What Gets Measured Gets Done! – The Secret to BPTA Success
Ever since Tom Peters wrote in Search of Excellence in 1982, Key Performance Indicators (KPIs) have played a greater role in managing business operations. Refer to the sidebar for specific areas of strategic business improvements that can be driven by KPIs.
Business Process Technology Alignment (BPTA) projects utilize milestone management during the project, supported by dashboards and KPIs that demonstrate improved performance upon project implementation.
BPTA is a robust methodology that identifies process defects, root causes, and implements best practice and technology solutions to drive strategic business goals.
So what are the top 3 secrets to successful continuous improvement using KPIs?
Secret 1 – Measure the right things
Most successful businesses find they need to aggressively assess many aspects of their business for balanced improvement. Your measurement system should cover customers, internal work processes, suppliers, finances and employees.
Define a complete set of strategically aligned measures that will drive you and your people to do the “right” thing. “Right” should be viewed as what achieves the best results, both for today and for tomorrow.
Secret 2 – Create metrics that are SMART
Always use metrics that are Specific, Measurable, Actionable, Relevant, Timely to complement SMART goals and objectives.
- Metrics that can be collected accurately or completely.
- Measures that cause people to act in the best interest of the business – not simply to “make their numbers.”
- Limit the number of metrics to avoid complication.
- Use simple metrics that can be easily explained to the organization.
Secret 3 – Follow a proven process for developing metrics
One tried-and-true approach follows five simple steps:
- Identify your customers and outputs of your process.
- Determine your customer needs /requirements.
- Ensure you understand the key goals of the business.
- Determine effective measures for both performance and diagnostic metrics.
- Compare/filter/align your metrics for each process with those for the higher level processes of which they are a part.
Once you’re satisfied with the selection of your metrics, have them in place, and start gathering data, you can begin tracking your progress.
Read more about one client’s experience with KPIs and the impact on their business. In our next article, we will describe the Best Practices and Lessons Learned from past BPTA projects.