“Plumbed‐in performance improvement”: accelerating improvement and adaptation in organizations

Abstract

PurposeThrough an illustrative case study, the paper seeks to demonstrate the implementation and use of new performance improvement software.Design/methodology/approachPast research in the field of performance measurement and management has tended to focus on what to measure. The reality, though, is that most of the value in performance measurement lies not in the measures selected, nor even in how the data are presented visually (using SPC where applicable) but in the decisions and actions that flow from insights provided. Deriving maximum value from performance measurement requires linking powerful insights from data to appropriate decision making, action and feedback.FindingsEspecially in situations of fast‐moving, operational data, it is possible to improve rates of innovation, adaptation and learning in organizations dramatically through a combination of: implementing the new genre of performance improvement software that currently has no name; structuring and enabling the performance planning and review process; and creating the necessary updraught of management attention.Originality/valueThis paper describes the impact of a new genre of performance improvement software implemented alongside novel concepts in performance planning and review. Performance measurement and management frameworks are analogous to new washing machines in the sense that they need to be properly plumbed‐in, connected‐up and switched‐on before they can deliver value. Given that achieving faster rates of innovation, adaptation and learning is now widely recognized as a key challenge for the coming decade, the message is that “plumbed‐in performance improvement” offers huge potential benefits for organizations that spot the opportunity first.