The performance monitoring practices are centered around the following principles:
- I must be able to measure what I am doing in order to improve it
- We set reasonable and achievable targets as well as stretch targets to drive improvement
- I need to feel accountable for my performance as well as my contribution to the success of my team.
Key Performance Monitoring Practices- Defining Metrics
- Organizational Focus
- Wrong metrics drive wrong behavior
- Levels of Metrics
- Need to mean something to individuals being measured
- Need to limit to a few key metrics
- Need to change as problems get solved and organization improves
- Need to drive cooperation among departments vs. sub-optimization
- Top Level Metrics
- Utilization
- Operations Expense (Opex)
- Profit Margin – focus on maximizing highest value products and minimizing lowest value products.
- • Department Level Metrics
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