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Intro: Welcome to the E6S-Methods podcast with Jacob and Aaron, your weekly dose of tips and tricks to achieve excellent performance in your business and career. Join us as we explore deeper into the practical worlds of Lean, Six Sigma, Project Management and Design Thinking. In this episode number 14 (Part 4 of 4), we wrap up our “Measure the Right Stuff” project metrics series with Project Goal Setting: the 70% rule of thumb. If you're just tuning in for the first time, find all our back episodes on our podcast table of contents at e6s-methods.com. If you like this episode, be sure to click the "like" link in the show notes. It's easy. Just tap our logo, click and you're done. Tap-click-done! Here we go. http://bit.ly/E6S-014RB Leave a Review! http://bit.ly/E6S-iTunes

I How to set a reasonable goal based on history (70% to Entitlement rule)

a. Definitions:

i. Baseline – Average performance within the observation history

ii. Entitlement – The best performance achieved within the observation history.

b. Teach the rule of thumb, the mathematics and the history behind the rule

i. Maximize metric : Goal = Baseline+ (Entitlement max- Baseline)*0.70

1. Example: Process % yields, Sales success rate, Net promoter score

ii. Minimize metric: Goal = Baseline - (Baseline – Entitlement min)*0.70

1. Example: DPU, DPMO, % Returns/Complaints, Throughput Time, Call Center Time to Pickup

c. Cautions: Unstable metrics: It is not recommended to determine Baseline and Entitlement on metrics and systems showing Non-normal or “Special Cause” variation

i. Trends – process is trending one way or another.

1. degrading – may not be capable of hitting the goalbased on an entitlement at the begining of the trend

2. improving – may not be worth a project, if it’s improving already. Just determine why and standardize.

ii. Steps – may mark a change in the process/people/policies, change in measurement system or metric,

iii. One-offs (outside 3-sigma) – May be a fluke, typo or other undocumented non-repeatable condition.

II Recap Episode

Outro: Thanks for listening to episode 14 of the E6S-Methods Podcast. Stay tuned for episode number 15, where we discuss tools for help create a consensus and project scope. We discuss common tools like SIPOC, MacroMap, 5-Why’s, and others. Don't forget to click "like" or "dislike" for this episode in the show notes. Tap-click-done! If you have a question, comment or advice, leave a note in the comments section or contact us directly. Feel free to email me "Aaron," aaron@e6s-methods.com, or on our website, we reply to all messages. If you heard something you like, then Clammr, and share it. Didn't like what you heard? Join our LinkedIn Group, and tell us why. Don't forget you can find notes and graphics for all shows and more at www.E6S-Methods.com. "Journey Through Success. If you're not climbing up, you're falling down." Leave a Review! http://bit.ly/E6S-iTunes

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