Harry Chapman Principal Bay Area Consulting Group LLC Hchapman@baconsulting.net (415) 971-5746

1. The Seven Deadly Sins of Performance Measurement Harry Chapman Principal Bay Area Consulting Group LLC Hchapman@baconsulting.net (415) 971-5746 3

2. Results in Terms of Performance Adopted from John H. Ingle and William Schiemann, “Is Measurement Worth It?” Management Review, March, 1996 and Morgan and William Schiemann, “Measuring People & Performance: Closing the Gap,” Quality Progress, January, 1999

3. Results in Terms of Culture Adopted from John H. Ingle and William Schiemann, “Is Measurement Worth It?” Management Review, March, 1996 and Morgan and William Schiemann, “Measuring People & Performance: Closing the Gap,” Quality Progress, 1999

4. What Are Performance Measures and Why Are They Important? • What is a Performance Measure? • Performance “the execution of an action; something accomplished” • Measure “a basis or standard of comparison” • Why Are Performance Measures Important? • Measurement Drives Performance - “If you measure it, it will improve” – Andy Grove – Intel • Establishes Accountability • Provides a Common Language for Organizations • Enables Focus

5. From the Wikipedia • Performance measurement is a process for collecting and reporting information regarding the performance of an individual, group or organizations. • It can involve looking at process/strategies in place, as well as whether outcomes are in line with what was intended or should have been achieved.

6. The Seven Deadly Sins of Performance Measurement…. • According to Dr. Michael Hammer, • President, Hammer and Company Dr. Hammer is the author of four books, including the international best-seller "Reengineering the Corporation", the most important business book of the 1990s. His latest book is "The Agenda: What Every Business Must Do to Dominate the Decade". His articles have appeared in periodicals from Harvard Business Review to The Economist, and his work has been featured in every major business publication.

7. The Seven Deadly Sins of Performance Measurement…. • 1. Vanity This sin is using measures that "will inevitably make the organization, its people, and especially its managers look good"

8. The Seven Deadly Sins of Performance Measurement…. • 2. Provincialism This sin is letting "organizational boundaries and concerns dictate performance metrics"

9. The Seven Deadly Sins of Performance Measurement…. • 3. Narcissism This sin is measuring "from one's own point of view rather than the customer's perspective"

10. The Seven Deadly Sins of Performance Measurement…. • 4. Laziness This sin is assuming that "one knows what is important to measure without giving it adequate thought or effort"

11. The Seven Deadly Sins of Performance Measurement…. • 5. Pettiness This sin is measuring "only a small component of what matters"

12. The Seven Deadly Sins of Performance Measurement…. • 6. Inanity This sin is implementing metrics "without giving any thought to the consequences of these metrics on human behavior and ultimately on enterprise performance"

13. The Seven Deadly Sins of Performance Measurement…. • 7. Frivolity This sin (which Hammer says may be the most serious of all) is "not being serious about measurement in the first place"

14. Redemption - • The Four Keys

15. Redemption… • 1. Select the Right Things to Measure

16. Redemption… • 2. Measure Things in the Right Way

17. Redemption… • 3. Embed metrics in a disciplined process for performance Improvement – use them for treatment rather than autopsy

18. Redemption… • 4. Create an organizational culture and value system that encourages the disciplined use of metrics for ongoing improvement