Wednesday, 11 November 2015

How to Define the Right Metrics Using Three Steps? Part 5

Step Two – Isolate the Underlying Causes

Calendar Driven
Many companies are now calling themselves agile and responsive, yet these terms cannot be assigned to their performance management processes.  An organisation that has agile and responsive processes will be able to get their hands on the right information exactly when it is required so that decisions can be made in a timely manner. Unfortunately, many organisations are only available on a predetermined calendar, and this same calendar also has an impact on the forecast process.

Extended Cycle Times
Performance management is costly and it takes up a lot of time. While many organisations work hard to reduce cycle times, they have failed to apply this to their performance management process and therefore the performance management is inefficient. It is necessary to speed up processes and ensure the performance management is productive.

Poor Staff Leverage
The staff leverage ratio measures the ratio of high value work of the staff verses low value reporting activities and data manipulation. An attractive goal for businesses is to reduce costs yet ensure that value is added. This is a difficult goal to achieve. Investing in people is a best practice but it’s not cheap. Investing in people by using career development programs is a must. Providing training and investing people will help the business.  .

Automating Inefficiency
Technology investments haven’t always worked out. Promises in saving time, improving control and visibility haven’t always been met. The investments may have been made, but the companies have not implemented the technology effectively and as a result they are left feeling cheated and frustrated. The organisations needed to leverage the investments in the enterprise resource planning, online analytical processing systems and data warehousing.

Management by Spreadsheet
Most companies depend on spreadsheets as their planning and budgeting tool. Sadly, the efficiency and ability to create models does depend on the skills of the users. Spreadsheet work is also time consuming and many organisations are basically slaves to spreadsheets, keeping them updated, secure, creating backups and creating routine calculations all take up time. Organisations would benefit from adopting advanced analytical tools and r eleasing themselves from the tight grip of spreadsheets.

No comments:

Post a Comment