What to measure and how to measure it?

We tend to want to measure things in all walks of life: in business, at home, in sport etc.  We do this for two main reasons.  We want to see how things are going (“great, we are doing better now…”) and we want to be able to predict the future (“okay, we are confident we can meet your request…”).

Sometimes we measure results, such as how many customers’ requests we delivered correctly this week, or how long it took to get our invoices paid.  Sometimes we measure process, such as how long it took to deal with a customer call (‘wrap time’ in a contact centre) or how many applications were received completed correctly.

A key principle for effective use of data is to ensure it is viewed in context.  By this I mean not comparing one number with another but having sufficient data to analyse properly and do so in graphical form.

One of the best ways of doing this is using time series data graphs.  Let’s interpret some data and determine:

• Is the data predictable, i.e. does it follow a stable trend?
• If predictable, then we have a good idea of future performance
• If we’ve changed the system (perhaps introducing a new team), we can see the real effect
• If we need to improve the system, we may gain insight into where to begin looking

A line graph can show us where things have changed. Using data this way lets us distinguish between ‘normal’ variation and significant change (i.e. when something major has happened such as the introduction of new working practices).

Sometimes a whole year of data is either not available or is too big to handle so the decision on which time period to use needs to be based on what is needed to be meaningful.  Often a month is a reasonable time to give a picture of cyclical changes (although not seasonal changes) but should be the starting point for ongoing measurement that is meaningful, gives insight and helps improve the system.

To deal better with these issues we use a variety of techniques (such as Deming’s Red Bead Experiment) to help our customers make sense of their systems.

Do you want to find out more? Contact me direct: Jaime Beckett, Principal Organisational Change Practitioner – jaime.beckett@icecreates.com