Applying the PuMP (performance measurement process) to service blueprints and customer journeys means we have two primary ways of developing performance measuring that are meaningful. Firstly, we can align the results we seek from the service delivery with the Results Map for the organisation. Or secondly, we can develop results and measures within the process of the service blueprint or customer journey.
2. Overview
• About Measuring Performance– overview of thePuMP
approach
• DefiningResults, Measures, KPIs
• Applying Measurementto Service Blueprints
• Group work to try this approach
4. Stacey Barr andPuMP
• Performancemeasurespecialist
• Creatorof PuMP
• Author of:
– Practical Performance Measurement: Using the PuMP
Blueprint for Fast, Easy, and Engaging KPIs
– Prove It! How to create a high-performance culture and
measurable success.
• Blog at www.staceybarr.com
• PuMPis used and deliveredaround the worldthrough a networkof PuMP
Partners
5. The Anatomy of a Performance Measurement Approach
steps frameworks templates tools
6. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement
as the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy
into clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most
feasible and relevant
measures that evidence
our performance results.
Building Buy-In to
Measures
Getting ownership from
our stakeholders, quickly,
easily and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and
reporting requirements for
each of our measures.
Interpreting Signals
from Measures
Focusing ourselves on
gaps between as-is and
to-be performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-
be.
> > >
> > >
8. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement
as the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy
into clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most
feasible and relevant
measures that evidence
our performance results.
Building Buy-In to
Measures
Getting ownership from
our stakeholders, quickly,
easily and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and
reporting requirements for
each of our measures.
Interpreting Signals
from Measures
Focusing ourselves on
gaps between as-is and
to-be performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-
be.
> > >
> > >
9. Why strategy is so hard to measure
• Action orientation
• Weasel words & vague ideals
• Multi-focus goals
• Confusion with
business as usual
• Lackof rigour and logic
Too fluffy to measure.
11. MeasurabilityTest
• Five step
process to
developing
a Result or
set of
Results
Measurability Test
If it fails the test:
A: Results-
oriented
Turn the action into a result by asking
WHY
B: No weasel
words
Translate the weasel words into 5th grader
language
C: No multi-focus Treat each focus as a goal on its own
D: Should, can,
will
Be ruthless about what should, can and will
be improved
E: Link to
strategy
Ensure a strong line of sight to purpose
and priorities
12. Results Mapping
• Results are then
mapped
• Provides a
framework for
Results and
Measures
• Results and
Measures can be
seen in the context
of the relationships.
13.
14. The PuMP Performance Measure Blueprint
STEP 2STEP 1 STEP 3 STEP 4
STEP 5 STEP 6 STEP 7 STEP 8
Understanding
Measurement’s
Purpose
Fixing the focus firmly on
continuous improvement
as the purpose for
measurement.
Mapping
Measurable Results
Translating our strategy
into clear, focused, and
measurable performance
results.
Designing
Meaningful
Measures
Choosing the most
feasible and relevant
measures that evidence
our performance results.
Building Buy-In to
Measures
Getting ownership from
our stakeholders, quickly,
easily and engagingly.
Implementing
Measures
Documenting in detail the
data, analysis and
reporting requirements for
each of our measures.
Interpreting Signals
from Measures
Focusing ourselves on
gaps between as-is and
to-be performance.
Reporting
Performance
Measures
Creating useful and usable
performance reports that
inspire us to action.
Reaching
Performance Targets
Improving business
processes to move as-is
performance toward to-
be.
> > >
> > >
15. Traditional measure-selection approaches that fail
• Brainstorming
• Existing data or legacy measures
• Adopting measures from industry benchmarking
• Measuring what stakeholders wantto measure
• Outsourcing the selection of measures to experts or
consultants, or Google
Need a bridge to get from
“result” to “measure”.
16. Meaningfulmeasures are evidence
Measure Design What to do:
1. Result Focus on one goal or result to measure, at a time
2. Evidence List sensory evidence of the goal or result
happening
3. Potential
measures
Quantify each piece of evidence to create measures
& choose the most relevant and feasible
4. Check Pause to consider unintended consequences of the
result or selected measures
5. Name &
description
Name and describe each measure, meaningfully
17. Let’s define a performance measure
• A quantificationthatprovides objective evidence to which a
performance result (or outcome) is occurring over time
• Measures provide feedback on theresults or outcomes we
seek
18. The recipe to write a good measure:
1. statistic:average, median,percentage,number,total,etc…
2. performanceattributedataitem(s):studentswhoparticipatedin
learningactivities,allstudents
3. temporaldata item:day,week,month,quarter
4. measurename+measuredescription
19. Results and Measures
The Result: Customers value our delivery time
Measured
by:
Measure name:
Average
Customer
Delivery Time
Measure description:
The average time in days from customer order
to completed delivery, monthly
20. Results, Measures and KPIs
The Result: Customers value our delivery time
Measured
by:
Measure name:
Average
Customer
Delivery Time
Measure description:
The average time in
days from customer
order to completed
delivery, monthly
Performance
Expectation (Target)
1. Target of 10 days
by December
2. A reduction in the
variation of the
delivery process
21. 0
10
20
30
40
50
60
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
Average Customer Delivery Time
Two types of KPIs
1. Change
Wherewewantto see
changeinthe way
thingsarenow.
