DEVELOPMEN GUIDEBOOK A

Transcription

1 DEVELOPMEN GUIDEBOOK A

2 DEVELOPMENT GUIDEBOOK MALAYSIA PRODUCTIVITY CORPORATION Lorong Produktiviti. Ofl John Sultan, Petallng Jaya, Selangor Darul Ehsan,Malaysia Tel: , , Fox: , , Toll Free: rlghts reserved part of this publicanon may be reproduced, stored in a retrieval system or transmittea * h any form or anv means electronics, mechanical, phot0codylng. recordhg or ofherwae..'*out prior permission of the Malaysia Productivity Corporation. :I lmer I Development Guidebook has been prepared by Malaysla Productivln/ CorDoration from sources believed to be reliable but no resoonsib~l~tv Is acceoted by ~aiqsla Productivity Corporotion. ~ts employees, consuirants, contractors andlo, agent's In relatlon to the outhentlcily origln. val~dlty accuracy or complerenesr of. or for any errors In or omissons from, the lnformot~on. statements forecasts, misstatement of facts. qq9nlons and comments conta~ned hereln.

3 I e leading organisation in productivity enhancement for global competitiveness and innovation. To deliver high impact services towards achieving performance excellence through innovation for the betterment of life. Providing value-added information on productivity. quality, competitiveness and best practices through research activities and databases: Developing human capital and organisational excellence for building a knowledge-based society through training, systems development and best practices; and Nurturing Innovative and creative culture through P&Q promotion and partnership programmes.

4 to succees of a buslneas or on drgonlsotlon Is on goad managemant Informotlon whlch allow6 Ion to monk ond evaluate the pro~tees they whether we ore h the private or publlc sectas, ore concerned with our performance. for the outcame is o rcrnylw cry that hos taken mrm. Olganlsatlons acm the notlon ore rn just seelng themselvee as atxountable for mrrylnp out actlvitlee to belng respondble far - meeflng gmk furtlllng the objecbes, and u~ty ai their senrms, h m Ideal world, arganlmtlotw would all hove vlslon, rnk&n jipak and objectlm, Flowlng from thaw would be the ;. iwganbation's Key Performance Indlmtars (KPls). the measures by whlch the organlmtlon knows whether It Is wccs&ul or not. KPls Is one important too! both for translating rtrategy (vlslon and mlsslon) Into octh and far manltorhg pro~m at a drateglc level. When an outcome Is monstosed. and trended with a KPI. the resu#ng flgure tells you the process performance effecthrenesa. ; mb KPI Devetapment Guidebook 1s a pocketshed book that, oontalns lnformotlon to osslst organlbatlon with the r knplernentaticm of thelr KPls. It offers reasons for develqlng a I KPI, a descrlptlon d the key components and step-by-step guidelines In developing the KPI. as well os monaglng me 1 Km. It pnvicies am samples of organhmn PI, tx a reference far the reader. It MPC hapes that thk Guldebdok wlll asskt qwtlty pructltloner ond company executive In dweloplng right KPls for thelr

5 3.1 What are KPk 3.2 The Aclvantages of KPls 3.3 General Prlnclples Regarding the KPls 3.4 Performance Management Dashboards and Scorecards 3.5 Gettlng It Right the Flrst Tlme 8.6 Summary d the Key hints Developing the KPls 4.1 Step By Step Approach KPI Samples: From CSF to KPls

6 1.1 Overview What Is Performance Measurement? Why Measure Orgar&satlonal Performance What Constitutes a G od Performonce 8 Measurement System? 1.5 Are Public and Prhrote Sectors' Performance 9 Measurement Dlffemt? 2.1 Why Do We Need to ldentlfy Critical Success 10 Foctorr (CSFs)? 2.2 How Do Qrganlsatlon Express Their Alms? Whot are CSFs? 11 2,4 How to Develop CSF5 from the V~ton/Mlslon Summory- Step In Developing the CSs 15

7 at 0 n E b m INTRODUCTION TO The KPI Concept and Performance Measurement 1.1 Overview 1.11 Is the concept of assessment or performance measurement new? Assessment of service delivery is not new, but linking the measures or indicators to the programme mission, setting performance targets and regularly reporting on the outcome of performance against targeted levels are new features in the assessment methodology or performance measurement movement. which are sweeping across the private and public sectors in Malaysia, 1.2 What Is Performance Measurement'? Essentially, performance measurement analyses the success of a work group, programme, or organisation's efforts by comparing data on what actually happened to what was planned or intended. Performance measurement asks "Is progress being made toward desired goals? Are appropriate activities being undertaken to promote achieving those goals? Are there problem areas that need attention?" in other words, performance meosurement is the selection and 1 quantitative measures ot capacities, processes, and oukorneo to ueve~op information about critical aspects of activities, including their effect on the public.

