During the course of working with various organizations that have deployed performance dashboards we have discovered 4 major success factors to implementing them successfully: (1) proper sponsorship and adequate resources for the project; (2) creating the right metrics and standardizing their meaning; (3) designing a compelling user interface and the proper technical infrastructure to manage the metrics collection and analysis processes; and (4) planning ahead to ensure end-user adoption and managing organizational change.
In this blog we would like to briefly address the second factor: creating the right metrics and standardizing their meaning. Organizations should invest the time towards developing a well-rationalized, well-balanced set of leading indicators and operational metrics aligned with their strategic objectives and priorities. This step is crucial when implementing a sound performance management capability. Here are a few tips on how to start: