Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ ,...
Transcript of Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ ,...
![Page 1: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/1.jpg)
Measuring for Success
Performance Indicators and Executive ReportingKaren Wolfe
![Page 2: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/2.jpg)
Introducing our challenges
The Future
Change
Management
Business IntegrationGoal: no damage to people
![Page 3: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/3.jpg)
Key Message
It’s all about the questions you ask
o What is your objective?
o Who will use the information?
o What is the cause and effect you are assessing?
o What activities will influence this?
o Measure and evaluate.
![Page 4: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/4.jpg)
Safety: Are we a science?
![Page 5: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/5.jpg)
“ Companies that bothered to measure a
non-financial factor (eg WHS) and to verify
that it had some real effect earned returns
on equity that were 1.5 times greater than
those that didn’t take those steps. (Profs C.
Ittner and D. Larcker 2003)
Measure WHS – WHY?
![Page 6: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/6.jpg)
Information – who needs it?
Source: O’Neill & Wolfe: Measuring and Reporting on Work Health and Safety (2017),
Safe Work Australia, Australian Government. See:https://www.safeworkaustralia.gov.au/
![Page 7: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/7.jpg)
Report – What?
To the Editor of the National Observer: 13 June 1891
“Sir, it has been wittily remarked that there are
three kinds of falsehood:
The first is a fib;
The second is a downright lie; and
The third and most aggravated is statistics.”
![Page 8: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/8.jpg)
Measuring Performance – what is the challenge?
Quantitative vs Qualitative
Understand the Maturity of your organisation
Immature: reactive, resistant, compliance
Developing: informing, toward improvement
Maturing: proactive, learning, continuous improvement
![Page 9: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/9.jpg)
Decisions – what information is needed?
Who needs WHS data to inform decisions?
What questions need to be answered?
What aspects of performance need to be understood?
Is there a KPI that can
represent that aspect of
performance
Can that KPI be measured in a
valid and reliable way?WHS KPI
Source: O’Neill S, Driving WHS Performance: How the Choice
of lead and lag KPIs influence WHS outcomes
![Page 10: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/10.jpg)
Existing measures – can they be challenged?
![Page 11: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/11.jpg)
Controls – are they effective?
![Page 12: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/12.jpg)
Proactive – is this you?
![Page 13: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/13.jpg)
Reactive: is this you?
![Page 14: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/14.jpg)
The real issue: How do you identify it?
![Page 15: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/15.jpg)
Injury Prevention: what is my progress?
![Page 16: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/16.jpg)
Is it real?
O’Neill, S & Wolfe, K, Issues in the Measurement and reporting of WHS, performance: a
review (Canberra, Safe Work Australia, 2013)
![Page 17: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/17.jpg)
Resources: are you using them wisely?
![Page 18: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/18.jpg)
Is your report getting attention?
![Page 19: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/19.jpg)
Can you make it become real?
Class Category
Coding
Class 1
Class 2
Class 3
Class 4
![Page 20: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/20.jpg)
Lead or Lag?
![Page 21: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/21.jpg)
What to measure: implement or effect?
![Page 22: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/22.jpg)
Who is responsible?
Lead KPI
# staff participating
# CAPEX utilising WHS advice
# rosters identifying ‘safe’
staffing levels
% contracts stating WHS criteria
Risk Control
Consultation
Consultation
Resourcing (HR)
Expenditure
Lag KPI
# staff suggestions adopted
# post-purchase mods required
# shifts operating below tolerance
% meeting costs vs WHS criteria
![Page 23: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/23.jpg)
How do we manage the risk?
• Choice of strategy is restricted by law
• Reduced role of cost benefit analysis
Avoid Reduce Transfer Accept
![Page 24: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/24.jpg)
How far do we take it?
![Page 25: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/25.jpg)
What do I need to think about?
Operational level KPI’s
Management level KPI’s
Board level KPI’s
External stakeholder KPI’s
![Page 26: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/26.jpg)
What is a useful WHS KPI?
Robust
Right tool
Consultation
Continuous improvement
![Page 27: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/27.jpg)
It all starts with the right questions
Knowledge
Controls
Performance
Assurance
![Page 28: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/28.jpg)
It started with a question…..
![Page 29: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/29.jpg)
How do I create something out of nothing?
I think it is by questioning. Amy Tan
![Page 30: Presentation 3: Measuring for success – performance ... · Source documents • Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012) • ONeill, S, Driving](https://reader033.fdocuments.in/reader033/viewer/2022060601/6055cbc9b8bc5b75466579be/html5/thumbnails/30.jpg)
Source documents• Mauboussin MJ , True Measure of Success (Harvard Business review Oct 2012)
• ONeill, S, Driving WHS performance: How the choice of lead and lag KPI’s influence WHS outcomes?
(Presentation MSD Symposium 2016)
• O’Neill S, The Business Case for Safe, Healthy and Productive Work, (Canberra, Safe Work Australia,
2014)
• O’Neill, McDonald and Deegan , Accounting, Auditing and Accountability Journal 2015
• O’Neill, S & Wolfe, K, Measuring and reporting on work health & safety, (Canberra, Safe Work Australia,
2017)
• O’Neill, S & Wolfe, K, Issues in the Measurement and reporting of WHS, performance: a review
(Canberra, Safe Work Australia, 2013)
• Prior, M, ANSTO Event reports (unpublished)
• Pryor, P., Capra, M. (2012). Foundation Science. (In HaSPA (Health and Safety Professionals Alliance),
The Core Body of Knowledge for Generalist OHS Professionals. Tullamarine, VIC. Safety Institute of
Australia.)
• Hopkins, A., Toohey, J., Stacy, R., Else, D (2012) The Organisation (In HaSPA (Health and Safety
Professionals Alliance), The Core Body of Knowledge for Generalist OHS Professionals. Tullamarine,
VIC. Safety Institute of Australia.)