Metrics: What, Why, How… - Wild Apricot... · 2020. 2. 25. · üRealize that you can’t measure everything, nor is it beneficial to do so. You have to pick the right metrics for

Metrics: What, Why, How…

Transformation Consulting

02.13.2020

A Metric Is…

2/25/20 Transformation Consulting 2

A measurement of performance

“How long did it take”?

“How many times did we receive something incomplete”?

“How many calls were answered within 30 seconds”?

“How satisfied is the customer”?

“How many items did we complete last week”?

Why Are Metrics Important?


How do you know where to focus improvement efforts without measurement? Without measurement, it is only based on opinions.

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But, I think we should. . . I think we should. . .

Without metrics, you’re just guessing. You’re just giving an opinion.

Also, how can you celebrate success unless you know how a process is performing?

Why Are Metrics Important?


Waste is any activity that does not add value to the process.

Below are the 8 different types of waste which occur in processes.

The acronym DOWNTIME articulates examples of waste for identifying potential metrics:

Ø Defects Ø OverproductionØ WaitingØ Not Using Creativity or TalentØ TransportationØ InventoryØ MotionØ Extra-Processing

Metrics allow you to quantify waste:

5 Basic Types of Metrics


Just as wastes fall into 8 general categories, similarly metrics can be put into 5 basic categories. You can remember these by the acronym QTIPS.

Type of Metric Main Idea Types of Waste Measured (TIM WOODS)

QualityTo what extent are our products and services meeting customer expectations (both internal & external)?

Defects

TimeHow much time is spent on a given activity? Waiting

InventoryHow much of a given item is kept on hand? Inventory

ProductivityHow much work is accomplished in relation to the number of team members working on it?

Transportation, Motion, Over-processing, Overproduction

SafetyHow safe is your environment?

Motion, Defects

Example: Quality Metric


Defined: The extent to which our processes and products are conforming to the customer’s requirements (a customer can be internal or external to HFHS).

• The CIO set an organizational objective to increase the quality of data coming from our Incident Management process. Customer feedback was that “IT is a black hole” and early metrics analysis indicated that the volume of aged incidents was unacceptably high.

• By publishing aged incident reports grouped by work center and tracking the information on the TSRH Working Board, the Team discovered over 600 incident aged > 60 days

• After three months of deliberate incident reduction activities, a number of underlying causes were discovered:o In some cases, IT staff were using incident records where a problem record would be more

appropriateo In other cases, IT staff were using incident records where an enhancement record would be more

appropriateo Ironically, many staff were hesitant to close tickets because they thought they were being customer-

centric and using the records to track things they had no other way of tracking • Through IT Leadership commitment, improving visibility and access to incident data, and

focusing on the metric daily, the team Corporate IT reduced incidents aged > 30 days by over 70% in a three month period.

Example: Time Metric


Defined: The amount of time utilized to carry out a process.

• The Vendor Access process was escalated to the IT Leadership after it took over 1 year for the process to carry out one particular vendor access request for an IT customer

• The baseline measure was from when the request submitted to when the access was actually granted, 74.5 days.

• The team identified barriers in their workflow and realized that an entry point to trigger the process that was thought to be retired, was still active. They also discovered that there was re-work being performed because the right information as not being visible to the customer

• Now the Team is engaged in improving the process team changed their process to pull patients from when the order is submitted. This change has led to an average of a 64.5 day improvement in TAT.

Example: Inventory Metric


Defined: A quantitative measure of the items (physical or virtual) required to perform a process.

• At Henry Ford West Bloomfield Hospital, inpatient departments noticed that they didn’t have adequate linen to take care of their patients.

• After tracking the information for a week, the nursing staff identified that supply chain was bringing low amounts of towels once a day.

• The unit manager brought this information to the supply chain manager and they determined a new process for (1) delivering towels twice per day-once during the day and once during the night (2), doubling par levels for towels to meet the demands of the unit.

Example: Productivity Metric


Defined: The amount of work accomplished in a specified amount of time.

At HAP, Post Processing is the two minutes that is automatically given to the Customer Service Specialist after every call to complete “wrap-up” work. This post processing time parameter of 2 minutes was outdated and did not reflect the current business need. Changing the 2 minutes that is automatically given after every call to 1 minute allowed Specialists to answer other calls in queue more quickly, thus improving the answer rate and service level statistics.

In 2016, this change had the following impact on their Customer Service Answer Rate:

• HMO Answer rate: Increase from 57.1% to 70.2%• AHL Answer rate: Increase from 81.8% to 91.8%

Less calls are being abandoned by members &more calls are being handled per day (resulting in ~ $500,000.00 savings last year!)

UPDATE: By continuing to do PDCA cycles to this process, they have now since eliminated the 1 minute delay!

Example: Safety Metric


• At Henry Ford West Bloomfield Hospital, staff in the Emergency Department was experiencing violence by visitors and patients at any alarming amount.

• After tracking the incidences for two weeks, they identified that there were an average of 5 incidences a day (physical and verbal) by visitors.

Defined: Hidden risks such as protrusions or wet areas that could cause slips, falls and hazards. These metrics are particularly important for identifying specific safety issues before accidents happen.

EMERGENCY• The team brainstormed a few ideas with security

and determined the following interventions: (1) visitors must check-in with security and have a visitor badge issued prior to entering the ED (2) security rounds in the ED every hour (3) security will physically intervene between employees and visitors when necessary.

• The result of these interventions was a 80% decrease in occurrences in a month’s time frame

Expressing Metrics in $’s


Often, it is beneficial to express metrics in financial terms. All of the following metrics have a financial impact, but no one will know that unless you express the metric in dollars and cents.

• Reduced incoming defects by 25 per month• Utilizing 1000 less sheets of paper per day• Increased team member productivity by 2%• Reduced the process time by 300 minutes per week

(employee time saved) X (employee cost) = $786/week in savings

How To Start A Metric


1. Determine what to measure. Focus on:

• Areas that are pain points for your team

• A known value driver (e.g. first call resolution)

2. Determine the type of metric to use:

• QTIPS – Quality, Time, Inventory, Productivity, or Safety

3. Determine how you will gather or access the data:

• Can you use an existing report or do you need to manually gather the data?

4. Determine the best format for the metric. Examples include:

• # of defects per day

• X% of work accomplished within Y amount of time

5. Implement.

Metrics Applied: The Huddle System


Daily Morning Safety Huddle, Wyandotte Hospital (03/2018)

Does It Really Work?


EKG Process for Emergency Department:

Data

Lessons Learned Thus Far


ü Realize that you can’t measure everything, nor is it beneficial to do so. You have to pick the right metrics for your team – metrics that are meaningful and actionable.

ü If data is not readily available, find creative ways to measure so that you don’t spend excessive amounts of time gathering data.

ü Averages are valuable but can potentially be misleading since they don’t tell you the full range of values (i.e. the amount of variation in your data set).

Words of Wisdom…


“What's measured improves.” ~ Peter F. Drucker

"Measurement is the first step that leads to control and eventually to improvement. If you can't measure something, you can't understand it. If you can't understand it, you can't control it. If you can't control it, you can't improve it." ~ H. James Harrington

"What gets measured gets done, what gets measured and fed back gets done well, what gets rewarded gets repeated." ~ John E. Jones

"When dealing with numerical data, approximately right is better than precisely wrong." ~ Carl G. Thor

Questions?


Documents

Metrics: What, Why, How… - Wild Apricot... · 2020. 2. 25. · üRealize that you can’t measure everything, nor is it beneficial to do so. You have to pick the right metrics for