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created by: Piman Phaewphraikul/Kultawat Sindhuseka
...
PERFORMANCE
EVALUATION
.
...
Greatest myths:
Decisions are made based on a wealth of hard data.
The truth:
Decision are based primarily on gut feeling. And
the bigger the decision, the bigger the gut feeling….!!
From
Reinventing Workplace
"You can't stop
your organization from changing, and you can't put the business on hold
while you're doing your research. "
Charles Rodgers, Work/ Family Directions
.
PROCESS-
VS. RESULTS-ORIENTED MEASURES
SUMMATIVE
VS FORMATIVE
RESULTS-BASED
VS TIME-BASED MEASURES
WHY
DO WE NEED TO MEASURE??
HOW
DO WE MEASURE THE PERFORMANCE??
CHOOSING
MEASUREMENT
TO
WHAT EXTENT THE MEASUREMENT IS ENOUGHT?
.
PROCESS-
VS RESULTS-ORIENTED
MEASURES
what it is that
is worth measuring, and why
The Cost-Drive Formula
|
Try to keep
costs as low as possible during product development
|
= |
Result in
a product that does not sell easily, or that has high warranty costs
|
According to
the Cost-Drive Formula, we then can also derive:
The Suffered Organization
Formula
|
The product
development group will "look good" against accepted performance measures
|
= |
The
organization, as a whole, suffers
|
SUMMATIVE
VS
FORMATIVE
|
SUMMATIVE |
FORMATIVE (ongoing measures) |
look at the end-point
or end result
|
influence what the
organization, group, or individual is actually doing throughout the life
of a project
|
organizations may
not have a clear picture of how the project worked
|
the organization
receives timely feedback on a program and can make continuous improvements
as the project moves forward
|
"Volkswagen
model"
continuous refinement
of a basic design based on continuous feedback. In effect, there is no
"end," since the completion of one project serves as the springboard to
the next.
RESULTS-BASED
VS TIME-BASED
MEASURES
"The "good citizenship"
model assumes that because someone is in the office and constantly looks
busy, he or she must be very productive."
The difference between
"a happy professor"
and "a nervous supervisor"
WHY
DO WE NEED TO MEASURE??
Organizations need to measure their performance in order to see what they
need in their change. The information needed for the measurement
should cover all aspects in the organization such as business and people
development, product and service development, manufacturing, marketing,
stakeholder satisfaction, etc.
HOW
DO WE MEASURE THE PERFORMANCE??
There is no single solution or process which can be applied in order to
measure all types of organization. It is important to create a clear
and consistent direction to measure performance. Without clear goals,
it might be impossible to recognize whether the measurement is relevant.
The criteria for measurement should be established by person who understand
the whole picture of company and can identify important key issues for
consideration. For example, in order to measure quality - the evaluator
should be the person involving closely with the organization or the department.
The evaluator must identify the relationship between things to measure
and it’s level of satisfaction which can be accepted as successful performance.
NEEDS
FOR NEW MEASURES
-Reevaluate
existing measures: The change team
will understand and be able to identify the mistakes and requirements which
are useful for new measures.
-Measure
the whole processes, not just the results:
result-oriented measures indicate problems, not the way to solve them.
-Measures
should foster goal-driven teamwork:
shared-process measurement create an environment of goal-driven teamwork.
-Measures
should be an integrated set, balances in their application:
They should be an integrated set derived from company strategy.
-Measures
should have an external focus whenever possible:
They should compare the performance with others in order to see the whole
picture of the organization.
WHAT
SHOULD THE ORGANIZATION DO??
The evaluator
should create a balance set of measures which will indicate what is going
on in the organization.
The issues
are:
-financial
/ non-financial
-cost /
non-cost
-internal
/ external
-process
/ result
-… / …
CHOOSING
MEASUREMENT
The
measures should be/have :
-entrusted
to a cross-functional team of high-level managers
and some one who can provide "know-how" such as engineering, marketing,
manufacturing, human resource, and information systems. It should
-Relevance:
Does it have a significant, demonstrable relation to strategy and objective?
-Reliability:
Will it identify the strengths and weaknesses of business processes?
-Clarify
of naming system: Is it understandable?
-Availability
of data: Is data available at reasonable
cost?
TO
WHAT EXTENT THE MEASUREMENT IS ENOUGHT?
It depends
on the activities and the strategy the organization has. Generally,
it should measure all aspects of the performance. It should map to
each element of its value chain.
Notes :
- Deming, W. The Logic of Evaluation. in Struening,
E., & Guttentag, M. (Eds.). (1975). Handbook of Evaluation Research;
Volume 1. Beverly Hills, CA: Sage
Publications.
- The Price-Waterhouse Change Integration Team.
Better Change, pp. 169-184, Measuring Performance.
- Becker, F., and Joroff, M. Reinventing the Workplace,
Ch 7, Assessing Performance.
- Allen, T. The Flow of Technology. Ch. 9, A field
experiment to improve communication: The nonterritorial office.
