Utility Measures – Approaching Measurement

There are two general approaches to performance measurement.

Internal performance measurement, which is the focus of the interactive Primer, involves evaluating current internal utility performance status and trends. It can also include comparison of outcomes or outputs relative to goals, objectives, baseline status, targets, and standards.

Benchmarking—which is not the focus here—is the overt comparison of similar measures or processes across organizations to identify best practices, set improvement targets, and measure progress within or sometimes across sectors. A utility may decide to engage in benchmarking for its own internal purposes or in a coordinated fashion with others.

While performance measures should be tailored to the specific needs of your utility, the following guidelines can help you identify useful measures and apply them effectively.

• Select measures that support the organization’s strategic objectives, mission, and vision, as well as the ten Attributes.
• Select the right number, level, and type of measures for your organization. Consider how measures can be integrated as a cohesive group (e.g., start with a small set of measures across broad categories and increase number and specificity over time as needed), and consider measures that can be used by different audiences within the organization.
• Measuring performance will not necessarily require additional staff, but will require resources. Allocate adequate resources to get the effort off to a good start, and fine tune over time to balance the level of measurement effort with+ the benefit to the organization.
• Develop clear, consistent definitions for each measure. Identify who is responsible for collecting the data, and how the data will be tracked and reported.
• Engage the organization at all levels in developing, tracking, and reporting measures, but also assign someone in the organization the role of championing and coordinating the effort.
• Set targets rationally, based on criteria such as customer expectations, improvement over previous years, industry performance, or other appropriate comparisons. Tie targets to improving performance in the Attributes.
• Select and use measures in a positive way to improve decision making, clarify expectations, and focus attention, not just to monitor, report, and control.
• When selecting measures, consider how they relate to one another. Look for cause-and-effect relationships; for example, how improvements in product quality could result in increased customer satisfaction.
• Develop an effective process to evaluate and respond to results. Identify how, when, and to whom you will communicate results.
• Incorporate the “Plan-Do-Check-Act” cycle approach into evaluating both the specific measures and the system as a whole. Regularly review the performance measurement system for opportunities to improve.

…and remember to celebrate your measured and documented successes!

Additional resources on performance measures can be found in the EUM Resource Toolbox.

Attribute Related Measures: