Key Problems with KPIs
Key Problems with KPIs a.k.a “…here’s another nice metric mess we’ve gotten ourselves into”
The mere mention of the acronym KPI and you can almost hear the collective shaking of heads and rolling of the eyeballs. How have so many companies ended up in such a metric mess?
Here are some observations of why KPI/Metric/Indicator systems fail to really help drive continuous improvement:
- Not tied to strategic goals or balance sheet of the company
- Poor timing – monthly, quarterly, annual . Lagging – damage already done
- Not actionable, no weighted significance
- Too many indicators spread over too many isolated systems
- No targets, limits, or benchmarks
- No drill down for troubleshooting
- Based on either Real-time OR Relational OR manually entered data
- No single place for workers to see the indicators related to their work / job function
- Poorly visualized e.g. use of speedometer type gauges or loss of magnitude by converting from absolute to relative
So we decided to do something about it.
We have resolved these kinds of issues by developing a simple, easy to use, Indicator system that leverages your existing data and helps to move away from “nice-to-have “or “so-what”. A low maintenance app that focuses on:
✓ MyKPIs: Situational awareness – timely insight into off-plan performance and new trends
✓ Highlighting areas of inaction
✓ Highlighting ineffective action
✓ Monitoring the impact of decision, actions and investment
Vizion OE™ – a better way to manage plant performance and help achieve Operational Excellence.
Contact us for a complimentary demo.