Got KPIs??? A brief post to test the efficacy of your Key Performance Indicators
Getting the workforce to make the right decisions that support organizational strategy is a challenge every business faces. If your business struggles with this you shouldn't feel alone because this dilemma dates all the way back to the days of the Roman Empire as they struggled to keep their distant republics aligned with their centralized policy-making.
How does your company ensure the workforce is doing the right things day-to-day while avoiding the never-ending red herring traps that can pull them into less critical, time consuming tasks? Is this alignment simply enforced through each employee's personal business objectives for the year or is there something else in place to keep them constantly aligned with the business' goals, especially as the overarching strategy changes throughout the year?
A best practice solution I've seen first-hand that's been employed by many organizations is the use of key performance indicators captured in a scorecard or basic dashboard directly linked to the underlying drivers that make up those KPIs for self-service access by each employee in the workforce. There are multiple components that go into this solution including defining and measuring the right kpi's, applying them to a real-time scorecard or dashboard and integrating those kpis with a drill-thru capability to investigate the drivers that make up each kpi. This drill-thru capability ensures each kpi owner can quickly drill-down on the metrics to easily understand the root causes for why they're on- or off-track. This self-service and in context access to the support detail behind each kpi allows these decision makers to act on this information as quickly as possible versus waiting days or weeks before they finally have a clear understanding of what's really happening.
For this blog post though I simply want to focus on the actual KPIs. That is, are they doing exactly what you need them to do to get the most out of your workforce?
Here are a few tests of a good KPI:
How does your KPIs stack up to these questions?
To learn more about IBM's solutions for enabling better decision making through the use of key performance indicators, please click here.
Tim O'Bryan, AnalyticsZone by IBM
Follow the AnalyticsZone on Twitter
Read more at the Insight Community blog