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This is the seventh in a series of articles on projects. In earlier articles, we learned the impact of maintenance projects that are not done right, how to estimate project costs, how to estimate the benefits of projects, how to evaluate projects, and aligning maintenance strategies to the organization.
In my previous article, we looked at organizational strategies and their impact. This time, we will look at performance measures and how they relate to strategy.
Effective performance measures should drive the behaviours necessary to make changes to continuously improve organizational performance. Performance measures need to support the organizational strategy. They should provide information for analysis on where improvement needs to be made, and should help manage organizational risk.
Effective performance measures communicate what is important to the organization. If the organization is prepared to invest the time and resources - especially those of senior management - to measure specific performance, then the endeavour will likely be viewed as important to the organization (e.g. What interests my boss fascinates me too'). If the performance measures do not drive change, then they may not be worth the time and resources invested.
The performance measures themselves provide an indication of performance and can indicate where further investigation is required to understand the underlying reasons for the current performance. For example, if there is a change in OEE...