Performance

I conducted another interview for inclusion in my upcoming book. A recurring theme among the best organizations is that they measure performance. The plan, and they measure performance against the plan.

Measuring performance without an objective standard or criteria to measure against is meaningless. That's what many organizations do, however. They evaluate performance in isolation or against some undefined perception. Performance of suppliers, of employees, and of yourself has to be measured against pre-determined standards or criteria if they are to mean anything. The thing is, people like to be measured. They like to be measured if they can meet the standards or criteria. That's important.

You can't measure an individual's performance if they are not give the tools, training, and resources that are needed to complete the task. The same goes for suppliers. You must act as a responsible customer, and you must tell them ahead of time what they will be measured on and how you will perform the measurements.

Be one of the best. Plan, and measure your performance.

Lessons from the Airwaves

Here's a lesson in Business Operations from an unlikely source - the Hawaii Public Radio semi-annual fund drive.

I listen to HPR (usually KIPO) even during their fund drives. I'm that much of a Public Radio junkie (I'm also a "True Believer"). I'm always amazed that they raise the amount of money they need, and they almost always achieve their goal on-time.

That's your first lesson. They set a specific goal, a specific dollar amount that they need to raise, and a specific time frame to reach it. Lesson? Set specific, measurable, achievable goals.

But I was getting worried this drive because they had fallen significantly behind after several days. With the economy the way it is and all the cutbacks and layoffs, it wasn't really a surprise, but it was a concern. But they got back on-track and even managed to reach their goal right on time. Amazing! So how did they do it?

Here's the big lesson. The big, final goal is hard for most people to really get their head around. It's a big number and people don't see how their little, individual contribution puts a dent in it. So what HPR always does, and what they sat down and really pushed and focused on after they fell behind, is break that big, final goal down into smaller targets set for each program or hour of the day. That is, instead of having to think about how your $60 membership (or $120 True Believer or $365 Dollar-A-Day pledge) puts a dent in the $700,000-plus final goal, you can get a really clear picture of how you pledge makes a difference in a $1,200 target during your favorite show. Lesson? Break a big, final goal down into smaller, more easily digestable targets that people can understand and feel good about.

Oh, and donate to your favorite Public Radio station (even if you're not liberal-leaning, the music's great).

Be The Best

I've been interviewing people/organizations to include in my upcoming book (to be released this Fall). I'm speaking with organizations that are doing things well in terms of their Business Operations (since that's the topic of the book). One of the questions I get regarding these interviews is what is the theme or common thread I see among the organizations I speak with.

The answer is - The best organizations plan, and they monitor their progress towards their planning goals. I'm constantly harping on planning and measuring performance, so it's nice to have confirmation for my near obsession.

I call it the Goal Attainment System, and it consists of three parts:

1) Goal Definition
2) Action Plan
3) Performance Measurement System

Define the goals of the organization as a whole. Develop a plan of action to reach those goals. Develop a system to monitor the progress towards those goals. Simple.

So why don't more organizations do it?