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What to measure and why Allan Preiss M c Arthur Talent Architects.

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Presentation on theme: "What to measure and why Allan Preiss M c Arthur Talent Architects."— Presentation transcript:

1 What to measure and why Allan Preiss M c Arthur Talent Architects

2 “Motherhood and apple pie” statement No-one can or would argue with this Greater efficiency in local government

3 Not everything that matters can be measured… But WHAT you measure matters – it is a statement of priorities and people will naturally give greater attention to the things you decide to measure Beware unintended consequences Eg teachers teaching to tests not pupil needs What gets measured gets done

4 Most measurement focuses on the What and the How The Why, How and What… Why How What

5 It depends largely on discretionary effort ie above and beyond effort –It’s not in my P.D. syndrome Discretionary effort is driven by: –Identification with and commitment to your organisation’s purpose –The quality of relationships with managers and colleagues –A sense of feeling valued and respected Efficiency is a dependent variable

6 A truly enormous body of research from a number of countries shows that how people are managed affects quality, profitability, and productivity Five high commitment work practices: –Investment in training to develop skills and knowledge. –Sharing of information so that people can understand the business and have the data to make better judgments about what to do and how to do it. –Decentralised decision-making and self-managed teams that permit trained and motivated employees to actually influence decisions about work. –Rewards dependent on individual but also group and organisational performance. –Mutual commitment and employment security with expectations of a long- term employment relationship. Are you “leaving money on the table?”

7 Efficiency is an Industrial Age measure in an Information Age –Was applicable when most of the work was labor and place-based Modern technology has changed the landscape –To measure efficiency you must know when the work day starts and ends –If I am thinking about a work-based issue when I am in the shower or driving to work is this counted as part of my working day; how about when I check my s on my phone at 8 pm Increasingly the work being done in developed countries is knowledge-based work A new measurement approach

8 Results Only Workplaces (ROW) Measures such as efficiency and productivity which are time-based and inputs focused are replaced by measures of outcomes –Where you work, when you work, how you work (within an agreed values framework) is up to you and your clients. Just deliver the required outcomes A different measurement model

9 Profit (efficiency) is to an organisation what oxygen is to the body – without it you can’t survive but it is not the reason you exist Conclusion


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