Dashboard and KPI's are Driving Behaviors
Sizenando Miguel, Director, United States, Member
Many organizations struggle to come up with relevant KPI's, and to build a dashboard that effectively drives culture, behavior, and to lead the entire organization to deliver the strategy.
For instance, a push sales organization to deliver Revenue is entirely different from one to drive Gross Margin or ROS (%) or ROACE. The same concept applies to supply chain professionals. To push a supply chain organization to improve service level (%IFOT) without defining the cash flow deliverables will reduce ROACE.
Senior management must define KPI's and a dashboard that eliminate or reduce attrition between departments and reward collaborators based on using the same set of KPI's across the board. Of course, to differentiate and reward the ones who deliver outstanding results in a department is also valid using specific metrics for that function.
With that said, a piece of advice to all C's level. Strive to reach an agreement in which KPI's/Dashboard will track the success of strategy implementation, results accomplished, and commitments deliverables.