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Too	
  Many	
  Measures	
  
Steve	
  Stanton,	
  Managing	
  Director	
  
Webinar	
  
	
  
January	
  27,	
  2016	
  
For	
  more	
  informa6on,	
  go	
  to	
  fcbpartners.com	
  or	
  call	
  Lindsay	
  Field	
  617.245.0265	
  
1	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
On	
  the	
  One	
  Hand:	
  	
  Measurement	
  
Excellence	
  
•  A	
  few	
  clearly	
  defined	
  key	
  measures	
  
-  end-­‐to-­‐end	
  and	
  “in	
  process”	
  
-  balanced	
  across	
  domains	
  and	
  stakeholders	
  
•  Well-­‐thought	
  out	
  performance	
  targets	
  
•  Precisely	
  ar6culated	
  data	
  sources	
  and	
  formula6ons	
  
•  Well	
  communicated	
  and	
  understood	
  
•  Drive	
  produc6ve	
  ac6on	
  
2	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
•  The	
  first	
  step	
  is	
  to	
  measure	
  whatever	
  can	
  be	
  easily	
  measured	
  
-  	
  this	
  is	
  okay	
  as	
  far	
  as	
  it	
  goes	
  
•  The	
  second	
  step	
  is	
  to	
  disregard	
  that	
  which	
  can’t	
  be	
  easily	
  
measured	
  
-  	
  this	
  is	
  misleading	
  
•  The	
  third	
  step	
  is	
  to	
  presume	
  that	
  what	
  can’t	
  be	
  easily	
  
measured	
  isn’t	
  important	
  
-  	
  this	
  is	
  blindness	
  
•  The	
  fourth	
  step	
  is	
  to	
  say	
  that	
  what	
  can’t	
  be	
  easily	
  measured	
  
really	
  doesn’t	
  exist	
  
-  	
  this	
  is	
  suicide	
  
And	
  On	
  the	
  Other	
  Hand…	
  
Source: Charles	
  Handy	
  	
  	
  
3	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
Why	
  Is	
  Measurement	
  so	
  Difficult?	
  
Requires	
  deep	
  insight	
  
how	
  value	
  is	
  created	
  across	
  a	
  complex	
  organiza6on	
  
what	
  customers	
  really	
  want	
  
what	
  other	
  key	
  stakeholders	
  really	
  want	
  
how	
  to	
  translate	
  the	
  organiza6on’s	
  strategy	
  into	
  ac6on	
  
	
  
	
  
In	
  addiBon	
  
the	
  environmental	
  trifecta	
  of	
  complexity,	
  novelty,	
  and	
  speed	
  
digi6za6on	
  provides	
  even	
  more	
  opportuni6es	
  
we’re	
  now	
  entering	
  the	
  age	
  of	
  data-­‐driven	
  decision	
  making	
  
intui6on	
  and	
  history	
  are	
  no	
  longer	
  enough	
  
the	
  plague	
  of	
  busy-­‐ness	
  

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Lean Six Sigma Leadership 062507
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This slide deck will help you appreciate the application of statistics (and now data science) in the field of Quality Management and Process Improvement. And why is there a need to produce a consistent "in spec" product at 99.9997% of the time.

process improvementsix sigmastatistical process control
4	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
The	
  Four	
  QuesBons	
  
•  Why	
  measure?	
  
-  what’s	
  the	
  purpose	
  of	
  measurement?	
  
•  What	
  to	
  measure?	
  
-  what	
  are	
  the	
  few	
  key	
  metrics?	
  
•  Where	
  to	
  set	
  performance	
  targets?	
  
-  what	
  do	
  key	
  stakeholders	
  want?	
  
•  How	
  to	
  measure?	
  
-  what	
  are	
  the	
  best	
  techniques	
  and	
  tools?	
  
5	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
Why	
  Measure?	
  
The	
  primary	
  goal	
  of	
  measurement	
  is	
  to	
  improve	
  business	
  performance	
  
–  by	
  understanding	
  how	
  stakeholder	
  value	
  is	
  created	
  
The	
  primary	
  role	
  of	
  measurement	
  is	
  to	
  reduce	
  uncertainty	
  by	
  using	
  
data	
  
–  perfect	
  certainty	
  is	
  rare	
  
The	
  primary	
  use	
  of	
  measurement	
  	
  is	
  to	
  help	
  you	
  get	
  where	
  you	
  want	
  to	
  
go,	
  not	
  just	
  tell	
  you	
  where	
  you’ve	
  been	
  	
  
–  it’s	
  a	
  business	
  issue,	
  not	
  just	
  a	
  financial	
  one	
  
An	
  important	
  by-­‐product	
  of	
  measurement	
  is	
  to	
  reduce	
  complexity	
  
