Step 2 : Collect Data
Most of the data you will need already exists within your company and much of that will be found in management accounts or project reports. However, where data needs to be collected, ensure you have clear roles and responsibilities and consistent methods. For each KPI, designate who is going to collect the data, when it is going to be collected (and in what form) and identify to whom the information gathered should be sent. Train people, if necessary, to ensure that they can do what you are asking of them and so that they know why they are doing it.
In some organisations, especially smaller businesses, performance measurement becomes the job of one person (who is typically also responsible for H&S and, maybe, ISO 14001, but not at Director level). It is very challenging for people in that role to collect data from other members of staff. Others need to be informed what they will be asked for and what will happen to the data they provide - it is important that they get feedback on the results so that they understand the process and feel part of it. High level company buy-in to the process is essential to encourage and lead the process.
Joanne James, Director of PLP Construction, “Getting performance measurement off the ground is really difficult. Whilst people within the company can think it’s a good idea, it needs someone with clout to take ownership of it and make sure all the people who need to be involved actually do their bit. This starts with getting everyone to agree which KPI should be used, includes ensuring that people are made to collect the data and, most importantly, getting the Board or Management Team to review the data regularly and take action accordingly.”