Goals and Measures
A man's reach should exceed his grasp, or what's a heaven for? —Robert Browning
GSM proceeds from an understanding that best-in-industry standards are the performance floor for the organization. This produces immediate competitive advantage and establishes a robustness, energy, and resources that will allow the organization to go higher.
Set High Goals (BHAGs)
Goals, in order to be meaningful to people and significant to the business must be BHAGs (Big, Hairy, Audacious Goals). Piddly improvements is not the job of management. Half measures create half hearted people. Excellence requires daring and big leaps. If that doesn't sit right with you or your team, you're licked before you start.
Basics of GSM goal setting include:
- 95th percentile or better on Customer satisfaction. Use Customer feedback to pinpoint operational problems. You are excellent only when they say you are.
- Once percentile levels are satisfactory, look at percentage of favorable response which is always a lower number. Elevate the standard as you achieve each new level.
- Create a list of best-in-industry awards and decide which you will pursue first (Top 100 Hospitals, Best Places to Work, Baldridge, Magnet, etc). GSM organizations generally are attracted to winning them all, but set priorities.
- Follow the prescriptions found in site sections Manage Results and Standards.
- Set dates of what will be accomplished in the next 12-24 months, pass on the idea of long term goals, a concept now considered worthless. What will happen in the next 30-90 days to begin?
- Organize a group of management commandos around each of the 4 KRAs of Customer Satisfaction, High Quality, Low Cost, and Best People.
- Keep it simple. No more than 2-4 subgoals per KRA.
Establish Meaningful Measures
"You can't manage it if you can't measure it." This mantra is central to GSM thinking. Balanced scorecards must be established one for the organization as a whole, and one for each department.
- Read our Suggestions for Scorecards, or use other sources that you find helpful.
- Keep it simple. No more than 3-4 measures per goal.
- Keep it relevant. Does it mean something to the people? Is it important to the business? Does it sizzle?
Drive Change
If a child had a fever of 104 degrees the parent would take action. When scorecard measures are poor, do the same.
- Open the door to change by getting people actively involved in their DIGs and JDIs and directed at goal areas.
- Remove barriers to change.
- Drive the process with rewards and recognition
- Enjoy the results!