8 re OrganMonal Performance? By tracking performance. organisation d promptly address-problems such as customer loyalty, flattenlng profits, or agalnst their rivals' and against Industry they can identify weak areas and address pen their compet~tivedge. How Well Are We Doing? Are We Meeting Our Gods? Are Ow Customers Satisfled7 Are Our Processes In Statlstlcal Contrd? Where Do We Need To Improve? Where Do We Stand In Cornporison To Our Goak And Objectives? Where Do We Stcn-~Y In Comparlson To Our

9 I 1,4 What Conornutoo a Good Performance Meaouremont System7 n Good performance measurement systems usually demonstrate balance. They assess not just flnanclal performances (such as revenues, expenses, and profits) but also non-financial performances (for example, employee knowledge. information system availability, and quality of customer relationships). They examine lagging (backward-looklng) indicators and leading (forward-looking) indlcators. For Instance, sales figures show you what your company has achieved in the past thus a lagglng indicator. By contrast, customer-satisfaction ratings suggest how your customers may behave In the future: thus a leading indicator. They weigh both subjective (difficult to quantify) aspects of performance (such as customer satisfaction and employee capabilities) and objective (easy to quantify) aspects (for example, revenues and returns on invested capital), - Customer "To ochieve our vbon, how shauld we owmar to our curtomerr?" nnonclal '70 RlCceed financially. how should we appear to om shareholders?' "TO achleue cu virion, how wil we surtaln our mm*, to change and improve9

10 1 ~rarnework Typically, performance mvasuremenl will provide a perspeclive lo translate strategy inlo operational terms. Effective perlormance measurement provider a comprehenslve range of information wilh which an organisolion can gouge ils nn.h.monra - I 1.5 Are Public and Private Sectors' Performance Measurement Different? easuring performance in public service is different from measuring performance in private enterprises in some ways. but not In many. And the differences can be measured in degrees, not leaps. The surprising truth is, there are components of performance rneosurement - includmg strategies for developlng and I trnplementing a performance measurement process and borrlers to makmg both happen - that are so fundamental mot It simply does not matter what the settmg is worklng In government or the private sector; running a job trarn~ng mramme; operating a hospital; building airplanes; or pmvkllng immunisations Performance Measure Should Help Us Decide: Ate We Doing mings Right? Business Planning (How?) Are We Doing Right mings? Business Planning (What?) 4. I, ,... :; _ -... ::::::::I wt#: Resources, including cost and workforce Activities, efforts, workflow Wput: Products and services produced -: Results, accomplishments, impacts Performanc Measures - -

11 UNDERSTANDING 5 Critical Success Factors $Q -t matters can compete for our attention in to see the "forest for the extremely difficult to get tn the same dlrection and,- -- CIFs are the essential areas of well if you are to achieve Kw your business or project, 'ylou eon create a common point of rect and measure the success of your As a common point of reference, CSFs help everyone in the team to know exactly what is most important. And this helps people perform their own work in the right context and so pull together towards the same overall aims. 2.2 How Do Organisatlons Express Their Aims? It is useful to understand that at least 3 levels can be distinguished to express the aims of any organisation: VlrlonIMlrrlon. An expression of the basic reason why the organisation was established and continues to exist.

12 Shat.glc Oaalt. Faced with the internal and external circumstances that an organisat~on must deal with in the next years: what should be the focus of the organisation so that it can successfully pursue Its vision. Such goals are identified by various techniques available in strategic analysis. 0bJ.ctiv.r. Strategic goals are by their very nature hlgh level expressions. blg ideas. These goals must be translated into something more concrete and specific, so that tactical plans can be devised or budgeted, responsibilities assigned and measurements made. Therefore the strategic goals are anaiysed to determine the Factors that affect their achievement. combined, the 3 levels form the basis of a anisation Plan. In real life. things may not fall very levels. However, the implication here is that of a aims, from the quite vague and ambitious down very concrete and measurable. The concept of used throughout the hierarchy. of CSFs was first presented by D. Ronald Daniel in. It was then built on and popularised a decade John F, Rockart, of MIT's Sloan School of as since been used extensively to help s implement their strategies and projects.

