How we measure Organisations ignores a lot of Waste and Untapped potential.
Most organisations use relatively weak methods to measure their performance, weak because the focus of attention is invariably on what is being obtained from the existing organisation, rather than what could be achieved if value adding capability was transformed. For example, the number of products, services or health patients per week or month are recorded, but waste, non-value adding time and untapped potential go unmeasured.
Current methods of reporting have their roots in standard cost accounting and financial measurement that focus on results and outputs. But a poor value adding system with a lot of untapped potential is a problem for financial performance measurement, because the waste cannot be seen.
So, what happens when we stop working like this and use the lens of time to track a single product, service or health patient through the entire end to end process, visually recording value adding time. Well, that’s when life gets interesting because now, we can see and remove a lot of waste. My findings are that value adding touch time is usually less than 15% and can be as low as 4% in UK local government services. Welcome to the time-based organisation.
How we measure Organisations ignores a lot of Waste and Untapped potential.
Most organisations use relatively weak methods to measure their performance, weak because the focus of attention is invariably on what is being obtained from the existing organisation, rather than what could be achieved if value adding capability was transformed. For example, the number of products, services or health patients per week or month are recorded, but waste, non-value adding time and untapped potential go unmeasured.
Current methods of reporting have their roots in standard cost accounting and financial measurement that focus on results and outputs. But a poor value adding system with a lot of untapped potential is a problem for financial performance measurement, because the waste cannot be seen.
So, what happens when we stop working like this and use the lens of time to track a single product, service or health patient through the entire end to end process, visually recording value adding time. Well, that’s when life gets interesting because now, we can see and remove a lot of waste. My findings are that value adding touch time is usually less than 15% and can be as low as 4% in UK local government services. Welcome to the time-based organisation.