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Dr Chris Yapp
Chris_yapp@hotmail.co.uk
The Big Problem of Measurement


“Hitting the Target
Missing the Point”
Let me tell you a story…
If we did     “Will the automobile
              impact on society? If
things then so, how?”
the way we
do things
 now
Charles Handy on Change..
             Performance



                           B
                                   E
                       A


                               C



                                   D   Time



12/03/2012                                    4
Problem Types
                                       Do we know where
Scaling practice                 YES
                                       We are going?         Best practice

                   TASK:                   TASK:
                   Process                 Operational
                   Development             Management

              NO                                                      YES

                                                                   Do we know
                   TASK:                   TASK:                   How to get
                   Concept                 Direction               There?
                   Creation                Setting

Next practice                                             Emerging practice
                                 NO            After Eddie Obeng
 12/03/2012                                                                   5
The Public Sector doesn’t innovate
 because....
    It can’t go out of business
    Exceptionalism
    It’s a monopoly or pseudo-competition
    Lack of competition
    Lack of skills..
    Regulation
    Targets
    Politics
    Leadership
    Culture
    Trade Unions.......YAWN

12/03/2012                                   6
Great Ormond Street




12/03/2012            7
Diffusion of Innovations




12/03/2012                         8
Why do some Innovations take
        longer to diffuse?


    Homophily
    Heterophily




12/03/2012                             9
High
                                             Whose problem?
                            Political
                            System
                                             Think
Complexity




                                             Tank



                            Consultant                Wisdom of
                                                      The Crowds


                 Academic
                 /Expert
       Low

                 Low                                               High
                                        Uncertainty
    12/03/2012                                                        10
High
                                              What value?
                             Political
                             System
                                              Think
Complexity




                                              Tank
                       Track record                    Ideas

                            Consultant                  Wisdom of
                                                        The Crowds
       Knowledge

                 Academic
                 /Expert
       Low

                 Low                                                 High
                                         Uncertainty
    12/03/2012                                                          11
High                                 During Step Change?
                            Political
                            System
                                                            Consultancy
                                             Think
Complexity




                                                            squeezed as limited
                                             Tank
                                                            track record




                                   Consultant
                                                      Wisdom of
                                                      The Crowds
                 Academic
                 /Expert
       Low

                 Low                                                      High
                                        Uncertainty
    12/03/2012                                                                12
Wisdom of the Crowds


    “In the Future blind People will
    Be able to drive cars”




12/03/2012                             13
Results

    Probability 0.9 with some 0.2
    Today with Resources: 1-3 years
    In practice: 3-10 years
    In reality: 10-100 years




12/03/2012                             14
How Far? The Three Horizons




                          Source: IFF




March 12   Chris Yapp            15
Measure What?

      Input   Process   Output   Outcome




3/12/2012                                  16
Measure How?
  Measurement X is the output of a measurement
   process. Change the process and you change X
  Examples: Unemployment, Truancy, Speed of Light
  How consistent is the process?
        Bias, self-selection?
        Skills?
        Channel?
        Human Factors
        Operational Definitions


3/12/2012                                            17
Starting the Journey
  Inputs                  Process
     People                  Time
     Skills                  Errors
     Money                   Variation
     Information
     Resources



 Efficiency and Quality        Effectiveness and Consistency




3/12/2012                                                      18
W Edwards Deming
  It is important that an
     aim never be defined in
     terms of activity or
     methods. It must always
     relate directly to how life
     is better for everyone...
     The aim of the system
     must be clear to
     everyone in the system.
     The aim must include
     plans for the future. The
     aim is a value judgment.”
3/12/2012                          19
Jake’s story
 Jake is 28. he didn’t do well at school.
 His parents split when he was 15. he
 dropped out of school. Within 2
 years he was homeless. He took to
 drink and drugs. He stole to fund the
 habit and ended up in prison. Inside
 he was found to be dyslexic. His
 support stopped when he was
 released. He drifted, with spells of
 work and homelessness. Last year he
 met his first real girlfriend. She is
 now pregnant. They are very happy
 and Jake wishes to build the home
 and family he never had. He wants to
 get skills for a good job.
3/12/2012                                   20
Helping Jake
  Outputs         Outcomes
    Housing

       Skills
                     Break generational cycle
      Family
                     Stable Family
      Work
                     Ability to earn and work
     Dependency      Jake mentoring others

        ….




3/12/2012                                        21
Open Innovation
  Innovating with lead users
  Co-design
  Co-creation
  Co-deliver
 …




12/03/2012                      22
Unintended Consequences
   Counter-intuitive result
   Interaction between different parts of system
   Targets distorting the system performance
   Performance measures reducing performance
   Injecting resources without involvement of key people



                                   Source: DEMOS; “System Failure”
Targets and Timescales
  All children should         80% of children should
     achieve their full        meet the target by 2015
     potential in education




3/12/2012                                                24
Two useful ways of thinking..

  Triple-loop learning


  Ashby’s Law of Requisite Variety




3/12/2012                             25
Triple-Loop Learning
                        Set

                         Change



                              Reframe



    Maximise yield
    At lowest price
    And reduce carbon



3/12/2012                               26
The Challenge
  Yield                            Carbon




            Temperature
                                              Temperature

                      Cost of
                      Energy



                                Temperature

3/12/2012                                                   27
Ashby’s Law of Requisite Variety
                                 The Economy

 If a “system” is to be          Increase number of people
 stable, it must have at least   working
 as many control levers as       Reduce the Debt
 degrees of freedom              Grow the economy
                                 Green the economy



3/12/2012                                                    28
Organisational culture

 Specialists and generalists
 Personal credibility
 Tolerance of uncertainty
 Story telling
 Leadership
 Collaboration


  12/03/2012                       29
Organisational Roles in Innovation



    Sponsor
    Product Champion
    Organisational Champion




12/03/2012                                   30
Beware
                  Whose definitions?
                  Who is measuring?
 “What get’s      Input, Process,Output or
 measured gets     Outcome
                  Shared Targets
 done?”           Unintended
                   consequences




3/12/2012                                     31
Leadership or Management?

