Without comprehensive data, business owners and senior management often risk making decisions based on faulty, inaccurate or incomplete information. To make an informed decision, information is typically is required from all parts of an organization and from various business disciplines.
Unfortunately, in too many organizations acquiring good information is often a challenge. Surprisingly, the lack of data is seldom the cause. Too often there is an overabundance of mediocre data with information stored in numerous different systems that rarely integrate well. Some systems even require IT support or technical analysts to extract data and run reports.
So, how does a company organize its data so it is easily retrievable and available for key decision making? Here are some suggestions:
Consolidated Your Metrics: Establish one “go-to” place for all Key Performance Indicators (KPIs) and performance metrics, including as many layers of drivers and leading measures as needed.
Provide A Strategic Context for your Data: Consider organizing your data collection into logical, strategic groupings. KPIs and other performance metrics may be associated with specific strategic themes, goals, objectives, or initiatives. This may provide a helpful context relative to each KPI or metric.
Consider “Stoplight Performance Indicators”: Goals, targets, and benchmarks may be set for each KPI or performance metric. Stoplight indicators provide a quick visual cue, allowing decision makers to focus on areas that need attention and focus.
Automate Your Metrics: Consider software alternatives to Excel. KPIs and other performance metrics may be automatically calculated from multiple sources, streamlining data entry and reducing opportunities for errors. Software is available that provides robust support of virtually all measure types, roll-ups, and even control charts. This software can usually create trend charts automatically, which you can then edit and manipulate.
Graphically Display Performance Trends: It is easier to spot trends when the information is shown in a graphic format. Software is available that provides numerous options for data visualization. Consider software options that allow advanced charting, leading/lagging measure hierarchy displays, Gantt charts for projects/initiatives and “Visual Maps”.
Continually Update your KPIs and Performance Metrics: Make sure that there is a system in place to ensure that KPIs, other performance metrics and the status of various initiatives is consistently and periodically updated.
Make certain that your Performance Management System is Easy-to-use: Data is everywhere in your company so regardless of the system used to collect and analyze information make sure it is designed to be used by everyone in the organization.
To ensure that you are properly prepared, and that your information is well organized and available to those that require it – Start small, think big but start now. Let us know how we can help. Have a great day!
