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DMEM Centre for Strategic Manufacturing Team Performance Measurement Jill MacBryde & Kepa Mendibil Centre for Strategic Manufacturing University of Strathclyde,

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Presentation on theme: "DMEM Centre for Strategic Manufacturing Team Performance Measurement Jill MacBryde & Kepa Mendibil Centre for Strategic Manufacturing University of Strathclyde,"— Presentation transcript:

1 DMEM Centre for Strategic Manufacturing Team Performance Measurement Jill MacBryde & Kepa Mendibil Centre for Strategic Manufacturing University of Strathclyde, Scotland

2 DMEM Centre for Strategic Manufacturing Feedback - Australia July 2001…. Increasingly companies in Australia are adopting team-based approaches to work But many companies are not achieving the benefits they thought they would get from teams And many people working in teams are dissatisfied Real interest in team performance management Companies want a simple tool that they can use at any level of the organisation What to measure How to measure it

3 DMEM Centre for Strategic Manufacturing Feedback – UK The story is the same…. I dont think we will ever get the best out of our teams - not when the reward system is an individual one and people are shooting each other in the back! We have a team that consistently performs well - how can we get the other teams to perform at this level ? How can we continue to motivate staff when we have taken away so many middle management jobs ? I want teams to manage themselves more! How do we create measures on which to base team variable pay ? How can I define performance measures for hard to measure white collar jobs ? I want a system to manage my teams performance – but if I wait for the senior management to buy into some system then Ill be waiting a long time!

4 DMEM Centre for Strategic Manufacturing FUNCTIONS Manage processes Support processes PROCESSES Operate processes Confusion! The horizontal processes pull people in one direction; the traditional, vertical, management systems pull them in another!

5 DMEM Centre for Strategic Manufacturing So why teams? Many people dont seem happy with their team performance…. So why are we using teams more? And are teams really the way forward?

6 DMEM Centre for Strategic Manufacturing Why Teams ? Working effectively, teams can result in: increased flexibility cost savings focus on the customer innovation and continuous improvement ownership & responsibility happier staff etc.…...

7 DMEM Centre for Strategic Manufacturing What the consultants fail to tell you… Its not about teams; its about performance Its not about individuals; its about organisational design Its not about structure as much as its about management philosophy Its not about empowerment; its about responsibility and accountability …..and thats the bits that we will try to help you sort out today….

8 DMEM Centre for Strategic Manufacturing Why Teams ? Some examples of good team performance management: Litton Rank Zerox Dutton Engineering

9 DMEM Centre for Strategic Manufacturing Why Teams ? Litton Interconnection teams run their own mini-business no job is a black box everyone receives basic manufacturing training customers are much happier team members are more motivated flexibility the team is responsible for recruiting, scheduling etc.. shared values

10 DMEM Centre for Strategic Manufacturing Why Teams ? Rank Zerox self managed teams productivity up employee satisfaction significantly up training was important flexibility

11 DMEM Centre for Strategic Manufacturing Why Teams ? Dutton Engineering annual hours effort put in when its needed healthy competition order fulfilment improved employee satisfaction

12 DMEM Centre for Strategic Manufacturing So whats the success factor? We believe establishing a team performance measurement system is central to success But you first have to recognise the things that will contribute to team performance Many performance measurement systems measure the process (output, quantity, quality etc.) But often measuring the process is not enough Some measure individuals contribution (skills, attitudes, output etc) But often the way we measure individuals is counter- productive to the team or process effort We dont want measures that just report on the past We want a performance measurement system that will help the team look forward as well as back.

