OE21 7.4 Leadership and Governance Results

Achieve excellent results in leadership, governance, law and regulation compliance, ethics, societal responsibilities and strategy implementation.

Strategic Objective:

Strategic Objective:

Measure and improve leadership and governance actions and results

Quality Objective:

Approved by: (Name), Chair, Leadership Focus Team (LFT)

Approved: MM-DDD-YY

Quality Objective:

Responsibility:

Lead: Leadership Focus Team (LFT-IT)  Support: Other focus teams, FAC

VALUE ADDED

  1. Provides Trend Chart for Baldrige 7.4 Leadership & Governance Results

  2. Supports Organization Performance Reviews and Action Plans

  3. Supports continuous improvement toward excellence of Results

  4. Ensures that the organization is focused on results

  5. Aligns results targets (goals) with all organization needs

  6. Facilitates Performance Reviews of Key Process Indicators (KPIs)

  7. Facilitates Continuous Improvements throughout the organization

  8. Improves decision making based on facts and trends

  9. Creates opportunities for Innovation to solve problems or improve performance in all areas of the organization

POLICY          7.4 COMMENTARY

7.4a(1) Leadership Results - The organization selects, measures and improves results for senior leaders communication and engagement with the workforce and customers. These results include key measures or indicators of senior leader's communication and engagement with the workforce and customers, to deploy the organization's VISION and VALUES, encourage two-way communication, and create a focus on action. The organization learns how these results differ by organizational units and customer groups and apply this learning to provide additional value to these organizational units and customer groups.

 

7.4a(2) Governance Results - The organization selects, measures and improves results for governance accountability, including key current findings and trends or indicators of governance and internal and external fiscal accountability, as appropriate. 

 

7.4a(3) Law and Regulation Results - The organization selects, measures and improves results for legal and regulatory results, including meeting or surpassing regulatory and legal requirements. The organization learns how these results differ by organizational units and customer groups and apply this learning to provide additional value to these organizational units and customer groups.

 

7.4a(4) Ethics Results - The organization selects, measures and improves results for ethical behavior, including breaches of ethical behavior, and stakeholder trust in the organization's senior leaders and governance.  The organization learns how these results differ by organizational units and apply this learning to provide additional value to these organizational units.

 

7.4a(5) Society Results - The organization selects, measures and improves results for societal responsibilities and support of key communities, including results for key measures or indicators of the fulfillment of societal responsibilities and support of key communities.

 

7.4b Strategy Implementation Results - The organization selects, measures and improves results for the achievement of the organizational strategy and action plans, including results for building and strengthening core competencies and for taking intelligent risks.

PROCESS

Process Flow Diagram for 7.4 

Process Chart for 7.1, 7.2, 7.3, 7.4 and 7.5 Results

Performance Management System (PMS) Requirements

Performance Measurement System Requirements

Performance Measurement System (PMS) - The Leadership Focus Team (LFT) acquires or licenses the Performance Measurement System (PMS) from a vendor unless the organization has its own PMS or a BI (business intelligence system, e.g., Microsoft Power BI).  

 

The OE21 PMS (spreadsheet model) has the following capabilities:

 

  • The number of Key Performance Indicators (KPIs) for each PMS Workbook is twenty (20) KPIs

  • Each of the four OE21 Focus Teams has their own PMS Workbook

  • Each OE21 Focus Team can create one or more copies of their PMS Workbook to increase the number of KPIs 

  • Trend Charts that track  up to 12 months of measures , targets, and two benchmark KPIs

  • Tracks measures input by week or month (measures by week are summarized by month)

  • Allow input of narrative Action Plans alongside each KPI trend chart

 

PMS Trend Charts - The OE21 PMS Trend Charts have the following characteristics:

 

  • A measure is color-coded (blue) with measure values overlaid

  • Measure trend is projected from measure forward (dotted line)

  • Target (black) is the goal that the measure should reach or exceed

  • Alpha (green) is a benchmark comparison of another organization

  • Bravo (red) is another benchmark comparison of another organization

  • Analysis Narrative is written by the owner of the measure (or assignee)

  • Action Plan Narrative is written by the owner of the measure (or assignee)

  • Name of person responsible for measure collection and validity is provided

 

OE21 PMS Files - There are four (4) OE21 PMS spreadsheet workbooks that may be used unless the organization has its own internal Performance Measurement System: 

 

Inputs to 7.4 Leadership and Governance Results

  • List of Key Competitors or Comparative Organizations (for selecting benchmarks for Trend Charts)

Measurement and Analysis Tools and Techniques

Outputs from 7.4 Leadership and Governance Results

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (with up to 20 Trend Charts, each including a measure, target, two competitor benchmarks and a brief action plan shown who will do what and when to drive measure to or beyond target value)

Case Study (not applicable)

7.4 Implementation Instructions

7.4 IMPLEMENTATION INSTRUCTIONS

 

Key Decision: The OE21 focus team responsible for this standard should begin by deciding whether or not the OE21 standard adds value (on is non-value added) when compared to any existing standard, SOP, or process the organization uses now. The decision process is:

 

1. The focus team studies all Tasks and tools used in the OE21 standard.

2. The focus team answers the questions:

  • NON-VALUE ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If YES, then the focus team should document that this standard is deemed as NVA, and then the focus team should proceed ahead to the next OE21 standard.

