claims, per year
• Time in days to process, per year
• Total number of claims / total days to process
• Monitor the percentage that were completed
in 40 days
There are three
targets in this KPI...
Manipulate the system by loading resources
as 30 June approached to increase the
percentage processed within 40 days...

10. Intended
Outcomes..? =
• Student claims are processed
• Students value our service
• Our business processes support our outcomes
“I can manipulate the system to get the target”
Student Claims example
Performance
Expectation =
90% of student claims are processed within 40
days by the June 30
Initial performance expectation does not
articulate what it is we want to achieve…

11. It’s your approach to setting
performance expectations
that causes the problems
with measuring performance.
Practical Insight #1

12. Overview
• The context for performance
expectations
• The current problems with the way we
set performance expectations
• How to define and measure outcomes
and strategic goals

13. Stacey Barr and PuMP
• Performance measure specialist
• Creator of PuMP
• Author of:
– Practical Performance Measurement: Using the PuMP
Blueprint for Fast, Easy, and Engaging KPIs
– Prove It! How to create a high-performance culture and
measurable success.
• Blog at www.staceybarr.com
• PuMP is used and delivered around the world
through a network of PuMP Partners

14. The Anatomy of a Performance
Measurement Approach
steps frameworks templates tools

15. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement as
the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy into
clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most feasible
and relevant measures that
evidence our performance
results.
Building Buy-In to
Measures
Getting ownership from our
stakeholders, quickly, easily
and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and reporting
requirements for each of
our measures.
Interpreting Signals
from Measures
Focusing ourselves on gaps
between as-is and to-be
performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-be.
> > >
> > >

16. Performance measurement is a
process, not an event.
There are essential steps to make
it easier, faster, more meaningful
and more engaging.
Practical Insight #2

17. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement as
the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy into
clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most feasible
and relevant measures that
evidence our performance
results.
Building Buy-In to
Measures
Getting ownership from our
stakeholders, quickly, easily
and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and reporting
requirements for each of
our measures.
Interpreting Signals
from Measures
Focusing ourselves on gaps
between as-is and to-be
performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-be.
> > >
> > >
To set measurable and meaningful performance
expectations we need to know how to:
1. Write outcomes so they are measurable
2. Design performance measures
3. Set meaningful targets

18. Why strategy is so hard to measure
• Action orientation
• Weasel words & vague ideals
• Multi-focus goals
• Confusion with
business as usual
• Lack of rigour and logic
Too fluffy to measure.

19. Ensure Outcomes are Measurable
Measurability Test
If it fails the test:
A: Results-oriented Turn the action into a result by asking WHY
B: No weasel words Translate the weasel words into 5th grader language
C: No multi-focus Treat each focus as a goal on its own
D: Should, can, will Be ruthless about what should, can and will be
improved
E: Link to strategy Ensure a strong line of sight to purpose and priorities

20. Action to Result
• “Create a network of priority bus
corridors”
• Why..?
• Reduce commuter travel time..?
• Reduce greenhouse gas emissions..?

21. How to de-weasel:
• strengthen: get more
More students participate in learning activities and find work
in their field of study
• engagement: participation in learning activities
• learning outcomes: grades and ability to find work in
field of study
Strengthen student engagement and learning outcomes
Two Results/Outcomes
1. Students participate in learning activities
2. Students find work in their field of study

22. Results Mapping
• Provides a
framework for
Results and
Measures
• Results and
Measures can be
seen in the context
of the business –
interdependencies
and other
relationships

23. If you cannot understand an outcome
well enough to visualise what it looks
like when it’s happening,
you won’t be able to measure it.
Practical Insight #3

24. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement as
the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy into
clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most feasible
and relevant measures that
evidence our performance
results.
Building Buy-In to
Measures
Getting ownership from our
stakeholders, quickly, easily
and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and reporting
requirements for each of
our measures.
Interpreting Signals
from Measures
Focusing ourselves on gaps
between as-is and to-be
performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-be.
> > >
> > >

25. Traditional measure-selection approaches
that fail
• Brainstorming
• Existing data or legacy measures
• Adopting measures from industry
benchmarking
• Measuring what stakeholders want
to measure
• Outsourcing the selection of
measures to experts or consultants
Need a bridge to get from
“result” to “measure”.

