Thursday, 5 November 2015

How to Define the Right Metrics Using Three Steps? Part 1

Step one – Identify the Magnitude of Pain Inflicted by a Detective Performance

It is possible to identify the level of pain that is inflicted in the organization by a defective performance by using the following statements and seeing if you agree or disagree with them.
  1. One of the most valuable management processes is the planning and budgeting process.
  2. Senior management is confident in the planning and forecasting process outputs.
  3. The planning process is completed and has management approval within less than 30 days.
  4. Planning identifies the resources, investments and the tactics required to attract new customers, retain customers, attract and retain associates, come up with innovative products or services and make sure that the company is environmentally sustainable.
  5. The expected key measures of the initiatives are identified and included in the planning.
  6. The forecasts and the plans show the future expectations without the use of manipulation.
  7. Incentives are not linked to the budget or the meeting plan.
  8. The company is using technology to improve planning efficiency and performance management processes.
  9. The analysts don’t spend more than one third of their time collecting and assembling data and creating reports.
  10. Contingency plans are created that identify the risks and come up with options.
  11. A forecast can be created within 24 hours when demanded.
  12. Managers are able to get information when requested that enable them to make business decisions.
  13. Management reports contain both leading and lagging information that shows the link between financial results and the key business drivers.
  14. The cost of analytical support has been reduced by 10 per cent for each of the last three years.
  15. Analysts can analyse the impact that different decisions on future performance without the need for spreadsheets or new models.



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