All our newsletters are copyrighted but we encourage you
to share them with others.
If you use the information, please let us know and cite us as the source.
Thank you.
Copyright 1999 AXIS Performance Advisors, Inc.
We've been talking a lot about team measures with our clients over the last few years. The reactions we get to these conversations have been interesting. Sometimes when we introduce the subject of measures we see eyes glaze over. It's like talking about taxes - a tedious, detailed task of administrivia we know we have to do but really wish we could avoid. Intellectually, everyone understands the importance of reliable and timely feedback data to continuous improvement, but few seem able to muster the energy, time, buy-in and resources to develop useful measurement systems. We wondered how many organizations were struggling with these issues and what we could learn from the successes and trials of others.
Last fall we developed and distributed a survey that had five categories of questions regarding teams and team-based measurement systems. The first four categories of questions had to do specifically with how organizations collected and used performance data. We asked about . . .
· What teams measure
· How they collected their data on performance
· What they did with the data once they had it
· What the result has been of keeping team measures
And because measurements and results so often form the basis for reward and recognition systems, we also included a set of questions about what organizations were doing in this arena.
We identified several items within each category and asked respondents to answer two questions about each of these items:
· Do you do this in your organization?
· If you do, how important or helpful has it been to team performance? (rated on a scale of 1-5)
Generally speaking, the responses we got confirmed out faith that measures and performance feedback help teams. With few exceptions, our respondents found value in performing most of the example measurement tasks we included in our survey. Inside are the highlights from the data.
Comments from our respondents tell us that establishing effective measures is important, but not easy. Intimidation is no excuse for not starting somewhere, these experienced organizations told us. Get something in place as soon as possible and expect to tweak it as you go. They reassured us that it does get easier.
When deciding what to measure, start first with measures that track team rather than individual performance. Our data indicates that individual performance data are of less value (judging from the ratings and number of organizations tracking it) while team data reinforce collaboration and problem solving.
Be sure that you have a balanced set of measures. One of our clients got into trouble by having their teams track only sales. Not surprisingly sales were going up, but so were complaints from customers! To prevent the teams from sacrificing long term success for quick gains, the organization added customer satisfaction to team score cards.
Measures should also be meaningful to team members and flexible enough to change over time to suit changing team needs and issues. One of our respondents told us that they originally designed their measures to satisfy their Budget Committee. Since these had little meaning to the team members, there was no buy-in to collecting or reviewing data.
The place to start, we were told repeatedly, is with the organization's and the team's mission and vision. Use these to identify 4-5 key performance indicators. If you pick too many, you will confuse people about priorities. (One organization reported making the mistake of starting with 20! No one could remember them all.) Our survey respondents seemed to like some version of the set we included on the survey: costs, customer satisfaction, quality, productivity and work processes.
We were also reminded to choose SMART measures: specific, measurable, attainable, relevant, and time bound.
Two points stand out on this issue: teams need feedback specific to their performance as opposed to the performance of the organization as a whole, and the feedback is more valuable if it is collected by the teams themselves. Also, using specific tools or instruments provided more value than casually collecting anecdotal data.
One of our respondents reminded us of how much easier the task of collecting and reporting data is when you have well designed information systems. The less you have to manually record and compute, the better.
Performance data is only valuable to the extent that it is reviewed and used. Most respondents reported reviewing their data regularly (some at every team meeting). Waiting until there is a problem or only looking at some of the data doesn't have nearly the same pay-off.
Many organizations also reported satisfying results with using performance data as the basis for goal setting as well as team feedback and performance reviews. AXIS has developed a process to help teams do this that we call the Team Improvement ReviewTM process. It is built around a set of four review questions:
· How are we doing (an examination of the data)?
· What have we learned (what does the data indicate about our strengths and weaknesses)?
· What should we do next (setting improvement goals)?
· What resources will we need to achieve our new goals (what help, training, equipment, etc.)?
One of our respondents made the wise suggestion to make sure your team members know how to use their measures as a tool for implementation. Without the skills to analyze data, problem solve, or build business cases for their ideas, all they'll have is a bunch of information.
Measures build teams. Our respondents were quite clear on this point. Measures helped their teams focus, collaborate, and make progress on targeted improvements.
Few of the people surveyed felt that tracking performance made their teams feel as if they weren't trusted to do a good job. It's just as we suspected. People want to know how they are doing.
While technically a separate issue, we felt like asking about measures without asking also about rewards and recognition would have left everyone waiting for the other shoe to drop. As we saw earlier, measures are useful to a team's focus and goal setting. They also provide obvious fodder for rewards.
What our data indicated was interesting. Most organizations reported more satisfaction with simple team celebrations and "atta boys" than they did with tangible or financial rewards for either teams or individuals. This is consistent with Alfie Kohn's philosophy about rewards. (See Punished by Rewards)
Most of the celebrations we have seen teams do center around food. One of our respondents, a manager at Con-Way Transportation Services, a subsidiary of CNF transportation, Inc., in Portland, OR, described a time when his team had to put in some late hours. He made a point of bringing a special dinner in to them each night they workedone night Chinese, another Thai, another Mexican, and so on. The big hit was the night he brought homemade lasagna. At the end of the project the team celebrated at one of Portland's best Italian restaurants.