13 DMEM Centre for Strategic Manufacturing Agenda for the day Introduction and background to our work Introductions – tell us about your team *** What influences team performance? What should we measure? Introducing the team performance measurement workbook *** Using the workbook to design your own team performance measurement system Group presentations & discussion *** Next steps – what you should do next Feedback & close

14 DMEM Centre for Strategic Manufacturing Introduction and background to our work

15 DMEM Centre for Strategic Manufacturing Background to CSM The Centre for Strategic Manufacturing (CSM) Based within the University of Strathclyde, Glasgow Our Mission - to facilitate performance improvements in manufacturing industries Core areas of expertise: Business process improvement Performance measurement Strategy management It was whilst working with companies in these areas that the issue of team performance surfaced

16 DMEM Centre for Strategic Manufacturing Initial Project Funded by UK Government through the Engineering & Physical Sciences Research Council (EPSRC) 5 initial collaborators IBM UDV Highland Spring Rolls Royce Applecross Properties Comparative study between industrial partners and best practice organisations Identifying the things that contribute to team performance Developing a framework of what to measure

17 DMEM Centre for Strategic Manufacturing Initial Findings We found no performance measurement system that included all critical aspects we believed to affect team performance Organisations told us they would like a practical tool that will help them to manage their teams So we set about develop such a tool And the workbook that you have in front of you is the output!

18 DMEM Centre for Strategic Manufacturing Introductions – tell us about your team!

19 DMEM Centre for Strategic Manufacturing What influences team performance?

20 DMEM Centre for Strategic Manufacturing What Influences Team Performance ? Before we can design a team performance management system it is necessary to first look at the critical factors influencing team performance. We looked at the literature on teams and performance management We visited companies that we believed to be best practice

21 DMEM Centre for Strategic Manufacturing What Influences Team Performance ? Factors identified as being major contributors to team performance: Alignment with strategic objectives Understanding the desired outcomes The existence of a performance measurement system The skills and abilities within the team (eg. education, ability to tackle problems etc) Organisational support & management (training & development, keeping the team informed, rewarding, motivating etc..) Type of team (eg. task force, project, self-directed etc.)

22 DMEM Centre for Strategic Manufacturing Lets look at these things that contribute to team performance in more detail…

23 DMEM Centre for Strategic Manufacturing Alignment The team needs to know what the organisation is trying to achieve The team should also be aware of the measures that are important to the organisation The team should be able to see how they are helping the organisation to achieve its objectives In todays workshop this is one of the first things we will do… look at what your organisation is trying to achieve look at what is being asked of the team And ask if there is alignment

24 DMEM Centre for Strategic Manufacturing Understanding the desired outcomes It is human nature - people to want to be appreciated People want to know what is being asked of them - knowing where the goalposts are! Achieving the desired outcomes should be celebrated and can help with affirmation of the team In the workshop we will help you to establish what the desired outcomes of your team process or task are…

25 DMEM Centre for Strategic Manufacturing The existence of performance measures Its true what they say… What gets measured gets done! Measuring performance provides information to help with training, coaching, rewarding etc.. Performance measures help to create a positive feedback cycle Later in the workshop we will help you to develop the appropriate measures for your team.

26 DMEM Centre for Strategic Manufacturing Team skills, behaviours etc. In order to successfully achieve their process objectives the team will need to develop certain competencies and capabilities… Skills Experience Team dynamics Leadership Communication Attention to quality Creativity Flexibility etc… Different teams will have different requirements in terms of competencies and capabilities In the workshop we will help you to establish what enablers will be crucial for your team…

27 DMEM Centre for Strategic Manufacturing Organisational support and management The organisation needs to support the team in order for them to achieve their objectives. For example the team may need.. Information Access to resources Spreading best practice Trust etc… Different teams will have different requirements in terms of support they need from the organisation In the workshop we will help you to establish what organisational enablers will be crucial for your team…

28 DMEM Centre for Strategic Manufacturing Type of team Teams come in different guises Some of us work in one team on one process For others we will be part of many teams that are put together for specific purposes eg. a task force Before we develop performance measures we need to take the type of team into consideration

