Leading With Next-Generation Key Performance Indicators (KPIs)

Leading With Next-Generation Key Performance Indicators (KPIs)

1. How business leaders use key performance indicators to lead and manage the enetrprise

2. KPIs are regarded as “key” ; the most prevalent attitude toward them seems to be one of compliance, not commitment.

   • executives use KPIs to monitor and spur growth.

3. kPI's are the quantifiable measures an organization uses to determine how well it meets its declared operational and strategic goals.

4. Covering organizations in a range of industries and geographies, reveals six behaviors common to advanced users of KPIs

   • Use KPIs to lead, as well as manage, the enterprise.
   • Develop an integrated view of the customer.
   • See KPIs as data sets for machine learning.
   • Drill down into KPI components.
   • Share trusted KPI data.
   • Aim for KPI parsimony.

5. incorporating financial and nonfinancial measures in order to guide tactics and strategy in the short and long terms, powerfully influenced a generation of C-suites worldwide

   • . Strategic alignment via KPIs is more effective (and more likely) with a decision-making culture
   • Some companies are refashioning their KPIs to take advantage of more varied data sets and analytic tools.

6. Increasingly Focused on the Customer Experience

   • companies to learn more about their users and by digital markets that make turning customers into brand advocates
     • Many companies are seeking to understand customers in more holistic ways.
       • KPIs to develop a single, integrated view of the customer.
       • KPIs that focus on customers beyond the sales funnel encourage organizational realignment around sharing, coordination, and collaboration.
       • Data governance might become an innovation enabler rather than a compliance activity.

7. The Fundamentals of Advanced KPI Uses

   • Measurement Leaders use KPIs to lead, as well as manage the enterprise.
     • They see KPIs as data sets for machine learning. They insist on the ability to digitally drill down to KPI components.
       • use KPIs to effectively align people and processes to serve the customer and the brand purpose.
         • Use KPIs in place to keep the company aligned with that vision

8. Develop an Integrated View of the Customer

   • KPIs help their function develop a single, integrated view of their target customer
     • KPIs informed by the goal of turning customers into influencers and evangelists are likely to force an organizational, operational, and cultural reckoning in some companies

9. See KPIs as Data Sets for Machine Learning

   • Executives in most organizations expect that ML/AI technologies will help them achieve enterprise goals.
     • The intricate dynamics that underlie an enterprise’s KPIs can be as consequential as the KPIs themselves.

10. Drill Down Into KPI Components

    • The ability to swiftly disaggregate and reassemble KPI components creates enormous opportunities for data scientists and their ML algorithms
      • Those organizations with incentives toward increased automation and ML technologies can more easily drill down to see the underlying data aggregated into their KPIs
      • To be effective, KPIs must truly be “key” performance indicators, not ordinary metrics or measures

11. Identify Your Company’s Top Three Enterprise and Top Three Functional KPIs

    • Create a Process for Ongoing, Enterprise-wide Discussion of KPIs
      • KPIs are central to leadership conversations around driving organizational behavior and change, not merely assessment tools.

12. Treat KPIs as a Special Class of Data Asset

    • Data and analytics are the raw ingredients of KPIs.
    • top managers may ask whether they are better off using KPIs to inform and manage their people or to train their machines and automate their processes.

13. KPIs are strategically, culturally, and operationally entwined with how leaders of data-driven organizations define success.

14. KPI definition, development, and deployment will command the lion’s share of leadership time and focus.