Are you measuring the right things in your business? I’m sure you have lots of data being generated by dozens of systems and being consumed by almost every employee.
But what’s actually going to make a difference in the business? What would it look like if you could cut your reports, dashboards, KPIs, and measures in half? By 80%?
If you’re going to audit your Performance Measurement strategy and practices, at a minimum you have to look at:
- The material value drivers in the business
- The most volatile (ie: undergo the widest changes the most frequently) value drives
- The most interconnected (ie: impacts many business functions & layers) KPIs
- The drivers most related to strategic objectives
And you would be surprised how many metrics do not have targets associated with them (nor are their trends exposed).
One of the biggest gaps out there is the correlation between your performance measurement strategy and practices and your information architecture.
You’ll know you have the gaps by either exposing the value drivers above (and value mapping them) and layering them on-top of your information architecture (and technology stack), or by combing through all of the end-user and customer complaints you have that there is no visibility into key drivers of value in the business nor accountability for results.
