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Quality & Productivity Metric Design


 Metrics, Graphics

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"Quality & Productivity Metric Design"


Companies change their productivity and quality metrics for a variety of reasons. A change in business environment, expanded business activities or ineffective processes are some of the main reasons highlighted by the Fortune 500 and other leading companies that participated in this research. Whatever the reason, identifying new metrics that can be used to measure operational efficiency or product quality across all business units can be a COO or CFO's worst nightmare. This study was designed to identify the processes that companies use to generate new metrics, test potential metrics, validate findings, gain company-wide buy-in, and rollout a new system of measurement. Executives in all industries can use this report to learn what is driving other organizations to change their metrics, how new metrics are developed and how metrics are tested and validated.


I. Processes and Lessons in Quality & Productivity Metric Design (Interviews)

  • Reasons for Metric Evaluation and Change
  • Stakeholders in the Metrics Development Process
  • Metric Development Process
  • Metric Testing and Validation
  • Data to Drive Metrics
  • Metric Reporting and Designing Data Views
  • Lessons Learned

II. Benchmarks in Quality & Productivity Metric Design Programs (Surveys)
  • Universe of Insights & Learning
  • Participant Industry Profile
  • Participant Company Size: Revenue
  • Participant Company Size: Employees
  • Structure of Quality Groups
  • Adding New Metrics
  • Currently Tracked Metrics
  • Catalysts for Developing New Metrics
  • New Metrics Developed by Area
  • Why Companies Need New Metrics
  • Leadership Involvement
  • Data Collection Sources
  • External Customer Feedback Data
  • Level of End Users of Metrics Data
  • Number of End Users of Metrics Data
  • Data Reporting Methods
  • Data Reporting Frequency

  • One best-in-class company chooses its quality metrics for products based on the product attributes that are most important to customers when making a buying decision. "We are starting to look at how customers perceive our products on the shelves, which led to the development of a common metric across all of our groups and products," said one participant.
  • Best-in-class companies use pilot programs to test new metrics before rolling the metrics out company-wide. The use of pilot programs allows companies to validate the accuracy and consistency of the data they are collecting. It also allows the senior management team to evaluate whether or not the action of measuring the metric improved awareness for the measure and improved whatever was being measured.


To learn more about the metrics development processes of leading Fortune 500 companies, Best Practices, LLC used a two-phased research approach. For the first phase of the study, Best Practices, LLC analysts interviewed managers and directors in charge of developing, testing and executing new metrics. These interviews focused on an in-depth look at the processes companies use as well as the lessons learned from decades of experience.

In the second phase, a benchmarking survey was used to identify quantitative information about what metrics are currently in place, why companies change metrics, how often companies change metrics, and who views the data collected for metrics.
Industries Profiled:
Manufacturing; Medical Device; Pharmaceutical; Consumer Products; Health Care; Diagnostic; Computer Hardware; Computer Software; Financial Services; Banking; Chemical; Telecommunications; Diversified; Insurance; Professional Services; Energy; Aerospace; High Tech

Companies Profiled:
3M; Unilever; Abbott; Amdocs; Bank of America; Becton Dickinson; Bristol-Myers Squibb; Cardinal Health; Colgate-Palmolive; Dade Behring; DePuy Orthopaedics; Inc.; Dow; DuPont; DuPont Teijin Films; EchoStar Communications Corporation; First Data Corporation; Fujitsu; Johnson & Johnson; Linde; McQuay International; MeadWestvaco Corp.; Merck; MetLife; Motorola; Nationwide Financial; Nortel Networks; RJR Nabisco; Schering-Plough; Siemens; Steelcase; Boeing; Coca-Cola; US Bank; Xerox

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