  • VALUE-ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If NO, then the focus team should proceed ahead to complete the following OE21 Implementation instructions.

 

Note: The NVA finding will be used later in the OE21 Certification Audit process.

START IMPLEMENTATION

Note: Implementation of 7.4 is led by the LFT-IT and supported by the other focus teams (CFT, OFT, and WFT). When complete, the 7.4 outputs are reviewed and approved by the LFT (CEO, CFO, etc.)

Task 7.4-1 Select Performance Measures - The Leadership Focus Team (LFT) selects performance measures for this category. Measures are selected based upon contribution to, review, and improvement of performance, in each of these results:

 

  • 7.4a(1) Leadership Results

  • 7.4a(2) Governance Results

  • 7.4a(3) Law and Regulation Results

  • 7.4a(4) Ethics Results

  • 7.4a(5) Society Results

  • 7.4b Strategy Implementation Results

The LFT uses the PMS Metrics Selection Tables in Figure 7.4-1 as a reference to help select measures and targets (goals) for the results items listed above.

 

NOTE 1: The PMS Metrics Selection Tables reference many of the Oe21 spreadsheet and survey models, which are a primary source of the performance measures selected for input into the Performance Measurement System (PMS). 

 

NOTE 2: As organizations mature and grow, they should consider licensing a good platform for their PMS needs, including Business Intelligence (BI) capability. The BI capability enables many additional analysis capabilities including the correlation of one data measure with others. The new BI systems (e.g. Microsoft PowerBI) also enable data connectivity and advanced charting and analysis of multiple types of performance measures.  

 

Figure 7.4-1 Metrics Tables for Leadership and Governance Results

Task 7.4.2 Select Performance Measures from Oe21 Spreadsheets & Surveys - The Leadership Focus Team (LFT) assigns the person(s) responsible for the collection of performance measures that originate from outputs of the Oe21 spreadsheets and surveys. Some of these outputs may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21.

 

Task 7.4.3 - Collect and analyze Comparative Data (competitor benchmarks) The Focus Teams select competitive or comparative organizations that are sources of benchmark comparative data and information. The benchmark data may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21. 

 

Task 7.4.4 Collect and Input Performance Measures into PMS (or BI system) - The Focus Team chairpersons determine who in each focus team are responsible for collecting and input of performance measures and comparative data into the PMS or BI systems used for performance measurement and review. Before each performance review, these responsible persons shall collect, verify and input all data and information into the PMS or BI system.

 

Task 7.4.5 Analyze measures and benchmarks, including correlation where appropriate - The Focus Team chairpersons determine who in each focus team are responsible for analysis of measures and benchmarks, including comparative data used for performance measurement and review. Before each performance review, these responsible persons shall perform analysis and where appropriate, correlation of measures and benchmarks. Example, use the Scatter Diagram tool to compare customer loss to service defect rates. 

 

Task 7.4.6 Create action plans to drive measured to or beyond target values - The Focus Team chairpersons determine who in each focus team are responsible for the creation of action plans used to explain how measures will be driven toward or beyond target values. Before each performance review, the action plans will be input and verified as accurate, timely and appropriate actions, including who will do what to achieve the desired target value. The action plan analysis narrative should explain the direction of the trend (upward, no change, or downward) and add useful statements regarding what happened to date and where the trend is projected to go in the future. 

 

Task 7.4.7 Use PMS or BI to review Performance Measures and Action Plans - The Leadership Focus Team (LFT) attends regular (monthly) reviews of the performance measures current values, trends, and projections of measures for selected performance measures in the PMS or BI platform systems. ​

 

Figure 7.4-2 is an example of a Trend Chart with Analysis and Action Plan input. 

 

The Action Plan review the Analysis and Action Plan narratives that help define what is going on with the trends, and what steps must be implemented to drive the measure to or beyond its Target value.

 

7.4 OUTPUTS

 

  • Performance Measures (Trend Charts)

  • Performance Measures Analysis Narrative

  • Performance Measures Action Plan Narrative

 

Figure 7.4-2 Trend Chart and Action Plan for Leadership and Governance Results (example)