Is business now KPI mad? In fact are organisations KPI or metrics mad? Just finished reading ‘The Tyranny of Metrics‘ by Jerry Z. Muller. And it does give reason to think again about the curent obsession with KPIs and ‘if you can’t measure it you shouldn’t be going it’.
Muller provides a good background – why we have seen the focus on KPIs. And it’s not a new phenomenon. It seems attractive to professional managers – if we can figure out what’s important to the performance of the organisation or company why not measure that? To some extent the various reporting processes – annual inancial statements, monthly management accounts, variance analysis against budget and/or forecast – are all part of this measurement process.
Key performance indicators
Key Performance Indicators (KPIs) seem attractive – capture the essence of performance in a discrete set of numbers (preferably calculated automatically). But unfortunately some of this attraction is the weakness. Selecting a KPI which is calculable – but which may be too simple to measure what si actually a moe complex process. And lot’s of important activities may not lend themselves to trasditional KPIs at all.
Cross industry challenge
Muller does a good job of looking through different industries and sectors – be they health, policing, univestities, etc. Ineach case he points out eamples where the metric is not comprehensive or causes people to game the metric. Almost more worrying, he lists lots of exampels where the metric causes sub optimal behaviour.
Conclusion
So what’s the answer? Do we stop measuring – because it’s too hard, demotivates people, encourages the wrong behaviour. The balance of the book is so critical of metrics that one could find oneself headed that direction. I do not believe this is the intent – and I do not think it the right conclusion. Rather we need to review again the strategic and operational objectives (in a more holistic way) and determine whether there are appropriate measures in respect of each of these. We need metrics which will motivate performance in line with organisation or corporate objectives.
Just listening to Mark Little (founder of storyful) on the radio this morning talking about the difference between Great Managers and Great Leaders. Not sure what the source his commentary. Iw was along the following lines:
A great manager walk into a room and convince others that she is a great manager
A great leader walks into a room and convinces others that each of them is a great leader
Digital Transformation
Not too far off in this. Now think Digital Transformation. The need is change leadership more than change management. So we are seeking people (leaders) who can convince others of their ability to lead change. Then these leaders will leverage the opportunities presented by new digital platforms and solutions.
I gave up buying daily newspapers a number of years ago. I do, however, subscribe to the Financial Times and the Economist – reading one online (sometimes) and listening to the other (sometimes). We have the Irish Times delivered home on Saturday – but I do not read much (if any) of it. And for the last number of years I have bought the Sunday Times and the Sunday Business Post on Sundays. But, to be honest, find myself increasingly bored by both.
Problems with newspapers?
So, what’s the problem? Has the standard of journalism dropped so much that I am not interested? Has the content changed and become less relevant to mey tastes in news? Is my life too busy to find time to read a newspaper?
I think the biggest change is that no one else in the house is interested in reading newspapers – or, should I say, interested in waiting for the newspaper as a source of news. When I was growing up as a kid the newspaper made its way around the house – read by one, if not two parents, and different pieces were read by different kids (including myself). But now now – not in our house and not in many houses.
And whatever about paying more than €3 for a newspaper on Sunday which may make sense if read by three people not sure it represents great value if only read by one person. And there is no interaction with other household members re the Sunday paper – because they get their news elsewhere – and are online all the time.
I do not have any particular issue with the quality or content/ relevance of the newspapers. But I am inundated with other news – news sites, twitter, blogs,various aggregation sites – far more than I have time to process.
No longer setting the weekly agenda
There was a time when the Sunday newspapers were looking to set the agenda for the week – the breaking new stories which would play out over the following week. No longer any need for this – the news breaks real time all of the time.
Keep paying?
So why do I continue to pay for subscriptions to the Economist and the Financial Times? I think I am still convinced, just about, that the spend is worthwhile for the content. But it’s marginal.
Not sure the newspapers have done a lot wrong – but I think to remain relevant, they have to find a way to become part of the future social framework – which is real time, mobile and largely free.
