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TXM Lean Minute – Lean Metrics Drive Improvement
What gets measured gets done. Human nature means that the things we measure in business are often the things that get the most improvement focus. So how do you choose the right lean metrics and ensure that everyone is focused on improving them? This Lean Minute Video explains how.
Read the Full Transcript of our Lean Minute Video
Do you find that the metrics on your communication board are out-dated, difficult to understand and relate to, and generate no actions?
Hi, I’m Ron Spiteri. Welcome to this TXM Lean Minute where we’ll review lean metrics.
There are four key points in maintaining effective lean metrics.
- The metrics must satisfy the SMART criteria. i.e they must be: Specific, Measurable, Achievable, Relevant, and Time-bound.
- The metrics must be simple. That’s simple to create, to relate to, to interpret, to update, and to influence.
- the metrics must be regularly reviewed through direct interaction,
- and the metrics must drive actions.
In most businesses, the right frequency to review team metrics is daily, within a 5-7 minute standup meeting. The reality is that the focus of most teams is to achieve a daily outcome, regardless of how long the overall task may take.
When reviewing metrics, the discussion is:
- What was our target?
- How did we perform?
- And importantly, What actions do we take?
This follows the fundamental lean plan-do-check-act cycle.
The key takeaway from the team metrics review is: what do I need to achieve today?
Call us at TXM to learn how we can help you improve your focus and performance through the use of lean metrics. I’m Ron Spiteri and this has been a TXM lean minute.