–  and	
  focus	
  on	
  what’s	
  important	
  
A	
  primary	
  output	
  of	
  measurement	
  is	
  communicaBon	
  
–  it’s	
  how	
  we	
  tell	
  everyone	
  what’s	
  important	
  
	
  
6	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
Why	
  Measure?	
  (…con:nued)	
  
You	
  must	
  know	
  what	
  you	
  want	
  to	
  measure	
  and	
  why,	
  before	
  you	
  worry	
  
about	
  how	
  
-  establishing	
  causality	
  and	
  controllable	
  outcomes	
  
Processes	
  are	
  the	
  key	
  inflecBon	
  point	
  of	
  an	
  organizaBon	
  
-  transla6ng	
  ambi6on	
  into	
  ac6ons	
  
-  linking	
  enterprise	
  goals	
  to	
  task	
  goals	
  
-  avoiding	
  func6onal	
  silo	
  approaches	
  
Strategic	
  clarity	
  and	
  deep	
  business	
  understanding	
  must	
  precede	
  
measurement	
  
7	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
What	
  to	
  Measure?	
  
—  All	
  measures	
  are	
  derived	
  from	
  strategy	
  
–  from	
  enterprise	
  to	
  process	
  to	
  performer	
  
–  it’s	
  always	
  tops	
  down	
  
—  A	
  metric	
  architecture	
  model	
  is	
  needed	
  
–  focused	
  on	
  control-­‐ability	
  and	
  ac6on-­‐ability	
  
–  based	
  on	
  hypotheses	
  and	
  experimenta6on	
  over	
  6me	
  
—  Most	
  measures	
  have	
  liTle	
  value	
  
–  focus	
  on	
  the	
  few	
  big	
  ones	
  (80/20)	
  
–  measure	
  as	
  li]le	
  as	
  possible	
  (it’s	
  NVA)	
  
—  Create	
  a	
  balanced	
  scorecard	
  for	
  every	
  process	
  (+/-­‐7)	
  
–  mixing	
  across	
  stakeholders	
  
–  mixing	
  stakeholders	
  

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six sigmacontinuous improvementgovernment
Building a Lean Enterprise: Navigating the Common Obstacles to Success
Building a Lean Enterprise: Navigating the Common Obstacles to SuccessBuilding a Lean Enterprise: Navigating the Common Obstacles to Success
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Recorded webinar: http://slidesha.re/1fi15LA Subscribe: http://www.ksmartin.com/subscribe Karen’s Books: http://ksmartin.com/books

six sigmaleanreengineering
RMS Six Sigma Training 2010 Final
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The document provides an overview of Six Sigma training concepts including the Define-Measure-Analyze-Improve-Control (DMAIC) methodology. It discusses key Six Sigma terms and tools used in each phase of DMAIC projects. Examples are given for tools like SIPOC, affinity diagrams, QFD, and data collection plans that are used to define problems, collect data, and establish baselines in the Define and Measure phases. The document also outlines common roles in Six Sigma organizations and how executives and champions guide Six Sigma initiatives. Overall, the document serves as an introductory guide to Six Sigma concepts and the project methodology.

8	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
•  What	
  are	
  key	
  stakeholders	
  demanding?	
  	
  
–  external:	
  customers,	
  regulators,	
  suppliers	
  
–  internal:	
  Execu6ves,	
  performers,	
  internal	
  customers	
  
•  How	
  well	
  are	
  analogs	
  (BP)	
  performing?	
  	
  
•  What	
  does	
  financial	
  viability	
  require?	
  	
  
•  What	
  does	
  our	
  intui6on	
  indicate?	
  
•  What	
  would	
  ins6ll	
  ambi6on	
  in	
  front-­‐line	
  teams?	
  
Se[ng	
  the	
  Right	
  Performance	
  Targets	
  
9	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
How	
  to	
  
Measure	
   Perform	
  
process	
  
Improve	
  
Measure	
  
performance	
  
Determine	
  
acBon	
  
Interpret	
  
results	
  
Communicate	
  
Develop	
  
causal	
  	
  
	
  model	
  
IdenBfy	
  and	
  
define	
  
key	
  metrics	
  
Develop	
  
performance	
  
targets	
  
Strategy	
  
Change:	
  
	
  measure,	
  target,	
  or	
  	
  process	
  
10	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
FCB	
  2016	
  Public	
  Courses	
  