Looks like the industry, the regulators, the public, science – all demand the availability of an Electronic Health Record. We work in an industry which is highly dependent on technology – be that radiology, robots, theatres, measuring and recording of vital indicators. Patients are all using very powerful technology (on their mobile phones and/or laptops) all day, every day – leveraging the latest in cloud, artificial intelligence and mobility.
Increasingly providers (hospitals) are faced with major investments to provide the required electronic health record – redesigning clinical and business processes, selecting and implementing complex and expensive information systems, hosting these systems in the cloud (or, for now, on premises), facilitating secure exchange of data between the hospital and patients, insurers, labs, collaborating doctors, regulators and others. And all the time being required to work within the context of legislation, including recent General Data Protection Regulation (‘GDPR’).
Who pays for, who owns the data?
Traditional thinking means that providers sometimes struggle to recognise that the data is really the patient’s data – even if the provider needs to make major investments to receive basic patient data, generate and record lots of data with respect to the treatment of the patient and provide this back to the patient (and her doctor as may be required). But I think we’re not far from the idea of patients choosing providers, making data available to providers on a temporary basis, updating the data with data from the provider and then taking the data with them (potentially not leaving a copy with the provider).
So, if that is the model, how do hospitals make the investment pay?
Well, in the first instance, hospitals may not be able to play at all without the investment. Perhaps, also, we should see all of this as more of an ongoing opex cost that the traditional capex investment followed by annual support cost. This may at least provide hospitals with the opportunity to match the opex cost with the number of patients being treated.
If the model is ‘provision of affordable private healthcare’ then the spend will be justified – but it must lead to economies in many areas of operation for each hospital e.g. capture of data once, effective integration of systems (eliminate rekeying and risk of associated errors), streamlined processes in interactions with patients, improved management of supply chain, etc.
Inevitably the technology will impact patient care (before, during and after hospital admission) , interactions between consultants, GPs, patients and hospitals, commercials between payors and payees. We may also see, in the medium term, changes in the ‘relationships’/ ‘partnerships’ – between GPs and consultants, consultants and hospitals, patients and consultants/ GPs and patients and hospitals.
Achieving an ROI on EHR investment
The return on investment requires that the additional costs (be they incremental capital or operating costs) will be offset by a combination of additional revenues and reduced costs of production. This will most likely result in redeployment of some current resources – as technology driven solutions obviate the requirement for basic transcription, constant monitoring of devices, labour intensive accounting and administrative tasks.
The outlook should be very positive – any change whereby error prone and repetitive tasks can be automated should be a good thing. Likewise artificial intelligence should assist in diagnostics. Virtual reality offers opportunities for training. And oll of the changes will provide improved opportunities for collaboration and communication between patients and their doctors and hospitals. But it would be foolish tno to anticipate the likely initially negative impact on productivity and profitability when implementing these changes (many of the best people will need to be freed up to lead digital transformation type activity).
Day 4 M2M – Legs a little more tired and 2nd longest day of cycling – knowing that the spin would finish with a climb over Molls’ Gap in Killarney National Park. Weather was good from the get go – if a little overcast.
The first target was to make sure that all cyclists made the 11am ferry at Killimer (across to Tarbert). We had a quick stop for a coffee on the road at
Coffee at Creegh
Creegh and got to Killimer in good time for a quick coffee & scone.
Jumped off the ferry on the other side at Tarbert and we headed for Abbeyfeale in Co. Limerick. We had lunch at Abbeyfeale GAA Club – which is actually located in Co. Kerry – although the Club plays in the Limerick Championship. More excellent soup and sandwiches.
That was followed by possibly the hardest drag of the trip – up out of Abbeyfeale. By now also now very conscious of the increasing road traffic for the bank holiday weekend. We pushed on to Faranfore for a ’99’. Then on towards Killarney and the mad bank holiday weekend traffic.
