Predicting Performance: Using Balanced Scorecard and Other Metrics

Many organizations report performance metrics through a myriad of measures, from tables and pie charts to red-yellow-green scorecards and time series diagrams. Yet organizations that use these and similar historical types of data for running their business are not unlike driving a car by only looking at the rear view mirror – a risky practice. In this program, we will introduce a unique predictive measurement assessment system that shows how to examine a process for regions of stability. In identifying such a region, we can consider the data from this time frame a random sample of the future. The implication of this is that we can now look out the windshield of our car to make business decisions. If we don't like what we see, we can apply the brakes or turn the steering wheel; i.e., do something different, not unlike creating and executing a process improvement project. Through a series of hands-on activities, managers will learn how to use a predictive metric system throughout the business to orchestrate activities for the most beneficial behaviors, and avoid much wasted effort.

Topics

• Common pitfalls of traditional measurements, such as:
  • How using red-yellow-green scorecards can lead to wasted firefighting effort
  • How many traditional charting and reporting methodologies such as x-bar and R control charts can lead to firefighting common cause variation as though it were an unusual special-cause event
• How to create a predictive measurement system for virtually every continuous and attribute situation
• Why it can be essential to transform data to determine the most appropriate action or non-action throughout the business

Learning Outcomes

As a result of attending this program, participants will:

• Realize why and how traditional measurements often fail, leading to inconsistent and erroneous decisions that result in wasted efforts
• Understand how to determine if a process has regions of stability and how to report-out this information
• Create performance metric report-outs that provide predictive statements, when appropriate
• Describe how to communicate business predictive value-chain metrics throughout the business
• Know when a transformation is necessary for a process stability assessment and predictive statement

Who Should Attend

Experienced managers and key contributors/practitioners who are interested in how they can better contribute to organizational performance. Pairs or groups of colleagues are encouraged to attend the session together.