Getting your key performance indicators (KPIs) wrong can be a costly error for your business. When used effectively they can give significant competitive advantage, improve cost control and reduce overall process waste.
If KPIs are that important why is it that understanding KPIs can be a real conundrum for some managers?
They understand what key performance indicators are – they just seem to struggle with the concept of using said KPIs to drive continuous improvement.
This is a missed opportunity. To better understand your processes / services, know how you are performing and identify opportunities to eliminate waste – all helps to reduce costs, improve quality and find SMARTER ways of working.
At a very high level, and in simple terms, KPIs fall into 2 key categories; management reporting and management control.Abdul Ghani, Exceed Excellence
Management reporting is sharing data on what ‘has’ happened e.g. how many widgets were sold. There is usually a ‘lag’ in time, meaning that the widgets could have been made a month ago.
Management control is analysis of what can be ‘real-time’ data. This data is used to ‘control’ the actual production of a product or service. This helps us to determine whether you are in control and likely to produce good quality products or services. Where a problem is actually highlighted you are able to quickly take corrective action and reduce errors.
When you begin an improvement project it’s worthwhile reviewing and redefining your KPIs. The goal is to get you closer to management control KPIs that help you stay in control in terms of quality, cost and time.
Got some questions, thoughts or keen to want to know more? Get in touch, we look forward to hearing from you? Prefer to call – phone: 01709 680188 or email: firstname.lastname@example.org