29 DMEM Centre for Strategic Manufacturing What type of team do you have? Type of TeamDescription Which Type? Simple Problem- Solving Team Address intra-unit problems over a fixed time frame. Membership is mandated, and the team is reactive and tactical Task Force Composed of members from various departments or functions - brought together to research, propose, and recommend solutions to one specific functional problem Cross- Functional Team Similar to task forces, but implement what they propose and recommend Self-Directed Work Team A small group of employees who are responsible for carrying out a significant piece of work. This team is empowered to control their work environment and to strive for self-sufficiency Virtual Team A team where members are from different departments, organisations, or locations, or where members work in the team for different durations

30 DMEM Centre for Strategic Manufacturing What should we measure? - the building blocks of the team performance measurement system

31 DMEM Centre for Strategic Manufacturing

32 DMEM Centre for Strategic Manufacturing The process we will follow 2. The Team Enablers 2.1 understand what the team needs to do to achieve the process objectives 2.2 identify team objectives 2.3 establish the appropriate measures to check performance against objectives 1. The Process 1.1understand what the outputs of the team task or process are 1.2 identify process objectives 1.3 establish the appropriate measures to check performance against objectives 3. The Organisational Enablers 3.1 understand what the organisation needs to do to help the team to achieve its process and team objectives 3.2 identify organisational objectives 3.3 establish the appropriate measures to check performance against objectives

33 DMEM Centre for Strategic Manufacturing 1. Identifying Process Objectives The first thing we have to establish is the objectives of the process that the team is responsible for What we mean by a business process is a series of linked activities, with a clear output that adds value to the business or to internal stakeholders

34 DMEM Centre for Strategic Manufacturing Questions we need to ask… Who are the customers of the team ? What does the process team deliver to the customer ? What performance criteria are the customers using What is the organisation really paying this team to achieve?

35 DMEM Centre for Strategic Manufacturing 2. Identifying team objectives Having established the process objectives we now need to ask: what does the team need to do to achieve these objectives What sort of competencies and capabilities will they need Can we set objectives for the team to gain these competencies and exhibit these capabilities

36 DMEM Centre for Strategic Manufacturing Questions we need to ask…. What sort of behaviour is required to achieve the process goals ? What are the values you want the team to share ? Are there any procedures or processes you want the team to adhere to ? What level of teaming is required ? How crucial is communication amongst the team ? What competencies are important ?

37 DMEM Centre for Strategic Manufacturing Critical success factors – team enablers Type of Teamcritical success factors (TEAM) Simple Problem- Solving Team - Members should have the expertise to focus on the problem and solve it - The team should be highly committed to the task - Employees need to have initiative - Employees need to be willing to accept responsibility Task Force - Innovation should be encouraged - Team members need the relevant skills and expertise to complete the task - The team needs to have good co-operation and little conflict - Team members need to be flexible Cross-Functional Team - As Task Forces Self-Directed Work Team - Innovation should be encouraged - The team focus should be on the customer and performance - The team culture should be highly participative - Employees should be willing to work under flexible working rules - A highly skilled workforce is required Virtual Team - Team members should have the communication skills to work in a virtual environment

38 DMEM Centre for Strategic Manufacturing 3. Identifying organisational objectives The team will need to be supported by the organisation We now need to establish what the organisation can do to support the team in achieving its process and team objectives

39 DMEM Centre for Strategic Manufacturing Questions we will ask… What knowledge does the organisation need to provide the team with ? What technology does the team need ? What other resources are required ?

40 DMEM Centre for Strategic Manufacturing Critical success factors – organisational enablers Type of Teamcritical success factors (organisational resources - process) Simple Problem- Solving Team - Management should be involved on an on-going basis - Investment in training is needed to encourage commitment from employees - Decision making should be decentralised - There should be a participative, communicative culture - Significant training is required to ensure team success Task Force - The team needs to be given time to plan the project effectively - The team need training in the following areas - business planning, performance management, team design and development, and process consultation - The team require substantial organisational support Cross-Functional Team - As Task Forces Self-Directed Work Team - There should be no barriers to communication and co-operation - Significant training of employees to help them complete their tasks is vital - The organisation should be adaptable to change to accommodate the team Virtual Team - Team members should be aware of any cultural differences and act to avoid damage to productivity - Technology should be in place to allow effective information sharing

