Metrics for Enterprise
Transformation
Craig D. Blackburn
(cdb@mit.edu)
How does your enterprise measure its
transformation progress?
How is Transformation defined in your
organization?
Researcher:
- “Too vaguely, sporadically, inconsistently. That said, we tend to
break our measurements into small pieces (like good Systems
Engineers) and never re-integrate back into a big picture.”
- “There are strategic level (enterprise) metrics at the top, then lower
level metrics. However, these metrics have no target goals and they
don’t align well at all.”
- “To change the process, culture, organizational mindset, and
values to improve the work output and value to the customer.”
-“A radical shift in individual and organizational behavior that is
driven by an urgent need to change (or reposition) an organization
for breakthrough performance or competitive advantage.”
What indicates that a transformation has
been complete?
Good leading/lagging indicators of enterprise
transformation success/failure?
- “There is never a moment when an organization is ‘transformed,’
per se; however, an organization will see signs of improvement
when a transcendent shift in organizational behavior begins to
manifest itself in a significant increase in customer and
stakeholder/shareholder satisfaction.”
Advisors:
LEADING: “Leadership involvement, employee understanding and
buy-in, linking compensation to organizational goals and
objectives.”
LAGGING: “Customer satisfaction, profitability. These tell you the
value streams are operating ‘well.’”
Prioritization of Enterprise Views (n=27)
Dr. Ricardo Valerdi
(rvalerdi@mit.edu)
Motivation for Transformation (n=25)
Importance of Factors in Motivating Transformation
Enterprise Views
(Error bars indicate the range between the 25th and 75th percentile)
Strategic
Value Threats
Knowledge
Prof. Deborah Nightingale
(dnight@mit.edu)
Views
Factor
Organization
• Identification of best practices and
heuristics for analyzing socio-technical
systems
• Cost/Benefit analysis for implementing
measurement frameworks
Research Methodology
Value Opportunities
Phase I: Literature review and prior
metrics research
Information
Product
Service
0
1
2
3
4
5
6
7
8
1.00
9
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Motivation from 1 to 5 (Very Low to Very High)
Importance (8 to 1, 8 is Represents the Most Important)
Success rate of enterprise transformations (n=20)
Sources of resistance to measurement (n=25)
Phase II: Pilot survey/interviews,
second hand case studies, and
identification of industry needs
Occurances of Objections to Measurement (1=Not Often, 5 = Very Often)
Phase III: One in-depth case study
Objections to Measurement
Resistance
Publications:
Valerdi, R., Nightingale, D.,
and Blackburn, C.,
“Enterprises as Systems:
Context, Boundaries, and
Practical Implications,” 6th
Annual Conference on
Systems Engineering
Research, Los Angeles, CA,
April 2008.
Blackburn, C., and Valerdi,
R., “Measuring Systems
Engineering Success:
Insights from Baseball,” 18th
Annual International
Symposium of INCOSE, the
Netherlands, June 2008.
– Culture & Organizational Inertia
– Leadership & Management Support
– Knowledge
– Total Employee Involvement
Value Crisis
Value Competition
The development of an
empirically-validated set
of leading and lagging
metrics that provides
insights on enterprise
transformation.
• Metrics that provide leading and lagging
information for enterprise transformations
• Analysis of relationships between
enablers and barriers to measuring
transformation within an enterprise
Process
Policy
Research
Contribution:
Expected Benefits to Industry
Phase IV: Survey administration &
development/refinement of
hypotheses and theories
Usefullness
Economic
Ethical
Interested In Participating?
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
Rating from 1 to 5 (Not Often to Very Often)
Research Timeline
LAI Metrics KEE
(Bethesda, MD)
Literature review
& prior metrics
research
Surveys/interviews,
identify issues &
industry needs
In-depth case study
Sep - Dec 07
Jan - Mar 08
Apr to Oct 08
Refine theories developed, smaller case
studies & verification of results
Oct 08 to May 09
On average, the
measurement
community measures
transformation 3
times/month & wants to
measure 8 times/month
(n=26)
Would your organization be willing to host
a case study? I am looking for
organizations wishing to better understand
their transformation journey from an
enterprise measurement perspective.