Measure For A Change
Consciously or unconsciously, we measure results and progress everyday. Whether we set out to maintain a budget, run a marathon or evaluate the results of a New Year’s resolution, we monitor progress through on-going measurements. As with personal goals and objectives, our businesses also need robust measurement practices in place to measure the effectiveness of new ideas, current systems and the return on investments. Strong measurement practices enable good decision-making, increase awareness and provide a common direction. Unfortunately, all too often measurement is applied only to the financial statements, and we lose valuable opportunities to improve our overall performance.
When we have strong measurement tools in place, we can accurately assess our current position and make informed decisions about possible change. These decisions move us in new directions and ensure that we are progressing toward our goals and objectives. Without an established measurement tool, we cannot accurately assess how far we have progressed, what distance lies between our current position and our goal, what decisions have led to successful outcomes, and what tactics to avoid in the future. Strong measurement history provides a guide to the road ahead. It teaches us about ourselves by charting our advancement as we push toward a defined goal.
An old adage about measurement is, “What gets measured gets done.” Anytime we define how we will measure a goal or system, we communicate to the people involved that we care about the results and we are committed to being accountable for those results. When we announce a goal and continuously measure progress and communicate updates to the organization, employees become clear about the direction in which the business is heading. This knowledge empowers personnel with a clear understanding of their roles and responsibilities, and it encourages them to take action toward the achievement of those goals. The result is a team working in synergy to move the company forward in a common direction.
The primary goal of any measurement system in business is to increase performance. Measurement provides valuable information in the form of unbiased feedback. Whether it is feedback for improvement or positive feedback for a job well done, the measurements allow us to monitor progress and change direction mid-course, if needed. Without defining how a goal will be measured and/or without regularly communicating the progress toward that goal, the team will not have a clear understanding of how much progress has been made. If we are not achieving the desired results, then it’s time to assess the need for change. This time is best recognized and acted upon during the process, not after it is over.
A classic measurement tool that is under utilized is an annual performance review. Why would you not sit down with a new employee and explain the criteria by which his/her performance will be measured? Such a process allows the employee to be cognizant of the goals that have been set and the level of performance that is expected in the organization. When effectively used, an annual review should contain no new information as management should have communicated the employee’s progress and provided feedback throughout the year. By monitoring, measuring and communicating such information to the employee about his/her individual performance, we provide the employee with the information and knowledge needed to make better decisions and grow in ability and confidence. This same concept applies to every goal and objective in an organization—proper measuring, monitoring and communicating empowers a team to attain goals by inspiring informed decision-making and direction-changing when needed.
The most effective measurement systems improve performance simply by existing. Most people are unaware that simply by monitoring something we affect the outcome. Developing a measuring tool with the goal of improving performance will assist one in achieving long-lasting, sustainable, positive benefits for the company and for its employees. Please consider reading our powerful article of the month, Exploiting the Uncertainty Principal: You WILL Affect the Outcome by Dr. Robert D. Thompson to learn how to create an assessment tool guaranteed to increase performance.
Dr. Thompson is an Executive Measurement Consultant who specializes in measurement of training outcomes and other performance measurement initiatives. His article presents a proven systematic process of measurement that will create exciting results for you and your organization.