41 DMEM Centre for Strategic Manufacturing Introducing the team performance measurement workbook - how to build your own measurement system

42 DMEM Centre for Strategic Manufacturing Using the workbook to set objectives The workbook will help you to look your own team and the context within which the team is working It will help you to set objectives each of the three areas (building blocks) Process objectives Team Objectives Organisational Objectives

43 DMEM Centre for Strategic Manufacturing Measuring performance against objectives Having established objectives in the three areas we then need to think about how we measure: How the process is performing against the process objectives How the team is performing against the team objectives How the organisation is performing in terms of the support it is giving the team

44 DMEM Centre for Strategic Manufacturing Create Measures Not everything can be measured with numbers Good measures are those that can be observed and verified by someone else Measures are the yardstick used to judge how well you have performed on each result General Measures quantity quality cost timeliness Specific Measures numeric measures descriptive measures In the workshop we are going to use the catalogue of measures developed by the Centre for Business Performance at Cranfield University.

45 DMEM Centre for Strategic Manufacturing Provide Feedback Need to give both positive and negative feedback Effective tracking systems are: relevant frequent immediate specific Data Collection Decisions what data to collect when to collect it who should collect it who should receive it how to collect it

46 DMEM Centre for Strategic Manufacturing Questions ? ……lets go do it!

47 DMEM Centre for Strategic Manufacturing Agenda for the workshop Understanding the process the team is responsible for Setting process objectives Establishing appropriate process performance measures *** Understanding what is needed from the team Setting team objectives Establishing appropriate team performance measures *** Understanding what the organisation needs to do to support the team Setting organisational objectives in relation to the team Establishing appropriate organisational performance measures

48 DMEM Centre for Strategic Manufacturing Next Steps What you can go and do next…

49 DMEM Centre for Strategic Manufacturing Weight the Objectives Weight is a percentage that describes the relative importance of a result Weights can help the team prioritise and manage their time Weights help the team member prioritise both team and individual results Lack of priorities can cause problems: confusion about what is important lack of shared vision people will complain about their lack of credit for their contribution

50 DMEM Centre for Strategic Manufacturing Linking Team and Individual Objectives Human nature - people want to be recognised for their individual contribution Evaluating individual performance provides information to help with training, coaching, rewarding etc.. Rewarding outstanding contribution may be valuable - even in a loosing team The problem is, how do we make sure the team and individual measures dont conflict ? You might want to draw up a matrix This may help team members to understand how the teams objectives/deliverables fit with their own priorities

51 DMEM Centre for Strategic Manufacturing Linking Individual & Process Objectives Process Objectives Team Members

52 DMEM Centre for Strategic Manufacturing Team Measures Matrix

53 DMEM Centre for Strategic Manufacturing Objective-Performance Matrix

54 DMEM Centre for Strategic Manufacturing To conclude Hopefully you are leaving todays workshop with a better understanding of team performance management You should have the basis of a team performance measurement system which has been designed to suit your own team situation You know what you should be measuring And you have discussed which measures are appropriate to your team, taking into account: the company strategy the type of team the process or task objectives (process objectives) the team competencies and capabilities (team objectives) the organisational support needed (organisational objectives issues surrounding data collection

55 DMEM Centre for Strategic Manufacturing Still to do… Back at work you might consider weighting the objectives – to help the team prioritise and manage their time and resources And you may choose to link the team objectives and measures to individual objectives, measures and rewards But the main thing is to put your team performance measurement system in place – and start collecting the data – so that you can start to see the areas where performance needs to be improved And dont forget to review the measures you are using on a regular basis! Good luck….

56 DMEM Centre for Strategic Manufacturing Questions? We welcome feedback…. …. and let us know how you get on!


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