How to Establish Clear, Specific, ontinuous Measurable Performance Standards

By Mac McIntire
Many managers either do not know how to measure employee performance or they have the mistaken assumption that certain tasks cannot be measured. Every job classification and every job duty can be measured reliably and with considerable precision even white collar job skills.

our Accountability Management Workshop we discuss the Eight Core Competencies of Management. Of these eight, the competency managers say they struggle with the most is competency five: measuring and monitoring performance. My experience leads me to conclude that the primary reason why managers struggle with measuring and monitoring performance is because they failed to clearly define the performance goals they wished to achieve in the first competency: identifying what you want. A manager cannot determine how to measure and monitor an employees performance until he or she has first identified the outcomes one wants. Many managers either do not know how to measure employee performance or they have the mistaken assumption that certain tasks cannot be measured. In reality every job classification and every job duty can be measured reliably and with considerable precision even white collar job skills. The accurate tracking and measurement of performance is critical to business success. Measurement is the first step leading to control, and eventually to performance improvement. If you cant measure something, you cant understand it. If you cant understand it, you cant control it. And if you cant control it, you cant improve it. Nothing is more critical to creating competence than establishing clear, valuable, measurable goals. Measurement is the science of knowing where you are, where you want to be, and the

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steps necessary to accomplish your goals. Nine Measurement Areas There are nine measurement dimensions from which to assess individual performance. Some job classifications can be rated in each of the nine areas, while others may only be measured against a few of the dimensions outlined below. The three broad categories of measurement are Quality, Quantity and Costs. Under each main category are three specific measurement dimensions. Quality The Quality measurement dimensions are Accuracy, Class and Novelty. Accuracy is the degree to which an accomplishment matches a standard without errors of omission or commission. Omission is when something is left out. Commission is when something is inadvertently added. Examples of accuracy measurements are: 100% compliance with all OSHA regulations Balance out within +/- $2 Within specifications Hot food hot, cold food cold Given correct change

measurements. The following are class-type ratings: Customer Satisfaction Survey scores Five Star / Five Diamond hotel rating The largest Chevrolet dealer on the West Coast Voted #1 three years in a row Two thumbs up

Novelty is a measurement of innovation and creativity without sacrificing any other qualities. Employees who develop leading edge technologies or patentable products add great value to an organization. An employee in the vault at a large bank in Las Vegas came up with a novel idea for breaking open wrapped coins by tossing them into a cement mixer. This saved countless man-hours of work. Other examples of novelty measurements are: Number of employee suggestions placed in the company Suggestion Box Number of Nobel Laureate professors at a college Number of new patents Improvements made to processes, procedures, practices, equipment, materials, etc. Labor or cost saving ideas Quantity The three Quantity measure-

Class is a comparative superiority of an accomplishment beyond mere accuracy. Market share, opinion polls, survey results, best of show, and other benchmarks are examples of class

2001, 2011, INNOVATIVE MANAGEMENT GROUP, 840 Trotter Circle, Las Vegas, Nevada 89107, 702-258-8334.

ments are Rate, Timeliness and Volume. Rate identifies the amount of items produced within a specified timeframe. These include such things as: Being able to type 110 words per minute Number of covers per shift in a restaurant Average daily room rate for a hotel Number of calls per PBX operator Number of widgets produced per hour, per day, per week, per month, per year

Costs Finally, the three Cost measurement dimensions are Labor, Material and Management. Labor costs the measurement most conscious to managers are the costs associated with an accomplishment. These include: Wages, benefits, overtime, etc. Overhead Taxes Training and orientation Travel and entertainment

Number of layers of management

Someone once said, That which gets measured, gets done. Managers are paid for getting things done. Competent managers, therefore, are those who measure and monitor performance to ensure employees accomplish the things that need to get done the way they need to be done. Innovative Management Group can help you identify clear, specific, measurable performance standards for every job classification in your company. We also offer a variety of performance management training programs for executives, managers and supervisors. Please contact us to find out how we can help keep your employees focused on the things that matter most.

Timeliness is a measurement of an accomplishment within a specified timeframe, where the emphasis is on the time rather than the amount. Examples of timeliness measurements are: Get out of town by sundown In by 8:00 out by 5:00 Shipped within 24 hours One day turn around Loans approved within 48 hours Answer the phone within three rings

Material is the measurement of the amount of resources and materials needed to produce an accomplishment. Employees who produce an outcome using less materials than their counterparts have greater value to an organization. Consequently, material measurements identify such things as: Yield rates Scrap rates Amount of waste eliminated through automation Paperless processes Steps eliminated through process improvement initiatives

-------------------Mac McIntire is the president of Innovative Management Group, a Las Vegas-based training and consulting firm specializing in strategic visioning and alignment, organizational effectiveness, quality improvement, and teamwork. He can be reached at 702-258-8334 or e-mail mac@imglv.com. His website is www.imglv.com

Volume merely is a measurement of the total amount produced. This is the simplest and most common measurement. It entails the simple act of counting something. For example: Number of salt/pepper shakers refilled at the end of the shift Total sales, total revenue, total costs, etc. Number of managers who attended IMGs Accountability Management Workshop Number of rooms occupied Number of butts in seats

Management measurements are the costs associated with the managerial or supervisory support needed to accomplish a task. These include: Management salaries and administrative costs Supervisor to employee ratios Number of days an employee works without direct supervision Number of self-directed work teams

2001, 2011, INNOVATIVE MANAGEMENT GROUP, 840 Trotter Circle, Las Vegas, Nevada 89107, 702-258-8334.