Process Management A Paradigm Shift Go from Measure the process and manage the results (Inspection and Corrective Action Approach) To Manage the process and measure the results ( Prevention Approach) Debbie Nightingale, MIT @2001
11 Process Management Process Management A Paradigm Shift A Paradigm Shift Go from Measure the process and manage the results (Inspection and Corrective Action Approach) To Manage the process and measure the results (Prevention Approach) Debbie Nightingale, MIT © 2001
Major Categories of Hard Data for Non-Financial Performance metrics Productivity Improvement output Increases) Quality Primary Time Improvement Measurements of Savings Process Improvement Cost Savings
12 Major Categories of Hard Data for Major Categories of Hard Data for Non -Financial Performance Metrics Financial Performance Metrics Primary Measurements of Process Improvement Productivity Improvement (Output Increases) Time Savings Quality Improvement Cost Savings Debbie Nightingale, MIT © 2001
TWo Edicts Effective measurement must be an integral part of the management process What you measure is what you get R.S. Kaplan and D P. Norton, Harvard Business Review, January-February, 71-79(1992) Debbie Nightingale, MIT O 2001 13
13 Two Edicts Two Edicts “Effective measurement must be an integral part of the management process.” “What you measure is what you get” R.S. Kaplan and D.P. Norton, Harvard Business Review, January-February, 71-79 (1992) Debbie Nightingale, MIT © 2001