StrategyDriven Podcast Episode 5 – Introduction to Organizational Performance Measures
StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve better results. These podcasts elaborate on the best practice and warning flag posts on the StrategyDriven website.
Episode 5 – Introduction to Organizational Performance Measures serves as a foundation for the upcoming series of podcasts on the best practices associated with organizational performance measures. This discussion…
- defines organizational performance measures
- examines the primary uses of performance measures
- identifies the common characteristics of well constructed performance indicators
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About the Contributor
Nathan Ives is a StrategyDriven Principal, and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Decision-Making – Evaluating Decision Options, part 2 of 3
Once a decision’s requirements, important value-adding, and nice-to-have characteristics are defined and various options possessing these qualities evaluated, the total value of each alternative must be assessed in order to enable option selection that will most effectively achieve the desired results.[wcm_restrict plans=”49206, 25542, 25653″]
Step 2: Option Value Aggregation
Aggregating each option’s characteristic values is the next step in identifying the most optimal opportunity or problem solution. Because not all of an option’s characteristics are required or even important, the characteristics must be prioritized in order to be aggregated. Each characteristic should be assigned to one of the following three priority categories from Step 1:
- Required: critical characteristic with a required minimum satisfaction point threshold below which an unacceptable outcome will result. Figure 2 shows a condition point below which an unacceptable outcome would be realized. All characteristics associated with this point should be designated as required and have a corresponding Required Minimum Satisfaction Point above which the unacceptable outcome will be avoided. (See Figure 1 in the Evaluating Decision Options, part 1 of 3 posting.) Note that all decision options possess at least four required characteristics: risk, cost, ethic, and total value.
- Important: non-critical characteristics that add to the option’s overall value. Typically, the aggregate of value added by an option’s several important characteristics must exceed a minimum investment return threshold for the option to be considered.
- Nice-to-Have: non-critical characteristics contributing only nominal value. The benefit of nice-to-have characteristics is that they help decision-makers choose between options of otherwise similar value.
Figure 2: Decision-Making Base Model – Hurdle Decisions
For decisions where a single solution is to be pursued, eliminate all options not meeting the needed Required Minimum Satisfaction Point threshold. For all other decisions, a portfolio of options is used to satisfy the necessary minimum requirements and so no options are eliminated at this time.
Important option characteristics are rank ordered according to the value contribution offered. This ranking suggests a weighting to be given some characteristics over others. Recognize that depending on the characteristic, value is either calculated or perceived. Therefore, the preference scheme tends to be both objective and subjective; varying based on the individual or team making the decision.
Combining the weighted value of the required and important characteristics provides the overall value of the option. Nice-to-Have characteristics meeting the Required Minimum Satisfaction Point threshold are listed with their respective options for added consideration in cases where competing options have similar value. It is at this point that the decision-maker or team will select the option(s) to pursue.
Final Thought…
Complex opportunities and problems often demand multi-faceted solutions. Processing the multi-dimensional options in order to arrive at a final solution will challenge even the most experienced decision-maker. Documenting each option and its associated required, important, and nice-to-have characteristic values aids in the evaluation and selection process as well as providing a record from which to communicate the decision, evaluate its implementation progress, and assess its ultimate outcomes for lessons learned.[/wcm_restrict][wcm_nonmember plans=”49206, 25542, 25653″]
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StrategyDriven Diversity and Inclusion Forum
“Diversity and inclusion exists when members of an organization act in a manner that recognizes and respects individual similarities and differences such that employees feel they and their work are valued and meaningfully contribute to the mission of the organization.”
StrategyDriven Contributors
Remaining relevant in today’s hyper-competitive business environment requires the full engagement of an organization’s workforce and the retention of highly talented employees. To accomplish this, leaders must capture the passion and commitment of subordinates by providing them with work that has a meaningful impactful on others and is quantifiablely measurable and rewarded; all while connecting with them on a personal level. Similarly, individuals need to connect with their peers in a way that makes them feel their contributions meaningfully add to the team and the organization’s overall success. Simply put, individuals seek to be valuable to and valued by their organizations; limited only by their abilities and desires. Without this sense of value and connectedness, a job becomes nothing more than the means to a paycheck, productivity declines toward that which is required to maintain employment, and attrition rises as employees seek more fulfilling work; all at great cost to the organization.
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Increasing workforce diversification challenges all members of an organization attempting to satisfy the individual value proposition. Differences in age, race, gender, religion, and sexual orientation to name but only a few, influence what makes individuals feel valued. Studies have shown the degree to which an individual feels valued by his/her superiors and peers in large part defines his/her work engagement and the subsequent value offered to the organization. Thus, the challenge is a circular one best solved by fostering an organizational culture that respects and embraces diversity and inclusion.
Focus of the Diversity and Inclusion Forum
While there exists a natural association between diversity and inclusion and organizational accountability, this forum will focus on the principles, best practices, and warning flags associated with establishing and maintaining a workplace environment that respects and values individual differences in order to earn full employee engagement and commitment to the achievement of the organization’s goals. The following articles, podcasts, documents, and resources cover those topics critical to enhancing workplace diversity and inclusion.
For additional information on creating a positive, motivating workplace environment, visit the StrategyDriven Employee Engagement Center of Excellence.
Articles
Principles
- What is Diversity and Inclusion? [StrategyDriven Premium Content]
- What Does Your Environment Communicate? [StrategyDriven Premium Content]
- Return On Investment, part 1: Employee Turnover Reduction [StrategyDriven Premium Content]
- Return On Investment, part 2: Employee Distraction Reduction [StrategyDriven Premium Content]
- Return On Investment, part 3: Employee Productivity Enhancement [StrategyDriven Premium Content]
- Return On Investment, part 4: Litigation, Fine, and Payout Reduction [StrategyDriven Premium Content]
Best Practices
- Best Practice – Know the Holidays [StrategyDriven Premium Content]
- Best Practice – Performance Measurement [StrategyDriven Premium Content]
Warning Flags
- Warning Flag – ad hominem: Personal, Not Issue Attacks [StrategyDriven Premium Content]
StrategyDriven Expert Contributor Articles
- Rocking the Workplace: How the Millennial Generation is Shaking Up the Way You Do Business by Lynne Lancaster and David Stillman
- Management vs. Leadership Mindset: What Millennial Employees Need to Know As They Enter Leadership Roles by Lisa Orrell
StrategyDriven Podcasts
StrategyDriven Podcast – Video Edition
StrategyDriven Podcast – Special Edition
- An Interview with Michael Gurian, author of Leadership and the Sexes examines the equal but different intelligence of men and women.
- An Interview with Tammy Erickson, author of What’s Next, Gen X? examines generational relationships within the workplace and the actions Gen Xers should take to ready and position themselves to be the next group of corporate and civic leaders.
- An Interview with Lynne Lancaster and David Stillman, authors of The M-Factor, part 1 of 2 examines how to successfully integrate Millennials into the workforce from the perspectives of the Traditionalists, Boomers, and Gen Xers already there and the incoming Millennials themselves.
- An Interview with Lynne Lancaster and David Stillman, authors of The M-Factor, part 2 of 2 examines how to successfully integrate Millennials into the workforce from the perspectives of the Traditionalists, Boomers, and Gen Xers already there and the incoming Millennials themselves.
Documents
Tools and Templates
- Cost of Employee Attrition [StrategyDriven Premium Content]
- Cost of Employee Distraction [StrategyDriven Premium Content]
- Value of Employee Productivity [StrategyDriven Premium Content]
Resources
Books
- First, Break All the Rules by Marcus Buckingham and Curt Coffman
- One Foot Out the Door by Judith Bardwick
Reports
- Corporate Diversity Still Coming Up Short for Women by Calvert Investments
Training Courses
StrategyDriven Podcast Episode 4 – Prioritize the Mission, part 2 of 2
StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.
Episode 4 – Prioritize the Mission, part 2 of 2 elaborates on Strategic Planning Best Practice 2 – Prioritize the Mission. This discussion concludes the Prioritize the Mission series by examining in detail the quantitative and qualitative methods to differentiate important mission-based goals.
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About the Contributor
Nathan Ives is a StrategyDriven Principal, and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Decision-Making – Evaluating Decision Options, part 1 of 3
Decision-making often involves trade-offs. Risk aversion suggests that all things being equal, decision-makers will select the option having the lowest risk. But because all things are never quite equal, decision-makers concede items they deem to be of lesser value to items they believe hold greater value with risk being one of the commodities considered.[wcm_restrict plans=”49204, 25542, 25653″]
Decisions involve a choice between two or more complex options. This complexity is a result of the multiple characteristics that define each option and will impact the probability of achieving a desired outcome. In making a selection, the decision-maker is attempting to choose the mix of characteristics that will most optimally achieve the desired result.
Step 1: Evaluation of Value-Adding Characteristics
Performing this step requires that the decision-maker or decision-making team first identify the critical value-adding option characteristics necessary for achieving a desired outcome. These characteristics can be categorized as:
- Required: critical characteristic with a required minimum satisfaction point threshold below which an unacceptable outcome will result. Note that all decision options possess at least four required characteristics: risk, cost, ethic, and total value.
- Important: non-critical characteristics that add to the option’s overall value
- Nice-to-Have: non-critical characteristics contributing only nominal value
The principle of diminishing marginal returns helps illustrate the process by which each option characteristic is evaluated. In the decision case, as the intensity of a characteristic is increased: 1) the level of need satisfaction will increase at an increasing rate, then 2) at the point of need fulfillment will increase at a decreasing rate, until 3) at the point of need saturation any addition to the characteristic’s intensity is excessive and total value contribution declines. (See Figure 1 below.)
Figure 1: Decision Characteristic Evaluation Curve
In using this model, it is important for a decision-maker to identify the need satisfaction threshold for each option characteristic. Once this is done, the characteristics of each option are evaluated for their value contribution in preparation for value aggregation and option selection.[/wcm_restrict][wcm_nonmember plans=”49204, 25542, 25653″]
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Sign-up now for your StrategyDriven Insights Library – Total Access subscription for as low as $15 / month (paid annually). Not sure? Click here to learn more. |
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Don’t need a subscription? Buy access to Decision-Making – Evaluating Decision Options, part 1 of 3 for just $2! |
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About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.