Leading with next generation KPI's

Leading with next generation KPI's

1. A ccelerating technological innovation, increasing customer expectations etc. are forcing business leaders to rethink how they use KPIs to lead and manage the enterprise.

   • KPIs traditionally have had a retrospective bias by measuring past costs, revenues, and profits but offering little insight into how an organization was likely to perform in the future
   • Organizations that use KPIs as leadership tools look to leading indicators to frame their strategy

2. KPI's → quantifiable measures an organization uses to determine how well it meets More Than Performance Management Tools its declared operational and strategic goals

   • Acc. to the survey Among executives surveyed, only 26% agree that their functional KPIs are aligned with the organization’s strategic objectives to a great extent
     • Like the ex.marines say, it is important that every soldier (employee) knows the objective and goals before they get into the battle.
   • While management and leadership are in many ways complementary, each has distinct attributes
     • Rather than focusing exclusively on how KPIs can help them manage their organization, Measurement Leaders look to KPIs to help them lead — to find new growth opportunities for their company and new ways to motivate and inspire their teams.

3. Develop an Integrated View of the Customer

   • More than 90% of Measurement Leaders affirm that their functional KPIs help their function develop a more complete view of their target customer.
   • we definitely need to worry about KPIs that are concerned with how our consumers are currently interacting with our brands
   • This appears especially true for organizations intent on being measurably customerfocused or customer-centric

4. See KPIs as Data Sets for Machine Learning

   • Nearly three-quarters of survey respondents believe that their current functional KPIs could be better achieved with greater investment in automation and ML technologies
   • ML-informed KPIs present comparable opportunities to improve alignment of strategic goals
   • Leadership will increasingly decide which KPIs will inform human behavior and which will inform machine learning.

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

   • Tomorrow’s most important KPI arguments and de- bates will focus on how and what performances are truly key to the organization’s future success
   • What KPI ensembles will inspire or incite new value creation initiatives for the enterprise and its cli- ents?
     • For the serious data-driven/analytics-oriented enterprise, KPI definition, development, and deployment will command the lion’s share of leadership time and focus.

6. As companies hone their data and analytics capabilities, KPIs will become even more powerful and persuasive mechanisms for defining economic value and organizational accountabil- ity

   • Managers who remain ambivalent about data-driven analytics and algorithmic innova- tion will continue to treat KPIs more as obligations than as opportunities for learning.
   • The biggest challenge that we have today is to sift through tons of meaningless KPIs, focus on really those few, and not get carried away.