Analysis:
Linking Performance Drivers to Results
Until you establish which performance drivers are responsible for
successful outcomes in each situation, you can't do much with your information. If you
want to repeat the program in slightly different circumstances, you have no way of knowing
whether the differences are crucial to the results you can obtain. Linking performance
drivers to results requires both an adequate number of program implementations under a
variety of circumstances and the analytical tools to quantitatively associate performance
drivers with results.
Many drivers will be relatively unimportant (but not always!), leaving
only a few in control over what happens. How do you identify drivers in each situation?
Years of broad-based experience, learning from lots of mistakes, and a systematic way of
looking at situations. Our approach here is based on the powerful "system
dynamics" methodology developed by Professor Jay W. Forrester of MIT in the 1960's.
Once you have identified potentially important performance drivers in each
situation, you can employ statistical and modeling techniques to assess relationships.
Statistical techniques typically establish only associations, not causality. Because
modeling can establish causal relationships, we tend to rely more heavily on modeling
approaches.
The goal here is to identify the subset of performance drivers in
each situation that are most important in generating the results you see.
There is one last step in transforming these critical pieces of
information into knowledge that you can apply in new
situations and that is transferable to others: understanding
why and how the drivers produce the results.
Developing and Transferring Knowledge
Only in very simple situations is it easy to see why and how certain
performance drivers impact the situation and produce the observed outcomes. In many cases,
the outcomes are counterintuitive, a characteristic of many complex systems. Often the
most difficult and demanding part of this process is the last step understanding
enough about what is going on to be able to achieve successful outcomes in new situations.
If you cannot do this, you cannot use your knowledge or make it possible for others to use
it.
If knowledge cannot be used and transferred, it is really not
knowledge just more information.
Understanding complex situations and linkages is what we do. It requires
an exceptionally broad background, long experience, and expertise in many areas of
management and business activity. Even then, you cannot always get it right on the first
try. So much knowledge is the result of many iterations of understanding and applying that
understanding. Making mistakes is fundamental to learning; making low risk mistakes is how
we prefer to learn.

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