13 u I Rockart defined CSFs as: "The limited number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the organisation. They are the few key areas where things must go right for the business to flourish. If results in these areas are not adequate, the organlsatlon's efforts for the period will be less than desired." He also concluded that CSFs are "areas of activities that should receive constant and careful attention from management." 2.4 How to Develop CSFs from the Vlslon/Mlsslon CSFs are best understood by way of an illustration. Consider a produce store "Sure Fresh". whose mission is: "To become the number one farm fresh store In Malaysia by selling the highest quallty, freshest farm produce, from farm to customer within 24 hours on 85% of our range of products and with 99% customer satisfaction." The strategic objectives of Sure Fresh are to: Gain local market share of 35%. Achieve delivery of farm fresh supplies, from "farm to customer" within 24 hours for 85% of their range of products, Sustain a customer satisfaction rate of 99%. Expand product range to attract more customers. Have sufficient store space to accommodate the range of products that customers want.

14 W to fdentify possible CSFs, we must examme the and objectives and identify which areas of me need attention so that the mission and objectkres We can start by brainstorming what the t be (these are the "Possible" CSFs) I Gain local market share of Candidate CSFs * Increase competitiveness versus other local stores Attract new customers Achieve delivery of brm Sustain st fresh supplies from 'farm to relafionships with local customer" within 24 hours for suppliers 85% of oroducts L Main a & m r * Retain staff afmjl itisfderon rate of 99% malntaln customerfocusgd tralnk-rg Extend store s~ace to 1 Secure financing for a~~omm~dote new expansion products and customers Manage building work and any disruption to the business I & have a list ot Cand~date CSk Ws tlme to conncier ~s&mlutely essential and so identify the true CSFs rsb la certainly the case for Sure Fresh One CSF that we tj' from the candidate list is "Sustaln c~lccessful wlps with local suppliers." This is absolutely emmral to b.freshness and to source new products.

15 C! - Another CSF is to attract new customers. Without new customers, the store will be unable to expand and to increase market share. 8 A third CSF is financing for expansion. The store's objectives cannot be met without the funds to invest in expanding the store space. Y MISSION, CSF AND GOAL FOR SURE FRESH To become me num~er.ith 1~~01 Wpph one form fresh store in GOAL: Gain local market share of 35%. Achieve fresh supplies, from *farm to customer" in 24 hours for 85% of products. Sustain a customer satisfaction rate of 99%. Expand product range to attract more customers, Have sufficient store space to accommodate the range of products that customers want. 'ips: How Many CSFs Should There Be? I Once there Is a clarity of the 'Vision'. 3-5 strategic goals should be! enough lo focus the organlsatlon's efforts durlng the forthcoming 3-5 year ' perlod. However the Balanced Scorecard technique, suggests 3-5 goals per focus area. Each Goal, as we have seen, should be broken down into a number of Factors, perhaps agaln 3-5, that affect the Goal. This would give. Iheoretlcally. between 9 and 25 Factors that the organisation should 1 consider lo be the CSFs. There should not be too many goals (locus is lost and responsibility is hard to identify). Nor should there be loo many factors (it moy be difficult to measure and take effective action to 1 remedy problems).

16 BummarySteps h Developing the CSFs, identifying your CSFs is a very Iterative process. Your the summary steps that, If used Iteratively. will help fy the CSFs for your business, organisation or project: s to the question are your candidate CSFs. Industry - these tactors result lrom specilic industry characferistics. These are the things thal the organisation must do to remain compelitive.. Environmenlal - these tactors result lrom macro-environmental influences on an organloallon. Things llke the business chmate,. the economy. competitors and technologlcol advancements are included in this category. Strategic - these factors result from the specillc competitive '. strategy chosen by the organisation. The way in which the. company chooses to positton Ihemselves, market themselves, whether they are high volume low cost or low volume high cost producers and etc. Temporal - ' these factors resulf from the organiration'r internal will determine these CSFs.

