Don’t Be Tyrannized by Old Metrics

Harvard Business

While effective metrics are essential for focusing attention and achieving results, they can also overpower better sense. Most industries cower to a few central metrics, the yardsticks that define the winners and losers. Metrics tried and proven over years become a guide to what’s important, driving resource allocation. But these metrics can become tyrants. When things change, outmoded metrics can threaten a firm’s survival. HBR STAFF.

Retail Bank Operational and Digital Leaders Reap the Rewards

BCG

BCG’s Retail-Banking Excellence benchmarking study (REBEX) profiles the operational and digital practices and performance of 20 of the world’s leading retail banks, a group of 40 institutions chosen for their size and the strength of their capabilities. Article Tuesday, May 10, 2016.

7 Ways to Improve Operations Without Sacrificing Worker Safety

Harvard Business

These kinds of statements speak to a leader’s choice of values, and a failure to understand the relationships between a safe work environment and operational performance. The reality is that virtually all workplace injuries are preventable, and safety management and operational excellence are intimately linked. Improved operational performance will result in fewer injuries. But many OSHA inspections lead to substantial improvements in a firm’s operations.

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties.

Why the Entire C-Suite Needs to Use the Same Metrics for Cyber Risk

Harvard Business

At the same time, members of the C-suite are measuring their potential impact using different metrics — financial, regulatory, technical, operational — leading to conflicting assessments. This lack of communication and coordination across functions makes it very difficult to assess the impact of cyber risk on the business as a whole or create any common metrics for doing so. Harry Haysom/Getty Images.

A Better Metric for the Value of a Worker Training Program

Harvard Business

These metrics are useful but miss the big picture, in part because they mistake a program’s cost for its value. We developed a new metric — cost per employed day (CPED) over the first six months — that we believe better defines how well employment programs work. Debating the utility of specific metrics might seem like a minor thing. For example, once Generation managers realized the power of CPED, they used it to make operational improvements.

The Perils of Internal Disruption (Part 5)

Markovitz Consulting

But when it comes to internal operations at least, disruption is often both bad for business and for employees, because it causes unevenness in work. Last week , I wrote about how kaizen events can disrupt daily operations and overburden employees. Managers capture all kinds of metrics, from the number of patient falls in a hospital ward, to the first pass yield in a production line, to the number of hits on a website, to the time it takes to repair a bicycle.

How a U.S. Health Care System Uses 15-Minute Huddles to Keep 23 Hospitals Aligned

Harvard Business

A core challenge of management is to ensure that the organization’s priorities, strategies, and metrics are consistently embraced and that any impediments are identified and addressed quickly. Metrics that are reported daily, such as “units at capacity.”

Why John Deere Measures Employee Morale Every Two Weeks

Harvard Business

Operations in a Connected World. But it turns out these methods don’t just have to do with technology and operations. Deere managers call it a “motivation metric” or even a “happiness metric.”

It’s Time for Companies to Be Strategic About Energy

Harvard Business

But to me, the most fascinating thing about the whole initiative is the organizational mindset shift it’s creating: a realization about the value of getting smarter about how — and where — operations use energy. Operations in a Connected World.

To Enlist Physicians in Reducing Costs, Show Them the Costs

Harvard Business

VDO includes data that helps to define quality (for example, national quality metrics and clinician-defined quality metrics) and cost (including supplies, pharmacy, imaging, and laboratory utilization; human resource utilization; and the general ledger, the organization’s complete record of financial transactions, including the acquisition costs for specific medical supplies). The operating room is one of the most resource-intensive environments in our health care system.

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How Digital Health Care Can Help Prevent Chronic Diseases Like Diabetes

Harvard Business

One of the key metrics that the Omada program tracks is participants’ weight. Technology Business models Operations Healthcare Digital ArticleEric Frommelt/Getty Images. Diabetes is one of the most pervasive and expensive chronic diseases: It affects an estimated 30.3 million people in the United States and costs a staggering $245 billion per year to treat. In addition there are 84.1

What the Companies on the Right Side of the Digital Business Divide Have in Common

Harvard Business

While some have invested significantly in technology, operational, and cultural changes, others are lagging behind. Other financial and operating indicators showed similar disparities. Our research indicates that these leaders approach the digital opportunity with a different strategic mindset and execute on the opportunity with a different operating model. The broad deployment of digital technology requires rethinking both business and operating models.

