Modern Business Magazine October 2016 | Page 15

MODERN MANAGEMENT The solution is to better understand the “that” we want to measure. What results will come from achieving the goal? Performance measures are evidence of results we’re trying to create or improve. The only place we can observe evidence is in the world around us. So if we can’t describe how we’d recognise if a goal is achieved, we won’t be able to measure it. There are three tests that any goal needs to pass before it is measurable. And if a goal fails any one of these tests, it’s an opportunity to take a closer look at it, and reword it to better say what it really means. Test 1: Is it action-oriented? A goal won’t be meaningfully measurable if it’s written as an action, like this: “Undertake extensive road condition assessments; develop and implement a Shire Council Road Maintenance Plan.” When we attempt to measure a goal that is articulated as an action, we end up measuring how much action is happening, or whether or not it happened. This goal was measured by “10 year asset management plan developed and considered by Council”. Useful performance measures tell us how much things have improved, as a result of our action. We all know that action doesn’t guarantee better results. So developing an asset management plan doesn’t mean that road condition is better. Instead of writing goals as actions, we need to write the results we are trying to achieve. Of course we still need to know what action we’ll take to achieve that result, but performance is about the result, not the activity. The question is, what results does that Council want from a 10 year asset management plan? Don’t confuse performance management with project management. it is, how transparent it is, how financially sustainable it is, and how responsive it is. That’s several measures, at least. And of course, the weasel words would need to be translated too! Test 2: Is it weasely? A goal won’t be very measurable if it’s written in vague, weasely language, like this: “Foster opportunities for social interaction in our community to enable greater participation in community life.” Each unique performance result needs its own measure. The ‘weasel words’ are foster, opportunities, social interaction, participation, and community life. And they are weasel words because they don’t have a clear and specific meaning that everyone could consistently interpret and visualise. Five different people could have seven different interpretations of this goal. We must be able to describe the differences we’d observe if our goal was achieved. A measurable goal A goal like “Council and the community actively recycle and reduce waste” isn’t actionoriented, it isn’t weasely and it’s not (badly) multi-focused. Right away we recognise that we want more waste recycled and less waste produced. Both of these we can observe, and so we can measure them. The first measure might be the percentage of waste that is recycled, and the second measure might be the tonnes of waste collected. Measurable goals are possible in local government, and they’re necessary. If we can’t observe it in some way, we can’t measure it. Test 3: Is it multi-focused? A goal won’t be easily measurable if it’s written as several goals smooshed together, like this: “An efficient, progressive, transparent and financially sustainable organisation which is responsive to the needs of the community through sound decision making and leadership.” Multi-focused goals are about several different performance results. We need to unbundle these goals into distinctly separate performance results. If the council that owns this goal is serious about achieving it, they’ll need a measure of how efficient the organisation is, how progressive Stacey Barr is one of the world’s leading specialists in business performance measurement and KPIs. She is known for her practicality in solving the most common struggles with measuring what matters. Her book ‘Practical Performance Measurement: Using the PuMP Blueprint for Fast, Easy, and Engaging KPIs’ is available at all amazon online stores. For more, visit www.staceybarr.com. October 2016 ModernBusiness 15