We made our way through and started the ascent of Moll’s Gap – with a breather at Ladies’ View. And then on to the Gap itself.
Ladies at Ladies’ View
Weather closed in on the ascent – making for a trickier descent on the far side into Kenmare. We parked up the bikes there – and were bussed to Glengariff – where we spent the night (no change of getting accomodation for 80+people in Kenmare that night).
Toughest day of the trip to date – but everyone made it: and looking forward to the final day (Kenmare to Mizen Head).
Day 3 of M2M – back to beautiful sunshine – as we cycled from Claremorris (Co. Mayo) to Lahinch (Co. Clare). First stop was Tuam for a coffee, followed by soup and sandwiches in Kilcolgan.
And then we headed West and towards the coast – Kinvara, on to Ballyvaughan and down via the Cliffs of Moher. Should not forget to mention Corkscrew Hill – a good test of all the training.
Arrived into Lahinch in time for a quick dip in the Atlantic before dinner.
Very different start for Day 2 of M2M 2018 at Ballybofey after a 6.30 breakfast. Bright sunshine of Wednesday replaced by high humidity, clouds and rain. Clib out of Ballybofey to top of Barnsmore gap – followed by a speedy trip through the gap. Rained on and off until lunch time. No real view of Benbulben as we passed through Yeats country. But all groups made great progress and we all met up for lunch in Collooney just beyond Sligo. Top class sandwiches and soup dispatched by everyone.
soup, sandwiches a chance to dry out
Weather cleared up for afternoon cycle – via Tobercurry, Charlestown and Knock on to Claremorris. Couple of tough drags late in the day – but all safely through and 168km done on day 2.
Excellent dinner in McWilliams Hotel and early to bed. Looking forward to Friday’s trip to Lahinch.
If you want to support our fundraising activities for Breast Cancer Ireland please go to: https://the-nissan-m2m-challenge-2018.everydayhero.com/ie/nissan-m2m-team – and select one of the team members.
Day 1 – M2M went very well as we made our way from Malin Head to Ballybofey. Brilliant sunshine all day. All 73 cyclists completed the first leg (97km) without any real issues. Early start from Dublin – yours truly arrived last minute. Some initial minor transport delays – made up for by smart routing and excellent driving. Breakfast at 11am in Derry and all at Malin Head in good time to have setoff by 1pm.
Our subgroup just before leaving Malin Head
Short break in Buncrana on way to Ballybofey – where we had dinner and an early night. Weather expected to be warm but some showers possible tomorrow. Tomorrow’s route is 168km and takes us through Yeats country on the way to Claremorris.
On Wednesday 30th May am setting out with 72 other cyclists from Kilmacud Crokes – raising money for Breast Cancer Ireland. We take a bus from the Club in Dublin to Malin Head
Malin HEad, Co. Donegal
– one of the most northerly points of County Donegal. And we will cycle – over 5 days – from there to Mizen Head – one of the most southerly points in Co. Cork.
For some of the cyclists this is their fourth time doing the cycle – for me – my second time.
The funds raised are split 50/50 between Breast Cancer Ireland and the Development fund within Kilmacud Crokes. Last time out we raised just over €100k – but this time we would like to break €150k.
Big operation – transporting 73 bikes, backup team of 4 minibuses, 4 motorcyclists – 12 backup people in total. Accomodation in 5 different locations, breakfasts, lunches and dinners – with the odd coffee stop.
But breast cancer is a curse – and we are doing something to assist in fighting this disease. And we all know people close to us who have been impacted – or are being impacted – by breast cancer.
And what a feeling 2 years ago when we got to Malin Head (having started then at Mizen). the whole team lined out on the road to welcome home the last of our cyclists.
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And then we headed West and towards the coast – Kinvara, on to Ballyvaughan and down via the Cliffs of Moher. Should not forget to mention Corkscrew Hill – a good test of all the training.
