2. Purpose of Workshop
To assist you in developing
•Performance measures
•Measurement methods
3. Your Vision, Mission, Goals,
and Objectives
Why?
Wh ? Unit Vision, Mission
Goal 1 Goal 2 Goal 3
Objective 1 Objective 2 Objective 1 Objective 2 Objective 1 Objective 2
How?
Necessary and Sufficient Objectives to achieve Vision
4. Performance Measure
Statements
A means of objectively assessing businesses,
divisions, projects, products, or services
Should be related to your vision and mission
Should specifically state how you will
measure your objective or goals
Should state frequency and when your
objective or goals will be measured
Should i di t
Sh ld indicate who will do th measuring
h ill d the i
5. Structure of a Performance
Measure Statement
•The (description of the measure) based
on (approach used to develop the
measure)
•The (number of rejects on a specific
manufacturing line) based on (daily
production)
•The (satisfaction level of customers for a
specific product/service) based on (a
quarterly survey of 1,000 customers)
•The (time taken to do a specific process)
based on (our timesheet system)
6. Two Methods to arrive at
Objectives and Performance
j i f
Measures
Objectives set “Ideal” Measures set
Measures Objectives
•Describe vision • Describe vision
•Define mission • Define mission
• List goals arising
g g
•List goals arising
List • Brainstorm
•List objectives performance
•Determine at least
Determine measures
one performance • Select “preferred”
measure for each performance
objective measures
• Set targets which
become the
objectives
December 13, 2000
OEAS--IE Training Workshop 6
7. First Approach: Objectives set
pp j
Performance Measures
Example: (Customer Service)
Goal: To provide timely response to
customers’ support calls
Objective: To reduce the time it takes for a
customer to resolve their difficulties to less than
15 minutes for 95% of support calls
Performance measure: The processing time
from call to resolution based on the time from
receipt of a call to the time the customer says
he is satisfied as recorded in our call system
satisfied, call-system
8. Second Approach: “Ideal”
Ideal
Performance Measures set Objectives
Example: (Customer Service)
Goal: To provide timely response to customers’
support calls
Related performance measures
(brainstormed)
•Support call processing time based on….
•Satisfaction recorded at X% based on annual
survey….
•The number of repeat support calls reduced
based on call logs….
g
Then, select preferred from above, set
“ideal” statistics – these become targets
9. Which Approach iis better?
i
•Horses for courses!
•Best Practice industry?
y
•Competitors’ information
available?
•Does your vision, mission set
targets?
•Industry measures?
10. Evaluating the Quality of Your
g Q y
Performance Measures
•Does each measure overtly and specifically relate to
y
your vision, mission, goals, and objectives?
g j
•Is each measure important to the business?
•Is it possible to collect accurate and reliable data for
each measure in a timely manner?
•Is there more than one measure for each goal or
objective and if so, do the entire set of measures reflect
the key results of the business product or service?
business,
11. Two Ways of Measuring
Performance
Direct measures of performance, usually
•Time
•Error rates
•Compliance
•Cost
•Number of outputs per input
Number
•Standardized tests
Indirect measures of performance usually
performance,
•Perceived time
•Perceived efficiency
•Perceived quality
Perceived
12. Example: To reduce the time it takes for a
customer to resolve their difficulties to less
than 15 minutes for 95% of support calls
Direct measure: The processing time of call
to resolution based on the time from receipt
of a call to the time the customer says he is
satisfied as recorded in our call-system – can
be directly measured by a clock but may not
accurately measure “satisfaction”
y
Indirect measure: The perceived time
based on satisfaction survey of a random
y
sample of 500 callers – can measure an
overall “feeling” but cannot accurately
define what is “right” time
13. Five Categories of
g
Performance Measures
1. Input measures (e.g., staff time,
materials, equipment, resources) are
useful in showing resources or effort used
g
to
t provide products and services;
id d t d i
however does not show effectiveness
You may be a spending resources doing the
wrong things well
2. Output measures (e.g., number of
products produced or services provided)
are useful in defining product or service;
however, does not reveal quality or
efficiency
You may be producing a lot of the right things
inefficiently badly
14. Five Categories of
g
Performance Measures
3. Outcome measures (
3 O t (e.g., scores on a
standard test, number of units produced) are
useful in showing the impact or benefit of the
employee,
employee product or service
4. Efficiency measures (e.g., cost per unit of
output, outputs per unit of iinput, outputs per
i f
unit time) are useful in showing productivity
and cost effectiveness
5. Quality measures (e.g., reliability,
accuracy, competence, responsiveness) are
y p p )
useful in measuring the effectiveness in
meeting customer expectations - Lack of
quality can be measured (e.g., error rates)
14
15. Example Goal: To provide timely response
to customers’ support calls
What are possible measures using different
categories of Performance Measures?
1. Input measure: The number of call-support staff
2. Output measure: The average number of calls
processed per day
3. Outcome measure: The call processing time for
calls based on the time from receipt of call to
satisfaction
4. Efficiency measure: The average number of
calls processed per call-support staff per day
call support
5. Quality measure: The satisfaction of applicants
with the call processing time as measured by a
survey
16. Performance Measurement
Matrix
Quantity Quality
How much/how many?
H h/h ? How well?
H ll?
Performance
What input/what output? What input/what output?
How much/how many? How well?
Outcome
O
What result? What result?
December 13, 2000 OEAS--IE Training Workshop 16
17. Workshop: Developing
Performance Measures for the
Ratatouille Foundation
The vision of the Foundation is “a
healthy society free of disease”
The i i
Th mission of the R t t ill
f th Ratatouille
Foundation is to promote the health &
welfare of persons resident or located in
the Kuala Lumpur Metropolitan Region
i i
by all appropriate means, including
support of p p healthcare and
pp proper
elimination of causes of disease.
18. One of Ratatouille’s Goals
Goal: To minimize the number of rats in Kuala
Lumpur
Achievement of th G l was d fi d by th
A hi t f the Goal defined b the
Objective: “To reduce the number of rats to
ten per city block in the next year”
Brainstormed a Statement of Performance
measure: “The number of rats per city block
p y
as measured by an extensive search of a
random sample of 10 city blocks”
19. PMs Relate to Goal: To minimize
the number of rats in Kuala Lumpur
•The dollars spent per rat killed based on budget and
exterminator records
•Percent increase in the n mber of traps set this year based
Percent number ear
on city records
•The satisfaction of the residents with the extermination
program based on survey of a random sample of residents
•The dollars spent on extermination based on the financial
records
•The number of rats remaining per city block obtained by
conducting an extensive search of a random sample of
the city blocks in Kuala Lumpur.
•The approximate number of rats killed during the year per
city block based on the exterminator reports
20. Evaluating the Quality of Your
g Q y
Performance Measures
•Does each measure clearly relate to the associated
Does
mission, goal, and/or objective?
•Is each measure important to management?
•Is it possible to collect accurate and reliable data for
each performance measure?
•Taken together, do the measures accurately reflect
the key results of the program, activity or service?
•Is there more than one measure for each goal and/or
objective?
•For this example - (Are your measures primarily
outcome,
outcome efficiency or quality measures?)
21. Evaluate: Related to Mission, Important to
business, Measurable, Comprehensive
business Measurable Comprehensive, and
Preferred Type?
MINIMIZE THE NUMBER OF RATS IN KUALA LUMPUR – POSSIBLE
ALTERNATE PM’S:-
•The dollars spent per rat killed based on budget and exterminator
records
d
•Percent increase in the number of traps set this year based on city
records
•The satisfaction of the residents with the extermination program
based on survey of a random sample of residents
•The dollars spent on extermination based on the financial records
•The number of rats remaining per city block obtained by
conducting an extensive search of a random sample of the city
blocks in Kuala Lumpur.
•
•The approximate number of rats killed during the year per city
block based on the exterminator reports
December 13, 2000 21
22. Some Resulting Objectives
g j
Supporting the Goal
MINIMIZE THE NUMBER OF RATS IN KUALA
LUMPUR
•To improve the cost effectiveness by
10% by end of the year
•To obtain high to very high satisfaction
rating of 90% of city residents
•To reduce the number of rats to 100 per
p
city block in the next year
December 13, 2000 22
23. Summary: Develop
Performance Measures for
each Goal
Try to develop an input, output,
outcome, efficiency, and quality
t ffi i d lit
performance measure for each goal
Identify whether each is a direct or
indirect measure
•Can you identify a direct measure for
the ones that are currently indirect?
•Can you identify an indirect measure
for the ones that are currently direct?
December 13, 2000 23
24. Summary: Develop
y p
Objectives
Evaluate quality of performance
measure:-
Related
•Related
•Important
•Measurable
•Comprehensive
•Preferred Type (outcome,
efficiency, quality)
ffi i lit )
Develop objectives
December 13, 2000 24
