An enhanced selecting kpis (Key Performance Indicators) process is the Integrated Enterprise Excellence (IEE) business management system with 30,000-foot-level predictive performance reporting methodology.
Enhanced Selecting KPIs Process and their Predictive Response Reporting
Metric selection for KPI reports is important. Key performance indicator (KPI) and performance measurement selection (with their report-outs) should lead to the most appropriate behaviors throughout an organization. However, this often does not happen, as described in a one-minute video:
The simple periodic reporting (e.g., monthly or quarterly) of measurements for KPIs often leads to report-outs that do one of the following:
- Serve no purpose and are ignored by leaders
- Lead to playing games with the numbers to meet goals that are set for the performance of KPIs
Organizations benefit when they first choose metrics that are in alignment to what their organization does from an IEE value chain point of view.
An illustrative IEE value chain is:
In this IEE value chain, processes are represented as rectangles, while performance metrics have an oblong representation. The functions connected by an arrow are the main organizational functions, while support functions are not (e.g., legal).
When selecting metrics for each function, one can ask what are good metrics relative to quality, cost, and time. Selected metrics in the above chart have a line connecting them to their function.
KPIs are performance metrics that are important to the business would be a subset of these value chain metrics. It is important to remember that long-lasting enhancements to KPIs that are financial are the result of improving the processes that impact other subordinate metrics in the IEE value chain.
The simple, reporting of KPIs does nothing to improve a business. Effective process improvement efforts that give focus to improving the business as a whole is what should be undertaken.
The question is how should this process enhancement effort be undertaken so that efforts are not in silos that have no big picture benefits.
The Integrated Enterprise Excellence (IEE) system is a means to accomplish this need.
Improving KPIs that are Important to the Business
Integrated Enterprise Excellence (IEE) is a 9-step system
The IEE value chain is in step 2, where 30,000-foot-level reporting can provide futuristic performance statements for the business’ functions.
In this IEE system,
- Step 3: The enterprise is analyzed as a whole
- Step 4: Financial goals are established
- Step 5: Targeted strategies are created
- Step 6: Metrics are selected that will benefit the enterprise as a whole when they are improved (can be organizational KPIs)
One aspect of step 6 is the creation of an Enterprise Improvement Plan (EIP), which provides targeted focus for process enhancement efforts that will benefit the enterprise as a whole.
An example EIP is:
The linked-to PDF paper below provides more information about IEE and 30,000-foot-level reporting.
Contact Us to set up a time to discuss with Forrest Breyfogle how your organization could gain much from an IEE approach to KPI selection, 30,000-foot-level reporting, and business improvement.