Why the Technology Economy Matters

BCG

Technology intensity is a proprietary metric that analyzes technology spending relative to a company’s and an industry’s revenues and to their operating expenses.). Article Wednesday, October 12, 2016.

Health Care Providers Must Stop Wasting Patients’ Time

Harvard Business

Like many patients, Jess felt her providers were delivering very little quality of care when defined by the one metric that mattered most to her: time. While Jess didn’t get her care at Kaiser Permanente, we are working to improve on this metric. While this may be more difficult for them to learn, it greatly reduces the pain of surgery and recovery, allowing the patient to walk immediately after the operation.

Companies Are Working with Consumers to Reduce Waste

Harvard Business

Operations in a Connected World. It is estimated that in 2014 the world produced some 42 million metric tonnes of e-waste (discarded electrical and electronic equipment and its parts)—with North America and Europe accounting for 8 and 12 million metric tonnes respectively.

Rethinking How Medicaid Patients Receive Care

Harvard Business

Using this approach to build each new Medicaid team, we then armed the primary care team with the operating structure, data, and incentives needed to create engagement with our patients wherever they are, enveloping them with compassion and the latest in evidence-based care.

Making Time to Really Listen to Your Patients

Harvard Business

The physician-sherpa should be a partner on the journey, not simply a medical operative, extracting formulaic rules and implements from a toolbox. Create a balanced scorecard of physician performance that tracks not only productivity but also professional development, team building, safety and quality metrics, timeliness of care or access, communication skills, and care coordination — measures that matter to patients. Operations Customers Healthcare Digital Article

Fighting Chronic Disease Starts with Better Pediatric Care

Harvard Business

PFK tracks data across all the more than 20 AHRQ Pediatric Quality Indicators , as well as metrics on utilization , which has led to improved quality of care and cost savings among its Medicaid population of children. Still, these metrics have yet to include broader measures of wellness such as academic achievement, involvement in crime, or job outcomes (i.e., Business models Economics & Society Operations management Healthcare Digital Article

4 Steps to Sustaining Improvement in Health Care

Harvard Business

But successful organizations have told us that the true frontline clinical leader is the day-to-day operations manager — often the charge nurse who supervises the nursing care given to patients in the unit. Without such clearly defined standardized work for the day-to-day operations manager, two things happen. Operations management Change management Leading teams Healthcare Digital Article

How to Reach the Technology Economics Frontier

BCG

To track the impact of their spending, we’ve recommended that business leaders keep a close eye on technology intensity, a proprietary metric that analyzes technology spending relative to a company’s and an industry’s revenues and operating expenses simultaneously.

Reflecting on David Garvin’s Imprint on Management

Harvard Business

I’ll fast-forward through the next decade, when Garvin, trained in operations, helped to answer the question much of America was obsessed with at the time: How Japanese automakers could make higher-quality, more-reliable cars than Americans, while charging less for them. Garvin stresses the importance of rigorous experiments (years before experimentation became the rallying cry for a new generation of innovators); thoughtful problem definition; and smart, well-designed metrics.

Is Your Company Actually Set Up to Support Your Strategy?

Harvard Business

For every company wrestling with evolutions in its strategy, success depends as much on matching the operating model to those evolutions as it does on the soundness of the strategy itself. Whether a company has reinvented itself, sought growth through expansion, or turned to partnerships or M&A, gaps between what it says it does for customers and what it delivers are usually the result of an operating model that isn’t set up to deliver the strategy.

Purchasing Managers Have a Lead Role to Play in Cyber Defense

Harvard Business

Traditionally, procurement professionals’ key performance metrics have revolved around cost reductions, quality, and assurance of continued supply. They haven’t been incentivized to make supplier cybersecurity a key metric in supplier scorecards or in the supplier selection process. Operations Technology Risk management Digital ArticleTim Robberts/Getty Images.

A Simple Way to Involve Frontline Clinicians in Managing Costs

Harvard Business

Point-of-care teams use a “box score” (see the example below) that brings together a parsimonious set of three categories of measures onto a single page: Five or six performance measures (quality metrics such as length of stay or readmission rates) show unit-level performance against organization-level strategic goals. Operations Performance measurement Healthcare Digital Article

Three Mistakes to Avoid in Strategic Planning

Joellyn Sargent

What you’re looking for is input from people who are close to the customer, from operations, sales, marketing, and others who can pinpoint potential roadblocks the executive team doesn’t see. Ineffective Metrics. . Planning for Success.

