Spectus Window Systems
3rd Commercial
Column - GGP
The Commercial Column
Sam Kennedy, Managing Director of Spectus Window Systems, examines various
aspects of running a successful fabricator business in today's changing market in
an exclusive bi-monthly 'commercial column' for GGP. In the third of the series,
he looks at the importance of measurement in making things happen.

WHAT GETS MEASURED GET DONE
   
Between 1924 and 1933, Henry Landsberger conducted a series of experiments on
managing factory workers at the Hawthorne Works of the Western Electric Company
in Chicago. The experiments became famous in professional management literature.
Various conditions such as light levels were manipulated to measure the effect on
worker performance. Increasing light levels were expected to increase performance,
and decreasing light was expected to decrease performance.
 

There was also a control group, where nothing was
changed at all. The results were phenomenal. No matter
what was changed, productivity increased - even in the
control group, simply because the workers responded to
attention: they knew they were being studied.

This phenomenon is now termed the 'Hawthorne effect'.
Interest from observers or management makes workers
feel better in any given situation, which increases
productivity and production. The experience alone of
being observed and measured has a psychosocial effect
that improves performance, often dramatically.

The Hawthorne experiment was a first step in a
'before and after' test. But the biggest effect was
achieved without changing anything except being
measured. Effective management uses measurement
to make things happen.

Translate wish lists into actions

Every management team and every company has a list of
improvements it believes will transform its performance.
But most remain wish lists because they are made up of
(too many) good intentions and enthusiastic instructions.
Planning and action are important, but if nothing
is measured, results are debatable.

Priorities matter

To effect change or improvement, select a small number of measures that will really
make a difference. By focusing on a few important aspects of your business you
won't lose track of the objectives. Some simple improvements can have big payoffs;
others will contribute little added value - so differentiate between the two.
Don't go over the top. There is such a thing as over-measuring.
The government lists 30 crucial targets to improve the NHS - but prioritising that
many is a contradiction in terms! Thirty priorities mean no priorities: they cancel each
other out. The AA discovered that the mind can only cope with a certain number of
signs while driving - around 6. Road junctions that have up to 17 signs are just too
many for the mind to deal with and become a hazard to drivers.
It's the same in business - focus for improvement and results.

The Planning Cycle

A simple planning cycle will help you
put words into action. The actions you
have decided to focus on need to be
integrated into the planning cycle.
Plan ahead, implement the actions,
measure the effects, review the
actions, adapt them accordingly
and then start the process again by
re-planning. The cycle breaks down
without the measuring stage.

How else will you know what effect
your actions have had? How else will
you know how to adjust the actions
to create a different output? This cycle
is the essence of management and
can only be achieved by measurement.

In planning, specify simply in writing what you aim to achieve. Focus on why it is
being done and the expected result, how it will be done, who will do it and when it will
be done by. After planning, implement the actions. Train people so you can delegate
and everyone understands what is expected and what to avoid. Before implementing
actions ensure there are no obstructions to prevent change. If you keep records and
measure as you go, it's easier to review the actions. Constantly seek advice and
feedback and adjust the actions until you see a significant improvement.

A measure of success

Be realistic. You don't have to become brilliant overnight, you just have to be better
than your competitors. And that's an achievable target. Plan, action, measure,
review and plan again. What gets measured gets done.