Key Performance Indicators: Relevant Metrics that Sell Results and Drive Ongoing Improvement

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Lean / Six Sigma

Karen Martin
Principal Consultant
Karen Martin & Associates

One of the greatest obstacles in improving processes in service environments is the lack of relevant data. A related challenge arises when we need to sell our improvement efforts, but are unsure about how to translate the results we've achieved into numbers with bottom line impact. While it isn't entirely true that you can't manage what you don't measure, it is true that measurement drives behavior and numbers sell. Attend this session to learn how to obtain and use numbers to drive organizational improvement, and why your measurement program must include leading indicators and operational metrics in additional to traditional lagging indicators and financial metrics.

Methods: Discussion followed by formal Q&A

Content: The session will include content about the relevance, measurement techniques and financial impact (both direct and indirect) of the following metrics: lead time (LT), process time (PT), Activity Ratio (AR), staffing requirements (#FTEs), percent complete and accurate (%C&A), rolled first pass yield (RFPY), and Takt time. The discussion about lead time reductions will include "The COMPLETE picture" regarding the organizational impact of reduced LT. Translating wasted motion, waiting and rework into bottom line impact will also be addressed.

The value of cost avoidance will be discussed as well as quantifying -- and putting into financial terms -- traditionally viewed "indirect/soft" benefits. A case will be made for the value of leaning more heavily toward leading indicators and operational metrics rather than the traditional approach of lagging, financial metrics. Selling results to executives will also be highlighted, including case studies.

Tools and Techniques: In addition to hard copy for ppt presentation, participants will receive a "Key Metrics Cheat Sheet" that helps measure or calculate key metrics.