Companies adapt with the evolving business landscape. You modify operational processes, change suppliers, or outsource activities to build a thriving business.
Do you change what you monitor as you adapt to compete?
Many companies look at the same KPIs for many years.
Financial KPIs such as revenue growth and profits are always relevant. But how about your operations KPIs?
Operations KPIs reflect how well you execute and deliver on your goals. They provide the fuel to drive improvements. Operations KPIs... provide the fuel to drive improvements. Click To Tweet
When you automate the invoicing process, for instance, the number of revised invoices goes down. As it becomes a non-issue, you might want to switch focus to how quickly customers pay their bills. The KPI for that is “days sales outstanding.”
A key purpose of performance monitoring is to uncover problems that deserve attention. It is a tool for guiding continuous improvement. And therefore, you need to ensure the KPIs that you look at today are relevant for guiding your actions.