Enhanced key performance indicators in business reports can be very beneficial to an organization. The Integrated Enterprise Excellence (IEE) business management system can improve the reporting of Key Performance Indicators (KPIs), as described in the following 1-minute video. The IEE system offers a methodology for reporting predictive KPIs.
Having effective key performance indicators in business is a very important aspect of a business. The cliché what get measured gets done is true. What is also important is not only what gets measured but also how metrics are reported.
If a metric goal is established for a certain period, this can lead to unhealthy, if not destructive, behaviors. Also, if metrics are not transparently reported from a process point of view, undesirable behaviors can occur.
One example of goal-setting metrics that lead to unhealthy behaviors is the Wells Fargo account fraud scandal . An example where metrics are either not created, ignored, not transparently reported, or not reported from a process point of view is Blue Bell Ice Cream listeria bacteria issues, where people even died from the problem. Perhaps other Blue Bell business measurements had higher priority before the government shut down; e.g., quarter financial profits and/or revenue.
How to Create Key Performance Indicators in Business
Reported Key Performance Indicators (KPI’s) are being used as financial and non-financial measures or metrics that are to help organizations define and evaluate their progress towards long-term goals. However, metrics that focus on performance to goals are subject to being changed over time as objectives/leaders change and are also dependent upon management opinions or intuition at some point in time.
A system that resolves this issue applies at the enterprise level such statistical analytical and non-statistical tools as Lean, Six Sigma, and Theory of Constraints (TOC) with a blending of innovation.
This system centers on first creating an effective long-lasting, value-chain, non-silo measurement system that has predictive metrics. This system, when integrated with strategic planning and business improvement efforts, can help organizations move toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.
The system for addressing these needs is 9-step Integrated Enterprise Excellence (IEE).
For more information about how key performance indicators in business can be created is available in the PDF article.
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization might gain much from an IEE reporting of predictive KPIs.