Dashboard KPI Design
Performance measurement leads to obtaining impartial feedback on the success of actions taken to implement the strategy. It is crucial that the company management itself focuses primarily on those KPIs that contribute to strategic goals (e.g., within the framework of a Balanced Scorecard). Unfortunately, new KPIs (Key Performance Indicators), new controlling tools, new reports, or new forms are often introduced instead of eliminating old ones. Reducing KPIs is particularly useful to avoid a counterproductive focus on the past for the future, to meet changing priorities, and simply to continually reduce non-value-adding work.
The KPIs should be defined along the most important success dimensions that reflect the value of a company. Essential KPIs are:
- Metrics for employee recruitment and employee satisfaction (including teamwork, result loyalty, absences)
- Metrics for customer acquisition and customer satisfaction (including cross-selling rate, cancellation rate)
- Metrics for speed and quality of processes
- Idea innovation rate
- Value-added and value-oriented financial metrics as a resultant
What’s crucial is not only setting up transparent KPIs at all times – even for a larger number of employees – but above all the correct use of KPIs. Organizations that can react faster to negative developments (including through self-managing teams with decentralized responsibility) than their competitors will prevail in the market.
