Do you have dozens of performance metrics and measures but are looking for a simple dashboard of 5-10 key performance indicators? It’s amazing how difficult it can be to get everyone to agree on which KPI’s to include on your dashboard or scorecard. As a Business Analytics Coach at Lodestar Solutions, we utilize a process that helps filter through and define the most important KPI’s & metrics for your dashboard that are unique to a client's organization.
Here’s our BAAM (Business Analytics Agile Methodology) approach designed by Heatherized for Lodestar Solutions that you can use in your organization. You may want to get a small group of 4-9 people together to do this exercise. Why do it as a group exercise? It provides a large amount of value as it will build consensus and “buy in” for each measure. Plus, as a group, you'll feed off each others answers and come up with the best solutions possible.
- CREATE a list of the measures you are tracking or considering tracking.
- MEASURE – Write each measure on a large sticky note. (1 per sticky note)
- WHY – Grab a sticky note with a measure and write down WHY you are tracking the measure. (What will it tell us, why is it important?)
- HOW/WHAT – Write HOW you will use the information or WHAT action would need to be taken if the measure was outside of the tolerance range then read the measure & contents out loud to the team. Discuss what strategic initiative the measure supports and place it on the appropriate flip chart. If it doesn’t support any strategic initiatives, put it aside as it is not likely to be a KPI. In the event a measure supports more than one initiative, copy the contact and include it on both flip charts. Repeat this step with each sticky note.
- PRIORITIZE – As a team discuss the measures on the sticky notes that support each strategic initiative and move them so the measure that best supports the initiative is on the top.
The end result is that you will have a handful of flip charts with your strategic initiatives and the prioritization of the KPI’s for each one. To expedite this process, please note that I recommend you set a timer to restrict the amount of time for classifying and prioritizing segments. You will find that people will be more focused and you’ll get the same results in less time.
Now that you have your KPI’s & metrics defined, we recommend you explore what visualization you would like to use for your scorecards before you implement metrics for your dashboard in your BI solution. You also may want to look at scorecard solutions like IBM Cognos’ balanced scorecard http://www-01.ibm.com/software/analytics/scorecards/.
If you would like to learn more about our proven methods and coaching, join our free community on our LodestarSolutions.com where we will provide you with access to our private collection of coaching videos, webinars and more. Lodestar hosts a Destination Dashboard workshop where you and your team will learn how to do this and more. Check out our website or call us for dates and locations of the next interactive Destination Dashboard event.
As Lodestar Solutions’ Business Analytics Coaches, we believe you can improve the world by leveraging data and analytics. If you want to improve the world, call us at 813-254-2040 or by email at Sales@LodestarSolutions.com.