Publicaties

Building an excellent KPI structure is critical for implementing a good Performance Management framework for your company. It is the foundation for communicating and improving performance, day in day out. But how do you build a KPI structure that lasts? Rule 9 out of 10: think in dimensions

 

Applying the first 8 rules, you have a KPI tree for your processes. KPI’s in cause and effect relations that tie up to your strategy and eventually to the ultimate goal of the company. Now it is time to start measuring. Most of us, have an reaction that we should define targets. Otherwise it is not possible to show traffic lights. And yes, it is all about red and green. Silly of course. Indeed, colour codes can help you to show where to focus, but again. It is all about cause and effect.   

It is an illusion that just colour codes will suffice to run your business. You need to look what behind the score. Each KPI as a world of its own. You need the think in which dimension you want to reveal the performance of that KPI. Do you want to show performance of the KPI Delivery Performance by customer, product or region. Or do you want to have the ability to have all three. Thinking in those dimension will show (non)performance and reveal where improvements can be made. Look at variability in scores. Averages don’t tell you much. Take employees as a preferred dimension. Performance is all about people.