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Keynote Presentations

Arthur SchneidermanHow 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.

R&D Metrics Indicator NewsletterRead Art Schneiderman's feature article, "Must Your Scorecard Be Balanced" in the July issue of the R&D Metrics Indicator Newsletter

Anthony DavilaMaximizing 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

Publication Sponsor:Sloan Management Review


Affiliate Organization:PMI Registered Education Provider

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