Extract
The use of Organizational Performance Dashboards and Balanced Scorecards (BSC), accessible on any device and updated in real time, offers a clear, detailed, updated and transparent vision of achieving results more efficiently. By eliminating static reports that only allow one point of view to be analyzed, information flows dynamically, allowing proactive, agile and accurate decision making that drives business success.
Contents
Achieving Business Excellence through Results-Based Management (RBM)
Tangible Objectives with the Definition of Key Performance Indicators (KPIs)
Visible Objectives with the Structuring of Balanced Scorecards (BSC)
Conclusions: Navigating into the Business Future with Confidence
Achieving Business Excellence through Results-Based Management (RBM)
Managers, directors and business owners increasingly recognize the importance of translating your goals organizational strategy into tangible and visible objectives for all employees of the organization, and in turn, provide precise monitoring of said objectives in search of guaranteeing their achievement.
In this context, Results-Based Management (RBM), or Management By Results (MBR), emerges as a tool that allows establishing clarity in objectives and measuring them closely. At the same time, it provides clear direction and a sense of purpose for all team members, aligning their individual efforts into a single vision to achieve business objectives.
This way of managing the business facilitates the recognition and reward of results to those who contribute satisfactorily to the achievement of objectives; as well as promoting accountability by setting clear expectations and holding individuals and teams accountable for their actions, decisions, and results. Thus strengthening a solid and responsible organizational culture that promotes transparency and trust, and promotes good corporate governance.
Furthermore, by integrating qualitative and quantitative measurements and evaluation methods into the business processes, a focus on achieving global results is encouraged that ultimately promotes High Performance in the Organization and encourages knowledge sharing, innovation and adaptation to market changes.
Tangible Objectives with the Definition of Key Performance Indicators (KPIs)
The implementation of digital Performance Dashboards is presented as a crucial component in this innovative approach. These dashboards act as transparent windows, offering all members of the organization a real-time view of the Key Performance Indicators (KPIs) that serve as the compasses that guide companies to success by offering a comprehensive view of business performance.
Defining KPIs effectively is essential to the success of an organization. First, it is crucial align KPIs with the company's strategic objectives and ensure that each indicator is directly related (and relevant) to one or more of them in the short, medium and/or long term; as well as that they can be measured easily and accurately to quantify the associated results, and evaluate progress and performance effectively.
Metrics that are not aligned with key business objectives should be avoided to ensure that attention and resources are focused on aspects that really matter (quality over quantity), and thus maintain a clear focus that is not diluted in unnecessary data. Some common examples of indicators that can be considered are:
Examples of Financial KPIs
Return on investment (ROI).
Profit margin.
Cash Flow.
Gross income.
Net profit.
Liquidity.
Examples of Operational Efficiency KPIs
Production cycle time.
Units produced per hour.
Cost per unit produced.
Production per person.
Resource utilization.
Equipment efficiency.
Examples of Project Management KPIs andQuality
Budget compliance.
Deadlines.
Quality of deliverables.
Number of reworks.
Defect rate.
Examples of Human Resources KPIs
Average days to fill a vacancy.
Staff job satisfaction.
Number of workers.
Staff absenteeism.
Training index.
Examples of Workplace Safety KPIs
Compliance with safety regulations.
Hours of safety training.
Workplace accident rate.
Examples of Organizational Development and Innovation KPIs
Percentage of revenue derived from new products.
Compliance with goals and objectives.
Product development time.
Number of new ideas.
Examples of Commercial KPIs
Net Promoter Score (NPS).
New clients acquired.
Customer satisfaction.
Cost per conversion.
Conversion rate.
Market share.
Examples of KPIs on Sustainability
Consumption of renewable resources.
Recycling percentage.
Carbon footprint.
Examples of KPIs on Regulatory Compliance (Compliance) and (Re)Certification
Response time to regulatory requirements.
Response time to audit findings.
Regulatory Compliance
Audit findings.
Approved audits
Examples of KPIs on Information Technology (IT)
Problem solving index.
System uptime.
Network response time.
Once the indicators to implement are determined, it must be defined who, when and how often those KPIs will be measured to ensure consistent and effective execution of performance monitoring and concrete actions that modify course if necessary.
The constant monitoring and review of KPIs through Organizational Performance Dashboards that consolidate the data in a coherent manner so that they serve as strategic information that allows collaborators to anticipate potential challenges, identify opportunities and make informed decisions. At the same time, evaluating the impact of your decisions and actions is essential to adapt to changes in objectives or the business environment and reflect the business evolution.
Visible Objectives with the Structuring of Balanced Scorecards (BSC)
The creation of Performance Dashboards must serve as an instrument so that all collaborators have access to the relevant and up-to-date information of the specific tasks necessary to achieve the organization's objectives. The implementation of the Balanced Scorecard (BSC) provides a coherent structure that allows the strategy to be effectively visualized and communicated at all levels of the organization, turning strategic objectives into something tangible and achievable for all collaborators.
The BSC framework includes a diversity of interrelated perspectives that allows the organization to holistically evaluate its performance and make informed decisions that drive progress toward strategic objectives. These perspectives being:
Financial Perspective focuses on financial results that are critical to the long-term success of the organization and provides insight into the financial health of the company and its ability to generate value.
Customer Perspective focuses on measuring customer satisfaction, retention and loyalty, as well as identifying customer needs and expectations to continually improve their experience and strengthen the brand.
Internal or Process perspective focuses on critical internal processes that drive financial success and customer satisfaction.
Learning and growth perspective recognizes the importance of human capital and innovation for long-term success, measuring training, innovation and the effective use of technology.
These BSCs not only make the objectives visible to all collaborators, but also provide a solid framework for making strategic decisions that drive business performance and the long-term success of the organization by contributing to:
Operating efficiency with the rapid identification and correction of inefficiencies and bottlenecks in the processes.
Agile and Accurate Decision Making by having access to relevant and updated information.
Continuous Improvement through the proactive identification of areas for improvement, driving the constant evolution of business processes.
Holistic View of Performance by integrating data from various areas for a complete understanding of global performance.
Regular monitoring and review of BSC results allows the organization to quickly adapt to changes in the business environment and ensure continued alignment with strategic objectives.
Conclusions: Navigating into the Business Future with Confidence
Digital Productivity Monitoring through Organizational Performance Dashboards and Balanced Scorecards (BSC) stands as a fundamental pillar in modern business management that gives life to the organizational vision and translates it into objectives that can be constantly measured to know the impact achieved through the execution of projects, plans and tasks.
Maintaining simplicity is crucial. Avoiding excessive complexity ensures that the KPIs and information we present are understandable by all team members, providing an accurate picture of the organization's overall performance.
By providing stakeholders with the certainty and security they seek, while driving efficiency and sustainable business growth by adopting this new technology-supported way of measuring performance, organizations not only meet customer expectations. partners, but also position themselves to lead in an increasingly dynamic and competitive business world.
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About Pablo Tellaeche (Author):
Owner and main consultant of TACs Consultores, Speaker and University Professor; seeks to bring a true and positive Lean Culture and Digital Transformation to every company with which he has the pleasure of collaborating.
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