Scorecards & KPIs
For internal reporting and efficiency management, scorecards and key performance indicators (KPIs) are a proven way of keeping track of how well teams are performing compared to what is expected, as well as constantly updating what is considered a ‘good’ performance from a management standpoint.
By using dashboards to visualise this information, board members and managers can view simple charts or gauges to see whether a person or team is meeting the expected standard. As with reporting, there a many products available to help create these dashboards, such as Microsoft Power BI, where dashboards can be tailored to be fit for purpose. KPIs are not necessarily financially based, so a clear visualisation of these as part of a dashboard can be particularly helpful to members of a company who may not have the time to talk through any non-financial progress.
The balanced scorecard
The balanced scorecard is not just a reporting technique for internal management, but a strategic planning and management process.
By balancing the financial and developmental performance indicators together, a clear picture of the company’s overall performance is achieved. This leads on to knowing whether such paths as internal expansion or streamlining are possible or necessary: whether one team is taking on too much of the workload, while another team is overstaffed.
What KPIs should I use in my business or industry?
As all industries have different KPIs, each dashboard needs to be tailored for the end-user, requiring engagement from all parties as to which areas of the business need to be visualised, and how. For example:
- For call centres dealing with customer service and quality assurance, monitoring the time taken to achieve customer satisfaction or determining average customer value prior to the call can help a business decide where to provide training, whether more staff is required, or how to proceed with specific customers.
- Funding management and financial output can be more easily managed when other areas of the business are monitored for their effect on it.
- Non-financial metrics by which all performance areas can be measured in order to encourage individual and corporate self-improvement.
Consolidata consultants are experienced in BI and have frequently used KPIs and scorecards to track performance for external clients. Engage with us to find out how this kind of solution can fit into your organisation and whether it would be effective for you.