What are Factors?
Factors are the objective measureables that drive successes and failures at each unique company role. They occur daily at every organization as employees interact and depend on each other to perform their job duties. Operating processes matter and deviations from them are important, that is why Factors are the building blocks of continuous performance management. Process failures affect everyone at a company over time.
In each role of a business, Factors are all around, and ever evolving. Therefore, you don’t have to identify them all at once. Simply identifying 5-10 Factors upfront is enough to implement this performance management tool.
To do this think about your role:
- What leads to success in my role?
- How are others dependent on my role in their job duties?
- How am I dependent on others for my job duties?
The answers to each of these questions are Factors that are directly linked to your success, as well as the successes of others that depend on you. Generating data and measuring these Factors as they occur will prevent the negative Factors and increase positive Factors. Need more help identifying Factors? Look at our one-page Implementation Questionnaire.
Factors are grouped together by ScoreCard Category, or the aspect of an organization that is to be measured. For example, Factors for a ScoreCard Category “Accounting” might be:
- Payroll not submitted on time
- Identified error during internal audit
- Clerical error entering account information
Each of these example Factors has a positive or negative impact on a company when they occur.
Like most facets of business, Factors evolve based on past, current, and future events and planning. Both the factors themselves and their assoicated value change realtive to history, goals, and expectations. As a manager becomes aware that “X” Factor is shaping business, one way or another, either the factor itself or the value can be changed to reflect its value or impact on desired outcomes.
Each Factor is valued independently of one another. Factor Value is commensurate with how much or little it positively or negatively impacts success within the associated ScoreCard Category. For Example, Factors within the ScoreCard Category “X Operations” might be:
1. Exceeded Monthly Goal – +15
2. Exceeded Daily Goal +1
While both of are positive factors, most would agree “Exceeding the Monthly Goal” has a greater impact than the daily goal.
Just as factors evolve, sometimes they are replaced or no longer impact success or failure within a ScoreCard Category. Some factors can be seasonal, or related to specific “things” that no longer exist, requiring a Factor by be inactivated. Factors can be made “Active” or “Inactive” in the Manage Factors tab. These can easily be left, inactive, or can be reactivated as business needs.
Stuck trying to identify Factors? Start by identifying ScoreCard Categories.
Each Factor is valued based on how an organization sees fit. This is based on the Factors’ relative importance to each other.
Evolve Over Time
Performance Scoring’s intuitive user interface makes adding, modifying or deleting Factors a simple process.