Metric Reports that Lead to the Best Behaviors (Using a Free App)

Effective Key Performance Indicator (KPI) metric management in an organization is critical; however, there are issues with traditional metric reporting and its accompanying goal-setting practices.

Current organizational goal-setting practices can lead to unhealthy, if not destructive, behaviors, as illustrated in the article "Wells Fargo under siege: Drops sales goals tied to bogus account scandal".

Traditional KPI metrics reporting is an elephant-in-the-room problem where organizations can waste much time and resources that unnecessarily cost a lot of money and lead to much frustration.

KPI management should lead to the best actions or non-actions in an organization, but more often than not, this does not occur. This presentation describes commonplace issues with KPI management practices and how to resolve these issues with an alternative 30,000-foot-level KPI management reporting methodology. This presentation uses the commute time from home to work (as described in a published article) to illustrate the benefits of 30,000-foot-level reporting and goal setting for addressing the issues of traditional metric reports, including red-yellow-green scorecards.

The described techniques also provide:

• An input to a strategic planning session, i.e., what metric an organization desires to improve via a created organizational strategy
• A metric to improve via a Lean Six Sigma process-improvement project
• A better approach for process-output-response capabilities indices reporting

• Red-yellow-green operational metrics reports
• Table-of-numbers reports
• Bar-chart reports
• Time-series reports
• Goal setting so the best behaviors occur
• Lean Six Sigma projects
• Statistical Process Control (SPC) control charting
• Process capability indices (Cp, Cpk, Pp, Ppk) reporting
• Creating a predictive statement for a process output response
• Process capability indices reporting when there is no specification
• If a predictive statement is undesirable, there is a need for process improvement
• Providing direction for an organization to move toward achieving the 3Rs of business (everyone doing the Right things and doing them Right at the Right time)

• Traditional organization metric and Key Performance Indicator (KPI) reports can lead to much firefighting the same issues over and over again leading to much frustration and wasted efforts that have high costs. Jobs can be lost because of this commonplace reporting format.
• Traditional goal setting can lead to very bad, if not destructive, behaviors, as illustrated by Enron at the turn of the century, Wells Fargo personnel setting up bogus accounts a few years ago, and organizations playing games with the numbers (costing the company big bucks) to meet arbitrary set monthly or quarterly goals.
• Traditional Lean Six Sigma deployment reporting that they saved 100 million dollars but nobody can find the money. Lean Six Sigma practitioners can lose their job over this.
• Traditional Lean Six Sigma deploy practitioners being laid off since only anecdotical statements were made about the benefits of their improvement projects and them not showing benefits of their work from a 30,000-foot-level metric statistical enhancement point of few.
• Red-yellow-green, table-of-numbers, and other reports often lead to behaviors that are not good (or very bad) for their organization. These commonplace forms of reporting do not encourage process improvement if responses appear undesirable. These forms of reporting do not provide a predictive statement, where if an expected future process-output response is undesirable, there is a need for process improvement.
• Process capability indices of Cp, Cpk, Pp, and Ppk are difficult to understand, can be dependent how samples are collected, can erroneous reject/accept lots, and can be gamed to make situations look better than they are.
• Acceptable Quality Level (AQL) lot testing statistically protects the supplier, not customer, from undesirable lots and does not encourage process improvement when specifications are not met as a process-output response.
• An organization conducts many Lean Kaizen Events for improvement; however, leadership and customers do not see the benefits of these efforts. People could lose their job over this.

• Traditional KPI & Performance Metric Reports can lead to unhealthy, if not destructive behaviors
• CNN article: "Wells Fargo under siege: Drop sales goals tied to bogus account scandal"
• Organizational performance metric reporting is an elephant in the room
• Y management in the relationship Y=f(X)
• Home-to-work commute time example article walk through: "Driving Better Solutions: Metrics reporting that can lead to the best behaviors"
• 30,000-foot-level reporting linkage to Lean Six Sigma and other process improvement methodologies
• How to access a free Enterprise Performance Reporting System (EPRS) app to create 30,000-foot-level reports
• Applicability of 30,000-foot-level reporting to the enhancement of process stability and capability reports, process performance output reports, non-conformance rate reports, on-time delivery reports, etc
• How does 30,000-foot-level reporting apply to your organizational data?
• How to benefit from 30,000-foot-level reporting throughout an organization via the Integrated Enterprise Excellence (IEE) business management system
• Books and complimentary material for doing things smarter

• CEO
• President
• C-suite
• General Managers
• Operational Managers
• Engineers
• Quality Managers
• Six Sigma Black Belts
• Process Improvement Practitioners
• Quality Practitioners
• Functional Managers
• Quality Managements