First, I apologize for taking so long between entries.  It's the cardinal sin of blogging.

I've been talking about selecting a set of metrics by which to measure the progress of the agile initiative.  Once the metrics are selected, here's what you do:  gather the data and make a graph of each metric.  Post the graphs in various places around the organization.  Make sure employees at all levels know what the graphs say and how to interpret them.  Review the metrics as a leadership team, separately from other company metrics, at least once a month.

What about setting performance targets and objectives?  For example, setting a scrap target of say, 1%?  Or an On-Time Delivery Objective of 98%.

My own view that such targets can be helpful but aren't necessary.  Targets and objectives can provide focus.  On the other hand, they can also provide complacency, once reached (or even gotten close to).  (And some "targets" aren't even targets.  I used to have a good client that used something of a Management by Objectives approach pretty effectively.  One of their targets would be "Hold an Employee Communications Meeting each quarter."  I'd tell them that's not an objective, it's an item on a "to do" list. They didn't care.)

Targets that are based on a comparison to industry best or represent "stretch performance" based on the organization's own history can be effective.  Targets should always communicate continuous improvement. 

Targets that are "picked out of the air", represent sustaining present performance (I have seen lots of supposed performance objectives that started out, "Continue to...."), or are vague don't add value.  Might as well not have them.

And, remember, a target or objective without an action plan is a wish.