Team Performance Measurement

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Team Performance Measurement

• Jill MacBryde Kepa Mendibil
• Centre for Strategic Manufacturing
• University of Strathclyde, Scotland
• Jillian.macbryde_at_strath.ac.uk
• kepa_at_strath.ac.uk

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Feedback - Australia July 2001.

• Increasingly companies in Australia are adopting
  team-based approaches to work
• But many companies are not achieving the benefits
  they thought they would get from teams
• And many people working in teams are dissatisfied
• Real interest in team performance management
• Companies want a simple tool that they can use at
  any level of the organisation
• What to measure
• How to measure it

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Feedback UK 2000-2002

• The story is the same.
• I dont think we will ever get the best out of
  our teams - not when the reward system is an
  individual one and people are shooting each other
  in the back!
• We have a team that consistently performs well -
  how can we get the other teams to perform at this
  level ?
• How can we continue to motivate staff when we
  have taken away so many middle management jobs ?
• I want teams to manage themselves more!
• How do we create measures on which to base team
  variable pay ?
• How can I define performance measures for hard
  to measure white collar jobs ?
• I want a system to manage my teams performance
  but if I wait for the senior management to buy
  into some system then Ill be waiting a long time!

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Confusion!

• The horizontal processes pull people in one
  direction
• the traditional, vertical, management systems
  pull them in another!

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So why teams?

• Many people dont seem happy with their team
  performance.
• So why are we using teams more?
• And are teams really the way forward?

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Why Teams ?

• Working effectively, teams can result in
• increased flexibility
• cost savings
• focus on the customer
• innovation and continuous improvement
• ownership responsibility
• happier staff
• etc....

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What the consultants fail to tell you

• Its not about teams its about performance
• Its not about individuals its about
  organisational design
• Its not about structure as much as its about
  management philosophy
• Its not about empowerment its about
  responsibility and accountability
• ..and thats the bits that we will try to help
  you sort out today.

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Why Teams ?

• Some examples of good team performance
  management
• Litton
• Rank Zerox
• Dutton Engineering

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Why Teams ?

• Litton Interconnection
• teams run their own mini-business
• no job is a black box
• everyone receives basic manufacturing training
• customers are much happier
• team members are more motivated
• flexibility
• the team is responsible for recruiting,
  scheduling etc..
• shared values

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Why Teams ?

• Rank Zerox
• self managed teams
• productivity up
• employee satisfaction significantly up
• training was important
• flexibility

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Why Teams ?

• Dutton Engineering
• annual hours
• effort put in when its needed
• healthy competition
• order fulfilment improved
• employee satisfaction

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So whats the success factor?

• We believe establishing a team performance
  measurement system is central to success
• But you first have to recognise the things that
  will contribute to team performance
• Many performance measurement systems measure the
  process (output, quantity, quality etc.)
• But often measuring the process is not enough
• Some measure individuals contribution (skills,
  attitudes, output etc)
• But often the way we measure individuals is
  counter-productive to the team or process effort
• We dont want measures that just report on the
  past
• We want a performance measurement system that
  will help the team look forward as well as back.

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Agenda for the day

• Introduction and background to our work
• Introductions tell us about your team
• What influences team performance?
• What should we measure?
• Introducing the team performance measurement
  workbook
• Using the workbook to design your own team
  performance measurement system
• Group presentations discussion
• Next steps what you should do next
• Feedback close

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Introduction and background to our work
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Background to CSM

• The Centre for Strategic Manufacturing (CSM)
• Based within the University of Strathclyde,
  Glasgow
• Our Mission - to facilitate performance
  improvements in manufacturing industries
• Core areas of expertise
• Business process improvement
• Performance measurement
• Strategy management
• It was whilst working with companies in these
  areas that the issue of team performance surfaced

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Initial Project

• Funded by UK Government through the Engineering
  Physical Sciences Research Council (EPSRC)
• 5 initial collaborators
• IBM
• UDV
• Highland Spring
• Rolls Royce
• Applecross Properties
• Comparative study between industrial partners and
  best practice organisations
• Identifying the things that contribute to team
  performance
• Developing a framework of what to measure

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Initial Findings

• We found no performance measurement system that
  included all critical aspects we believed to
  affect team performance
• Organisations told us they would like a practical
  tool that will help them to manage their teams
• So we set about develop such a tool
• And the workbook that you have in front of you is
  the output!

