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Peter Geelen
Peter Geelen
CPM Partners

CPM Partners

Rule 9: think in dimensions

Posted over 11 years ago

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.

Comments (1)

Xavier L.
Xavier L.
Senior Business Analyst at equisign

I fully agree with your multi-dimensional vision of the performance. Indeed, depending on the point of viewer of the KPI, perception is different being at a strategic, operational or process level, being viewed from inside or as you mentioned from the customer side…
As you says : “Each KPI” is a world of its own".
Now, hopefully, the technology enables today to provide the means to represent the same measurement on diffrent persepectives, depending the profile of the viewer: as a CEO, an operational officer, a customer.
My thoughts about a multi-dimensional representation of KPI’s should ideally be in a 3D view, as it would be easy to see the different levels, persepectives and ties with other related KPI’s.

Posted over 11 years ago | permalink

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