| Keynote
Presentations  How to
Avoid Metrics Overload and Paralysis
Arthur M.
Schneiderman
One of the most difficult organizational challenges is to
select the right manageable set of metrics. Having too many metrics can lead to paralysis
and a focus on projects that will not yield the highest value. Art Schneiderman will
address the critical distinction between measures for control and strategic improvement - control
measures have target levels essentially equal to their historic value, while strategic
improvement measures have goals that require significant process improvements. Art
will discuss how vital it is to develop effective metrics that meet the following basic
criteria:
- measures should always have a strong visible link to stakeholder satisfaction
- measures should have unambiguous operational definitions
- measures should be critical for control or strategic improvement
- measures should form a complete set that avoids undesirable tradeoffs
Unfortunately the vast majority of measures in use today fail to meet these criteria
and consequently produce organizational frustration, confusion and wasted effort. Major
progress towards effective performance management can be made when an organization scores
its current measures against a customized version of these criteria and discards those
that don't make the cut.
 Maximizing the Value of Performance
Measurement Systems
Anthony Davila,
Stanford University
Graduate School of Business
What are the characteristics of a good performance
measurement system? Measuring innovation is a challenging proposition - success depends on
achieving the appropriate combination of creativity and discipline. In this demanding
process, having a clear idea of what defines a good measurement system is key to
performance. But a perfect measurement system does not exist and considering how the
measurement system fits into the overall management systems of the organization becomes an
important building block.
This presentation will highlight the main criteria to evaluate a measurement
system and will provide a framework to examine the fit between the measurement system and
the broader management systems. The talk will discuss these issues within the context of
the results of a two-year research project on measuring innovation. This research surveyed
the innovation practices of mainly large firms and captured metrics data. Survey results
will be presented including findings on:
- How to assess the impact of innovation metrics on innovation performance
- How to identify those aspects of innovation that companies find more challenging
from a measurement perspective
- How to describe the management systems required to maximize the value of
performance measurement systems
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