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Introductions tell us about your team!
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What influences team performance?
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What Influences Team Performance ?

• Before we can design a team performance
  management system it is necessary to first look
  at the critical factors influencing team
  performance.
• We looked at the literature on teams and
  performance management
• We visited companies that we believed to be best
  practice

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What Influences Team Performance ?

• Factors identified as being major contributors to
  team performance
• Alignment with strategic objectives
• Understanding the desired outcomes
• The existence of a performance measurement system
  
• The skills and abilities within the team (eg.
  education, ability to tackle problems etc)
• Organisational support management (training
  development, keeping the team informed,
  rewarding, motivating etc..)
• Type of team (eg. task force, project,
  self-directed etc.)

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Lets look at these things that contribute to
team performance in more detail
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Alignment

• The team needs to know what the organisation is
  trying to achieve
• The team should also be aware of the measures
  that are important to the organisation
• The team should be able to see how they are
  helping the organisation to achieve its
  objectives
• In todays workshop this is one of the first
  things we will do
• look at what your organisation is trying to
  achieve
• look at what is being asked of the team
• And ask if there is alignment

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Understanding the desired outcomes

• It is human nature - people to want to be
  appreciated
• People want to know what is being asked of them -
  knowing where the goalposts are!
• Achieving the desired outcomes should be
  celebrated and can help with affirmation of the
  team
• In the workshop we will help you to establish
  what the desired outcomes of your team process or
  task are

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The existence of performance measures

• Its true what they say
• What gets measured gets done!
• Measuring performance provides information to
  help with training, coaching, rewarding etc..
• Performance measures help to create a positive
  feedback cycle
• Later in the workshop we will help you to develop
  the appropriate measures for your team.

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Team skills, behaviours etc.

• In order to successfully achieve their process
  objectives the team will need to develop certain
  competencies and capabilities
• Skills
• Experience
• Team dynamics
• Leadership
• Communication
• Attention to quality
• Creativity
• Flexibility etc
• Different teams will have different requirements
  in terms of competencies and capabilities
• In the workshop we will help you to establish
  what enablers will be crucial for your team

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Organisational support and management

• The organisation needs to support the team in
  order for them to achieve their objectives.
• For example the team may need..
• Information
• Access to resources
• Spreading best practice
• Trust etc
• Different teams will have different requirements
  in terms of support they need from the
  organisation
• In the workshop we will help you to establish
  what organisational enablers will be crucial
  for your team

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Type of team

• Teams come in different guises
• Some of us work in one team on one process
• For others we will be part of many teams that are
  put together for specific purposes eg. a task
  force
• Before we develop performance measures we need to
  take the type of team into consideration

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What type of team do you have?
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What should we measure?

• - the building blocks of the team performance
  measurement system

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The process we will follow

• 1. The Process
• 1.1understand what the outputs of the team task
  or process are
• 1.2 identify process objectives
• 1.3 establish the appropriate measures to check
  performance against objectives

2. The Team Enablers 2.1 understand what the team
needs to do to achieve the process objectives 2.2
identify team objectives 2.3 establish the
appropriate measures to check performance against
objectives
3. The Organisational Enablers 3.1 understand
what the organisation needs to do to help the
team to achieve its process and team
objectives 3.2 identify organisational
objectives 3.3 establish the appropriate measures
to check performance against objectives
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1. Identifying Process Objectives

• The first thing we have to establish is the
  objectives of the process that the team is
  responsible for
• What we mean by a business process is a series of
  linked activities, with a clear output that adds
  value to the business or to internal stakeholders

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Questions we need to ask

• Who are the customers of the team ?
• What does the process team deliver to the
  customer ?
• What performance criteria are the customers
  using
• What is the organisation really paying this team
  to achieve?

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2. Identifying team objectives

• Having established the process objectives we now
  need to ask
• what does the team need to do to achieve these
  objectives
• What sort of competencies and capabilities will
  they need
• Can we set objectives for the team to gain these
  competencies and exhibit these capabilities

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Questions we need to ask.

