Some things are easily measured – speed, temperature and volume, for example. Others are not so easy. Take for example the performance potential of an organisation, business unit or team.
Even if there was a way to measure potential, how would the result be expressed? After all, there is no standard unit of measurement – no equivalent of km/hr, kilogrammes, litres to measure potential! Well, that was until the P2P Metric™ was created.
Measuring Potential, scientifically
Some business units or teams are capable of more than others, but exactly how to measure that potential?
Sure you can use your instinct guided by past performance, but there is a more scientific way. That is the P2P Metric™.
The diagram shows the relative P2P Metrics™ for 5 functions and 4 regions within a global corporation. Clearly, some of these units have more potential than others.
Potential: Unit of Measurement
The P2P Metric™ is the equivalent of degrees Fahrenheit, only it is a scientific measure of potential rather than temperature.
Measured on a scale from 0 to 100% where 100% is the full potential, the P2P Metric™ is the ratio of performance to potential of an organization, business unit or team.
It is the mathematical answer to the BIG question based on data captured by Pitstop Analytics™ from your team.
Data-driven analysis of potential
When it comes to performance everybody has an opinion. But few have performance data to back it up.
To scientifically determine the % of your organization or teams full potential presently being exploited requires objective data and lots of it.
Calculating the P2P Metric™ requires BIG data analytics via Pitstop Analytics™.
The Case for Measurement & Data
Imagine a team of race engineers standing track-side. All thought the car could go faster. But just how much faster? Some said 20% faster, others said 60%. They could not agree.
So who should the driver listen to? More importantly, what exactly should happen during the pitstop – a change of tires, adjustment to the nose cone, etc? If the diagnosis of performance and potential is uncertain, the strategy will be uncertain too.
This sounds like a crazy scenario, but it replicates itself everyday within organizations. Of course it couldn’t happen in F1™ where data is king.
Why You Need the P2P Metric™
What gets measured gets managed and of all things that should include performance. So a metric that tracks the performance of business units, departments and teams is key.
The P2P Metric™ is like an organization’s Net Promoter Score* or the Unemployment Rate for an economy.
It is a yardstick against which organization, team and people performance can be measured, adjusted and monitored over time – one that enables internal and external comparison too.
The P2P Metric™ must be based on fact, rather than feeling, while at the same time taking account of the so called ‘fluffy’ stuff such as organizational culture.
That the P2P Metric™ measures performance against potential is important. This helps ensure that the debate about performance is future-focused, realistic and positive.
How effectively a team can dialog its P2P Metric™ and what, if anything, happens as a result, reveals a lot about its psychology or mindset, even its cohesiveness and alignment.
*Net Promoter Score is a registered trademark of Satmetrix