Where performance did impact compensation, we see that profit sharing is more popular than any of the other suggested reward systems. One respondent provided this caution, however. They recommended not tying team pay to measures until the metrics have been in place for one full cycle, and have been validated and agreed upon by management and teams.
Who responded
Thanks to the Internet we had responses from team based organizations around the world! Below is a break down of respondents by industry.
Financial services 2
Government/education 30
Health care 5
Manufacturing 23
Non-financial services 5
Utilities/transportation 26
Other 8
TOTAL 99
What do your teams measure?
Survey Item
Percent of respondents who do this in their organizations
Value of the practice to teams as measured on a 1-5 scale Customer satisfaction 69%
4.04
Quality of the end product or service 70%
3.89
Work processes 71%
3.87
Costs 63%
3.64
Productivity 75%
3.60
Team effectiveness 61%
3.47
Individual performance 51%
3.21
How do your teams collect their data?
Survey Item
Percent
Value
We use formal, validated methods 55
3.83
We collect the data ourselves 84
3.80
We have data specifically on our team 84
3.78
We use our own methods/instruments 69
3.68
We have data for the whole organization 64
3.34
Others collect and report data to us 55
3.24
We use informal, anecdotal evidence 53
3.22
What do your teams do with the data?
Survey Item
Percent
Value
Regularly review all our data as a team 65
3.87
Use data to set team and improvement goals 64
3.84
Report the results to management 71
3.64
Use team data in our official performance review process 48
3.57
Use data to give informal feedback 47
3.56
Base rewards/compensation on team measures 43
3.39
Regularly review some measures but not all 44
3.13
Review data only when there's a problem 18
2.35
We seldom look at our team data 21
2.35
What has been the effect of measuring teams?
Survey Item
Percent
Value
Measures keep us focused 76
3.96
Measures help us improve 71
3.92
The data shows what we contribute 57
3.57
Having to track our performance makes us feel like we are not trusted 21
2.24
How do you recognize and reward teams?
Survey Item
Percent
Value
Celebrations at team level 71
3.98
Profit sharing 25
3.84
Informal pats on the back 76
3.75
Tangible rewards to individuals 43
3.51
Tangible rewards for teams 45
3.49
Celebrations for the whole org. 43
3.43
Public recognition/reward ceremonies 53
3.41
Gain sharing 17
3.40
Financial rewards to individuals 36
3.35
Financial rewards to teams 30
3.29
One of our clients is a healthcare non-profit providing services primarily to women. Due to a number of factors, their patient revenues have been declining while their expenses have remained level. Most of their facilities do not pay for themselves and are subsidized by donations. Their management realized that they needed to turn this picture around.
Step 1: Pre-Launch. We helped them form a task force to redesign their work process. The first step was to sit down with the managers and develop a project charter for this team, carefully clarifying boundaries, purpose, expectations, roles, etc. This "pre-launch process" typically takes four hours. In this we identified a set of measurable goals for the team, including:
· Ability to handle 3-4 patient visits per clinician per hour
· Same day appointments for urgent needs; no more than one week wait to get other appointments
· Wait time for patients not to exceed 10 minutes past their appointment time
These measures have kept the team focused on business needs.
Step 2: Launch. At the first meeting with the team, the managers walked the new members through the team charter as we clarified and negotiated the details. We also established team agreements for how to operate.
Step 3: Redesign. Now we are in the process of mapping their work processes, gathering baseline data on their processes, and generating ideas for meeting the measures. (Tip: Use pictures to map out the process. These icons keep people from tunneling too deeply into any one step.) We are expecting to complete the project with 8 half-day meetings, fully expecting to turn around their business.
Are you getting the most out of your measurement system and avoiding the pitfalls our respondents highlighted? Take this test and see. If you answer "NO" to any of these questions, we're ready to help you set your teams back on track.
Yes |
No |
Best Practices Assessment |
Do your teams track a balanced set of key performance indicators? Are those indicators linked to the organization's and team's mission? Are your teams tracking fewer than six measures? Do your teams get performance data related to their specific performance? Do your teams gather and report this information themselves? Do your teams review all their data regularly as a team? Do your teams use their data to identify new goals and improvement projects? Do team members use performance data to give feedback to one another? Are you consistent about celebrating the successes and learnings indicated by your performance results |
Here are some of the books and materials survey respondents reported as having been helpful:
· Johana L Howell, Tools for Facilitating Team Meetings
· Barder, Bloom and Chang, Measuring Team Performance
· Mark G. Brown, Keeping Score
· DDI's Team Start-Up Kit
· Hitchcock and Willard, Why Teams Can Fail and What to Do About It
· Katzenbach and Smith, Wisdom of Teams
· Maureen O'Brien, Who's got the Ball?
· G. Rummler, Improving Performance
· Sullivan and Harper, Hope is Not a Method
· Peter Scholtes, The Team Handbook
And a couple we like:
· Robert Kaplan and David Norton, series of articles on the balanced score card Harvard Business Review, 1996
· Alfie Kohn, Punished by Rewards
· Steven Hronec, Vital Signs