Measure the Immeasurable: The 4th Step to Operational Excellence

Measure the Immeasurable: The 4th Step to Operational Excellence

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Measuring the Immeasurable

When an organization is up-and-coming it can be easy to track data, production and performance. In this stage, the required data should be readily available to the top level employees, allowing them to analyze it and plan accordingly for the future. This is because there are less employees, clients and revenue. As a company develops, the required data becomes harder to track and less accessible. The top level employees lose track of what is happening in the organization.  Where there were once only 10 employees, there are now 200, and the company’s 100+ clientele is only growing. These top level employees struggle to measure the data, performance and function of the organization, leaving them to believe it cannot be done. The 4th step of Operational Excellence, Measure the Immeasurable, helps create a solution to this problem.

When it comes to an organization, a major component that is difficult to measure is the performance of an employee. When an organization is large, this becomes even more difficult because there are often many people working on different components of one task and it can be hard to keep track of which particular person is doing what. With these complications it can be tough to achieve Operational Excellence in your organization. The entire company’s performance should be measured, from the CEO to the ground level staff. Everyone should be measured on an equal and fair system and the data should be visible for the top level management to cross check. This measurement of performance then can play as a psychological factor. People generally behave as they are measured. A good measure will urge people to give that extra push and walk that extra mile to get their things done on time, thus making a difference in the organization. There should be tools set in place for measuring the performance such as KRA’s and KPI’s that we discussed about in the previous blog. Apart from KRA’s and KPI’s there are two other ways of achieving employee performance data:

  1. Assign each employee 40 hours of work each week and if the work is not completed within the prescribed time, two possible explanations could likely be the cause –
  • The time taken to complete the task was underestimated.
  • There is a skill gap between the person and the task.
  1. Measures leads to incentives—When the employees are measured well, it drives them to perform at an optimum level. This leads to their own success/benefits while helping the company grow as well.

Using these measures will help the top level staff to be in tune with the happenings inside the organization throughout all levels. Slowly but steadily, the organization will be transparent and thus measurable. Measure the immeasurable and keep your organization on track. This is the fourth step of Operational Excellence.

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