26. Meaningful measures are evidence
Measure Design What to do:
1. Result Focus on one goal or result to measure, at a time
2. Evidence List sensory evidence of the goal or result
happening
3. Potential
measures
Quantify each piece of evidence to create measures
& choose the most relevant and feasible
4. Check Pause to consider unintended consequences of the
result or selected measures
5. Name &
description
Name and describe each measure, meaningfully

27. Badly written measures look like these:
• Milestones: ‘student learning outcomes
analysis complete by Dec 2014’
• Activities: ‘gather ideas from students to
improve the learning experience’
• Data sources: ‘Student Survey’
• Vague names: ‘Student Engagement’

28. What is a performance measure, really?
• A quantification that provides
objective evidence to which a
performance result (or outcome) is
occurring over time
• Measures provide feedback on the
results or outcomes we seek

29. The recipe to write a good measure:
1. statistic: average, median, percentage,
number, total, etc…
2. performance attribute data item(s): students
who participated in learning activities, all
students
3. temporal data item: day, week, month, quarter
4. measure name + measure description

30. Measures provide Feedback on Results
The Result: Students participate in learning activities
Measured
by:
Student
Participation Rate
The percentage of students who participated
in learning activities, by week
Engagement
Score
The average score (0-10) to the survey
question: learning activities are engaging,
monthly

31. Always write your measures with a
name and a description based on a
statistic, a performance attribute
data item, and a temporal data item.
Practical Insight #4

32. Data driven perspective
of KPIs
• GoS - 90% calls answered in
60 seconds
• AHT – average handle time is
360 seconds
• Average talk time
• Post call processing time
Result or Outcome perspective
of KPIsOur
customers
have a great
experience
Our
customers
love our
service
• Average experience score from CX
survey, monthly
• Average score to the Q: I love the
service provided by the contact centre,
monthly
• Average Call Quality assessments per
team, per month
• Schedule adherence
What’s my
focus..?
What’s my
focus..?

33. The Outcome or
Result we want
Performance Expectation:
90% of Student Claims
processed in 40 days
by 30 June
Student
claims are
processed
Our
customers
value our
service
• Average time in days to process a
Student claims, per month
• The number of student claims
lodged per month
• The number of student claims
processed each month
• The percentage of Student Claims
not processed at the end of the
month
Our
business
processes
support our
outcomes
• Average rating that Students
value our service
• ??
• ??
• ??
Measures give us
feedback on the
Outcome we seek
What’s my
focus here ..?
Now what do
I focus on..?

34. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement as
the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy into
clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most feasible
and relevant measures that
evidence our performance
results.
Building Buy-In to
Measures
Getting ownership from our
stakeholders, quickly, easily
and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and reporting
requirements for each of
our measures.
Interpreting Signals
from Measures
Focusing ourselves on gaps
between as-is and to-be
performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-be.
> > >
> > >

35. How we usually question a measure:
• Is this month better or worse than last month?
• Is this month better or worse than the same month
last year?
• What’s the trend doing?
• Did we hit target this month?
• How close is our year-to-date to our annual target?
(Wrong questions for performance measures, they
can only answer three questions.)

36. Question 1: Is it increasing?

37. Question 2: Is it decreasing?

38. Question 3: Is it staying the same?

39. XmR Chart with Targets

40. 0
10
20
30
40
50
60
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
Average Customer Delivery Time
XmR Chart with Targets
Two Targets:
1. Central Line
2. Reduce
Natural
Variation

41. Measurable Performance Expectations
The Result: Customers value our delivery time
Measured
by:
Measure name:
Average
Customer
Delivery Time
Measure description:
The average time in
days from customer
order to completed
delivery, monthly
Performance
Expectation (Target)
1. Central line target
of 10 days by
December
2. A reduction in the
variation of the
delivery process

42. Use XmR charts to display your
performance measures and targets.
Only trust their signals to conclude
if performance is changing or not.
Practical Insight # 5

43. Key Points
• It is our approach that causes all the struggles and
unintended consequences we have with them.
• Our measurement system provides feedback on
progress towards our outcomes.
• Performance expectations need to:
1. Be linked to a result or outcome
2. Performance measures as used for feedback
3. Targets or performance expectations can be put onto
measures where we want to see a change in performance
or maintaining a level of performance
4. Focus people on improvement – knowing what performance
is doing, why it is doing that, how can we improve...?

44. What next...
• Change your approach setting performance expectations
• Connect with me: or drop me and email -
mark@markhocknell.com – Whitepaper on this approach
• Visit: www.staceybarr.com - heaps of free resources
• Blueprint Workshops: Brisbane in March; Wellington in
April; Melbourne, May; Sydney in August.