17 .ier/aluate candidate CSFs. you may trategic objectives or more detailed may need to define your misslon. Fwr: Identify how you will monitor and measure each of ffre CSFs. Step Five: Communicate your CSFs along with the other ~mportant elements of your buslness or project's strategy. Step Six: Keep monitoring and re-evaluating your CSFs to ensure you keep moving towards your alms. Indeed, whilst CSFs are sometimes less tangible than measurable goals, it is useful to identify as specifically as posslble how you can measure or monitor each one.

18 Performance Indicators (KPls) What are KPls the organisation, business unit or ainst predefined goals and targets. What do we want to be in the future? How do we Intend to accomplish What must we complete to move forward? Whcrt areas must we focus on to achieve our vision? Key Performance Indicators What are our metric indicators of success? Wha-t action programmes will achleve our performance goals? Pls selected must reflect the organisation's goals. They be keys to its success, and need to be measured.

19 for instance being the most Strategic Objective A one-to-many relationship (e.g, one goal may have many strategies) A one-to-one relationship (e.g. one measure has one Tlps: Number of KPls A8 we am aware Mat many Mlngs are measurable but do not make Mem key to the wganisaiion's succeu. In selecting KPls, If is crltical lo limn them to #how factor8 that are ensenhal to the organisations reaching their goals. It is also important to keep the number of KPls small just to keep everyone's attention focus on achievlng the same KPls. KPls should preferably meet the following essential criteria: Be direct (no complex calculations) Be objective Beadequate Be quantitative Be practical

20 lips: Lead and Lag Indicators KPls are basically classified Into two categories: Lead lndicators and Lag Indicators. However, lag Indicators should rarely be considered as a real KPI as the benelit of KPI is to adlust processes and behaviour to get better performance. KPls that measure CUffent performance are more uselul. Examples include today's licenses I issued. sales or production level. I,'

21 a This Is so because a KPI may meet the criteria of reflecting the organisational goal, which may for instance being the most 3 popular company. However. slnce a company's popularity f cannot be measured or compared to others, therefore the KPI would be useless. A one-to-manv relatlonshlp (e.g. one goal may have many strateaies) A one-to-one relationship (e.g. one measure has one target) Tlps: humoer of KPls A8 we am aware Mat many mlnga are measurable but do no1 make them key to the organisation's success. In selecting KPls, it is critical to limit them to those lacfors that ore essenttol to the organisotlons reaching their goals. It Is also important to keep the number of KPls small just to keep everyone's attention focus on achieving the same YPk KPls should preferably meet the followlng essential crlterla: Be direct (no complex calculations) Be objective Be adequate Be quantitative Be practical

22 I Tips: Lead and Lag Indicators KPls are basically classified into two COtegOrles: Lead lndicators and Lag indlcatorr. However, lag indicators should rarely be considered as a real KPI as the benefit of KPI Is to adjust processes and behaviour to get better performance. KPIs that measure current pertormance are more uselut. Examples Include today's licenses issued, sales or pmducron level.

23 a 1 budget and time to market. Each strategic focus has KPls that are beneficial specifically to that type of focus. Outcome (Lag) ~earurer Purpore FOCW on the performance resub at the end of a time pem or activity Examples 'war-end-sdes' 'market shore' 'yietd' SWenglhs Usually oqective and costly captured Issues Outcome measures reflect success of past. not current, octivitles and declslon6. vmer wewl meaower Pulpore Measure Intwmedlate processes acthrltles, and behavlours Examples 'howr apent with customers " rn 'revenue mlx' Stmngfhs More predlctlve In nature Albw ~nlsdlorw to adjust behwlwrs for performance l~ues lased on hypotheses 01 stroteglc "cause and effect' rn Often difficult to collect supporting data Serves as a conduit of performance information Working without feedback can be like bowling behind a curtain with no electronic scoreboard to tell you how many pins you have knocked down. The KPI system is intended to prevent a similar situation in the workplace.