An Asset Manager’s Guide to Data and Digital Disruption

BCG

However, for most firms, the ability to keep up, from an investment and trading standpoint, will require significant investment and material changes to almost all elements of the target operating model, the blueprint that governs nearly every component of the business.

How HR Can Become Agile (and Why It Needs To)

Harvard Business

While initially designed to improve the responsiveness of software development teams, more recently agile has become the default team-based operational model for companies big and small, across industries and sectors, with the promise of a substantial and sustained spike in team productivity and efficiency. Operations Business processes Human resource management Digital ArticleIf software has eaten the world, then agile has eaten the software world.

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How the U.S. Army Redesigned Its Mental Health System

Harvard Business

At monthly review and analysis meetings, clinic chiefs and the Army service-line-management team discuss selected metrics and ways to improve performance. Operations management Performance measurement Healthcare Digital ArticleIstock. Leaders in today’s complex health care systems need better processes and systems for aligning day-to-day, clinical-care activities with the strategic goals of their organizations. The U.S.

The most attractive consulting market in the world

The Source

Sitting behind this are growth prospects for 2019 which, while still decent, look a little muted: Indeed, DACH only places mid-table by this particular metric.

Why Companies Can’t Turn Customer Insights into Growth

BCG

On the left side, record each mention of an internal topic, such as financial or operational performance, plans, metrics, organization, employees, or culture. Our research has found that most companies struggle to make CI more than just a traditional market research operation.

4 Ways Change Management Consulting Leaders Leverage Organizational Structure

LSA Global

When roles and success metrics are unclear, it is difficult for teams to perform beyond the sum of their parts. It is also critical when internal operations must change to become more efficient or more satisfactory to external or internal customers.

How to Find Weak Links in Your Corporate Culture

LSA Global

Success metrics are confusing, conflicting, unfair or unbalanced. Identify the cultural aspects that matter most in terms of customers, market approach, brand positioning, risk tolerance, operational variances, decision making, work atmosphere, people and results.

6 Ways to Support Your Desired Culture

LSA Global

Monitor Culture Metrics. If you are undergoing culture change, establish tracking metrics in areas such as: Key financial metrics: revenue, profit, expense, etc. Key customer metrics: satisfaction, loyalty, growth, market share, etc. Support Your Desired Culture.

The Power of Strategic Alignment

LSA Global

Our research found that team members are half as clear as their leaders about the team’s goals, roles, success metrics and operating norms. goals, roles, processes, relationships and success metrics). The Power of Strategic Alignment.

Review: BCG 2016 M&A Report

Consultants Mind

That is a super-macroeconomic metric (similar to the billionaire index I mentioned last post), but M&A continues to creep higher. Due diligence gets a lot of finance, operations and IT people involved to “look under the cover” at the target company’s situation.

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Why Don’t More CMOs become CEOs?

Joellyn Sargent

While a simple operational change might net thousands if not millions of dollars in corporate savings, a shift in marketing can take months to pay off. On top of that, many of the metrics marketer use to gauge success are still soft measures, like brand awareness or customer engagement. Fortunately for CMOs, technology is making is easier than ever to turn soft metrics into hard data.). A Look at What It Takes for a Marketer to Ascend to the Top Spot.

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Getting Smart About Change Management

BCG

And organizations are conscientiously incorporating it into their operating models: in the decade between 2003 and 2013, according to a recent survey, the proportion of respondents adopting a “structured approach” to change management rose from 32% to 80%.4. Focus Thursday, January 05, 2017.

The Challenge of Activation

Kates Kesler

After working closely with over twenty large US and European-based global companies during the past ten years, we have concluded the problem is not in the fundamental design of these operating models. The design of a global operating model is not complete until these decision-making ground rules and forums are defined, and too many executive teams leave this guidance to chance or to the political forces that unfold among strong personalities in the company.

Will Your Keep Your Brand Promise this Year?

Joellyn Sargent

So instead of assuming it’s a squishy thing that isn’t relevant on your day-to-day operations, add a metric for “Keeping Our Brand Promise” to your dashboard and track it. We’re a week into the new year.