With performance monitoring, you track results and analyze them to evaluate whether performance is up to par. The analysis provides insight on what action is necessary to correct course. The choice of action depends on many factors. This is where storytelling about the KPI would provide context for decision makers to gauge how quickly to respond, how much effort to allocate, and who to assign to the work. Good storytelling for KPIs conveys clear messages about performance. There are three elements to include.
Background about the KPI
Setting the scene for the story, describe clearly the result the KPI is supposed to monitor and why there is a need for it.
Illustrate how the KPI links to a business objective.
For instance, expense associated with warranty repair. For every warranty repair, it reflects poorly on product quality and the business absorbs the expense.
Players crucial to success
KPIs are meant to monitor results that matter. It would be logical to ensure players who are critical to success hear the message via storytelling.
Include areas involved in handling warranty repair for the above business in the story. They include those that work behind the scene and in direct contact with customers, namely Purchasing, Quality Control, Repair, and Customer Support.
In the story, reinforce the significance of their roles. This also serves as a reminder of their responsibilities to take action when called for.
Illustrative central message
Reporting on the KPI number is seldom meaningful. You need to provide context to the central message you want to convey.
In addition to presenting the actual result, incorporate information on how significant the deviation is from target performance and the causes. These include trend analysis, comparison of actual result with target, and potential causes. The full story enables recipients of the information better understand the situation and suggest concrete actions.
A comparison of historical trend on warranty repair expenses, for instance, reflected an anomaly. The jump was two times higher and the customer complaints reported on the same issue. From the inventory log, it showed that the returns were from a single delivery. Purchasing and Quality Control agreed to reach out to the supplier immediately.
Good storytelling for results not only describes vividly the state of the situation, the illustrative message conveys a clear picture that is meaningful. The approach creates engagement from team members who need to step up and make improvement.
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