Case Study: Metric Development

Pinnacle West Capital Corporation is a public company that provides electrical power to over 1,000,000 customers in the Southwest United States. It took over 100 years to obtain that many customers. The next 1,000,000 customers will be added during the next 10 years. The Center for Process Excellence was formed over two years ago to integrate Continuous Improvement into the various business units of the company. In this case study, we will explain how Metrics are developed and put in place within the organization. Most information available on Metrics describes the development and analysis portion of handling information, but this presentation discusses some important factors often overlooked. Key Issues • The Philosophy behind Metrics • Baseline and Prescriptive Metrics • The use of a Common Currency to “Roll Up” Metrics• What Not to Do when developing Metrics