Performance metrics acts as leading indicators and as pointers to changes needed in strategic direction specially when monitored or tracked over a period of time. Focus needs to be shifted from those things which are easy to measure. Performance targets are usually set on the metrics of revenue and target. And if performance targets are not achieved, it is often too late at that stage for corrective measures.
Excellence and metrics programs have an interesting relationship. Without excellence initiatives that establish the corporate culture and a common management system, it is very difficult to enable continuous improvement.
Many companies are striving to institute some type of excellence or continuous improvement initiative. Below are the key excellence metrics:
However the choice of key metrics needs to be reviewed periodically – as business is dynamic so why should the metrics remain constant? No metric is useful unless there is an action plan that arrives out of it and is communicated and implemented with urgency. Otherwise, a metric becomes just another number on a report that nobody pays attention to till it is too late.
Written by: Faber Devna Chaturvedi