Aligning executive strategy with tactical operations and supply chain management

Metrics

Metrics don’t last forever. You need a review schedule to determine: which ones still align into executive level strategy and which ones do not, which ones drive desired behavior and which ones do not, which ones are still relevant and which ones are not... Get rid of those that are not used or that create problems.

Use your metrics to create customer value:

Supply chain metrics are based on delivering customer value in the way the customer dictates. Even better for the company, they can educate the customer on what she/he can choose from, thus giving the customer choices that are at the same time limited to the supply chains the company can support (think online product purchases that allow you to get free shipping or to pay for faster service through a 3PL).

For operations, metrics that focus on what the customers require will help reduce defects in the eyes of the customer, thus saving time and money. Metrics for internal use will drive behavior and prioritization.

Try to focus on no more than 3–5 metrics per area. More is overkill and can’t be managed (just think of all the reporting that goes unread). This doesn’t mean you’ll be limited to 5 metrics that pertain to an area. You will put the less critical ones away until they are needed for diagnostic purposes. One method for creating a metric hierarchy is to use the SCOR model.

A well thought out metric plan will include how much data per metric should be stored where for how long so that eventual problems have data supported metrics at the ready.

Well thought out metrics will:

If you are interested in creating a metric hierarchy from operations through to executive strategy, please contact Process & Strategy at Info@ProcessStrategySolutions.com

Key words and topics: SCOR, metrics, supply chain, customer value, prioritization