24 process makes performance discussions ce. not a once a year report card. This is its recommendations for interim and Is, and Its emphasis on using the performance n times to discuss barriers you are experiencing ng the achievement of the organisation's ention can be given to their removal. When s identify strengths and areas for development s provides specific performance feedback on expectations as well as our ability to meet oals that we have set. rs at all levels in an organisation can track key lndlcators to assess how well their groups are ir business objectives. whether performance is or declining, and how their group's performance with that of other units or groups within the and with rival organlsations. Tlpr: KPls Can Shed the Light tor Us!! Conrider Men: A curlomar nnlce manager tracks customer rewlce quallty uslng WNWl. If IhO SUNOW SUggerl lbat WWke qwllw I8 drapplng, he m~ght need to add more account representatives to improve rervlce levels. A benefits adminlslrator monitors how manv claims her arou~ has processed during the current year, and compares it with tgeen&nber processed in the previous year. An Increase, for example, may SJQQ~S~ it is time b Invest In new benefits software thot con speea up claims processing.. A human resources staff calculates the percentage of employees who actually attend voluntaty training programmes offered by the company, and compares the result against the targeted percentage. A droo mav lndlcate the oroaramme Is unsuccessful and can orornot an inqu~ry io find o ~t why-possibly raving the company tnousands of dollars In Ineffective training programmer A cornmunlcatlons expert revlews employee survey results to find out whether workers understand the company's corporate strategy. Lack of understanding may suggest Ihe need for clearer presentations on stralegy by the company's CEO and olher executives or the need to reach employees through different channels.

25 General Rlnclples Regarding the KPla Some general principles regarding the KPls should be taken into consideration during their application: They should be seen within their local context and have more meaning as a comparison over time than as a comparison between organisations. Once again. a set of performance indlcators should be balanced. For example, measures of efficiency should be set against measures of effectiveness and measures of cost against quality and others. After being proposed and applied. KPls should be reviewed and updated The targeted performance description, which is described in measurable terms through the KPls, must be deployed to the organisationai level that has the authority and knowledge to take the necessary action. Every initial proposal for KPls is expected to be imperfect. However, it is important for the organisations to understand and apply the appropriate KPls so that, they can develop some experlence in using them. from I which they can derive real expertise. I Tipsl For eaoh CSF there must be at least one Measurement (KPI) KPlr should not be an end In themselves, but be considered as an aid lo management. They are a stall to a proper informed debate that should lead to a plan for improvement. i 3.4 Performance Management Dashboards and Scorecards Organisations across industries regularly use the terms dashboards and scorecards interchangeably. Though both are used for performance management of an organisation,

26 s to take proactive initiative. ser interfaced with dials and related to the status/health ovlsion of drilling down to

27 Example: A Scorecard Percentage of Satisfaction Level Pecentage of repondents il!3s Saliied Very Satisfied Neither DlssatC Red Dkxltis Very Level of Misfactlon Red

28 Scorecard Model of Value Creation 'To Jatlsfy our customers cnd shorehdders, ot wnch proceses must we excel?' 'How hutd we monoge and allocate OUT resources fa

29 Scorecards, on the other hand, measure the organlsatlon performance against predefined KPls and provide perlodi snapshots of the organlsatlon's performance vls-a-vis th strategic objectives and plans. Scorecards are mor structured in nature and usually group the KPls relevant t Individuals, department or business units or strategi objectives. focusing on future and strateglc goals and mak use of management methodologles like Balanced Scorecar (BSC), Economic Value Added (EVA). Value-Base Management (VBM) and etc. 1 Tips: Dashboard In a nutshell, doshboards measure performance of an organisatio through real-time or right-time feeds, while scorecards chart th progress of an organiration vir-64s the strategic objeclives and plan through periodic snapshots of the business performance. 3.5 Gefflng R Right the Flrtt Tlrne It is easy to underestimate the importance of KPls. When KP are well thought-out and used effectively, no one even loo1 at them twice. But take them away or replace them wlth KP that are not matching your goals. and your organisatlon (( unit or even your project) will be reduced to shambles. A hit-or-miss approach simply does not work; by making sur that your key performance indlcators (based on your ma organisational goals) can be measured (such as revem statistics for a retail store), you are ensuring that ttorganlsation Is on the right track. The problem with measurement is that it can be a loaded gun-dangerous if misused and at least threatening if pointed In the wrong direction.

