Traditional KPI reporting and performance metrics reporting can lead to unhealthy if not destructive organizational behaviors. A 30,000-foot-level reporting 2.0 methodology with its free app overcomes these problems.
Examples of Key Performance Indicator (KPI) and performance metrics reports are: profit, expense, work in process (WIP), lead time, units shipped, call center response quality, net promoter score, supplier performance, product sales, overtime per employee, call handling time, product quality, and the number of phone calls.
In addition to WHAT to include in KPI tracking dashboards and performance metrics reporting, organizations also need to address HOW to report the status of KPI tracking metrics from a process-output point of view; if they don’t, wasteful, if not destructive, behaviors can occur.
Organizations need to ask: Are our KPI reporting tools and performance metric reports leading to the BEST behaviors? More often than not, organizations have metric-reporting problems that waste MANY resources and cost a LOT of money unnecessarily!
Each of the above-listed KPI and performance metrics to report are an example of a Y response in the equation Y=f(X). This traditional performance metric reporting:
- Encourages “Y” management, often leading to playing games with the numbers to meet arbitrarily set next-reporting-period goals.
- Does not structurally include process “commonly-occurring output noise” in the reporting, which can impact the appropriate action or non-action for a reported measured response.
- Does not encourage process improvement, e.g., using a team to determine what X’s to change, so future Y responses improve.
KPI and Performance Metrics Reporting that leads to the BEST BEHAVIORS
A traditional reporting of one of the above KPIs and organizational performance metrics may have a monthly reporting for the whole organization or specific department. This reporting may be one entry in a table of numbers or as one metric in the Y-goal setting of a red-yellow-green scorecard.
However, the most appropriate action or non-action for a given situation does not typically occur with these reporting formats.
A 30,000-foot-level reporting methodology addresses these reporting problems through the following three steps:
- Determine if the Y process output response is stable from a high-level viewpoint.
- If a process response is considered stable, there is an automatic reporting of a best-estimated prediction statement in the report-out.
- If this futuristic statement is undesirable, there is a need to improve the X’s in a process.
Let us show you how your organization can benefit from 30,000-foot-level KPI reporting using one of your data sets!
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