Metrics-based management is about following the path from information to action, and for today’s health and human service executives, the ability to follow that path is an essential management requirement. Getting to the bottom of metrics-based management was the topic of Managing With Metrics: The Executive’s Guide To Leading In A Numbers-Based Market, the executive workshop presented by OPEN MINDS Senior Associate, Joseph P. Naughton-Travers’ at the 2014 OPEN MINDS Executive Leadership Retreat. The first piece of advice from today’s presentation? Executive teams need to understand that they already have the data they need to get started. The truth is, there are a lot of different metrics (really, as many as you want to track), but the place to start is where most management starts – with the basics: strategic management and business process management.
First comes strategic management. This is about connecting goals by identifying “cause-and-effect” relationships – an idea originally introduced in The Harvard Business Review article, The Balanced Scorecard: Measures That Drive Performance; and expanded on in the 2001 book, The Strategy-Focused Organization. As part of your strategic planning process, ask yourself, what “performance” will make you the preferred option in your market? What strategies and innovations will deliver the desired performance? And finally, how do you manage to that performance expectation? Basically, how (the cause) will a specific quality (effect) be recognized (measured), and finally achieved? Answering these questions is ultimately about codifying your path to the strategic advantage.
Second comes business process management. This is about promoting the efficiency and effectiveness of those day-to-day organizational processes that all organizations rely on to succeed. Think of all the methods and metrics it takes to run an organization – these are all part of optimizing an organization’s activities across the business process life cycle. These processes must also be identified through measurement as outcomes of cause-and-effect relationships, and then managed to specific goals.
So, why is investment in metrics-based management important? Understanding the relationships between process measures and strategy is central to performing competitively, and reducing costs. For more on both strategic management and business process management, see Two Uses Of Metrics-Based Management – Strategy & Business Process Management. And for more on developing your metrics-based management program, check out these resources from the OPEN MINDS Industry Library.
- Metrics-Based Management In Four Slides
- Your Unread Book
- Better Data = Better Decisions: Using Metrics To Manage In A Competitive Environment
- Metrics-Based Management: Key Performance Indicators
- Using KPIs in Behavioral Health & Social Service Organizations: Put Management Back Into Management Information Systems
- Creating Performance Dashboards From Your EHR To Support Executive Decision Making & Metrics-Based Management
- Four Cornerstones of Metrics-Based Management
- One Of The Many Advantages To EHRs: The Ability To Use Your Data For Strategic Decision Support & Market Differentiation
- Performance Data, Dashboards & Metrics-Based Management: Meaningful Data For Meaningful Decisions
- The Four-Step Model for Metrics-Based Management: Improving the Bottom Line with Better Use of Data
Most health and human service organizations have direct control over their strategy and process measures – and with that data already in place, a critical first step to larger metrics-based management programs is understanding the cause-and-effect relationships between the data you already have.
Make sure to tune in tomorrow for more coverage of the 2014 OPEN MINDS Executive Leadership Retreat – if you couldn’t join us in Gettysburg, be sure to check out our live coverage on Twitter @openmindscircle #ELR14, and look for photos of the retreat on our Facebook page at https://www.facebook.com/openmindscircle.