We consult an incredible amount of data every day. Whether in our personal or professional lives, data is everywhere. In this sea of information, it becomes difficult to choose which data to use for our company’s performance indicators. We therefore offer you some tips to use your data in a strategic and structured way.
Data valuation is the strategic exploitation of collected data. It is a dynamic process that allows for the monetization of information by transforming raw data into actionable and relevant knowledge. This can be done internally to optimize the company’s activities or through the resale of data to third parties. – Ibitek group
1. Evaluate Your Current Performance Indicators
The purpose of performance indicators is to measure your performance so that you can proactively make decisions to achieve your goals. Here are four criteria by which to evaluate your current indicators.
4 Characteristics of an Effective Performance Indicator
2. Choose a Small Number of Indicators
Given the large amount of data available, it can be difficult to make choices. This complexity is compounded by internal political issues when each executive wants to see different data in a specific format. It is therefore important to have a clear indicator selection process that also includes a review cycle. The ultimate goal is to have fewer than ten indicators for each level of the organization.
3. Establish Different Levels of Indicators
It is important to have different levels of indicators to be able to investigate when goals are not being met.
Revenue per productive employee is a frequently used indicator. However, it can mask inefficiencies in your structure and support roles. For example, the production department may have outstanding performance that hides the inefficiency of your accounting processes. A more appropriate KPI would be revenue per total employee, which can then be broken down into different levels if the results are not met.
4. Create a Simple and Accessible Dashboard
Once the indicators are chosen, it is important to make the information easily accessible to your team members. This step represents a significant challenge but is crucial for data valuation. Best practices are to have a visual, automated tool that quickly allows decisions to be made at every level of the organization.
5. Regularly Review Your Indicators
Listen to anecdotes and other information that indicate the situation is not as shown by your indicators. For example, if your indicators are positive but your business results do not meet your goals or if customer feedback is negative, it is important to investigate and look at another level.
References:
BDC https://www.bdc.ca/en/articles-tools/operations/operational-efficiency/kpis-key-performance-indicators
Generative AI was not used in the ideation, writing, or revision of this article.
