Bummer! You're not a
Stitcher Premium subscriber yet.
Learn More
Start Free Trial
$4.99/Month after free trial
HELP

Show Info

Episode Info

Episode Info: Maybe you know that "What Gets Measured Gets Done"! Or in other words if you do not have a measurement for a certain business aspect do not expect any change (to the better). As long as you do not create transparency it is very easy to hide, to ignore weaknesses and people will do so. Colleagues will focus on other things out there which are more important, which feel more painful. But in most cases not because the topics are more urgent as such but the urgency is given by reports, maybe even by linking transparency and the required improvements to incentive targets. The power of transparency So transparency is a very sharp saw. But this saw could easily become stump if it is not used in a proper way. A common mistake is to have the wrong transparency, you might put light onto a symptom but not onto the root cause. Another mistake is to jump to frequently from one area not to miss any challenge. Last but not least a transparency can be jeopardized by to many lights as you might not see the wood for the trees, you lose focus very easily. Keys performance indicators The key to transparency is a key performance indicator a KPI. But the term is spelled out too easily. Sharpen the saw by understanding the true nature of a key performance indicator, by knowing what turns a performance indicator into something which is KEY to your business. It is a lot about focus, it is a lot about business requirements and it is about discipline. The perfect KPI set We learned that transparency is a sharp saw, that creating the right transparency makes things changing, makes people taking actions. Key performance indicators is a great tool to create transparency. But is it about one single KPI or do I need several KPIs. One part of the answer is pretty simple, most likely one KPI is not good enough. Just think about strategic procurement (one of our most recent podcasts) if you just focus on price, e.g. defining one single KPI which create price development transparency, do not expect that the replenishment lead time improves, that the quality of goods improve, the only thing which will improve is the price. So this is not the right approach. But listen to perfect SCM's latest podcast and learn about the perfect KPI set, about the criteria which turn a KPI set into a perfect KPI set. Define kpi; Processes are crucial Last but not least learn about the link to processes, learn how processes facilitate the definition of key performance indicators and how key performance indicat
Read more »

Discover more stories like this.

Like Stitcher On Facebook

EMBED

Episode Options

Listen Whenever

Similar Episodes

Related Episodes