4.3 Performance & Impact

Performance management must be objective, quantifiable, and tied directly to the organization's mission. It measures measurable output (what was delivered) and outcome (the impact of that delivery), rather than subjective effort or activity. A robust system employs a mix of Individual, Team, and Organizational metrics to align day-to-day work with business goals.

Measurement Framework: Output vs. Outcome

Performance is assessed on a dual axis to ensure that efficiency does not compromise effectiveness.

Output (Operational Efficiency)

Focuses on the volume, speed, and compliance of the work delivered.

• KPIs (Factory/Shift): Throughput (Units/Hour), OEE (Overall Equipment Effectiveness) measured per Shift or Work Cell to identify local bottlenecks.
• KPIs (Individual/Team): Tasks completed vs. planned velocity, code review turnaround (Software), drawings released on time (Mechanical).

Outcome (Strategic Impact)

Focuses on the value, reliability, and financial health generated by the work.

• KPIs (Quality): FPY/RTY (Yield), CoPQ (Cost of Poor Quality), Improvement in Cpk for critical processes.
• KPIs (Customer): NPS (Net Promoter Score), successful closure of CAPA tickets, meeting or exceeding customer specifications (Project Success).

Role and Level-Specific Performance Metrics

Different functions require distinct yardsticks. Critical engineering roles often rely on Group KPIs to foster collaboration, while Operations requires granular tracking by Shift or Cell.

The Assessment Protocol

Reviews must be structured, data-driven, and focused on future improvement rather than past blame.

Project Completion Review

At the close of a major project or milestone, performance is graded against the initial baseline:

1. Regular Result: Met all defined requirements (Time, Budget, Spec).
2. Outstanding Result: Exceeded expectations (e.g., delivered early, under budget, or with higher performance) in a way that added tangible business value.
3. Below Expectation: Failed to meet one or more critical constraints; triggers a Root Cause Analysis (RCA).

The Blameless Feedback Loop

• Principle: Performance reviews must focus on actionable improvement areas and the systemic support required to achieve them.
• Method: Separate the person from the problem. "The project was late because the resource plan was inaccurate" (Systemic) vs. "You were slow" (Personal).
• Frequency: Formal reviews occur annually for compensation adjustment, but mandatory informal check-ins must occur quarterly to prevent surprises and allow for course correction.

Final Checklist