Everything that is measured...improves?

A common statement, however this is not just so simple. Every day we have more and more information, data, analytics,... and the technology enables a more optimized use of the information. However, it creates as well massive and sometimes non useful information. More data does not mean better control. More information does not necessarily improves the processes. So, we can say that "What is not measured, can not improve" [Peter Drucker], but ... what is measured, not necessarily improves. Let´s see why.

1. Measuring the correct indicators: many companies get lost into the data, reporting and dashboards that do not address an specific target.

So they get nice reports that do not serve to the company purposes. Then, the first obligation is to define what are the desired strategies in terms of financials, operations, people, technology, etc. and from that starting point, define what is the required data to be reviewed. Again, this data does not have to be extensive, but concrete and focus on max. 5 -10 indicators that summarize the company / area operations.

2. Consistency: the information provided need to be very well predefined, not only in terms of calculation but mainly in terms of frequency. How is this report going to be created /distributed? Daily? Weekly? Monthly?. In my opinion, there should be many different frequencies and reporting types combined, depending on....

3. the Audience and required reaction time: if we want to see the efficiency of an operational team, then we might want to review the indicators in a weekly or even a daily basis. It will be based more on the reaction time to be able to correct deviations from a specific plan.

4. Communicating to those agents that can influence on the results: information will have no value unless it serves to a purpose. What does it mean?. If those nice reports are provided with the appropiate indicators and frequency but do not reach the correct stakeholders, they will be useless., as the value of the information resides on the capacity to act, react and resolve [deviations]. So one of the key elements is to...

5. Define the appropiate Governance Committee, including the operational teams that perform the activities and those line managers that can support and influence on the optimization of the results.

These tips may help to start working on a robust reporting!