Abstract: Use of People Metrics

[Jack Zigon <jack@zigonperf.com>]

[Moderator's Note:  When I first read the articloe Jack forwarded to the DEN,
I missed the relevance.  When I have doubts, I use the SoPK test...  it passed.

Here's an abstract of a recent article in Quality Progress. You can order 
the original article from the authors.

Measuring People and Performance: Closing the Gaps 
Morgan, Brian S.; Schiemann, William A. Copyright: 1999, 
Brian S. Morgan, William A. Schiemann 
Metrus Group, Somerville, NJ  Phone: 908-231-1900 
Quality Progress, January 1999, Vol. 32, No. 1, pp. 47-53 

Quality Progress and Metrus Group surveyed a sample of ASQ members about 
people metrics and management at their companies. Findings from more than 
800 respondents indicate that even though people measures are used in 
many companies, only about 30% of companies use these measures 
strategically. In this minority of companies, five-year return on 
investment is 146%; it is 97% in the other companies. Companies that 
describe themselves as industry leaders are more likely than other 
companies, by 42% to 20%, to have performance targets linked to their 
people metrics. Industry leaders also are better than other companies, by 
22% to 14%, in linking their people measures with customer satisfaction 
and financial performance measures. 

A previous Metrus Group study identified eleven people dimensions that 
can predict customer satisfaction: customer focus, performance 
management, teamwork, management, supervision, clarity of direction, 
employee commitment, employee satisfaction, respect, empowerment, and 
organizational learning. The current survey finds that the only one of 
these dimensions measured by more than 50% of the respondents is customer 
focus. For measurement tools, 91% of the responding companies use 
individual performance assessments. Employee surveys are a distant second 
at 42%. To improve people measurement, organizations should: have support 
from their leadership; use integrated measures; build measurement into 
the culture; and use simple and personal tools like Motorola's Individual 
Dignity Entitlement measure. (Contact the Metrus Group at the phone 
number above for information on this. JZ)

  Jack Zigon                      Email: jack@zigonperf.com  
  President                   URL: http://www.zigonperf.com  
  Zigon Performance Group               Voice: 610-891-9599  
  PO Box 520                              Fax: 610-891-9055  
  Wallingford, PA 19086-0520 USA       Orders: 800-244-2892
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