Measuring matters

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When I was little I made a lot of important decisions based on color. Choosing between a red shirt and a blue? I chose blue every time. Blue was a better color. Between Icee pops? Same thing. What can I say I liked blue.

 

Over time I learned that for somethings color wasn’t a great indicator of performance. Choosing a grocery line? It almost never pays to choose based on the shirt color of the last person in line. Typically I like to choose these lines on the basis of current line length and estimated shopping cart items. Sometimes this works and sometimes it doesn’t but as far as informal decision support metrics it does ok.

 

Most of us leverage these types of learned strategies everyday. We make choices about what lane to drive in, who to ask for help and where to go next based on models we have developed over time. These models become more fixed over time, although most of us have adjusted our models here and there to account for things like the “excessively talkative checkout clerk.”

 

The decisions we make in the office should be no different. They should be based on models that we build up over time and are updated regularly to take into account for new inputs. I think one of the biggest gaps many organizations have is that by failing to develop formal decision models over time, they fail to understand what led to success and what led to failure and of course because it is informal nobody can learn from either.

 

I’m certainly not advocating for turning every decision into an overly formal exercise in data gathering and evaluation that leads to analysis paralysis. I do however think that identifying key decisions that your organization makes repeatedly and then developing set criteria for evaluation can lead to improved decision making over time. It certainly does hurt to have this information available to others within the organization as well.

 

When we go started with ExAM (ExAM4Enterprise.com) our focus was on data collection and analysis with the belief that by making it easier to collect information about their organization and then helping them to develop decision models based on that information we could be part of changing the way organizations did their business and help them achieve a higher level of performance.

 

What we didn’t know then was that it would lead to so much work in the inspections and compliance space. Looking back at it now, I guess I shouldn’t be surprised. Most inspections are exercises in data gathering that are supposed to support decision making (No working refrigeration, No Food Service permit).

 

In the end I’m happy that we’ve managed to help so many organizations support these types of decisions. Unfortunately, outside of compliance I think that this type of ongoing evaluation and decision support that is talked about more than implemented. Getting better results requires identifying key decisions, the information required to support the decision and ideally a method for weighing (scoring) that information to support decision making.

 

Of course if all else fails, you can always fall back on choosing blue.

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.

Designing Dashboards: Important questions everyone should be asking

9-16-13

I was talking to a client the other day about the particular dashboard we were putting together for them. We had a few different people in the room and we were discussing:

  • What should go on it
  • What should be left off
  • What sort of decisions it will help support
  • How often would different people will be looking at it

Those are just a few of the things that were taken into consideration when we were putting together the executive dashboard. About halfway through the session one of the folks said, “I’m really glad I came to this; I never really thought about our business this way.” I think that’s one of the unintended benefits of developing these types of analytics and working on things like dashboards and reports. It makes you think about the types of decisions that you’re supporting in organizations. I think that’s one of the really important side benefits that you get from broad stakeholder engagement.

These reporting efforts oftentimes spawn a conversation about what types of information you need to support the business and it can be an incredibly valuable conversation. It really makes you examine how you run and operate your business. Too often you’ll have people take reports and the information that they have on hand as a given and they don’t question why they don’t have this other piece of information. Or maybe they think, “Wouldn’t it be great if I did have this other piece of information and look how much better I’d be able to do my job.”  So I think there’s a really powerful side benefit to having a conversation about how do we make decisions and what information do we need to make it happen.

Thanks as always for reading my blog, I hope you will join the conversation by commenting on this post.

If you liked this post, please consider subscribing to this blog and following me on twitter @jmillsapps. I regularly give talks via webinar and speak at events and other engagements. If you are interested in finding out where to see me next please look at the my events page on this blog. If you would interested in having me speak at your event please contact me at events@joshmillsapps.com.

If you are interested in consulting services please go to MB&A Online to learn more.