Transforming Performance Measurement: Rethinking the Way We Measure and Drive Organizational Success

by Dean R. Spitzer

Book Overview

It's no secret that you can't improve your organization's performance without measuring it. In fact, every function, unit, process, and the organization as a whole, is built and run according to the parameters and expectations of its measurement system. So you'd better make sure you're doing it right. All too often, performance measurement creates dysfunction, whether among individuals, teams, or across entire divisions and companies. Most traditional measurement systems actually encourage unhealthy competition for personal gain, creating internal conflict and breeding distrust of performance measurement. Transforming Performance Measurement presents a breakthrough approach that will not only significantly reduce those dysfunctions, but also promote alignment with business strategy, maximize cross-enterprise integration, and help everyone to work collaboratively to drive value throughout your organization. Performance improvement thought leader Dean Spitzer explains why performance measurement should be less about calculations and analysis and more about the crucial social factors that determine how well the measurements get used. His socialization of measurement process focuses on learning and improvement from measurement, and on the importance of asking such questions as: How well do our measures reflect our business model? How successfully are they driving our strategy? What should we be measuring and not measuring? Are the right people having the right measurement discussions? Performance measurement is a dynamic process that calls for an awareness of the balance necessary between seemingly disparate ideas: the technical and the social aspects of performance measurement. For example, you need technology to manage the flood of data, but you must make sure that it supports the people who will be making decisions and taking action crucial to your organization's success. This book shows you how to design that technical-social balance into your measurement system. While it is urgent to start taking action now, transforming your organization's performance measurement system will take time. Transforming Performance Measurement gives you assessment tools to gauge where you are now and a roadmap for moving, with little or no disruption, to a more transformational and mature measurement system. The book also provides 34 TMAPs, Transformational Measurement Action Plans, which suggest both well-accepted and emergent measures (in areas such as marketing, human resources, customer service, knowledge management, productivity, information technology, research and development, costing, and more) that you can use right away. In the end, you get what you measure. If you measure the wrong things, you will take your company farther and farther away from its mission and strategic goals. Transforming Performance Measurement tells you not only what to measure, but how to do it -- and in what context -- to make a truly transformational difference in your enterprise.

• Format: Hardcover
• Language: English
• ISBN: 0814408915
• ISBN13: 9780814408919
• Release Date: February 2007
• Publisher: Amacom
• Length: 256 Pages
• Weight: 1.37 lbs.
• Dimensions: 1.1" x 6.3" x 9.1"
• Age Range: 17 years and up
• Grade Range: Grade 12 and higher

Customer Reviews

Mal Conway Review of Spitzer Book

DEAN SPITZER has produced a ground-breaking book that shatters long-held, deeply entrenched conceptualizations of measurement that have resulted in measurement dysfunction. Moving beyond classical measurement theory and the focus on technical measures, Dean challenges all who create, track, use and are affected by performance measures to move away from measurement dysfunction characterized by: 1. Excessive focus on rewards 2. Fear 3. Measuring the wrong things 4. Measuring `looking good,' rather than `being good' 5. Measuring too much 6. Sub-optimization (measuring in functional silos) 7. Cheating His cogent, compelling, specific remedies for transforming traditional performance measurement are to focus instead on: 1. Context: Continuously improve how measurement is experienced. [We rarely think about the "measurement experience" in organizations!] 2. Focus: Focus on measuring the right things. Focus on the `critical few' transformational measures, rather than the `trivial many' routine ones. 3. Integration: Use measurement frameworks and cross-functional measures to break down barriers and align the organization. 4. Interactivity: Performance measurement is just a bunch of `metrics' if it isn't the basis for dialogue. Dialogue around measurement makes it come alive, makes it meaningful, and promotes organizational learning. Dr. Spitzer's thoughtful book is destined to be a classic due to its focus on the human aspects of performance measurement. Kudos and my gratitude to him for producing this practical guide. Malcolm J. Conway IBM Global Business Services

Breadth and depth

Dean Spitzer could have simply written a book to critically examine the traditional, ineffective use of measurement so pervasive today. Or, he could have laid out some of his thoughts on what perspectives and actions would constitute a truly transformational approach to performance measurement. Or, he might have regaled us with a proliferation of examples of both traditional and transformational measurement. However, he has skillfully woven together all of these elements into a compelling case that not only stands to transform performance measurement, but can stand as a valid, universal approach to management and leadership. And, not only that, but he has detailed at least 34 transitional measurement "maps" to help get a running start. As directly as he suggests the reader examine their own measurement system, Dr. Spitzer "takes on" established measurement practices, and explains why - from sociological and psychological as well as procedural perspectives - they are not working. At the same time, he deftly paints a landscape of hope and encouragement, detailing the transformational performance measurement approach. Dean's new book should be on your shelf beside those from which he significantly quotes: Senge, Deming, Argyris, Drucker, et al.

