Before you begin: Executive support

- [Instructor] In this section we're going to begin to explore your organization's system of metrics. In just a few steps you'll be able to systematically identify some of the problems and deficiencies in your organization's system of metrics. We'll explore issues like Alignment, Completeness, Redundancy, Confidence, Cooperation, and Decision making. This will allow us to see how metrics impact a company from the executive strategy level down to the employee and manager decision level.

One very important thing to remember, though: No matter how good your system of metrics, if the top executives and key managers do not believe in the metrics, the entire system will quickly fall apart. Imagine if the organization utilizes three metrics to track manager performance; Sales, Inventory levels, and Team morale. But the director, the manager's manager, says, "Yeah, I know the company really stresses "the importance of all three metrics, "but, I really need you to hit those sales "and inventory numbers.

"Don't worry about the team morale numbers." At that point, is our manager at all motivated to keep the team happy? If my raise, my bonus, or promotion is being decided upon by my director, and this director doesn't care about team morale, do I really care about team morale anymore? A system of metrics needs support and leadership. So let's get your company on the path to improved motivation, evaluation, and outcomes.

Let's begin our performance metric tuneup.