8.0 Metrics and Monitoring – Enable Actionable Feedback

“What gets measured gets done” is the accepted approach and this is the case in enabling the standardization and harmonization of business processes. However, we caution against an over reliance on metrics and the inevitable proliferation of performance reporting. Clearly there is a need for some metrics and KPIs to gauge process performance, but doing too much clouds the focus and is therefore not actionable.

Standardization of business processes should therefore be combined with a parallel standardization of the performance metrics. Using the approach to targeting value described in an earlier paper (Kirchmer, Franz, 2014-2) the high impact, low maturity processes are identified through a “Process Impact Assessment”. By describing this prioritized set of processes in terms of their relationship with the business value-drivers the most important leading measures can be identified.

The lagging measures, are those formulated to describe the outcomes expected through achieving each of the key value drivers. This produces a standardized set of metrics that are aligned to the business strategy and the most important standard processes that are required to deliver the strategy. A further useful addition to this set of metrics is a “Standardization Index” which needs to be carefully constructed to identify how various parts of the organization are delivering on the promise of both standardization and harmonization.

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