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Corporate Performance Management (CPM) enables companies to identify and address the performance in all divisions and functions within the firm. CPM/KPI strategies must be: relevant and meaningful, measurable, easily understood and communicated and include actionable tasks. These are key components of any executive dashboard. There are many Systems Performance Management strategies that provide reports and dashboards. The challenge is to identify a limited and manageable set of accurate CPM/KPI that will assist the executive team — all the way to the technician — in detecting trends and areas of deficiencies, enabling the team to be more proactive and effective. A carefully designed system of Key Performance Indicators is more than just a set of numbers. cResults will help you to select and prioritize the key CPM/KPI in areas such as Inventory Levels, Cycle Time, Transportation Cost, Customer Satisfaction, Time to Market, ATP, Product Yield, Quality Level, On Time Delivery etc.
Effective CPM/KPI strategies must:
Be linked to Strategic Objectives
Ask the question, "What strategic goal is being addressed by this activity?"
CPM/KPI strategies must be:
• Measurable
• Easy to track
• Consistent, Not noisy
• Easily Understood and Communicated
• Thoroughly defined so everyone has the same understanding of the metric
• Actionable
• Drive behavior
A KPI Strategy Must Be Balanced
Source: Kaplan and Norton, "Using the Balanced Scorecard as a Strategic Management System"
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