 "The most important figures that one needs for
 management are unknown or unknowable (Lloyd S.
 Nelson, director of statistical methods for the Nashua
 corporation), but successful management must
 nevertheless take account of them."




3/12/2012                                                 32

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The perils of measurement

  • 2. The Big Problem of Measurement “Hitting the Target Missing the Point”
  • 3. Let me tell you a story… If we did “Will the automobile impact on society? If things then so, how?” the way we do things now
  • 4. Charles Handy on Change.. Performance B E A C D Time 12/03/2012 4
  • 5. Problem Types Do we know where Scaling practice YES We are going? Best practice TASK: TASK: Process Operational Development Management NO YES Do we know TASK: TASK: How to get Concept Direction There? Creation Setting Next practice Emerging practice NO After Eddie Obeng 12/03/2012 5
  • 6. The Public Sector doesn’t innovate because....  It can’t go out of business  Exceptionalism  It’s a monopoly or pseudo-competition  Lack of competition  Lack of skills..  Regulation  Targets  Politics  Leadership  Culture  Trade Unions.......YAWN 12/03/2012 6
  • 9. Why do some Innovations take longer to diffuse?  Homophily  Heterophily 12/03/2012 9
  • 10. High Whose problem? Political System Think Complexity Tank Consultant Wisdom of The Crowds Academic /Expert Low Low High Uncertainty 12/03/2012 10
  • 11. High What value? Political System Think Complexity Tank Track record Ideas Consultant Wisdom of The Crowds Knowledge Academic /Expert Low Low High Uncertainty 12/03/2012 11
  • 12. High During Step Change? Political System Consultancy Think Complexity squeezed as limited Tank track record Consultant Wisdom of The Crowds Academic /Expert Low Low High Uncertainty 12/03/2012 12
  • 13. Wisdom of the Crowds “In the Future blind People will Be able to drive cars” 12/03/2012 13
  • 14. Results  Probability 0.9 with some 0.2  Today with Resources: 1-3 years  In practice: 3-10 years  In reality: 10-100 years 12/03/2012 14
  • 15. How Far? The Three Horizons Source: IFF March 12 Chris Yapp 15
  • 16. Measure What? Input Process Output Outcome 3/12/2012 16
  • 17. Measure How?  Measurement X is the output of a measurement process. Change the process and you change X  Examples: Unemployment, Truancy, Speed of Light  How consistent is the process?  Bias, self-selection?  Skills?  Channel?  Human Factors  Operational Definitions 3/12/2012 17
  • 18. Starting the Journey  Inputs  Process  People  Time  Skills  Errors  Money  Variation  Information  Resources Efficiency and Quality Effectiveness and Consistency 3/12/2012 18
  • 19. W Edwards Deming  It is important that an aim never be defined in terms of activity or methods. It must always relate directly to how life is better for everyone... The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment.” 3/12/2012 19
  • 20. Jake’s story Jake is 28. he didn’t do well at school. His parents split when he was 15. he dropped out of school. Within 2 years he was homeless. He took to drink and drugs. He stole to fund the habit and ended up in prison. Inside he was found to be dyslexic. His support stopped when he was released. He drifted, with spells of work and homelessness. Last year he met his first real girlfriend. She is now pregnant. They are very happy and Jake wishes to build the home and family he never had. He wants to get skills for a good job. 3/12/2012 20
  • 21. Helping Jake  Outputs  Outcomes Housing Skills  Break generational cycle Family  Stable Family Work  Ability to earn and work Dependency  Jake mentoring others …. 3/12/2012 21
  • 22. Open Innovation  Innovating with lead users  Co-design  Co-creation  Co-deliver … 12/03/2012 22
  • 23. Unintended Consequences  Counter-intuitive result  Interaction between different parts of system  Targets distorting the system performance  Performance measures reducing performance  Injecting resources without involvement of key people Source: DEMOS; “System Failure”
  • 24. Targets and Timescales  All children should  80% of children should achieve their full meet the target by 2015 potential in education 3/12/2012 24
  • 25. Two useful ways of thinking..  Triple-loop learning  Ashby’s Law of Requisite Variety 3/12/2012 25
  • 26. Triple-Loop Learning Set Change Reframe Maximise yield At lowest price And reduce carbon 3/12/2012 26
  • 27. The Challenge Yield Carbon Temperature Temperature Cost of Energy Temperature 3/12/2012 27
  • 28. Ashby’s Law of Requisite Variety The Economy If a “system” is to be Increase number of people stable, it must have at least working as many control levers as Reduce the Debt degrees of freedom Grow the economy Green the economy 3/12/2012 28
  • 29. Organisational culture  Specialists and generalists  Personal credibility  Tolerance of uncertainty  Story telling  Leadership  Collaboration 12/03/2012 29
  • 30. Organisational Roles in Innovation  Sponsor  Product Champion  Organisational Champion 12/03/2012 30
  • 31. Beware  Whose definitions?  Who is measuring? “What get’s  Input, Process,Output or measured gets Outcome  Shared Targets done?”  Unintended consequences 3/12/2012 31
  • 32. Leadership or Management? "The most important figures that one needs for management are unknown or unknowable (Lloyd S. Nelson, director of statistical methods for the Nashua corporation), but successful management must nevertheless take account of them." 3/12/2012 32