Event	
   Dates	
  and	
  LocaBons	
  
Process	
  Redesign	
  
Hammer	
  Cer:fica:on	
  Course	
  
Coconut	
  Grove,	
  Miami	
  FL,	
  February	
  2-­‐5	
  
Process	
  Owners	
  in	
  AcBon	
  
Advanced	
  Hammer	
  Cer:fica:on	
  Course	
  
Coconut	
  Grove,	
  Miami	
  FL,	
  February	
  3-­‐5	
  
Change	
  Leaders	
  and	
  Catalysts	
  
Advanced	
  Cer:fica:on	
  Course	
  
Arlington,	
  VA,	
  April	
  4-­‐5	
  
ImplementaBon	
  and	
  ExecuBon	
  
Advanced	
  Cer:fica:on	
  Course	
  
Arlington,	
  VA,	
  April	
  6-­‐7	
  
Process	
  Redesign	
  
Hammer	
  Cer:fica:on	
  Course	
  
Arlington,	
  VA,	
  April	
  5-­‐8	
  
Power	
  of	
  Process	
  
Hammer	
  Cer:fica:on	
  Course	
  
New	
  Orleans,	
  LA,	
  October	
  24-­‐25	
  
Leading	
  TransformaBon	
  
Hammer	
  Cer:fica:on	
  Course	
  
New	
  Orleans,	
  LA,	
  October	
  26-­‐28	
  
11	
  ©2016	
  FCB	
  Partners.	
  All	
  rights	
  reserved.	
  
For	
  More	
  InformaBon	
  
FCB	
  Partners	
  
	
  
Lindsay	
  Field,	
  Program	
  Director	
  
617	
  245	
  0265	
  
lfield@fcbpartners.com	
  

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Lean thinkingLean thinking
Lean thinking

Lead Definition, Lean Leadership, Operational Excellence, Lean Journey, Lean House, Lean Pillars, Lean Culture, Respect for People, Gemba

lead definitionlean leadershipoperational excellence
Webinar: KPI Best Practices
Webinar: KPI Best Practices Webinar: KPI Best Practices
Webinar: KPI Best Practices

To view recording: https://youtu.be/GP7rtDLAYEg or watch the video at end of the slide The Balanced Scorecard Institute and partner Informa Middle East invite you to participate in our upcoming complimentary webinar, ‘KPI Best Practices’, which will discuss the relationship between strategy execution and KPIs. Developing meaningful KPIs to measure strategy execution is both an art and a science, involving a deep understanding of what to measure, how to measure, how to analyze performance information, how to report and clearly inform others regarding desired results and performance, and how to use the information to make better decisions. This webinar introduces one of the main topics at our upcoming Saudi KPI for Business Strategy & Transformation workshop. Join the Balanced Scorecard Institute's Howard Rohm, Co-Founder and President, and Suzy Nisbet, Senior Associate and Consultant, as they discuss developing strategic, operational, project, and organizational capacity KPIs, aligning KPIs to strategy, measuring intangible goals, streamlining measurement and reporting processes, and creating derivative KPIs for employees at all organizational levels. Sharing best KPI practices from their worldwide client experience, this 40-minute webinar (followed by a 20-minute Q&A session) will provide the knowledge and insight to better understand the relationship between strategy and KPI's. Webinar participants will learn how to: • Improve managers' and employees' perception of the value and importance of measuring performance • Lift the skill level of managers and employees in selecting meaningful measures and using those measures to make better informed decisions • Use KPIs to build individual and collective accountability for results

saudi kpi for business strategy & transformation winforma webinarbalanced scorecard institute