THE Foundation for Driving Business Success Through People

Three cheers for Dr. Dean Spitzer who unmasks the holy grail of measurements. You will truly have a unique book when you get your hands on Transforming Performance Measurement. The author does an exceptional job of root cause analysis to make the people side of business success work - and work well. In my mind, he clearly distinguishes between the "letter" and the "spirit" of performance measurement by driving the question of, "What results and behavior do you truly want?" He then leads the reader to understand that measurement is about perception, understanding and insight, not about numbers - in essence, creating an optimal environment for high performance. But understanding is not enough, which brings me to the real gold of this publication - Dr. Spitzer provides the guidance on how to make performance measurement 'come alive' within organizations, rather than just using it for monitoring, justifying, and reporting. Under the status quo, people will continue to be 'victims', rather than 'beneficiaries' unless businesses take informed action on new insights - driven by the transformation of their performance measurements. This book is THE foundation for your organization to make just such a radical change. (Jeff Mersereau, Enablement Leader for IBM Software Group)

An excellent, critical new approach for managers and entrepreneurs

Transforming Business Measurement provides a sound methodology and guide to measuring the most elusive (and thus valuable) of all strategic metrics: an organization's transformation. Companies undergoing turnaround, M & A or radical reinvention processes will find a formidable tool in Spitzer's book. The book also provides a step-by-step approach to establishing truly strategic, functional and effective measurement systems by measuring critical value creation factors and aligning business models, organization and structure. Chapters 8 to 14 provide a step-by-step methodology and tools to set up (or straighten up) an organization's measurement system.

How to measure only what really what matters...and do it right

Consider the following observations: "Cherish those who seek the truth but beware of those who find it." - Voltaire "Insanity: doing the same thing over and over again and expecting different results." - Albert Einstein "There is surely nothing quite so useless as doing with great efficiency what should not be done at all." - Peter Drucker In this remarkable volume, Dean Spitzer urges his reader to re-think how to measure and drive organizational success, whatever the size and nature of the give organization may be. He offers a number of performance measures and ways of measures that can have a "transformational impact" on the way people in organizations view the work, their products, their associates, and their customers. He asks his reader to begin to view measurement itself "through a new lens" when correlating the material in this book with her or his own organization. "Perhaps the most surprising truth covered in this book is that the `context of measurement' [i.e. `an optimal environment for its effective use'] will largely determine its effectiveness." At this point, it should be noted that Spitzer offers two significant reassurances in the Introduction: transformational measurement doesn't require a major change in a business structure or systems, "but only in how you think about measuring your organization; moreover, "on those occasions when measurement is used for the purpose of improvement rather than to make judgments or place blame, and when it is focused on the right measures, its true power is revealed." After an especially informative Introduction, Spitzer carefully organizes his material within and 13 chapters as he explains why transformational measurement is so powerful, what happens when measurement "goes bad, why it does so, the beginning of the transformation process, how to create a positive context of measurement, on what to focus when measuring, how to integrate measurement, the nature and extent of interactivity of measurement, the leadership required by effective measurement, what can be learned about and from measurement, what the uses and abuses of measurement technology are, how to achieve and then sustain "performance measurement maturity," and then in Chapter 13 for purposes of review, what transformational measures are and aren't as well as what they offer in terms of their capabilities and potential benefits. Then in his final chapter, after having established a multi-dimensional frame-of-reference (i.e. a proper "context") for his own core concepts, Spitzer examines 34 different transformational measurement "action plans. I strongly recommend that this material, in Chapter 14, be reviewed at least every 3-6 months because the needs and interests of a given organization, as well as the perils and opportunities within its competitive marketplace, are certain to change and thus modifications of its own "game plan" must be made in response to those changes. I began this brief commentary with three quo