Productivity Management

9 07 2009

Performance typically ebbs and flows along a number of fronts.  In the worst cases it declines across multiple areas when it is not managed consistently.  Most productivity initiatives create curves something like below:

Productivity Management

  • At point A – we have identified a performance issue and have created a plan to improve performance.
  • At point B – we have succeeded and typically move on to solve another issue.
  • At point C – we start to see productivity decrease from lack of management and attention.

Unfortunately, most things don’t have pretty economic curves or requires focused thought to create one.  And if we do not create a performance plan we typically see the inflection point at C happen closer to A.  This happens because we have not put a plan in place and/or when we feel some momentium we abandon management of the initiative to fight the next battle.

Initiative Performance Indicators (IPIs)

8 04 2009

I made the argument that Key Performance Indicators and Key Risk Indicators are really the same thing, yet a nuanceworth discussion is initiative management.  We launch new factories, new products, training programs, marketing material, etc all the time, yet often do a sub-optimal job managing the project.  And execution waters down further as we try to manage the portfolio.

Even though initiatives are different than performance indicators, we need to account for their management within the same framework.  We need to understand our objectives, the priorities, resource constraints, milestones, etc in order to more proactively manage the business to achieve more strategic goals.  We need to enhance our ability to discuss our progress to our goals (both annual and strategic) and how all the KPIs and Initiatives are working together to achieve the end.