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  • 1. Too  Many  Measures   Steve  Stanton,  Managing  Director   Webinar     January  27,  2016   For  more  informa6on,  go  to  fcbpartners.com  or  call  Lindsay  Field  617.245.0265  
  • 2. 1  ©2016  FCB  Partners.  All  rights  reserved.   On  the  One  Hand:    Measurement   Excellence   •  A  few  clearly  defined  key  measures   -  end-­‐to-­‐end  and  “in  process”   -  balanced  across  domains  and  stakeholders   •  Well-­‐thought  out  performance  targets   •  Precisely  ar6culated  data  sources  and  formula6ons   •  Well  communicated  and  understood   •  Drive  produc6ve  ac6on  
  • 3. 2  ©2016  FCB  Partners.  All  rights  reserved.   •  The  first  step  is  to  measure  whatever  can  be  easily  measured   -   this  is  okay  as  far  as  it  goes   •  The  second  step  is  to  disregard  that  which  can’t  be  easily   measured   -   this  is  misleading   •  The  third  step  is  to  presume  that  what  can’t  be  easily   measured  isn’t  important   -   this  is  blindness   •  The  fourth  step  is  to  say  that  what  can’t  be  easily  measured   really  doesn’t  exist   -   this  is  suicide   And  On  the  Other  Hand…   Source: Charles  Handy      
  • 4. 3  ©2016  FCB  Partners.  All  rights  reserved.   Why  Is  Measurement  so  Difficult?   Requires  deep  insight   how  value  is  created  across  a  complex  organiza6on   what  customers  really  want   what  other  key  stakeholders  really  want   how  to  translate  the  organiza6on’s  strategy  into  ac6on       In  addiBon   the  environmental  trifecta  of  complexity,  novelty,  and  speed   digi6za6on  provides  even  more  opportuni6es   we’re  now  entering  the  age  of  data-­‐driven  decision  making   intui6on  and  history  are  no  longer  enough   the  plague  of  busy-­‐ness  
  • 5. 4  ©2016  FCB  Partners.  All  rights  reserved.   The  Four  QuesBons   •  Why  measure?   -  what’s  the  purpose  of  measurement?   •  What  to  measure?   -  what  are  the  few  key  metrics?   •  Where  to  set  performance  targets?   -  what  do  key  stakeholders  want?   •  How  to  measure?   -  what  are  the  best  techniques  and  tools?  
  • 6. 5  ©2016  FCB  Partners.  All  rights  reserved.   Why  Measure?   The  primary  goal  of  measurement  is  to  improve  business  performance   –  by  understanding  how  stakeholder  value  is  created   The  primary  role  of  measurement  is  to  reduce  uncertainty  by  using   data   –  perfect  certainty  is  rare   The  primary  use  of  measurement    is  to  help  you  get  where  you  want  to   go,  not  just  tell  you  where  you’ve  been     –  it’s  a  business  issue,  not  just  a  financial  one   An  important  by-­‐product  of  measurement  is  to  reduce  complexity   –  and  focus  on  what’s  important   A  primary  output  of  measurement  is  communicaBon   –  it’s  how  we  tell  everyone  what’s  important    
  • 7. 6  ©2016  FCB  Partners.  All  rights  reserved.   Why  Measure?  (…con:nued)   You  must  know  what  you  want  to  measure  and  why,  before  you  worry   about  how   -  establishing  causality  and  controllable  outcomes   Processes  are  the  key  inflecBon  point  of  an  organizaBon   -  transla6ng  ambi6on  into  ac6ons   -  linking  enterprise  goals  to  task  goals   -  avoiding  func6onal  silo  approaches   Strategic  clarity  and  deep  business  understanding  must  precede   measurement  
  • 8. 7  ©2016  FCB  Partners.  All  rights  reserved.   What  to  Measure?   —  All  measures  are  derived  from  strategy   –  from  enterprise  to  process  to  performer   –  it’s  always  tops  down   —  A  metric  architecture  model  is  needed   –  focused  on  control-­‐ability  and  ac6on-­‐ability   –  based  on  hypotheses  and  experimenta6on  over  6me   —  Most  measures  have  liTle  value   –  focus  on  the  few  big  ones  (80/20)   –  measure  as  li]le  as  possible  (it’s  NVA)   —  Create  a  balanced  scorecard  for  every  process  (+/-­‐7)   –  mixing  across  stakeholders   –  mixing  stakeholders  
  • 9. 8  ©2016  FCB  Partners.  All  rights  reserved.   •  What  are  key  stakeholders  demanding?     –  external:  customers,  regulators,  suppliers   –  internal:  Execu6ves,  performers,  internal  customers   •  How  well  are  analogs  (BP)  performing?     •  What  does  financial  viability  require?     •  What  does  our  intui6on  indicate?   •  What  would  ins6ll  ambi6on  in  front-­‐line  teams?   Se[ng  the  Right  Performance  Targets  
  • 10. 9  ©2016  FCB  Partners.  All  rights  reserved.   How  to   Measure   Perform   process   Improve   Measure   performance   Determine   acBon   Interpret   results   Communicate   Develop   causal      model   IdenBfy  and   define   key  metrics   Develop   performance   targets   Strategy   Change:    measure,  target,  or    process  
  • 11. 10  ©2016  FCB  Partners.  All  rights  reserved.   FCB  2016  Public  Courses   Event   Dates  and  LocaBons   Process  Redesign   Hammer  Cer:fica:on  Course   Coconut  Grove,  Miami  FL,  February  2-­‐5   Process  Owners  in  AcBon   Advanced  Hammer  Cer:fica:on  Course   Coconut  Grove,  Miami  FL,  February  3-­‐5   Change  Leaders  and  Catalysts   Advanced  Cer:fica:on  Course   Arlington,  VA,  April  4-­‐5   ImplementaBon  and  ExecuBon   Advanced  Cer:fica:on  Course   Arlington,  VA,  April  6-­‐7   Process  Redesign   Hammer  Cer:fica:on  Course   Arlington,  VA,  April  5-­‐8   Power  of  Process   Hammer  Cer:fica:on  Course   New  Orleans,  LA,  October  24-­‐25   Leading  TransformaBon   Hammer  Cer:fica:on  Course   New  Orleans,  LA,  October  26-­‐28  
  • 12. 11  ©2016  FCB  Partners.  All  rights  reserved.   For  More  InformaBon   FCB  Partners     Lindsay  Field,  Program  Director   617  245  0265   lfield@fcbpartners.com