• What sort of behaviour is required to achieve the
  process goals ?
• What are the values you want the team to share ?
• Are there any procedures or processes you want
  the team to adhere to ?
• What level of teaming is required ?
• How crucial is communication amongst the team ?
• What competencies are important ?

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Critical success factors team enablers
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3. Identifying organisational objectives

• The team will need to be supported by the
  organisation
• We now need to establish what the organisation
  can do to support the team in achieving its
  process and team objectives

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Questions we will ask

• What knowledge does the organisation need to
  provide the team with ?
• What technology does the team need ?
• What other resources are required ?

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Critical success factors organisational enablers
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Introducing the team performance measurement
workbook

• - how to build your own measurement system

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Using the workbook to set objectives

• The workbook will help you to look your own team
  and the context within which the team is working
• It will help you to set objectives each of the
  three areas (building blocks)
• Process objectives
• Team Objectives
• Organisational Objectives

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Measuring performance against objectives

• Having established objectives in the three areas
  we then need to think about how we measure
• How the process is performing against the process
  objectives
• How the team is performing against the team
  objectives
• How the organisation is performing in terms of
  the support it is giving the team

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Create Measures

• Not everything can be measured with numbers
• Good measures are those that can be observed and
  verified by someone else
• Measures are the yardstick used to judge how well
  you have performed on each result
• General Measures
• quantity
• quality
• cost
• timeliness
• Specific Measures
• numeric measures
• descriptive measures
• In the workshop we are going to use the catalogue
  of measures developed by the Centre for Business
  Performance at Cranfield University.

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Provide Feedback

• Need to give both positive and negative feedback
• Effective tracking systems are
• relevant
• frequent
• immediate
• specific
• Data Collection Decisions
• what data to collect
• when to collect it
• who should collect it
• who should receive it
• how to collect it

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Questions ?

• lets go do it!

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Agenda for the workshop

• Understanding the process the team is responsible
  for
• Setting process objectives
• Establishing appropriate process performance
  measures
• Understanding what is needed from the team
• Setting team objectives
• Establishing appropriate team performance
  measures
• Understanding what the organisation needs to do
  to support the team
• Setting organisational objectives in relation to
  the team
• Establishing appropriate organisational
  performance measures

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Next Steps

• What you can go and do next

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Weight the Objectives

• Weight is a percentage that describes the
  relative importance of a result
• Weights can help the team prioritise and manage
  their time
• Weights help the team member prioritise both team
  and individual results
• Lack of priorities can cause problems
• confusion about what is important
• lack of shared vision
• people will complain about their lack of credit
  for their contribution

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Linking Team and Individual Objectives

• Human nature - people want to be recognised for
  their individual contribution
• Evaluating individual performance provides
  information to help with training, coaching,
  rewarding etc..
• Rewarding outstanding contribution may be
  valuable - even in a loosing team
• The problem is, how do we make sure the team and
  individual measures dont conflict ?
• You might want to draw up a matrix
• This may help team members to understand how the
  teams objectives/deliverables fit with their own
  priorities

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Linking Individual Process Objectives
Process Objectives
Team Members
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Team Measures Matrix
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Objective-Performance Matrix
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To conclude

• Hopefully you are leaving todays workshop with a
  better understanding of team performance
  management
• You should have the basis of a team performance
  measurement system which has been designed to
  suit your own team situation
• You know what you should be measuring
• And you have discussed which measures are
  appropriate to your team, taking into account
• the company strategy
• the type of team
• the process or task objectives (process
  objectives)
• the team competencies and capabilities (team
  objectives)
• the organisational support needed (organisational
  objectives
• issues surrounding data collection

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Still to do

• Back at work you might consider weighting the
  objectives to help the team prioritise and
  manage their time and resources
• And you may choose to link the team objectives
  and measures to individual objectives, measures
  and rewards
• But the main thing is to put your team
  performance measurement system in place and
  start collecting the data so that you can start
  to see the areas where performance needs to be
  improved
• And dont forget to review the measures you are
  using on a regular basis!
• Good luck.

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Questions?

• We welcome feedback.
• . and let us know how you get on!