Joel Doherty
Andersen Consulting
The objectives of the HPM (Human Performance Measurement) project were to manage and to measure human performance and to link human performance to corporate performance. The performance management and measurement marketplace consists of an abundance of tools, methodologies, models, processes, applications, and systems; so the questions was, "which is the logical choice, and where does it fit in the HPM mix?
Prior to joining Andersen Consulting, Joel Doherty conducted an extensive, eight month research initiative on the performance management and measurement marketplace. These results were added to the internal and external research outcomes of the HPM team. All best practices, tools, and approaches in practice across North America were researched. Highlights are presented here, and they from the basis upon which The Concept System, from CSI (Concept Systems Incorporated), was selected for the HPM project.
Performance Measurement AlternativesThe task of managing and measuring human performance is complex and can be a difficult challenge. The market reflects this by offering many high-level methodologies and few hands-on applications for effective results. For example, the well-known Kirkpatrick model offers perspective on performance, but there is no actual process to manage or measure it.
After researching external performance management and measurement approaches, tools, and models, it was evident - there were three options in achieving the HPM project objectives (preliminary internal research indicated the same three alternatives apply to current Andersen Consulting practices):
Custom Measurement & Evaluation is the most popular approach in practice, in the external marketplace and in Andersen Consulting. Custom solutions can be rigorous in providing accurate results and flexibility in meeting measurement objectives. Downfalls to a custom approach are that:
| Solutions tend to lack computer support, so they require extensive administrative support to process, structure, and statistically analyze data for meaningful output and reporting | |
| Paper-based solutions (smile sheets, evaluation surveys, balanced scorecards, etc.) are difficult to seamlessly integrate into existing systems and reporting functions within a client organization | |
| Solutions lack consistency across projects and companies |
Some of the notable custom measurement companies and solutions that were researched in-depth were:
| Executive Consulting Group | |
| Harold Stolovich and Associates | |
| Renaissance Solutions (Balanced Scorecard) | |
| Performance Resources Organization (Jack Phillips) | |
| Donald Kirkpatrick | |
| Coopers and Lybrand | |
| Case Studies from Motorola, Sears, Southwest Airlines, IBM, Intel . . . Best | |
| Practices from ASTD, ISPI, Performance Measurement Foundation |
"Off the Shelf" Measurement Solutions are designed to standardize, to add rigor to, and to improve the reporting function of the measurement process. As stand-alone solutions, "Off the Shelf" products are ineffective because:
| Most products require considerable implementation efforts | |
| Libraries of benchmarking or metrics data may be irrelevant to a client organization | |
| Most products still lack extensive statistical rigor and analysis capabilities | |
| Most products are structured and lack the flexibility necessary for customization | |
| Most products handle a specific component of human performance measurement well (defining indicators, measurement data mining, financial analysis, performance modeling), but none prove to be a one-stop solution to the measurement process |
"Off the Shelf" Software Measurement Solutions researched in-depth were:
| Friesen Kay and Associates | |
| Success Profiles | |
| Performance Trak | |
| Resolver Suite (Saunders Consulting) | |
| Aliah Think | |
| pbViews | |
| Q Maps |
Integrated Performance Management/Measurement Solutions - Although the collective research to date fails to identify a single, all-encompassing performance measurement solution, one can combine models, software, and practice methodologies to create a functional alternative. Integrated models must be supported by rigorous software. A solution's flexibility should enable it to measure and to link performance across any domain(s) (corporate, team, human performance). Its integration into an organization's systems needs to be seamless for ease of use and application. An effective solution is the result of piecing together best practice custom work (balanced scorecards, evaluation surveys, smile sheets), software solutions (pbViews for measurement data aggregation, Success Profiles for metrics and measures libraries), and Andersen Consulting methodologies (value measurement work from GE Capital).
The Concept System as an Integrated Solution
When searching for an integrated, reliable, and reproducible approach to human performance management and measurement, the Concept System is, by far, the most advanced, rigorous, and adaptable solution in the marketplace today. It is not a stand-alone solution, but it is an exceptional framework for diagnosing, structuring, and measuring performance at all levels within an organization. A completely integrated solution using the Concept System may require some support and enhancement from Andersen Consulting measurement practices (such as value measurement) and some technological support for data mining purposes. The Concept System differentiates itself from other solutions because:
| Concept System capabilities exceed those of any other single measurement framework or tool (concept mapping, pattern matching, "Action Planner", measurement/metric definition tool, "Concept Interactive") | |
| Concept System's statistical rigor and analysis is superior to any other system in the marketplace (multi-dimensional scaling, multi-variant utility analysis, cluster analysis, etc.) | |
| The Concept System is the only measurement system that can be facilitated and analyzed in real time via the Internet | |
| The Concept System (used extensively for management, measurement, decision support, training evaluation, curriculum design, competency modeling, and more) is the most flexible performance management and measurement system available | |
| When using the Concept System, client "face-time" and time to implementation is exponentially lower than when using any other solution (implementation can require less than three days of client participation and less than fourteen days for total project fulfillment) | |
| Integration of the Concept System with existing measurement practices and systems is seamless, and it can be initiated at various stages of an existing project (if performance diagnosis or indicators have already been developed, they can easily be incorporated into the Concept System) | |
| The Concept System is a proprietary tool and methodology that is regularly upgraded and enhanced (this differentiates the Concept System from the balanced scorecard, which is not proprietary and which lacks consistency, effectiveness and sometimes accuracy because of the countless versions of "scorecards" and third-party supporting software) |
Conclusion
It would be foolish to assume the Concept System can handle all aspects of human performance management and measurement. Research clearly indicates there is not, and there may never be, a single, all-encompassing solution, because managing and measuring human performance is a delicate and dynamic endeavor that, according to Dr. Bill Trochim, is both "…Hard Art and Soft Science." The Concept System suite of solutions, an integration and formalization of best practices, tools, methodologies, and models, is the most logical approach to human performance management and measurement.
Andersen is pursuing the development of such a "suite" by adding to and validating the first, and likely the most valuable, component of performance mangagement, the Concept System. With a formalized approach (ROE, GE Capital practices, "Predictive ROI" - Concept Systems), as well as a technology solution for tracking and reporting performance indicators and measures, Andersen Consulting will be able to provide clients worldwide with phenomenal added-value by measuring the impact of human performance.