Evaluating the Business Impact of Improvement Projects
Most managers are under pressure to define, measure, track and report actual performance gains for their improvement initiatives.
Evaluating the Business Impact of Improvement Projects Paul Docherty - i-nexus Geoff Rinaldi – Tranzform Group 13 March, 2013
Issue #1 There is often not a clear understanding of the real objectives
Problems Solutions “Success”?
Issue #2 Hard to know on a day-to-day basis if project activities are improving performance
“Success” Project view
≠
Business view
Issue #3 Difficult to track and report on performance improvements
Budget cuts
â‰
Efficiencies
Three essential things for success. A way of describing your real objectives and how success will be measured at all levels of your organisation. A co-ordinated plan with all activities linked to business performance triggers A way to manage performance of activities and projects continuously against the agreed measures.
Success essential #1 Translate your high-level goals into actionable priorities that are meaningful to individuals
DEPARTMENT HEAD SERVICE EXECUTIVE
“Customer complaints must be reduced.”
“We must improve customer satisfaction.”
OPERATIONAL MANAGER
“We must reduce rework.” INDIVIDUAL CONTRIBUTOR
“I must input the right details first time.”
1.1 Capture the Goal Cascade
1.2 Set Targets For Improvement
Success essential #2 Focus on the essential activities for achieving your desired business results.
DEPARTMENT HEAD
“We must improve customer satisfaction.” SERVICE EXECUTIVE
“We must reduce customer complaints.”
OPERATIONAL MANAGER
“We must reduce rework.” SERVICE PROJECT
“We need an input checking process.” ACTIVITY
“We need new procedures.” SKILLS PROJECT
“We must develop a training program”
2.1 Identify the Essential Activities
2.2 Plan/Task Out the Essential Activities
Success essential #3 Create a reporting structure that gives visibility that your activities and projects are actually providing the results you expect.
BUSINESS GOAL SERVICE EXECUTIVE
“Customer complaints are reducing.”
DEPARTMENT HEAD
“I can see improvement in customer satisfaction.” OPERATIONAL MANAGER
“Rework is reducing.” SERVICE PROJECT
Input checking process completed. ACTIVITY
New procedures implemented. SKILLS PROJECT
Training program delivered.
3.1 Track Progress Towards Goals
3.2 Generate Reporting That Focuses on Results Not Just Progress
An email is received with an attached PDF report.
The executive can click drill into reports to see metric detail, action plan progress or any countermeasures
The attached top-level report provides executives with detail of individual Business Unit Performance.
From the top-level report, the executive can access each "Bowling Chart" (without needing to login)
Three essential things for success. A way of describing your real objectives and how success will be measured at all levels of your organisation. A co-ordinated plan with all activities linked to business performance triggers A way to manage performance of activities and projects continuously against the agreed measures.
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