How do I know if what I just did helps the company, or hinders it?
Metrics help monitor the results of business activity. However, where do you even start?
A metric hierarchy helps position each metric chosen as a diagnostic for a larger, more aggregate metric it feeds into. For instance, how does your machine operator impact Inventory Turns? Or, even more blurry, how does the person in HR affect Inventory Turns? Everything is connected. Good tactical planning makes sure all those connections are transparent, known, and monitored. That means we’re back to metrics.
In the beginning, start with what you know and
what you can reasonably monitor.
It’s the Nike “Just Do It” mentality at the start.
As you grow in ability and capability, you’ll develop automated data capture for the measurements supporting the metrics. This will be followed by wanting all of your metrics to align in such a way that it is easy to understand why a strategic KPI went out of acceptable range and what it will take to get it back in range without having to wait months for comprehensive analysis. A hierarchy of metrics does it for you and it is created whenever you create/modify a process, add new capability, etc.
At Process & Strategy Solutions, we have experience creating aligned metrics from the factory floor or your service operations, through tactical management, supporting staff processes, and the creation of executive strategy. Typical customers who seek this type of alignment are middle market organizations and larger.
If you are ready to align your metrics, from strategic KPIs through tactical processes and down into operational metrics, please contact Process & Strategy Solutions at info@ProcessStrategySolutions.com