During a strategy development meeting, Paul and Lisa discussed how, in prior years, company executives had spent a lot of time developing the company’s strategy, but they had not often discussed how the company was doing in achieving its strategies during the year. At the end of this year’s strategy development meetings, Lisa suggested that they measure how well the company was doing by developing key performance indicators (KPIs) that intersected with the company’s strategy and by setting targets for the upcoming year. Paul countered that the company already had KPIs because they had a budget with financial targets. Lisa replied that, though financial KPIs are helpful, they are the end result of specific initiatives that could be measured using both financial and nonfinancial measures.
Most companies do use KPIs throughout their business to measure how well the company is performing. Fewer elevate KPIs to a strategic level and use them to track their progress against strategic objectives. There is great potential in using KPIs to cascade the strategy into a company’s performance management processes.
When you are introducing something new, people are sometimes afraid and may resist something that can be in their, and the company’s, best interest. It is important to determine what these concerns are and suggest some approaches you can use to introduce the strategic use of KPIs to your company.
Does your company have a lot of KPIs to track but somehow is missing the bigger picture? Does it seem that everything is going according to plan, but the company isn’t really making strategic progress? The Accenture Academy course Improving Success Using Key Performance Indicators (KPIs) will help you develop KPIs that track your company’s strategy and help you implement the KPIs to improve decision making. You will determine how to collect and distribute KPIs to the critical decision makers in your company and identify how to use KPIs in strategy reviews. It will help you focus on your company’s financial and nonfinancial KPIs to achieve its strategic objectives and review its progress through the year, making course corrections as necessary.
Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.