Why Do Performance Measurement Tools Work?
A few examples of performance measurement tools are: Pareto Chart, Run Chart, and Histogram, Cause and Effect Diagram, Cycle Time studies or packaged SPC programs. The point is there are a number of tools available for your situation and implementation. If you have questions about application or usage of these tools, seek out quality professionals in your organization or go on-line and search for training and or product demonstrations. There are quit a few good reference web sites providing free information as well as links to professional quality organizations such as the American Society for Quality.
After you get your goals understood, measurement tools up and running, take the next step towards organizational communication and performance improvement by utilizing a scorecard or summary performance matrix. The scorecard is a simple summary matrix identifying the overall key business goals and their respective performance indices. A lot of people refer to these performance matrixes as stop light charts, because of the incorporation of the colors red, green and yellow. If you incorporate red (poor), green (good) and yellow (marginal) highlights, the focus of resources can be deployed to understand and correct the poorer performing indices.
The flexibility of the scorecard matrix allows alignment and deployment down through as many levels an organization as you see fit. The scorecard matrix allows integration of many indices vertically to the top company priorities. Normally, companies look at three general categories; financial, quality and customer satisfaction. Pick what your key business performance goals, identify how to measure, understand the data and reward the successes.
My check and balance before starting a performance measurement activity is simply asking: Am I sure this activity is meaningful and measurable? Good luck in reaching your goals and in continuously trying to find ways to continuously improve.