Visual Management - What Get's Measured Gets Improved
Visual Management - What Get's Measured Gets Improved
Visual Management is any system, process or tool that provides real-time information and feedback about the status of the organization, departments and job functions. Think of it as the organizational nervous system that connects employees to the critical activities needed to achieve the goals of the business. It’s also what many refer to as KPI’s (Key Performance Indicators). Visual Management systems can take on a number of different forms from sophisticated database applications to simple white boards mounted on a conference room wall. Over the years, I’ve learned a tremendous amount through trial and error as to what seems to work best and what doesn’t. Here are a few tips that might help.
Think of a visual management system as the scoreboard for your business. At a minimum it should communicate:
* What are the goals the organization, department or job function is trying to achieve?
* What are the key measures or units of work?
* How are we performing in relation to our goals?
* What prevents us from reaching our goals?
* And, most importantly…what are we doing to contribute to reaching our goals?
Now, here are a few things to consider when you are either add or modify your huddle boards within your business.
First, make sure your visual management board is broken down into three specific sections - “how”, “why” and “what”.
The “HOW” should illustrate the performance (daily) with daily metrics that are critical to your business. This could include things such as “number of calls”, “conversion rates”, etc. They are the activities that matter to your financial or customer service performance. Be sure to include the “goal” rate for performance within the graph.
The “WHY” should be a metric that is related to the “HOW.” e.g., if you were tracking your turn-over, the “WHY” metric would be results from the exit interviews you conducted as to why the employee was leaving the company.
Finally, the “WHAT” should chart what corrective “actions” need to be taken, who is responsible, when it will be done, and what resources will be needed.
Use graphs, pictures and diagrams whenever possible. There’s a reason for the saying “a picture’s worth a thousand words.” Display “expected” performance levels whenever possible.
Don’t sweat it if your board doesn’t look polished. It needs to be adaptable to your market and industry’s changing environment.
Be sure to require your people interact with the data. A simple way to do this is to NOT use computer programs to generate fancy graphs (e.g., Excel) but rather to make them draw the results on a white board. When they interact manually with the data they will have to “think” about it - which in turn will help them see when something needs their attention.
Finally, include as many employees in the process whenever possible - this includes the design on your boards, deciding where to post them, and how to communicate the information.
Visual Management What Gets Measured Gets Improved - To learn more about this author, visit John Stepleton's Website.
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I was first introduced to the idea of Visual Management while attending the Birthing of Giants program - an executive educational program jointly sponsored by the MIT Enterprise Forum and Entrepreneurs Organization (EO) - during the summer of 2001. At the time, my company had experienced rapid growth and I was dealing with the typical issues related to fast growth companies. We were struggling to deliver the quality of service that we had become known for. But the more we grew, the less we were able to control and predict. It was then, sitting on the lawn at the Endicott House at MIT, that I learned the importance of implementing visual systems in the business.
Visual Management is any system, process or tool that provides real-time information and feedback about the status of the organization, departments and job functions. Think of it as the organizational nervous system that connects employees to the critical activities needed to achieve the goals of the business. It’s also what many refer to as KPI’s (Key Performance Indicators). Visual Management systems can take on a number of different forms from sophisticated database applications to simple white boards mounted on a conference room wall. Over the years, I’ve learned a tremendous amount through trial and error as to what seems to work best and what doesn’t. Here are a few tips that might help.
Think of a visual management system as the scoreboard for your business. At a minimum it should communicate:
* What are the goals the organization, department or job function is trying to achieve?
* What are the key measures or units of work?
* How are we performing in relation to our goals?
* What prevents us from reaching our goals?
* And, most importantly…what are we doing to contribute to reaching our goals?
Now, here are a few things to consider when you are either add or modify your huddle boards within your business.
First, make sure your visual management board is broken down into three specific sections - “how”, “why” and “what”.
The “HOW” should illustrate the performance (daily) with daily metrics that are critical to your business. This could include things such as “number of calls”, “conversion rates”, etc. They are the activities that matter to your financial or customer service performance. Be sure to include the “goal” rate for performance within the graph.
The “WHY” should be a metric that is related to the “HOW.” e.g., if you were tracking your turn-over, the “WHY” metric would be results from the exit interviews you conducted as to why the employee was leaving the company.
Finally, the “WHAT” should chart what corrective “actions” need to be taken, who is responsible, when it will be done, and what resources will be needed.
Use graphs, pictures and diagrams whenever possible. There’s a reason for the saying “a picture’s worth a thousand words.” Display “expected” performance levels whenever possible.
Don’t sweat it if your board doesn’t look polished. It needs to be adaptable to your market and industry’s changing environment.
Be sure to require your people interact with the data. A simple way to do this is to NOT use computer programs to generate fancy graphs (e.g., Excel) but rather to make them draw the results on a white board. When they interact manually with the data they will have to “think” about it - which in turn will help them see when something needs their attention.
Finally, include as many employees in the process whenever possible - this includes the design on your boards, deciding where to post them, and how to communicate the information.
Visual Management What Gets Measured Gets Improved - To learn more about this author, visit John Stepleton's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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