30 KPls, the acronym SMART is often applied S = specific tu your Job or tole h me organi~h M= measurable In some concrete waye--numbers, rate, etc. yq A= opproprlate%ithln your aphere of Influence and authority., R= reasonable to what you could be ewcted to do, yst stretches bevond the.evendav wm.mn d vwr hill% ry of the Key Points must be key to organisational success t fall into the trap of having too many I (PIS. ent and attention focus are lost if you track too metrics, It is easier to remember a handful of KPls at 1 : :me time. tt3hg KPls is a strategic process, but the metrics are not knent in nature. Some key pointers that must be kept In fl whlle dealing with KPls are: r #he Identified KPls must be in line with the corporate strategies and goals. Each of the KPls must have personnel identified for accountability of outcomes. The number of KPls must be limited (usually between 12 and 25) and must be easy to understand by all levels of staff of the organisation. The KPls must be periodically reviewed and refreshed to identify any KPls that are not being tracked or are out of context.

31 The KPls must be chosen such that they are predictb and actionable. The users must be involved in the entire process identify the right KPls KPls must be quantifiable If a KPI Is going to be of any value, there must be a way accurately define and measure it. "Generate More Repe Customers" is useless as a KPI without ways to distingui between new and repeat customers. "Be The Most Popui Company" would not work as a KPI because there Is no wl to measure the company's popularity or compare it to othe

32 J1 :h lr ly $. STEP 1: Creak the PrQ]~cf Team It is proposed that a cross-functional team Is set up to implement the KPls measurement, The team must consist of high-level employees, coming from dimht sectbnr that have a clear view of lhe ofganlsatkm't goals and priorities. The t m muat oeso be familiar with the performance mewm u be given a short troinlng cowre, lh~ mmbr of the team members depends on he WQ# the organisation and may vary 6 employees. Before you can drive the gart-e your organisation you ne+d ID hwr i W picture of the core procaasler. o diagram that shows tho major rtppl tm perform the task. This may Include tbpr I k Take enquiry Provide informatlon Receive application Process application Deliver the output d

33 - This way? Ffr Or this? This way? You cannot ldenttfy the KPls H you do n underltand your pmcwl Now you need to allocate a role to eac step in your core process. Who actua completes that step? For instance tt receptionist might take the enquiry ar provide the information, the officer thr receives the application. processes it and on. Then you need to look at what is the CSF ar what is it that an employee needs to ( successfully in that role to ensure tl organisation is able to achieve its goals. For instance, the receptionist may need to; Be polite, courteous, efficient a1 professional Accurately provide information Provide the necessary forms for ti applicatlon

34 STEP Choose Basis of ' KPI Qnce you have completed Step 2 you may b e a list of 5-10 critical factors that need 10 be addressed to ensure that the process is wmpleted successfully. From that list you now need to select your KPls. You should try lg have only 1 or 2 KPls per CSF. There are m e vltal factors that need to be taken into mount when selecting KPls. I The person in the role needs to have full gpntrol over achieving that KPI for instance it is no good making the meptionist accountable for "ensuring customer application approved within 15 Mlnutes" if they have no way of driving the prgcessing officer to process the appllcation ond this task Is beyond their control. b. Vou need to have hard, objective data You need to be able to compile hard, objective data to measure the KPI. Looking through your list of options consider which one you can truly measure. Without hard data it is dlfflcult to get a clear picture of what Is really going on In the organisation. Also hard data enables more fruitful and objective discussions during performance reviews with individual team members. Following our example. it may be Important to be polite and courteous when receiving customers and certainly you can give feedback by listening to someone when they are talking to customers. However, it may not be a very good KPI as it can be extremely dlfflcult, subjective and potentially costly to measure.

35 STEP 5: Set the KPls Having completed the analysis outline above you should arrive at 1 or 2 optiof Choose the ones that are most critical to tt organisation's success. In our processir officer example, how long it takes to proce and the number of delivered output a1 selected as the KPls. Therefore the KPls are: STEP 6: Set the Target and the Review Dates KPl 1 : Time taken to process tt application KPI 2 : Number of processed applicatic within a week You may notice that by addressing these KF a number of the other critical factors a addressed in part. For instance, if the enqui is not handled professionally then tt duration may take longer than expect and customer satisfaction might be unlikelb Your final step is to set the performanc levels. Once you have identified c objective/strategic direction and CSF, ar decided what will serve as a KPI, it necessary to establish some level accomplishment for which you are aimin This is the Performance Standard or Target. This Is often an overlooked step in tt process of establishing KPI. Establishing level will set the target for the unit on hc well they 'ought" to do. If a level or "crlte for success" is not established prior to tt reporting of the assessment results, everyor simply says, "That is about what I thought tt