Article Review Assignment
1-Overview of the article
Data analysis has become one of the significant business or management functions. In the contemporary business era, it has been unveiled that the firm can improve its performance by using data and making effective decisions accordingly. A performance management consultant in Los Angeles has identified five critical steps in the performance management process, which are related to data analysis or examination. Of course, the objective is to improve the performance of employees and increase overall business outcomes. The most important thing is to learn how to use data to improve performance and achieve both short and long-term goals and objectives.
2-Summarizes the five key steps
Step1: Figure out the Numbers that Matter
When measuring the unit, the management has to use only pertinent numbers. In short, instead of focusing on an immense range of data, company management has to identify critical issues and find related data. For Instance, if an HR manager is navigating the data, he can concentrate only on time to fulfill a particular job position. In an organization, the average time to do a job is critical as it is directed connected with performance productivity and efficiency. Similarly, the development team may focus on the cost and time of the development. Importantly, critical issues or concepts in business functions are to be optimized, and accordingly, examine the metric. The whole process must be aligned with corporate goals and objectives as well (Harvard Business School Publishing, 1998).
Step 2: Drill Down to Understand Cause and Effect
The next step is to focus on cause and effect. For Instance, the management has to rely on numbers and indications. Numbers can reveal different insights, which can help to highlight a particular problem or issue. The firm may find the increasing cost of labor by navigating numbers. Now, the best thing is to work on related metrics such as wage rate, time, and employee behavior. Maybe unnecessary breaks by employees may lead to higher costs and lower productivity. Similarly, the impact of an inexperienced team of workers on sales is negative. It is all about cause-and-effect examination through metrics, which can facilitate in making effective decisions at the end (Harvard Business School Publishing, 1998).
Step 3: Set Real Goals Not Arbitrary Ones
The third step in performance management is to set realistic goals instead of focusing on arbitrary ones. If the company intends to examine the sales of the company, it doesn’t seem very helpful. Comparatively, if a firm aims to assess the sales performance for the past six months or one year, it seems worthy. Thus, goal setting is imperative in this process to streamline. Coming up with goals can enhance the visibility of motivation as well. Setting the target in the unit performance and evaluation is useful, and employees and management have to know what they are trying to conclude. It can be said that goal setting is directly associated with motivation (Harvard Business School Publishing, 1998).
Step 4: Learn to Forecast
Disciplined forecasting seems critical, and it is what managers can learn with the passage of time. If a manager derives results from the navigation of metrics, he must anticipate the position of a particular unit of the company in the next months or year. Unit metrics can assist in developing new patterns for the company. Based on these patterns, the manager can predict the performance for a particular time. Unit performance and forecasting are interrelated with each other, and managers must develop this ability to meet performance goals and objectives. By knowing where numbers can be placed at the end of the month or week, appropriate actions can be streamlined (Harvard Business School Publishing, 1998).
Step 5: Don’t do it alone
Unit performance can be measured effectively by employee’s involvement. In a team meeting or strategy meeting, not employees and managers can work together to focus on the implications of data or information. Of course, ideas can be brainstormed in terms of cause and effect, possible solutions, and strategies. The purpose of the participative approach is to bring every stakeholder on the same page. All key stakeholders must know what is to be done to make a difference. Improvement of unit performance through metrics seems an exciting journey, which enables everyone to contribute according to his roles and responsibilities (Harvard Business School Publishing, 1998).
3-How the article ties/related to the topic on Metrics and Performance Measurement
The article is related to unit performance and the use of metrics. Mark Graham Grown, a performance measurement consultant, has emphasized five key steps which can be implemented to boost unit performance. The role of data or metrics in the improvement of unit performance is in the spotlight. All five key steps have been elaborated for managers and related staff. By navigating these steps, managers can learn how to gather data, set goals, optimize techniques, and get results. Managerial cognition seems crucial in each step to interpreting results and forecast accordingly. Five steps of performance measurement can enhance the unit performance, and it is what the firm may intend to achieve.
Reference
Harvard Business School Publishing. (1998). Using Measurement to Boost Your Unit’s Performance. Harvard Management Update, 3(10), 1-4.
