Quality instead of quantity
KPIs, everybody knows and uses them. But do we really know them? In established organizations, we always meet accumulated knowledge and thus also measurements, which have evolved over the years. With the company’s development, the goals are also changing continuously. Products undergo strict quality management procedures, but who ensures the quality of KPIs? And who actually knows them all?
KPI * Human Factor
The risk of KPI distortion, introduced through an evolving business environment, are amplified significantly by human interaction with the data.
Are you sure that your KPIs are not influenced by this ‘human factor’? When data is entered manually (e.g. Excel sheets), is subject to manual controls or interpretation, or even consists of subjective judgments or conclusions, distortions are virtually inevitable.
„The whole is greater than the sum of its parts.“ Aristoteles
Too often we come across organizations that create droves of KPIs while their actual contribution to business insight falls by the wayside. Ask yourself: How many KPIs does a company need?
Are you able to fully answer the following questions?
Which data from what source flows into the KPIs?
Where are redundancies in the data sources?
Where do conflicting and contrary goals evolve out of it? (e.g. in different units/divisions)?
How does the set-up of KPIs look like within the organizational structure?
How significant are the KPIs?
What do the different KPIs show? A status or a trend?
Do the KPIs also take factors like innovation or disruption indicators into account?
At what life cycle stage is the KPI used?
Do the KPIs fit in well with the strategy?
Do flexible KPIs and systems exist for measuring?
„If you want to have a better performance than the crowd, you must do things differently from the crowd.“ John. M. Templeton, investment fund founder
Our opinion: If you want to have a better performance than the crowd, you must use different KPIs from the crowd.
Since performance is our focus, we have extensively studied its indicators.
We can analyze your KPIs quickly, develop a roadmap and present optimization potentials which simplify operations and reduce the number of KPIs while raising their significance.
Just ask us how!