In this session we’ll be discussing the principles behind selecting the measurements you choose.  We won’t be telling you specifically what to measure per se, or providing any particular benchmark data, though that may come up in the discussion.  These principles include choosing measures that:

1. Expose our weaknesses, so we can improve them.
2. Facilitate collaboration, not conflict, across functional boundaries.
3. Matter, that is, can be used to drive behavior.
4. Limited to our span of control, and ability to manage.
5. Be visible, and kept current.
6. Cascade from the executive suite to the shop floor to facilitate organizational alignment.
7. Provide the proper balance of leading (shop floor) and lagging (management) indicators. If you do the right things (leading indicators), you’ll get the right results (lagging indicators)

Following these principles, you will have a better measurement system, one that drives and reinforces behavior across the organization for better results.

Performance Management

ABC – Antecedents, Behaviors, and Consequences

The belief that if we look to understand that drives the behaviors that deliver strong or positive results, we can then provide reinforcement that will ensure the desired behaviors continue.

Antecedents – What are the conditions that drive/motivate employees to be engaged?

1. Trust
2. Motivation/Positive Reinforcement from Leaders
3. Positive relationship with direct supervision
4. Opportunity (Career Growth, Training)
5. Recognition

Behaviors – What are the behaviors that drive the results we are looking for?

1. Engaged employees
2. Open communication
3. Safe Work Environment
4. Continuous Improvement – Defect Elimination

Consequences – How do we ensure that the behaviors we desire will continue?

1. Positive Reinforcement – Provides motivation to continue (Positive, Immediate, Certain)
2. Negative Reinforcement – Takes away something that negatively impacts performance (safety hazard)
3. Punishment
4. Extinction

In understanding ABC, one can now focus on measures for each with a strong focus on behaviors.