2. Standard of Performance
Maintain thestatusquo, BAU.
For example,Contactcentre:
Name: Description: Target:
GradeofService %ofcallsanswered 90%
within60 seconds
22. Defining Results, Measures, KPIs
• Datais notmeasurement– measurementuses data
• Results:whatwe measure–our desiredoutcome
• PerformanceMeasures:quantifiableevidence; feedbackon the
Result
• KPIs: PerformanceMeasures+ a Target
24. What are we
trying to know..?
What are we
trying to learn..?
What are we
trying to
measure..?
25. What is the
RESULT..?
What is the
RESULT..?
What is the
RESULT..?
What are the
performance measures
that will provide feedback
about this RESULT..?
What are the
performance measures
that will provide feedback
about this RESULT..?
What are the
performance measures
that will provide feedback
about this RESULT..?
26. Two Key Options for Measurementof Service Blueprints /
Customer Journeys
1. Align the Results with the OrganisationResultsMap
2. Design“in process” Resultsand Measures for theService
Blueprint / CustomerJourney
28. 2. Design “in process” Results and Measures for the Service Blueprint /
Customer Journey
1. Articulate the Result
you hope to achieve at
each key stage of the
service design or
journey.
2. Design performance
measures that will
provide feedback on the
Result.
29. Meaningfulmeasures are evidence
Measure Design What to do:
1. Result Focus on one goal or result to measure, at a time
2. Evidence List sensory evidence of the goal or result
happening
3. Potential
measures
Quantify each piece of evidence to create measures
& choose the most relevant and feasible
4. Check Pause to consider unintended consequences of the
result or selected measures
5. Name &
description
Name and describe each measure, meaningfully
30. GroupWork
1. Agree ontheServiceDesign/Blueprint
2. Discussandagree onthekeystages
3. Discussandagree ontheResultsyouhopetoget ateachstage(noactions
or targets)
4. DesignperformancemeasuresforeachResult:
– Evidence: Fully describe what you would expect to
see/hear when the Result is achieved
– Now develop potential performance measures -
quantifiable evidence of the Result
31. What next...
• Visit: www.staceybarr.com - heaps of free resources
• Sign up for Stacey’s “Measure Up” email
• Get clear about what you want to measure (the Result), design
performance measures for the Result and only set targets when you
understand the current level of performance and you want to change it.
• My blog: www.markhocknell.com
• Let’s connect
Traditional approaches to selecting measures that fail
TIME: 5 minutes
PURPOSE: to expose the limitations of these common methods and why we need a more deliberate method
There appears to be about 5 methods people use most often to find performance measures:
[CLICK TO REVEAL] Brainstorming
no better than what is already known
too many measures – Freight manager who had 87 KPIs, followed by a nervous breakdown due to too many priorities
measures that aren't really measures (like the following 3 examples):
milestones like win an award or set up a CRM system
actions & improvement ideas like “make sure we train everyone in handling customer complaints well”
vague concepts like Customer Loyalty
[CLICK TO REVEAL] Existing data or legacy measures
never get the measures you really need
and then you never get the data you really need
[CLICK TO REVEAL] Adopting measures from industry benchmarking
measures for someone else’s strategy – just because others measure it doesn’t mean it’s right for your goals and improvement priorities
Measure Definition not clear – e.g. looking through KPI lists, where you really don’t get to know enough detail about the measures
like Average Time to Competence, which is the average time it takes until expected competence level is reached. But how is competence defined and how do you know when it’s reached?
[CLICK TO REVEAL] Measuring what stakeholders want to measure
narrow and biased perspective of what matters for the strategy
measures become a product to report to others, not food for decision making
[CLICK TO REVEAL] Outsourcing the selection of measures to experts or consultants
measures that have little ownership and little appreciation
e.g. the inch thick KPI report for a big consultancy firm, gathering dust on the shelf of the Corporate Strategy Manager
SEGUE:
What we’re going to do is replace these failing methods with a deliberate technique for designing and choosing the best measures for your performance results…
REFERENCE ONLY BELOW THIS LINE -----------------------
PuMP Certification Exam questions related to this slide:
Which of the following are good practices to select meaningful performance measures?
(A): Brainstorming, to ensure people think creatively about measures.
(B): Finding measures that are popular among similar organisations or industries.
(C): Hiring the right consultants for their expert advice on what to measure.
(D): None of the above. (CORRECT ANSWER)
THE RECIPE TO WRITE A GOOD MEASURE:
There are 4 essential parts to writing a good measure:
[Click to reveal] Firstly, the statistic. average, median, percentage, number, total, etc…
[Click to reveal] Secondly, the performance attribute data item(s): exactly what you are applying the statistic to. What exactly are you averaging? What exactly are you counting? What exactly are you taking a percentage of? For example: students who participated in learning activities, or all students, or students who got a job in their field of study.
[Click to reveal] Thirdly, the temporal data item: day, week, month, quarter. It’s about how frequently you want to calculate the values of your measure, so you can monitor it often enough to pick up signals of change.
[Click to reveal] Finally we have the measure name + measure description.
[Click to reveal] This is how you put it all together. For example:
Student Participation Rate = The percentage of students who participated in learning activities, by week
SEGUE:
And so Practical Insight #6 becomes…