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Business Performance Assessment Program Best Practice 12 – Define Issue Materiality
Business performance assessments seek to identify meaningful improvement opportunities for an organization, typically in the areas of safety, performance reliability, and operational efficiency. Meaningful or material opportunities are those representing a performance improvement that satisfies a regulatory requirement, exceeds the organization’s financial return on investment threshold, and/or provides a not easily replicable advantage over competitors. As such, assessors should evaluate potential performance improvement opportunities for their materiality; focusing on those offering the organization meaningful gains.
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About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
The name, Management Observation Program, suggests that authorship of these documented performance assessments are or should be limited to those who supervise work. Yet, in a healthy organization, workers are encouraged to provide upward feedback and report conditions adverse to quality. All organizations should embrace a safety culture within which individuals are responsible for both their safety and the safety of their coworkers. (See StrategyDriven whitepaper, 
All performance is relative and performance measures without contextual references are largely meaningless. Such measures provide a performance count without a value indicator. Without this indicator, managers cannot know what, if any, action is required.
Data access frequently challenges metric developers. Consequently, they may resort to using the most readily available performance data; data that can be obtained through a user defined production application query and downloaded into a Microsoft Excel spreadsheet or Access database.
“What is six to one is a half dozen to another.”
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