Many companies start implementation of process KPIs (Key performance Indicator)/ dashboards. However, very few get their destiny. Dream is to capture KPI drill down upto last mile and extract real time information from it. It is not easy. It is rough road. Many companies keep searching root cause for all issues in perceptions. Data hardly supports. I am trying to write some key points of my views on this issue.
1. No standard model: Balance score card is most famous model for overall system wellness. It should highlight pain points. It works well at strategy level. Somehow , it loses its grip at transactional level. Making high level goals and passing them to 2-3 levels down is manageable. In more hierarchical organization, it loses compactness.
So, there is no standard model which fits in all businesses/ Industry. There are different practices in different industry . I personally like COPC model for overall wellness in service business. It can fit and balance sustenance with growth.
2. What is process/ Transaction: Can we really define a process and a transaction? It varies from manager to manager. APQC provides some guidelines , but don't know how many organization follow them. If we don’t know what to measure, difficult to put them in real sense. A line manager can hardly manage 10-20 PPl, and he define his KPI and process, within his boundary. All transactions are not equal. Transaction for toilet paper payment and big sale deal can’t be compared as one. There may be painful debate what to measure and compare for any function.
3. Manual Factor : Despite huge IT intervention and tools, 50-80 % transaction measurement remain manual. Statistics says measure them through samples. Issue comes when some transactions may take second ( bulk processing) and some long hours. All transactions are unique and their roll up at balance-card level ends up in comparison.
Next question comes what is ideal system solution for it. SAP has BI integration. It is not very user friendly. Other ERP provides some MIS solutions , however in end company uses excel file to report key data. Integration with ERP in all cases is an illusion.
4. VUCA business environment : Change is happening everyday. How to keep pace? People join/left organization. New products/ technology are coming at very fast rate. Perfect measurement model should take that in consideration. A stable scenario may be possible at end of S curve. New companies hardly bothered to end stage drill down. KPI dashboard can help a company to sustain longer.
I am personally very impressed with Google Analytics for websites. It really gives end mile insight. However, for an organization where perception, loyalty and other abstract emotions help, capturing internal dynamics real time end to end is a challenge. Have you a better way to resolve this issue?
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